In the highly competitive realm of finance, an increasing number of university students are opting to challenge themselves by taking the Chartered Financial Analyst (CFA) exams even before completing their studies. These comprehensive examinations, comprising three rigorous tests, are being pursued by students to redirect their career paths and bolster their credentials.
Recent data from the Chartered Financial Analyst Institute reveals a steady rise in the number of university students registering for the CFA exams. The impetus behind this trend is the aspiration to gain a competitive advantage in securing internships and job opportunities in the finance industry. The CFA designation is held in high regard and is considered a prerequisite for certain roles in banking or private equity, contributing to the increasing number of students taking on this formidable challenge.
Rob Langrick, the chief product advocate at the CFA Institute, disclosed that approximately one in five individuals embarking on the CFA process are students. Furthermore, there has been a noticeable decrease in the average age of candidates, dropping from 24 to around 23, as more undergraduates enrol in the programme.
The decision to pursue the CFA exams while still in university is influenced by the belief that doing so, while being accustomed to a study routine and without the burden of a full-time job, can be advantageous. Additionally, for students from lesser-known academic institutions, obtaining the CFA designation can significantly distinguish them to potential employers.
However, while the increase in university students undertaking the CFA exams is on the rise, the overall numbers of individuals taking these exams have declined since 2020. This decline is attributed to pandemic-related cancellations and deferrals, leading to a significant decrease in the registration numbers.
While the CFA designation may hold great significance for roles such as portfolio managers and securities analysts, its relevance to other finance careers, such as investment banking or sales and trading, is a subject of debate. Some students and professionals believe that having prior experience in related roles might be more valued by employers in these specific areas of finance.
Eric Wye, a recent graduate from the National University of Singapore, shared his experience of preparing for the CFA Level I and II exams while pursuing his economics degree. Despite not feeling a direct advantage in securing finance internships, he recognized the value of the certification for other finance roles. However, Wye’s sentiments were echoed by another student preparing for the Level I exam, who expressed that while the CFA might be important for those outside the finance field looking to break in, it may not be as necessary for students already majoring in finance.
In conclusion, the decision to pursue the CFA exams before graduating is a matter of personal choice and career goals. While it may significantly benefit individuals aiming for certain finance careers, its relevance to other areas within the industry is a point of contention. As the finance job market continues to evolve, the value of the CFA designation and the decision to undertake the exams as a university student is a debate that will continue to be discussed.
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