Becoming a financial analyst is like becoming a detective in the world of money. Financial and investment analysts piece together clues from market trends, company reports and financial data to solve the case of where to invest.
As a financial analyst, you get to be at the forefront of predicting future trends, advising on major business moves and shaping the financial health of individuals and companies across the country.
Whether it's the excitement of the stock market, the intricacies of financial modeling or the joy of seeing their research and predictions come to life, financial analysts have lots of ways to make their work rewarding.
But how do you go from here to there?
6 Steps to becoming a financial analyst
If you enjoy working with numbers, analyzing financial data and making informed decisions, becoming a financial analyst might be the right career path for you.
Like many careers, however, it can be confusing to understand exactly how to become a financial analyst. That’s why we’ve put together a step-by-step guide on how to become a financial analyst and embark on your career journey.
Step 1: Meet the educational requirements
Most financial analysts need a Bachelor’s degree, according to the Bureau of Labor Statistics.1 While some universities may have Bachelor's degree programs specifically designed for those seeking financial analyst roles, these specialized degrees are uncommon. Most employers look for candidates with a related business and math Bachelor's degree such as finance, accounting, economics or statistics.
While a Master’s degree is not required to get started as a financial analyst, it could help you advance to more senior positions.1 A Master’s degree in finance, business analytics or business administration could increase your qualifications, as these programs typically delve deeper into advanced financial concepts.
You could even consider specializing your Bachelor's degree or Master's degree in areas like investment analysis, portfolio management or risk management in to make yourself stand out.
Rasmussen University does not offer programs where the credential awarded is Master’s in Finance and Master’s in Business Analytics. Rasmussen University does not offer any bachelor’s or master’s degree programs which offer a specialization in investment analysis, portfolio management or risk management
Step 2: Develop your analytical and technical skills
Beyond the education section of your resume, employers will be looking for proficiency in certain skills successful financial analysts will need. These skills include analytical skills, technical skills and communication skills, which will prove to employers that you’re a well-rounded hire.
Many of the essential financial analysis and problem-solving skills financial analysts need, like identifying trends and forecasting outcomes, will be taught in your finance degree program. Regardless of the degree you earn, these skills are universal business practices that make up the focus of many courses.
Financial analysts, like any other role, must constantly keep up with the advancing technology in their field. Today, employers are often looking for demonstrated understanding of essential technology and software like Excel®, SQL, Bloomberg® or SAS®. These tools should also be part of your education.
In your future career as a financial analyst, you’ll need to communicate your findings through written reports and verbal presentations. Focusing on communication skills is so beneficial to your career path.
Step 3: Gain relevant experience
As with any role, employers will be examining your resume for relevant experience in order to have faith that you can get the job done. While you won’t be able to put senior-level positions on your resume immediately, internships and entry level financial analyst positions can help you get there by growing your financial analysis experience.
Internships at financial institutions, investment firms or corporate financial departments provide valuable on-the-job training and networking opportunities that can sometimes lead to full-time positions.
Entry-level roles like junior financial analyst, research analyst or investment analyst allow you to apply your knowledge in a professional setting and develop trust with your employer.
You could even look towards financial services sales agents, as they are able to gain a foundational understanding of relevant products and services and build a relationship with the industry. Regardless of your entry-level role, the BLS projects a 3 percent increase for all financial analyst jobs from 2022 to 2032, which can help you get your foot in the door.1
Step 4: Get certified
Depending on your role and where you work, you may want obtain certain state-specific licenses according to the Financial Industry Regulatory Authority® (FINRA). Many employers even favor hiring financial analysts who already possess a FINRA license.
A Chartered Financial Analyst® (CFA) license is a highly respected designation that demonstrates a high level of expertise in the common responsibilities of a financial analyst. To earn the CFA license, you’ll need to pass three levels of exams, covering a range of relevant industry and ethical standards, and have four years of professional work experience.
A Financial Risk Manager (FRM®) certification is ideal for those focusing on risk management and requires you to pass two levels of exams and have two years of professional experiences.
For those interested in becoming a financial analyst with a focus in accounting, a Certified Public Accountant (CPA®) certification would be valuable. On top of completing the Uniform CPA Exam, most states require a bachelor’s degree, and 150 semester hours of college coursework along with specific areas of work experience.
