How to Become a Financial Analyst? Check Out the Steps & Skills

Suppose you are interested in analyzing data trends and the performance of the current stock market to help encourage people to invest the right amount of money to grow. In that case, a career in financial analysis is preferred for you, and you can even start by joining finance certification courses.

This blog will explain the steps and skills to assist you in starting your journey as a financial analyst.

Who Are Financial Analysts?

Financial analysts are financial advisors who interpret financial information and perform analyses to help businesses and organizations to make decisions on investments according to their reports. The investments can be made in different areas such as real estate, stocks, bonds, business operations, franchise performance, etc.

Financial analysts combine multiple data sets in their research to make predictions about the market. For example, a financial analyst at an investment firm may combine economic variables like the unemployment rate and a company’s growth potential to make predictions about buying or selling company stock.

Financial Analyst- Job Description

The following primary duties are typically listed in financial analyst job descriptions, whether sell-side or buy-side:

  • Investigate financial developments that are relevant to your industry and general business and economic trends.
  • To assess investment prospects, analyze financial statements.
  • For investors to locate profitable assets, create financial modeling.
  • Encourage people to make individual and group investments.
  • Analyze the performance of bonds, alternative investment options, and equities.
  • Create clear presentations and simple financial reports using financial data.
  • Consult with the top executives of the customer companies to comprehend their requirements.
  • Keep abreast with new technological developments and market trends.

The terms ‘insights’ and ‘due diligence,’ which convey the degree of responsibility involved in this position, as well as ‘model’ and ‘report,’ which convey the level of analytical skill and the client-facing responsibilities associated with this area of work, are frequently used in job descriptions for financial analysts. It’s significant to remember that this position also requires strong interpersonal abilities.

Required Skills to Become a Financial Analyst

A focus on developing financial analyst skills is critical whether you are a student pursuing a career as a financial analyst or a junior analyst seeking advancement. The skills required to become a data analyst are broad and depend on the industry in which you are employed. The skills also differ according to the job role that you are playing in your respected company.

Whether you are pursuing education as a student who wants to deploy skills for a future career as a financial analyst or you are a junior analyst. 

Some of the common skills needed to become a financial analyst are mentioned here:-

  • Analysis skills
  • Communication skills
  • Financial modeling skills
  • Knowledge of enterprise resource planning software like SAP
  • Multitasking skills
  • Understanding financial law like the Sarbanes-Oxley Act

Steps to Become a Financial Analyst 

Financial analysts are considered natural planners. They believe in evaluating and comparing facts more than making judgments and decisions based on their learnings. They make plot graphs and charts to compare the merits of different choices while making purchases. If you want to pursue a career in financial analysis, these qualities will make you an excellent candidate. However, there are other steps to take along the way.

  1. Complete Bachelor’s Degree

Completing a bachelor’s degree in the relevant field is the first and most crucial step to becoming a professional financial analyst. General courses in economics, statistics, and other related fields can be relevant to financial analysis. 

  1. Attain License and Certificate

Many students start their career working in accounting, investment, or banking firms after completing their bachelor’s degree in financial fields. However, working at the initial level does not require being licensed; many professionals apply for license and designation after gaining some field experience.

Companies selling financial products must comply with specific regulations to protect consumers from fraud or unfair practices. License is required for financial analysts who are involved in the sale of financial goods. Entities that fall under the jurisdiction of the Financial Industry Regulatory Authority (FINRA) must register and abide by its rules. These stipulate that FINRA licensing of financial analysts is required. Therefore, many employers favor financial analysts who already hold a FINRA license.

  1. Build Experience

Yes, the proper education and licensing are crucial for becoming a successful financial analyst. Still, beyond these steps, future financial analysts must have work experience in the financial industry to get promoted to the same post.

Candidates with hands-on experience in finance, economics, accounting, or other related fields might have significant advantages over other job seekers.

  1. Join a Certification Course

Being a working professional or even at the initial stage of learning relevant skills related to financial analyses, an individual needs to be updated about the market trends. 

Finance certification courses help equip people with the market trends and develop the relevant skills accordingly. The course helps you gain relevant skills to analyze financial data & understand the core principles of finance. You can develop industry-relevant knowledge and become a Certified Financial Analyst.

Start Your Journey to Become Financial Analyst 

So, the above-stated steps you may follow to start your career as a Financial Analyst. Suppose you are looking for online financial technology courses to upgrade your skills and knowledge in the field of finance. In that case, Hero Vired is one of the best online institutes providing industry-oriented courses, including a Certificate Program in Financial Analysis, Valuation & Risk Management. The program provides a comprehensive knowledge of finance and helps you become a professional data analyst.