Interested in a career as a Financial Analyst? Here's what you need to know about the educational paths that can lead you there, including popular degrees, tips for entering the field without a degree, and key skills required in the job.
Key Insights
- A Bachelor's degree in math, statistics, economics, accounting or a related field is typically the minimum requirement for becoming a Financial Analyst. However, higher roles such as Senior Financial Analyst may require a Master’s degree in finance or an MBA.
- A Financial Analyst's role involves studying financial data, creating financial models, studying market trends, and making informed investment strategies. They are commonly employed by large corporations like insurance companies, security firms, and investment banks.
- While a degree is often preferred, entry-level finance positions may also be available to individuals with a high school diploma or equivalent. Work experience, networking, and self-study can contribute significantly to one's career in financial analytics.
- Common degrees for Financial Analysts include Finance, Accounting, Economics, Math, Statistics, and a Master of Business Administration (MBA).
- Additional certifications like a Financial Industry Regulatory Authority (FINRA) license, Certified Public Accountant, or Certified Financial Planner can be beneficial for those pursuing a career in financial analysis.
- Noble Desktop offers a range of courses in financial modeling and analysis, providing practical experience and expert instruction on key concepts and techniques.
Although there are no formal requirements to pursue a career in financial analytics, most employers seek out candidates who have a bachelor’s degree as a minimum. Aspiring Financial Analysts sometimes choose to study math, statistics, economics, accounting, or a related field as undergraduates. For those interested in applying to more advanced finance roles, such as Senior Financial Analyst, additional education is often needed, such as a master’s in finance or an MBA. Not only does a graduate degree teach you the skills needed to excel in higher-up Analyst roles, but degrees such as this often provide hands-on training that can set you apart from other job candidates. While the educational requirements needed to work in finance will ultimately depend on your employer, as well as your specialization, a strong background in math, data analysis, business, and financial literacy are core skills needed for this profession.
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.
Do I Need a Degree to Become a Financial Analyst?
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 help you get a job in finance, but it also can lead to higher pay. In 2020, those with a bachelor’s 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.
Common Degrees for Financial Analysts
For those interested in becoming Financial Analysts, the following are some of the most common degrees you may consider to prepare you to enter this profession:
- Finance: Finance degrees offer coursework in business law, statistics, economics, and accounting, among other relevant skills for Financial Analysts. Approximately 15% of Financial Analysts report having a degree in finance.
- Accounting: Another common degree for Financial Analysts to have is a bachelor’s in accounting. Six percent of Financial Analysts report having this educational background. Training in accounting is a good first step toward pursuing a career in finance or business. Accountants are needed by organizations of all kinds, such as nonprofits, corporations, small businesses, and government agencies. Studying accounting is a good way to learn how to review expenses and income, create financial reports, work with tax documents, and receive training on regulatory compliance.
- Economics: Majoring in economics as an undergraduate teaches students how nations, corporations, communities, and individuals use resources. Not only does this degree provide a solid foundation in money-related skills, but it extends into broader categories like healthcare, environmental policy, and education. Nine percent of Financial Analysts studied Economics as an undergraduate.
- Math: A background in math is at the heart of a Financial Analyst’s job. This is why many choose to pursue a bachelor’s in this field. Majoring in math exposes students to training and theory in core and applied mathematics. This major offers broad instruction of mathematical topics, as well as in-depth study in some core math areas, depending on the school.
- Statistics: Studying statistics as an undergraduate is a good way to study fundamental skills needed in finance. Those who earn a degree in statistics study topics like data analysis, probability, statistical computing, and mathematical statistics, among others. Because of how prevalent data collection and analysis is among organizations of all sizes, there’s currently a demand for those who can statistically analyze data and provide insights into these numbers.
