Financial Data Analyst: Careers and Job Information
Financial data analysts focus on trends that impact a specific industry, region or type of product. For example, an analyst will focus on a subject area, such as the oil and gas industry; a geographical location, such as Alaska; or a specific financial market, such as oil and gas futures. Financial data analysts must understand how new policies and regulations, as well as political and economic trends, can potentially impact the industries they are watching.
Job Outlook for Financial Data Analysts
Financial data analyst careers are among the country’s fastest growing, according to the U.S. Bureau of Labor Statistics (BLS), which projects an increase of 20% or more through 2018. However, the BLS estimates that competition will continue to be high for these well-paid jobs, especially for new job seekers.
Job Duties
Each day, financial data analysts study company financial statements and analyze commodity prices, sales, costs, expenses and tax rates to determine a company’s value by projecting its future earnings. They review all aspects of a company’s operations, including meeting with company officials to gain a better insight into the organization’s management and initiatives.
Some analysts examine domestic and international finances or advise institutions on pension fund investment options. Other financial analysts help determine the value of stocks and bonds. Financial data analysts look at a company’s “big picture” to predict future trends and identify potential opportunities. After reviewing their findings, financial data analysts create detailed reports that make recommendations for future actions.
Job Environment
Most financial data analysts work for large financial institutions or multi-national corporations. These can include banks, stock brokerages and insurance companies, as well as government agencies.
Financial data analysis is a high-pressure, deadline-driven profession that often requires long hours and frequent travel to meet with companies or potential investors. Depending on the organization where they work, financial data analysts must maintain strict compliance with regulatory standards.
Job Projections
As the financial markets continue to rebound from the recent recession, the BLS estimates a 20% increase in the demand for financial data analysts from 2008 to 2018. The main drivers for this growth include the rising number of assets under management, as well as the global diversification and increasing complexity of investments. This means that companies will continue to seek more financial analysts to research and recommend investment options around the globe.
Financial Data Analyst Salary Potential
According to the BLS, the median annual salary of financial analysts was $73,670, excluding bonuses, in May 2009. The middle 50% of analysts surveyed earned between $55,640 and $98,920. While the lowest 10% earned less than $44,000, the highest 10% earned salaries topping $139,000. Additionally, it’s common for financial data analysts to receive annual performance bonuses that significantly increase their salaries.
Graduates who hold only an associate’s degree will generally start off in entry-level roles at a lower rate of pay than the salaries listed here, as these figures represent the earning potential for financial analysts with a bachelor’s or master’s degree. However, continued education and experience will lead to better job opportunities and higher income.
Education and Training
Those looking to enter the financial data analyst field need a strong academic background. The first step can be an associate’s degree in accounting.
A typical accounting education program helps students learn to:
- Estimate the value of liabilities and equities.
- Prepare and apply accounting standards to financial presentations.
- Incorporate cost-accounting fundamentals into daily practice.
- Exercise critical-thinking methods to identify and solve problems.
After receiving your AA in Accounting degree, you’ll want to continue your education, pursuing a bachelor’s (or higher) degree in areas such as finance and economics. Additional certifications and graduate degrees, such as a CFA certification or a master’s degree in business or finance, can significantly improve your job prospects.
Is a Financial Data Analyst Job Right for You?
Financial data analysts often work in a demanding, high-pressure, deadline-driven environment, but typically enjoy substantial salaries and bonuses. If you enjoy working with numbers and statistics, creating reports and analyzing data, then this may be the perfect career for you.
