Financial Analyst Requirements

If you’re considering a career in financial analytics, you may wonder what the requirements are for this field of work. Although the skills and tools you’ll need will likely depend on the specific requirements of the job, there are some common requirements across industries in finance you’ll need to have. Read on to learn more about what it takes to become a Financial Analyst.

What is a Financial Analyst?

Financial Analysts study financial data and perform various research tasks to spot investment opportunities and analyze possible outcomes for business decisions. These professionals play an integral role in helping to create more informed investment strategies for their organization or its clients. To do so, Financial Analysts routinely perform tasks for their employer like studying current events and developments in the market, examining financial statements, and creating financial models that can anticipate future performance. They also may study macroeconomic trends or hone in on particular industries or sectors. Financial Analysts rely on their background in math, accounting, research, reporting, communication, critical thinking, and data analytics to perform these tasks.

Because of how valued they are by organizations, Financial Analysts often find employment with large corporations like insurance companies, security firms, investment banks, venture capital firms, or government agencies. They play an integral role in supporting an organization’s budgeting initiatives, as well as writing financial status reports and recommendations. Their process often involves steps such as collecting data, organizing information, performing data analysis on these numbers, providing projections or forecasts, offering recommendations, creating Excel models, presenting their findings to organizational stakeholders, and writing reports or dashboards to convey suggestions. Depending on their professional focus, Financial Analysts do extensive research on their organization’s buy-side and sell-side financial data. They often focus on either credit markets or equity markets.

Read more about what a Financial Analyst does.

Education

Although it’s not required by all employers, a bachelor’s degree is often seen as the first step to pursuing a career as a Financial Analyst. While there are many ways to develop the skill set needed to become a Financial Analyst, earning a Bachelor of Science in Accounting, Management, or Finance is a common path toward entry-level positions in this field. Some individuals also choose to study Statistics, Business Management, Economics, or Math. The training provided during undergraduate study with core skills like finance principles and investment or portfolio management will likely make it easier to perform as an Intern or Junior-Level Financial Analyst. Some undergraduate and graduate programs even offer concentrations in financial analysis. These programs provide hands-on lab instruction and internship opportunities in Business Statistics, Corporate Finance, Investment Management, Economics, Accounting, Risk Management, Professional Ethics, and Financial Reporting.

Not only will a bachelor’s degree help you get a job in finance, but it also can lead to higher pay. In 2020, those with a bachelor’s degree earned $19,000 more a year than those with an associate degree and about $27,000 more than those with a GED or high school diploma.

In addition to education, many Financial Analyst positions also seek candidates who have completed additional licenses or certifications. For example, those who wish to sell financial products typically need a Financial Industry Regulatory Authority (FINRA) license. Some organizations look specifically for Certified Public Accountants or Certified Financial Planners, both of which require certification.

Read more about if you need a degree to become a Financial Analyst.

Experience

The amount of experience needed to become a Financial Analyst will depend on the position you’re applying for, as well as the industry in which you wish to work. Most people begin gaining real-world finance training with an internship shortly after graduating from a bachelor’s program. Some individuals consider internship training to be an essential step toward becoming a Financial Analyst. It’s common for large firms to have internship programs that allow aspiring Analysts to work in different departments. This is a great way for them to see what areas they are most drawn toward, where they have the most talent, and which skills they still need to acquire to advance professionally.

In addition to internships, some people who recently graduated with a Bachelor of Science in Finance or a related field may wish to apply for entry-level Financial Analyst positions. Positions are available in a variety of specialization areas. Some graduates may choose to pursue Junior-Level positions at brokerages or banks, whereas others may wish to work for corporations or large firms. Some aspiring Financial Analysts may explore roles in pension management companies, rating agencies, or even small private companies. The U.S. Bureau of Labor Statistics notes that most Financial Analysts are employed with insurance carriers, financial investments, securities, credit intermediation, or professional, scientific, and technical services. Acquiring at least two to four years of training in internships or Junior-Level finance positions is a great way to learn the skills needed to pursue more senior job positions.

Skills

Although the specific skills you’ll need for financial analysis will likely depend on your industry focus and the requirements of your employer, some skills are common across financial industries and professions. The following are some of the most commonly sought-after hard and soft skills Financial Analysts need:

• A firm understanding of core financial principles, software, and programs.
• Time management and multitasking experience.
• A background in data analytics.
• Clear verbal and non-verbal communication skills for presenting data findings in an accessible and engaging manner. Financial Analysts also rely on effective communication techniques when talking to investors, drafting emails, and leaving phone messages. Additionally, these professionals benefit from interpersonal skills like the ability to interpret nonverbal cues at meetings, which is an asset when interacting with investors or colleagues.
• Strategic thinking and problem-solving knowledge. Those who work with financial analysis often need to solve financial questions or propose ways to deal with a company’s debt concerns. Finding creative solutions to organizational problems is a must for Financial Analysts.
• Financial reporting, forecasting, and modeling.
• Leadership training helps Financial Analysts effectively manage finance teams or departments. This can involve professional mentoring and facilitating collaboration.
• Market research experience.
• Microsoft Excel formulas, features, and functions for tasks such as data query, data management, and dashboard reporting.
• Technical skills with bookkeeping or accounting software. Financial Analysts work with programs and tools such as QuickBooks, SQL, and Hyperion.
• Variance analysis to evaluate the difference between actual and planned numbers.
• Statistics and Economics.
• Accounting skills such as a background working with budgets, cost analysis and reduction, cash flow, ledgers, and bank statements.

