what is a financial analyst?
As a financial analyst, you guide individuals or businesses on investment opportunities with lucrative outcomes. You use industry knowledge, market trends and financial data to find the best strategy for continued growth. Your job involves analysing economic trends, financial information and business news.
As a financial analyst, you can work in investment companies or financial institutions like banks. Some businesses also need internal financial analysts to monitor their investment strategies and minimise losses. Depending on your position, you are responsible for various research tasks that guide investment decisions. Some tasks include evaluating financial data and market developments or examining the organisation's financial statements. You also participate in financial modelling to predict the performance of various investments. Since the tasks are data-intensive, you require strong analytical and mathematical skills to evaluate the data and develop investment strategies.
To build financial models for data analysis and forecasting, proficiency in building portfolios and using various statistical software for analysis is important. The software helps you track past and present financial information and use prediction models to determine if an investment is viable.
Would working as a financial analyst suit your strong mathematical skills and business acumen? Then read on to find out what competencies and qualifications you need to thrive in a financial analyst role.
financial analyst jobsaverage financial analyst salary
According to the Economic Research Institute, the median salary of a financial analyst is €45,000 per year. As a financial analyst, your earnings depend on your educational credentials and experience level. For instance, a financial analyst early in their career in Greece starts with a salary of €31,000per year. When you have at least five years of experience, your earnings increase to over €55,000 annually.
what factors affect the salary of a financial analyst?
The compensation package of financial analysts depends on educational qualifications. When you have additional professional certifications, you can earn more. For instance, a chartered financial analyst (CFA) earns a higher salary than a financial analyst without CFA credentials. Your expertise and qualifications allow you to negotiate a higher salary.
The size of the company you work for also determines your earnings. When you work for a small start-up, you start with a lower compensation package due to the limited resources available. Working for a large company increases your earning potential due to the complexity of your tasks and the unlimited resources available.
types of financial analysts
Some types of financial analysts include:
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investment banking analysts
Your responsibility as an investment banking analyst is to help companies meet their financial goals by looking for investment opportunities. You also create economic models and complete evaluations to determine the performance of current investments.
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equity research analysts
Your job is to oversee investment portfolios for a group of companies in a particular industry. You can work for both buy-side and sell-side firms to help them decide the securities to hold and the ones to sell.
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treasury analysts
As a treasury analyst, you manage finances in various government agencies. You oversee investment income, cash flow and asset levels. You also advise on ways to improve financial health.
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corporate development analysts
Your job is to optimise business processes and enhance income from business operations. You assess operations and expenses and develop better strategies.
working as a financial analyst
As a financial analyst, you evaluate financial data and recommend the best investments for a company. Discover financial analysts' specific duties, tasks, work schedules and career opportunities.
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what does a financial analyst do?
Specific roles depend on the industry and company you work for, but typical duties of a financial analyst include the following:
- organising information: as a financial analyst, your job begins with gathering information from historical financial reports, macroeconomic data, stock price information and accounting data from ledgers. You organise the information in databases or Excel sheets, clean up the data, and arrange it in a format that makes sense. It is important to categorise the data and add formulas to ensure it has consistent formatting that's easy to understand.
- analysing financial results: after cleaning up the data, you analyse the historical information using ratios and metrics to determine patterns. Your job is to identify trends and compare the performance with other companies in the industry. You can evaluate the company's value and find ways to improve investment income from the analysis.
- forecasting and making projections: your analysis reveals company performance predictions. You can find various financial models to help you make projections and predict the company's future performance. If you are analysing the viability of investment opportunities, the financial models help you make investment decisions.
- developing recommendations: as a financial analyst, your job goes beyond crunching numbers and creating financial models. You provide recommendations on ways to improve business operations based on the projections. For instance, you list viable investment opportunities and suggest ways to improve revenue and market share. Aside from writing reports, you make presentations to clients and investors.
- risk analysis: as a financial analyst, you can specialise in risk analysis and assess potential risks in a company's financial strategy. You help the managers identify sources of loss and minimise the risks involved in financial investments to increase profits.
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work environment of a financial analyst
Financial analysts work in banks, insurance companies and investment firms. In financial companies, you advise on investment opportunities and help firms grow. Your work is primarily office-based since you spend most of the time analysing data and building financial models. In government institutions, you help the criminal investigation department in identifying fraud.
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who are your colleagues?
As a financial analyst, you work for investment companies, and your colleagues may include fund managers, mortgage brokers, accountants, finance business partners, finance managers and finance assistant roles. Since you work with financial data, you may work close to business development managers, chief executive officers (CEOs) and other specialists, including portfolio managers, business analysts and data analysts.