- Master of Business Administration (MBA): In addition to undergraduate degrees, some people choose to pursue an MBA to prepare for a career as a Financial Analyst. An MBA offers a combination of training in hard and soft skills. Those who choose to earn this graduate degree receive two or more years of training in many of the skills needed to succeed in finance, such as clear communication, leadership, analytics, critical thinking, decision-making, time management, and professional conduct. In addition, most MBAs offer options for students to concentrate or specialize in a particular facet of business, such as technology or finance. Those who receive an MBA with a specialization can often pursue jobs that pay higher salaries.
Tips for Starting a Financial Analyst Career Without a Degree
Most Financial Analysts have a minimum of a bachelor’s degree in economics, finance, accounting, or a related field. However, not all job openings require applicants to have an undergraduate degree. If you have a high school diploma, you may be eligible for certain entry-level positions in finance. The following are some tips to help you find a job if you’re interested in a career as a Financial Analyst but don’t have a bachelor’s degree:
- Work experience plays a large role in helping to prepare Financial Analysts to learn the skills they need to contribute to their organization. While some Junior Financial Analyst positions may be available to those who didn’t attend college or a university, these positions are competitive and sometimes go to individuals who have completed an undergraduate study. This is not the only available job option in financial analytics, though. If you want to get started in finance but don’t have a degree, you may consider internships or volunteer positions. The more real-world training you can acquire, the more competitive you’ll be as a job candidate.
- Networking is an essential component of most jobs, regardless of industry. Financial analytics is no different. Who you know is sometimes as important as what you know, at least when searching for jobs. That’s why attending networking events like co*cktail hours, lectures, meet-and-greets, or financial analytics conferences like the Market Counsel Summit or True Influence Summit are great options. These opportunities provide great ways to continue learning about finance while connecting with others. They can help you grow professionally and, at the same time, meet others who may know about open positions or other exciting job opportunities.
- Studying financial analytics doesn’t necessarily have to be reserved for college and university coursework. A range of in-person and online learning options are available in this field. Top educational providers like Noble Desktop, Coursera, Udemy, and Udacity offer courses exclusively on financial topics. In addition to classes that require an enrollment fee, learning material is also available for free on YouTube and through some educators. While some employers may require a formal four-year degree, others may seek candidates who can demonstrate their financial analytics knowledge, which can come from many sources.
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. 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 also help students develop a comprehensive financial model for an actual company. As a prerequisite to this bootcamp, students should have intermediate Excel proficiency.
Noble also has a Financial Analyst Training Program that provides expert instruction on timely corporate and financial concepts, such as making a full valuation model. Those enrolled in this intensive program receive instruction on fundamental Excel skills, such as using shortcuts and PivotTables. Advanced Excel techniques are also covered in this 30-hour program, like Goal Seek and cash flow projection tools. All learners also receive instruction on creating a three-statement financial model for a public restaurant company.
In addition to the Financial Modeling Bootcamp and Financial Analyst Training Program, Noble Desktop also has in-person and live online financial modeling training courses. The
Excel Bootcamp offers 18 hours of instruction on core business Excel skills like working with VLOOKUP, INDEX, MATCH, and What-If Analysis for Goal Seek. FinTech courses are also available, like Algorithmic Trading with Python, Python for Data Science Bootcamp, and FinTech Bootcamp. This course provides students with hands-on training from expert instructors in FinTech skills like working with Python and SQL for data analysis, creating machine learning models, and working with different data types like 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.
Key Takeaways
- Those with a background in financial analytics provide their organization with a perspective on their financial data. The insights these professionals find can then be used to improve how a business performs.
- Even though there’s no formal requirement for which degree(s) you’ll need as a Financial Analyst, most people have a bachelor’s degree in math, accounting, statistics, or a related field. Some also hold advanced degrees, such as a master’s in finance or an MBA.
- If you don’t have a degree and still want to become a Financial Analyst, you may want to attend networking events like conferences, apply for volunteer jobs or internships to gain real-world experience, or learn the skills you need in another format, such as through live online coursework or self-paced study.
- You can receive comprehensive training to become a Financial Analyst through an in-person or live online course with Noble Desktop.
