Financial analyst

What does a financial analyst do?

• Build financial models and forecasts, usually in spreadsheets.
• Analyse company accounts, market trends and economic data.
• Value companies, shares, bonds or investment projects.
• Write reports and recommendations for managers, clients or investment committees.
• Compare actual results with budgets and explain the differences.
• Follow news, interest rates and regulation that could affect investments or plans.

Where do they work?

Financial analysts work for investment banks, asset managers, pension funds, insurers, credit rating agencies and stockbrokers. Many others work in corporate finance teams, helping companies in every industry plan budgets and investments, and some work for governments and development banks. The work is office-based, often in large financial centres, and many firms offer hybrid working. Roles linked to deals and markets can involve long and unpredictable hours.

What skills do you need?

• Financial modelling and forecasting
• Reading and analysing financial statements
• Valuation methods
• Advanced spreadsheets
• Data tools such as SQL or Python
• Understanding of markets and the economy
• Clear report writing and presentation
• Accuracy under time pressure

Official skills profile (ESCO)

Essential skills listed for this occupation in ESCO, the European Commission's multilingual classification of skills and occupations.

• prepare financial projections
• interpret financial statements
• perform business research
• perform business analysis
• consider economic criteria in decision making
• offer financial services
• advise on financial matters
• create a financial report

Essential knowledge: statistics · accounting · microeconomics · economics · business processes · financial management · macroeconomics

How do you become a financial analyst?

Most financial analysts have a bachelor's degree in finance, economics, accounting, mathematics or another numerical subject. Entry to banks and investment firms is competitive, and internships are often the main way into graduate programmes. Many analysts then study for the Chartered Financial Analyst (CFA) qualification, which has three levels of exams and also requires relevant work experience. Corporate finance roles often value accounting qualifications such as ACCA or CIMA instead. A master's in finance can help graduates from other subjects switch, and people from accounting, data analysis or engineering often move in with extra study.

1. Degree and graduate programme. A degree in finance, economics, accounting or mathematics, combined with one or more internships, is the most common route. Banks, investment firms and large companies recruit through graduate programmes with numerical tests and interviews. Strong spreadsheet and modelling skills make a real difference to your chances.
2. Professional qualification while working. Many people start in a related role, such as accounts, operations or client service, and study for the CFA, ACCA or CIMA while working. Some employers pay for the exams. This route takes several years, but it shows commitment and builds skills that employers recognise worldwide.
3. Master's degree. A one- or two-year master's in finance helps graduates in other subjects, such as engineering or science, move into analyst roles. Some programmes are designed for students with no business background. Check that the course has good links with employers in the country where you want to work.

Degrees that lead to this career

• Accounting and finance

  An accounting and finance degree teaches how organisations record, report, analyse and manage money, from financial statements and tax to investment and risk.

  6 linked careers

• Economics

  An economics degree studies how people, businesses and governments make choices with limited resources, and how markets, money and policy affect jobs, prices and growth.

  6 linked careers

• Mathematics

  A mathematics degree develops advanced reasoning and problem-solving through pure mathematics, such as algebra and analysis, and applied areas, such as statistics, modelling and computing.

  6 linked careers

• Business management

  A business management degree teaches how organisations are run, including strategy, marketing, finance, people management and operations.

  6 linked careers

• Data science

  A data science degree teaches how to collect, clean, analyse and learn from data, combining statistics, programming and machine learning with knowledge of real-world problems.

  6 linked careers

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Do you need a licence to work as a financial analyst?

Financial analysis is partly regulated. You do not need a licence to work as an analyst in a company's finance team. However, people who recommend investments to clients, or who work in certain roles at banks and investment firms, often have to pass exams approved by the regulator or be registered with it. The rules differ by country and by type of role. The CFA qualification is voluntary but widely respected. Check your national financial regulator for the rules that apply to you.

How much does a financial analyst earn?

Pay in the United States

• $102,740Median annual wage, May 2025
• $63,720–$180,860Range from the lowest-paid 10% to the highest-paid 10%
• 362KPeople employed in the US

US Bureau of Labor Statistics, Occupational Employment and Wage Statistics, SOC 13-2051, May 2025. National estimates across all industries; excludes the self-employed.

Earnings of Professionals around the world

Most countries do not publish pay for single job titles. The International Labour Organization collects median monthly earnings for broad occupation groups instead. This career belongs to ISCO-08 major group 2, "Professionals". The table covers the whole group, which includes financial analyst and many other occupations.

Source: ILOSTAT, median monthly earnings of employees, latest year available. PPP$ adjusts for price differences between countries so figures can be compared. "vs all employees" compares the group's median with the median for all occupations in the same country.

Career progression

1. Graduate or junior analyst
2. Financial analyst
3. Senior analyst or associate
4. Finance manager or portfolio manager
5. Finance director or head of research

Job outlook

Organisations always need people to analyse performance and plan investments, so demand is spread across finance and industry. However, hiring in banks and investment firms rises and falls with financial markets and can drop quickly in a downturn. AI and automated tools increasingly collect data and write standard reports, so employers value judgement, communication and data skills more. Areas such as sustainable finance and risk analysis are creating new specialist roles.

Questions about becoming a financial analyst

What degree do you need to become a financial analyst?

Finance, economics, accounting and mathematics are the most common degrees. Employers also hire graduates in statistics, engineering, physics and other numerical subjects, especially for investment and risk roles. What matters most is strong numerical ability, good spreadsheet skills and a clear interest in markets and business, which you can show through internships, projects or investment clubs.

Do you need the CFA to be a financial analyst?

No. The CFA is not a legal requirement for most analyst jobs, and many analysts never take it. It is highly valued in investment management and equity research, and some employers support staff while they study. Completing all three levels takes most people several years, so many start working first and then decide whether it suits their career.

What is the difference between a financial analyst and an accountant?

Accountants mainly record, check and report on what has already happened, and they follow detailed accounting and tax rules. Financial analysts use that information to look forward: they forecast results, value investments and recommend decisions. The two careers overlap, and many people move between them, especially in corporate finance teams.

Can you become a financial analyst without a finance degree?

Yes. Many analysts studied other numerical subjects, such as mathematics, engineering or science. You will need to learn accounting, valuation and financial modelling, which you can do through online courses, a master's in finance or professional exams. Internships and examples of your own analysis, such as company valuations, help show employers what you can do.

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Sources

1. US Bureau of Labor Statistics — Occupational Employment and Wage Statistics — SOC 13-2051, national estimates, May 2025
2. ILOSTAT — Median monthly earnings of employees by occupation — ISCO-08 major groups, latest year per country
3. European Commission — ESCO occupation profile — ESCO code 2413.1

How to cite this page: CourseToJob (2026). How to become a financial analyst: degrees, skills and salary. https://coursetojob.com/careers/financial-analyst/ (accessed September 26, 2026)

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