[1mm Financial Talk] Bank Clerks Taking Certifications and PT Interviews... IB Boom in Banking Sector

Young Bankers Seeking Financial Expertise Take the Lead
Gaining Experience in M&A 'Big Deals' Along with Monetary Rewards and Prestige

# A bank clerk in his 20s who has been working in the corporate sales department of a major commercial bank for three years set a goal to work in the Investment Banking (IB) department. After studying diligently, even purchasing a regular pass for a study cafe after work, he obtained the Certified Investment Asset Manager license last month. He plans to participate in the in-house IB training program soon. This fall’s regular personnel reshuffle at the bank saw a surge of applicants hoping to join the IB department. It was so popular that candidates had to pass document screening and presentation interviews.

These days, the preference for IB roles is increasing among bank employees. IB is a role that brokers large-scale transactions such as mergers and acquisitions (M&A) between companies or real estate development.

Desiring IB Work... Studying Hard to Build Credentials

As internal competition intensifies, there is a growing enthusiasm for building credentials related to IB roles. A bank employee working at a commercial bank said, "It is not uncommon to see colleagues preparing for advanced financial certifications such as Chartered Financial Analyst, Certified Investment Asset Manager, and Credit Analyst," adding, "Participation rates in IB-related training and education programs operated internally or outsourced by banks are also high." Many banks including KB Kookmin, Shinhan, and Daegu Bank give preference to candidates holding certifications like Certified Public Accountant or Chartered Financial Analyst, or those who have completed training programs when recruiting IB department staff.

The IB craze in the banking sector is led by young bankers seeking to develop their financial careers. Unlike retail banking, which sells loan and card products to individuals and corporations at branches, IB involves managing much larger sums of money. Experience gained here is highly valued for career advancement. In addition to monetary rewards such as individual incentives based on performance, it can increase one’s market value in the IB sector. It is also common for professionals to secure networks and build expertise in bank IB before moving to asset management firms.

Another Strength: IB Is Difficult to Replace with Digital

Interest in IB within the banking sector began in the late 2010s. Banks, which were unable to increase interest income in a low-interest-rate environment, started turning to alternative investments like M&A after observing successful large-scale deals at the time. They also referred to the business models of world-renowned IB firms such as Goldman Sachs and JP Morgan. A banking industry insider with IB experience explained, “As financial holding companies felt the need to expand their business from traditional revenue sources like interest income to non-interest income areas, IB work became more important.”

While retail banking tasks are rapidly digitalizing, IB remains a ‘person-to-person’ domain, which is also an advantage. Another banking industry insider said, “While retail staff are gradually decreasing, corporate finance is a field that cannot be handled solely by systems and often proceeds through communication and judgment between people, so the workforce in this area is steadily increasing.”