If you are considering a career in the business sector that gives you the flexibility to work in almost any industry, you can choose to become a financial analyst. As a financial analyst, you can help businesses plan and prepare for the future, maintain compliance with laws and regulations, and determine the efficacy of advertising campaigns, to name just a few possibilities. In this article, we’ll learn in detail what a financial analyst does, how to become one, and what kind of salary you can expect.
What are the responsibilities of a financial analyst?
Financial analysts usually use objective data to help businesses make strategic decisions. Usually, but not always, these decisions revolve around investments. Financial analysts consider economic conditions, business specifics, and other data to make recommendations to management teams at all levels of an organization. These are some of the responsibilities that a financial analyst needs to perform:
- Travel to different places to attend conferences and seminars
- Review financial statements to determine business value
- Provide recommendations on investment portfolios or individual investments within a portfolio
- Utilize the latest information, business and economic trends, and historical data to make financial forecasts
- Take part in regular meetings with management teams
- Use complex spreadsheets, statistical packages, database programs, and other software programs to develop professional reports and presentation
Average salary of a financial analyst
According to Glassdoor, the national median salary for a financial analyst in India is around ₹5,00,000 per year, with salaries ranging from ₹2,37,300 to ₹12,50,600 per year, as of June 2020. Also, location, experience, and industry influence are some significant factors determining how much a financial analyst can earn. The highest salaries in India are found at investment firms in the financial capital Mumbai, where even the starting salary can exceed ₹5,00,000 a year. However, in other sectors, such as insurance and banking, median entry-level salaries exceed the median Indian household income.
Who Can Become a Financial Analyst?
To meet the expectations of a financial analyst job, in addition to having the necessary mathematical knowledge to carry out their functions, these professionals must have these specific qualities:
- They must possess an analytical and detail-oriented mindset, which can help them solve complex problems and make strategic decisions.
- They must be organized and demonstrate adequate time and resource management skills.
- They must have adequate mathematical and financial knowledge because it helps develop their work activity, such as forecasting risks and trends, managing financial analysis programs, etc.
How to Become a Financial Analyst
Here are some of the steps that can help you become a financial analyst:
- Continue education
- Enroll in fintech certification courses
- Obtain necessary licenses and certifications
- Choose a field of specialization
- stay up-to-date
- Continue Education
Educational requirements for financial analysts are somewhat flexible. Unlike other sectors, you do not need to complete a specific degree program or have a specialized analyst degree to enter this field.
Albeit, there is no single educational path to becoming a financial analyst, most businesses require a bachelor’s degree in economics, finance, or a similar field. Engineering and mathematics are also in high demand in specific sectors. Businesses are constantly searching for graduates with a broad understanding of the business world, with solid fundamentals in accounting, economics, and investing.
A lot of financial analysts choose to pursue fintech certification courses or an MBA. A better position with greater responsibility usually requires this advanced level of training.
- Obtain the Necessary Certifications & Licenses
Different certificates related to the fintech industry can boost your resume and help demonstrate your qualifications to potential employers. Although you can earn one by enrolling in fintech certification courses, whether or not you need to obtain them depends on your duties and your employer.
Different certificates related to the fintech industry can boost your resume and help demonstrate your qualifications to potential employers. Although you can earn one by enrolling in fintech certification courses, whether or not you need to obtain them depends on your duties and your employer. However, certifications must not stop you from applying for an analyst position since most businesses don’t expect entry-level candidates to come to the job having already obtained certifications and licenses.
- Choose a Field of Specialization
People working as financial analysts usually advance their careers by becoming experts in specific industries. For instance, risk analysts focus on helping businesses assess the probability of gains and losses on investments. Some financial analysts also specialize in a particular segment of the business world, such as foreign exchange or energy. Other people working in the fintech industry may focus on particular geographic regions, such as the UK or Eastern Europe. As you work in the fintech sector, you will learn more about the specialization possibilities and use that knowledge to choose the area that appeals to you.
- Stay Up to Date by Reading Industry News
Most financial analysts have a series of essential documents and online publications that they follow in detail. The business world is constantly evolving, so people working in the fintech industry need to operate with the most updated information to direct trends, risks, and opportunities. The Economist and Wall Street Journal are two popular publications among financial analysts.
Comprehensive analysis of the market and investments can help an analyst promote the business’s future and maximize its benefits in the short, medium, and long term. This is why the figure of a financial advisor is in high demand among businesses in any sector. If you want to become an expert in the fintech industry and land a job as a financial analyst, enroll in HeroVired fintech certification courses, which will help you gain the necessary knowledge to become an industry expert.