Investment Banking Vs Chartered Accountancy – The More Rewarding Choice
When it comes to careers in the finance domain, there are multiple options popular among young professionals or more experienced ones looking for challenging assignments and good salaries. Two of the more popular options among job roles in this field are: chartered accountant (CA) and investment banker.
A common dilemma, then, is the choice between a career in investment banking or in chartered accountancy. An investment banker works as an intermediary between a company looking to raise funds by issuing securities or bonds and investors (individual or institutions) who can provide such money. As an advisor in capital markets, he or she also provides financial advisory services and helps in activities related to mergers and acquisitions (M&A).
What skills are required for both domains?
Top skills required to be successful in investment banking are:
- Competence with analytics
- Discipline: to handle long hours and the need for diligence and managing high-pressure situations
- Creativity and innovation: to provide effective solutions and appreciate and understand diverse cultures
- Fluency in more than one language (desirable, not compulsory)
- A knack for building relationships to be able to deal with difficult people in situations thatare extreme
A chartered accountant works in different sectors of an economy. He or she manages the finances of a company, providing advice on financial matters and helping to manage money. Other services include auditing, forensic accounting, business recovery and insolvency, and more. Useful skills for a chartered accountant include the following:
- Awareness of and interest in general business matters
- Commitment and self-motivation
- Communication and interpersonal skills
- A methodical, well-organized approach
- Leadership and teamwork
How is the work environment for both options?
A chartered accountant faces more stringent academic requirements than someone in investment banking. He or she must audit bank statements of a client, along with offering other advice and making process improvements when it comes to financial matters at the client end. There are multiple levels of very tough exams – with low qualification rates – to clear before becoming a CA. Salaries are good once the person meets the qualification requirements of a recruitment team, and jobs are relatively more stable.
For an investment banker on the other hand, there are no fixed academic requirements. Useful qualifications include a master’s in business administration or in business management, or a degree in finance, and an investment banking certification adds some very useful skills. Salaries are exceptionally high but so is the workload, with 80-hour work weeks with 7 am-to-11 pm work days not uncommon. Work is very high pressure, and job security is quite low given that it is results and success in deals that matter.
Which field is financially more rewarding?
Investment banking certainly leads the way here, with average salaries at USD 96,000 per year going up to a high of USD 140,000 per year. In India, the average base salary for an investment is about INR 11.9 lakhs per annum, with the total average compensation going up to INR 12.2 lakhs per annum.
As against this, for a chartered accountant in India, the average base salary as per LinkedIn is about 6 lakhs per annum, with the total average compensation going up to INR 6.25 lakhs per annum. In the US, annual salaries range from USD 48,800 to USD 136,000, with the average being USD 90,400 per year.
How does one choose?
There are pluses and minuses to both choices, and a focus on own skills and qualifications is a useful way to decide. The CA course is tough and requires hard work and an aptitude for numbers and analytics. On the other hand, for a career in investment banking, a bachelor’s degree along with an interest in deal management and structuring and good abilities to network are useful attributes.
Is certification useful for a career as an investment banker?
An investment banking certification provides a candidate with the latest skills and knowhow needed for a career in the field. It shows the person is serious about a career and is also interested in ongoing learning.