Portfolio

Creating a professional portfolio in finance can play an essential role in helping you to stand out from other candidates in the job application pool. A strong portfolio is an opportunity to showcase a select sample of your best work and use it to tell a story to employers about how your prior training would benefit their organization. The kind of portfolio you make will depend on the job you’re interested in pursuing. Generally speaking, a strong financial analytics portfolio will contain a range of professional and educational samples such as transcripts, your resume, proof of skills, certificates, work samples, and visual components like project overviews or details about relevant projects you’ve been involved with or managed.

Everything you choose to include in your portfolio should serve a specific purpose: telling the story of why your particular financial skill set, educational background, and work experience make you a good match for the job. Taking the time to arrange these materials in a visually engaging way that tells a larger narrative can distinguish you from other job candidates who may have similar qualifications. The goal of a financial analytics portfolio is to show employers the work you’ve done, how it has impacted an organization, the lessons you’ve learned from the experience, and the outcomes achieved as a result of your efforts.

Resume and LinkedIn Profile

When searching for a job as a Financial Analyst, having a strong resume and an up-to-date LinkedIn profile can help improve your employment prospects. Your resume should provide a brief (1–2 page) overview of your educational background, most relevant work experience, and any skills or credentials you’ve acquired. Information such as certifications, programming languages, software proficiency, and training with industry-standard applications such as Excel are also important to include. Formatting your resume in a clear and professional manner with a consistent, readable font such as Times New Roman can help audience members absorb the content more easily.

When writing about past job experience, be sure to highlight the skills most relevant to the position you’re applying for. For example, if you managed a team that helped your organization finalize its budget, or if your advanced Excel skills played an important role in the data analytics process, highlight these experiences using active resume verbs. Details such as these will likely catch the attention of employers seeking candidates for similar roles.

If you’re interested in learning how to create a resume that will get the attention of employers, Noble Desktop offers Financial Analyst resume tips.

In addition to a succinct and engaging resume, maintaining a current and professional LinkedIn profile is also crucial. Over 800 million people in more than 200 countries use LinkedIn to make professional connections, apply for jobs, and list job openings. Not only is LinkedIn a rich resource for employment-related information and connections, but it also includes LinkedIn Learning—a platform offering industry-specific training and credentials that appear on your profile.

Having a current LinkedIn profile is a great way to connect with others in financial analytics and to apply for jobs. The following are some tips to help you create an effective LinkedIn profile:

• Use a recent, high-quality profile picture in which your face is visible and you're wearing professional attire. Consider adding a background image that aligns with your industry or personal brand.
• Create a compelling headline that goes beyond your job title. Use this space to briefly convey your professional identity and value.
• Make the most of your LinkedIn summary. Use this section to tell your professional story—explain your interests, experience, and goals in a personable, engaging manner.
• Build a strong network. Connect with colleagues, classmates, instructors, and other professionals in your field. The more connections you have, the greater your visibility and access to opportunities.
• Highlight the most relevant skills for financial analytics. Prioritize clarity over quantity and reinforce your headline and summary.

For those who want to learn more about how to use LinkedIn to find a job in finance, Noble’s LinkedIn tips are a great resource that can help you get started.

References

On your financial analytics resume, you may wish to include a section listing two or three professional references. When deciding whom to include, select individuals who can speak specifically and positively about your work ethic, skills, and experience. Although these individuals don’t need to be Financial Analysts themselves, it’s helpful if they have a background in finance, which can help contextualize their endorsement of your capabilities. Strong reference options may include supervisors, colleagues, former professors, or mentors who can discuss your performance and impact in a professional or academic setting.

Learn the Skills to Become a Financial Analyst at Noble Desktop

Noble Desktop, an educational provider located in New York City, offers a range of classes devoted to financial modeling and analysis. The Financial Modeling Bootcamp is a hands-on, 18-hour course that teaches students fundamental financial concepts such as corporate valuation, accounting, and finance. Participants in this small class create their own discounted cash flow using Microsoft Excel. Over three days, expert instructors help students develop a comprehensive financial model for a real company. As a prerequisite to this bootcamp, students should have intermediate Excel proficiency.

Noble also offers a Financial Analyst Training Program that provides in-depth instruction on core corporate and financial concepts, including how to build a full valuation model. Enrolled students learn essential Excel techniques such as using shortcuts and PivotTables, and explore advanced features such as Goal Seek and cash flow projection tools. This 30-hour intensive also includes instruction on creating a three-statement financial model for a publicly traded company in the restaurant industry.

In addition to the Financial Modeling Bootcamp and Financial Analyst Training Program, Noble Desktop provides a variety of in-person and live online financial modeling courses. The Excel Bootcamp offers 18 hours of training in core Excel skills such as VLOOKUP, INDEX, MATCH, and What-If Analysis. FinTech programs are also available such as Algorithmic Trading with Python, Python for Data Science Bootcamp, and the FinTech Bootcamp. These courses provide students with hands-on training from expert instructors in FinTech topics such as working with Python and SQL for data analysis, creating machine learning models, and managing different data types such as integers, floats, and strings. All students have the option of a free course retake for up to one year, as well as one-on-one mentoring sessions.

Key Takeaways

• The path to becoming a Financial Analyst generally begins with undergraduate study. Although not all employers require Financial Analysts to have a bachelor’s degree, most organizations will expect this as a minimum qualification.
• If you want to secure a position as a Financial Analyst, it’s important to have an up-to-date resume, a professional LinkedIn profile, relevant references, a strong portfolio, and training in Finance, Accounting, Business, or a related field.
• Real-world training is another important component of becoming a Financial Analyst. Those who have recently graduated may consider applying for an internship or an entry-level position at a bank, investment firm, or financial services company.
• You can receive comprehensive training to become a Financial Analyst through in-person or live online courses with Noble Desktop.