what is a finance analyst?
A finance analyst advises individuals and businesses. You analyse various markets, companies and business trends to give your clients the information they need to apply the best strategies for continued financial growth. You also keep up to date with the latest relevant financial information and business news.
You work in various industries as a finance analyst. Some large businesses have internal finance analysts to monitor their investment strategies. The most common setting for this role is financial institutions, such as banks. The role is largely unaffected by its industry, meaning you can move from industry to industry without needing special expertise beyond your financial analytical skills.
As a finance analyst, you are confident in your ability to draw sound conclusions from the data available. You create financial models that can be used for forecasting using a variety of statistical software solutions. You also have the skills necessary to present these findings to your client in the most appropriate form. This may involve a simple phone call or a full meeting with a presentation element.
If the analytical demands of this job sound like something you would enjoy, keep reading to find out what competencies and qualifications help you succeed in this profession.finance analyst roles
average salary of a finance analyst
Financial analysts in India take home an average salary of around ₹434,234 per year. AT the lower end of the overall pay range, the salary is closer to ₹220,000 per year. Conversely, India's most experienced and successful finance analysts can earn ₹10,00,000 per year.
factors that affect finance analyst's pay
Your qualifications are the most significant factor affecting your salary when you first enter the job market. Finance analysts with a higher education level tend to start with a better salary. Once you have gained experience and have demonstrable results to show an employer, your experience takes precedence. The highest earners have many years of experience and their analyses have yielded positive results over time. Another factor affecting your salary is where you work. Some regions generally pay more, but salaries are higher in cities than in rural areas. The private sector tends to pay finance analysts more than the public sector.
types of finance analyst
There are several different types of finance analysts, though the differences are more to do with the type of analysis provided than the industry. Some of the most common types of analysts are:
- equity research analyst: in this role, you oversee investment portfolios for the people or organisations to whom you provide the service. You help them decide which securities to hold and which to sell.
- corporate development analyst: you work to optimise business processes to increase income from the various operations that make up the business. This involves assessing expenses and operations and developing better strategies.
- investment banking analyst: you help organisations to meet their financial goals by looking for good investment opportunities. You also provide valuable insight into existing investments, creating economic models and completing evaluations to determine their performance.
- treasury analyst: in this role, you manage the finances of various government agencies or public organisations, such as charities. You oversee investments, cash flow and assets and advise on ways to improve financial outcomes.
working as a finance analyst
A finance analyst is responsible for analysing various data points and industry information and using that data to create economic models and forecasts. Some of the more specific duties are listed below.
duties and responsibilities
The specific duties of a finance analyst include:
- analysing financial results: one of the most important aspects of your role is the analysis of financial data. You identify trends and compare performances with other companies in the same industry. The results of these processes are used to improve income from investments.
- forecasting: a key aspect of your work is the forecasting and projections you produce from your analysis. These forecasts are essentially your "product" and what your employer will likely judge your performance on.
- organising information: before you carry out your analysis and develop your projections, you gather the necessary data. Part of your role involves gathering information from various sources, such as historical financial reports, stock price information, accounting, etc. You organise this information into a format that is understandable and consistent.
- risk analysis: not all financial strategies originate with you. When an organisation is considering a particular strategy, you analyse the risk involved so the organisation can make an informed decision about whether to go ahead (or continue) that strategy.
You work almost exclusively in an office-based setting within a financial institution such as a bank or insurance company. This will mean many hours sitting at a desk working with a computer.
who are your colleagues?
You work in a financial setting, and most of your colleagues will also be from this background. Depending on your specific organisation, you may work with accountants, mortgage brokers, and other financial personnel. You may also work closely with other specialists in related fields, such as portfolio managers and data analysts.
Working as a finance analyst is, for the most part, quite a stable routine. You most likely work a full-time schedule of 40 hours per week during regular business hours, although meeting clients outside of those hours may sometimes be necessary. It is possible to find part-time opportunities, but most positions are full-time.
The job outlook for a finance analyst is positive. There is a lot of room for growth within the role itself, as illustrated by the wide range of salaries available in this profession. You also have the potential to move into a self-employed situation. It may be possible for finance analysts with a strong track record and plenty of experience and expertise to start a consultancy firm with much higher earning potential.
advantages of finding a finance analyst job through randstad
Finding your finance analyst job through Randstad provides important advantages such as:
- a wide variety of training and development opportunities
- an experienced contact person to provide help if needed
- a range of opportunities in your area
- get paid on a monthly basis
- temporary and permanent contracts
Want a permanent contract? A temporary job as a finance analyst is often a stepping stone to an attractive permanent job. Every year, thousands of people earn a permanent contract with great employers thanks to a temporary job found through Randstad. What's more, many companies recruit their permanent employees through Randstad too!
education and skills
When moving into a career as a finance analyst, it is necessary to have the following qualifications:
- degree: a bachelor's degree in a relevant subject, such as accounting, economics, finance, statistics or mathematics. You can also pursue a bachelor's of commerce in finance.
- postgraduate study: it is possible to enter this profession with a master's degree in finance.
- chartered status: your ultimate goal is to become a chartered finance analyst. Following your bachelor's degree and work experience, you can take the chartered financial analyst exam.
skills and competencies
Some of the qualities of a successful finance analyst include:
- attention to detail: you are detail-oriented in your role, which helps you identify market trends. Your role involves a lot of data analysis, and being detail-oriented will ensure you don't miss things that could have impacted your forecasts or advice.
- strong mathematics skills: as one would expect from a role in finance analysis, strong maths skills are important. You handle complex calculations and large data sets to construct the financial models you work with.
- research skills: the quality of your analysis is only limited by the quality of your research when gathering data. You are adept at mining information from various sources, from internal company records to wider economic records.
- communication skills: a key element of your role is the communication of your findings to your clients or superiors. You put your findings into a format that people who are not financial experts can understand.
FAQs about working as a finance analyst
FAQs about working as a finance analyst:
what does a finance analyst do?
Finance analysts are responsible for researching various financial systems, such as internal company accounts or larger economic trends, and then using that information to inform investment strategies.
do financial analysts make good money?
In India, the pay for finance analysts covers quite a wide range. At the lower end of the pay scale, entry-level analysts can earn around ₹220,000 per year, while the highest earners in the profession can make as much as ₹10,00,000 per year.
who can I work for as a financial analyst?
Finance analysts can work for a wide range of organisations in a variety of industries. However, the most common employers for this role are financial institutions like banks and insurance companies.
do financial analysts work from home?
While most finance analysts work in an office setting, remote working is becoming more common in this profession. It is entirely down to your employer whether this is an option for you.
how do I apply for a finance analyst vacancy?
Applying for a finance analyst job is easy: create a Randstad profile and search our job offers for vacancies in your area. Then simply send us your CV and cover letter. Need help with your application? Check out all our job search tips here!