Financial service analysts are in high demand as they are increasingly critical to the financial success of businesses and individuals alike. Using a financial analyst can increase the odds that a business or individual will make the best financial decisions for their unique situations.
What does a financial analyst do?
A financial analyst uses a variety of tools and skills to help people and businesses achieve financial success. These skills include:
Research
An extensive amount of research is often needed to get the full picture so a financial choice can be made. For example, a company may be considering acquiring a new brand or investing some of their money in a start-up company. A financial analyst would research the potential investment’s assets, reputation and what the future market in their niche is likely to look like in the years to come.
Planning
More people and businesses than ever before are realizing that having a short- and long-term financial plan in place can be helpful and ensure greater wealth for the future. A financial analyst can consider a client’s current financial situation, including their assets and liabilities, to create a strategy that is realistic and likely to offer the most rewards. Plans are often created for retirement, paying for education and growing wealth so there is more to pass on to future generations.
Forecasting
Analysts use current data and trends in conjunction with computer forecasting programs to make predictions about future financial markets and trends. This is very useful as it can reduce the odds of investing in stagnant areas or investing for the wrong time period. Some investments are more likely to pay off in the long or short term and these timelines do not always work for every situation.
How to become a financial analyst
A bachelor’s degree in finance or a related field is standard for most positions. While Master’s degrees are available, they are only necessary if analysts wish to move up to higher level positions in their field. Many analysts study for their Master’s while earning an income and gaining experience.
A financial analyst license is required. The Financial Industry Regulatory Authority (FINRA) offers exams and certifications. To sit for the exams, an employer usually sponsors the candidate. The Securities Industry Essentials exam and Series 7 exams are often required. These exams and certifications help ensure that analysts have the skills and knowledge to be trusted with handling the financial affairs of clients.
Passing a background check and fingerprinting are standard practice for anyone entering a financial planning position at any level.
Experience in different financial sectors can help prepare analysts
There are many different areas and sides of finance. It is important that analysts gain experience in all areas. An internship can help future financial analysts gain the experience they need to land their dream position and make the best and most well-rounded financial choices for their clients.
Working in different departments helps analysts gain the experience they need to take on leadership roles within companies and help guide them into the future. An analyst might work in accounting, forecasting, investments, business development and a variety of other areas of finance at a company.
BNY Mellon Student Programs is a great example of a company that offers internships and analyst programs to students. The Bank of New York Mellon Corporation recruits talented future analysts and offers them experience and job opportunities. The analyst program is a 24-month program that offers rotational and non-rotational experience.
What skills are required for a financial analyst?
An analyst must have excellent critical and analytical thinking skills. Exceptional attention to the smallest details and the ability to be a great listener are essential.
A good knowledge of math and statistics as well as computer science skills are needed for understanding facts, figures and using analytical and forecasting software.
Great organizational skills and the determination to see a job through to the end as well as working on a tight deadline are all requirements for working at any company.
Conclusion
Financial analysts will continue to be in demand. If you are currently earning your degree or a recent graduate, now is a great time to consider internship programs that can you help you gain the skills needed to get the position you want after completing your education.
Gaining valuable experience in many sectors also helps you determine which specific role you like the most as a financial analyst so you can hone your skills and become exceptional in the area you choose.
