Which certificates do bank clerks go after?
An employee at the global market sales department of the Korea Exchange Bank’s headquarters in Seoul stares at the monitor in this Oct. 24, 2012 photo. / Korea Times
By Kim Da-ye
Miss. Kim, the heroine of “Queen of Office,” a popular Korean TV drama series based on a Japanese soap opera, has a gamut of certificates including one for a midwife and another for fortune telling.
That mirrors the Korean office life in which employees have to study and obtain as many certificates as possible in order to get hired and promoted.
There is a particularly strong need for various certificates in the banking industry. Banks increasingly deal with diverse financial products, and tellers must have a certificate that matches the product they sell under regulations revised in 2009. Here is a list of certificates tellers and senior managers at banks study for.
Certified Financial Planner
Certified Financial Planner (CFP) is considered the top-notch certification that bank clerks, especially those in private banking, can obtain. The certificate originates from the U.S., and one can now obtain it in more than 20 countries across the world. In Korea, the Financial Planning Standards Board Korea administers the certification process. Last year, 1,300 candidates took the CFP examination in Korea.
In order to become a certified financial planner, candidates have to go through four stages — finishing the coursework, taking a 10-hour-long exam, gaining experience and agreeing with the ethics standards.
The coursework covers various areas of personal financial planning including income tax, retirement and insurance. Once completing the coursework requirement, candidates can take the exam that consists of 285 multiple choice questions. The three-session exam takes over two days.
Passing the exam alone isn’t enough. Three years experience in financial planning — or 2,000 working hours for part-timers — is required, and candidates must acquire it in five years from the date of examination.
In the final stage, candidates go through background checks and pledge to adhere to the CFP Board’s code of ethics.
The CFP certificate is renewed every two years, and the holders have to pay a bi-annual membership fee of 200,000 won.
It costs around 2 million won to obtain the certificate. This includes the education costs and examination fees.
Associate Financial Planner Korea
Associate Financial Planner Korea (AFPK) is the Korean counterpart to CFP, which many bank clerks obtain. AFPK is also required to get a CFP certification.
Last year, nearly 9,800 candidates took the AFPK exam. In order to take the test, one has to study the curriculum at the designated cram schools including One Edu Plus and Credue. Many universities nowadays offer the course as part of their finance-related degree program. Candidates can also study the curriculum online.
After passing the exam that consists of 200 multiple choice questions, candidates will have to agree to the AFPK code of ethics.
Financial Planner
The Financial Planner certification administered by Korea Banking Institute is considered a step before obtaining AFPK. Candidates have to prove in the exam that they can draw a life plan for their clients by evaluating their income, expenditure, assets and debts. More than 5,000 people take the exam each year, and about a quarter of them pass it.
Certified Fund/Securities/Derivatives Investment Advisor
These three different kinds of certifications administered by the Korea Financial Investment Association — dubbed the “finance three kinds” — are considered the most basic requirements in finding a job in the financial industry that encompasses securities firms.
Many tellers at banks have certificates for funds and securities because they need them to sell related products. The certificate for derivatives investment advisors isn’t necessary for bank clerks because banks aren’t allowed to sell derivatives.
Life insurance/nonlife insurance authorized agents
According to the financial regulator, banks accounted for 79 percent of life insurance products sold between April and June last year.
One can become an authorized agent who arrange and calculate insurance plans by gaining enough experiences or passing an exam, so the latter is popular among tellers.
The exam administered by Korea Insurance Institute consists of 126 multiple choice questions, and is known to be easier to study for than funds, securities and derivatives investment advisor certificates.