A crucial factor in success in anything related to finance is the ability to read and interpret numbers accurately. Anyone who is working in the financial industry has to regularly deal with large volumes of data which have to be presented and used in a meaningful way for arriving at crucial business decisions. Any financial decisions like building for a project, arrange for project finance, study the capital structure of an entity, do the valuation of an acquisition target, odd even do the financial planning every month, a large number of data points have to be understood and used.
For all of these, a financial model is prepared to present the relevant data and numbers in a clear perspective. Financial Modeling is used by every major financial entity regularly so that predictions can be made accurately and easily by the management without having to go through the large chunks of data. It is a tool that can be used to forecast the future financial performance of a company based on its historical data.
Financial Modeling Certificate Holders
A Financial Modeling certificate holder is a person who has already done a course on Financial Modeling and is capable of preparing financial models accurately. The major areas where the Financial Modeling experts get to work are:
IPO and FPO analysis
Mergers & acquisitions
They are considered to be proficient in:
- Estimating how the business will react to different market conditions and financial situations.
- Determining whether the organization needs additional debt or equity funding or not.
- Analysis of comparative investment options and predict which one will yield the best returns.
- Risk analysis and management.
- Scenario analysis to determine the sensitivity of the business to loss of customers and business opportunities.
- Aiding in the decision-making process to help in the creation of strategic and tactical plans for driving the business.
- Perform analysis and valuation of companies for Merger And Acquisitions, Initial Public Offering (IPO) And Follow-On Public Offerings (FPO).
Students can pursue a Financial Modeling course and get themselves certified. This will give them access to a wide range of career opportunities. They must be experts in the theory as well as practical application of Financial Modeling in order to get an exciting and highly rewarding career in this industry.
Companies Looking For Financial Modeling Holders
In India, there is a serious shortage of qualified professionals who can do Financial Modeling accurately. Since every financial company needs many of them, there is a steadily growing demand for the Financial Modeling certificate holders.
Most of the financial companies would need financial modeling certified professionals. The main demand comes from:
- Equity research companies
- Credit rating agencies
- Investment banks
- Mutual fund companies
- Project finance companies
In India, Citibank, Ernst And Young, JP Morgan Chase, HSBC, CRISIL, McKinsey And Co, Accenture, and KPMG are some of the companies which regularly recruit freshers as well as experienced Financial Modeling certified professionals. They look for people with the necessary Financial Modeling knowledge and educational background. Anybody who has done their Financial Modeling course from a reputed education provider and is confident about the concepts and their applications can expect to get good interview opportunities from the companies which actively look for Financial Modeling professionals.
The designations offered to Financial Modeling professionals include:
- Equity Research Analyst
- Equity Research Associate
- Financial Analyst
- Senior Financial Analyst
- Business Analyst
- Market Research Analyst
- Associate Analyst
- Research Analyst
- Assistant Finance Manager
- Finance Manager
- Senior Finance Manager
- Associate Vice President – Finance
As per payscale.com, the median salaries of Financial Modeling professionals in India range from Rs. 4 lacs to Rs. 16 lacs. The designation wise salaries are:
|Equity research associate||Rs. 4,37,556|
|Financial analyst||Rs. 5,09,618|
|Research analyst||Rs. 5,89,581|
|Assistant finance manager||Rs. 7,66,497|
|Senior financial analyst||Rs. 7,77,235|
|Finance manager||Rs. 10,54,756|
|Senior finance manager||Rs. 15,54,631|