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.

finance analyst roles
finance analyst roles

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.


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:

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