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financial analyst work schedule
Financial analysts work the regular 9-to-5 work day. Although your schedule takes 40 hours a week, you add a few hours to meet your deadlines. Sometimes, your clients need to meet outside business hours to discuss investment opportunities. Meeting clients also requires travelling to various establishments and attending investment conferences. If you work for a multinational investment firm, overseas travel might be part of your job. Most financial analysts work full-time, but you can find part-time opportunities.
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career opportunities as a financial analyst
As a financial analyst, you can specialise in an area of study like portfolio management or fund management. Alternatively, become a risk or ratings analyst and focus on helping companies minimise costs. When you are a junior financial analyst, you should work hard to become a senior financial analyst, where you oversee larger projects and assist the executives. From a senior financial analyst position, you can progress to the finance manager position before becoming the finance director or chief finance officer (CFO). Financial analysts also have self-employment opportunities, but you’ll need a high level of expertise.
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advantages of finding a job as a financial analyst through randstad
Working with Randstad offers you a range of benefits.
- always a contact person you can fall back on and ask for help
- a range of jobs in your area
financial analyst skills and education
To become a financial analyst in Greece, you require the following educational qualifications:
- bachelor’s degree: you need a bachelor’s degree in finance, business administration, accounting or another related field, like economics and statistics. While a master’s degree is not mandatory, it gives you a competitive advantage.
- work experience and certification: you require experience to join mid-level and senior positions. Gain experience through internships and entry-level jobs. It is also important to seek out certification to advance your professional development. For instance, you can pursue professional certification to become a Chartered Financial Analyst and join the CFA Society Greece.
competencies and characteristics of financial analysts
You need these soft and hard skills to succeed as a financial analyst:
- research skills: your job involves mining data from various sources for financial analysis. Research skills help you find historical data from company records and macroeconomic data from industry sources. You can make predictions from the data analysis with sufficient information.
- attention to detail: being detail-oriented helps you notice market trends and make accurate predictions. Attentiveness to detail helps you make insightful conclusions based on changes in the market.
- analytical skills: as a financial analyst, you evaluate tons of data and make accurate conclusions. You need analytical skills to ask the right questions, draw accurate conclusions and discern the best solutions for your clients.
- maths skills: being good in maths and numbers helps you handle complex calculations in financial modelling. Sometimes, you use complex equations to complete data analysis. Maths skills also help you formulate financial models, including charts and graphs.
- communication skills: you need communication skills to explain complex financial jargon to clients and investors. Communication and people skills also help you maintain relationships with stakeholders to gain access to information.
- problem-solving skills: as a financial analyst, you are a problem-solver who finds solutions to the company's liquidity problems and financial constraints. Your exceptional problem-solving skills in dealing with financial issues help the company gain investors.
- technical skills: as a financial analyst, you rely on sophisticated accounting software to analyse financial data. Your technical skills help you learn new software applications quickly and perform your duties as a financial analyst effectively.
FAQs
Here, you will find the answers to the most frequently asked questions about the profession of a financial analyst.
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what is the work of a financial analyst?
As a financial analyst, you forecast future revenue and expenditures on upcoming investments. You research market trends and review the company's financial information to help make the best investment decisions. You also monitor financial movements within the market.
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how much do financial analysts make in Greece?
The median earnings of a financial analyst is €45,000 per year. In an entry-level position, you start with compensation as low as €31,000 annually, while senior financial analysts take home over €55,000 yearly. The compensation packages depend on experience and educational qualifications.
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what does an entry-level financial analyst do?
As an entry-level financial analyst, you compile income statements and budgets to prepare forecasts and reports on the financial performance of various investments. You analyse information for a company and help improve its financial health.
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what is the difference between a financial analyst and an accountant?
An accountant reviews the company’s financial data to ensure accuracy and determine its financial position. In comparison, financial analysts are focused on investment opportunities and use financial data from accountants to make forecasts.
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what skills does a financial analyst need?
As a financial analyst, you require interpersonal skills to work closely with various professionals in the accounting and finance departments. Your critical thinking skills also help you make good decisions on investment opportunities.
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how do I find a job as a financial analyst?
Finding a job near you as a financial analyst is easy. Search our job offers. Have you found what you're looking for? Then submit your application using the ‘Apply’ button top right on the page. No jobs available right now? Then log in or register an account to send us your resume and we'll pass it on to a recruiter who will contact you if an opportunity opens up for you.