Rasmussen University’s Accounting Certificate, Accounting Associate’s and Accounting Bachelor’s degree programs are not designed to prepare graduates for any state-issued professional license or certification. Rasmussen University’s Accounting Certificate, Accounting Associate’s and Accounting Bachelor’s degree programs do not meet all educational prerequisites for licensure as a Certified Public Accountant (CPA) in any state. Each state determines its own requirements for licensure as a CPA.
Step 5: Commit to continuous learning and networking
No career really stays static anymore. But the world of finance moves fast. Luckily, the finance industry is full of unique and useful resources.
To maintain your professional development, you may want to seek out industry workshops, seminars or webinars to stay up-to-date on the latest trends and topics in finance. (Or check out 19 Finance Blogs Worth Following in 2019 in Beyond)
There are also numerous professional associations that can help you find opportunities for development while also helping you network with other industry members. Organizations like the CFA Institute®, American Finance Association (AFA) or the Global Association of Risk Professionals® (GARP) are constantly welcoming new members.
Experienced financial analysts are also great resources for you as you get started in the industry, as they provide mentorship opportunities that can give you important guidance and advice.
Step 6: Consider what type of financial analyst you want to be
Once you’ve decided you want to become a financial analyst, you need to ask yourself exactly what kind of financial analyst best fits your goals. The world of finance is surprisingly varied in career and role options.
Financial analysts for buy-side firms
Buy-side financial analysts work for institutions that buy securities and investments for their own portfolios. Their main goal is to provide research and recommendations that help their firms make profitable investment decisions.2
Financial analysts for sell-side firms
Sell-side financial analysts are employed by brokerage firms and investment banks that sell securities to the buy-side firms and individual investors. Their primary function is to produce detailed reports, forecasts and recommendations, which are then distributed to clients. Sell-side analysts aim to influence investment decisions by providing thorough research and expert insights.2
Investment banking financial analysts
Investment banking financial analysts work within investment banks, focusing on transactions such as mergers and acquisitions (M&A), initial public offerings (IPOs) and other corporate finance activities. They perform financial modeling, conduct due diligence and prepare pitch books to support these transactions.2
Equity analysts
Equity financial analysts specialize in evaluating public companies and their stocks. They analyze financial statements, interview company management and attend industry conferences to provide recommendations on specific equities.2
Other investment and financial analysts
There are several other types of financial analysts, each with a unique focus. For example, credit analysts assess the creditworthiness of individuals and companies. Financial risk analysts evaluate economic risks and develop strategies to manage them. Portfolio managers oversee investment portfolios and make decisions about asset allocation.2
Despite their different specialties, all financial analysts share the common goal of providing valuable financial insights, recommending investment opportunities and guiding their clients or companies.
It all starts at step one
A financial analyst career can lead to a vibrant and impactful profession. No matter what your goals look like, these five steps will help you become a financial analyst and make those goals a reality.
Enrolling in a program or starting a new career path requires careful analysis. Even though you have the outline of what you need to do to reach a financial analyst role, you still need more information. How much do these programs cost? Does it make a difference if you learn online or in-person? How long of a commitment are we talking about? Will prior credits, education or experience transfer?
Get all your questions answered at Rasmussen University's Finance Degree page. For any specific questions, fill out the request for information form, and an admissions representative will get back to you.
Rasmussen University’s Accounting Certificate, Accounting Associate’s and Accounting Bachelor’s degree programs are not designed to prepare graduates for any state-issued professional license or certification. Rasmussen University’s Accounting Certificate, Accounting Associate’s and Accounting Bachelor’s degree programs do not meet all educational prerequisites for licensure as a Certified Public Accountant (CPA) in any state. Each state determines its own requirements for licensure as a Certified Public Accountant (CPA. Please consult with your state’s board of accountancy or equivalent oversight agency for further details. Rasmussen University’s Accounting Certificate, Accounting Associate’s and Accounting Bachelor’s degree programs have not been approved by any state board of accountancy or other professional licensing agency.
Global Association of Risk Professionals® is a registered trademark of Global Association of Risk Professionals, Inc.
CFA Institute® is a registered trademark of CFA Institute
CFA® is a registered trademark of CFA INSTITUTE
Chartered Financial Analyst® is a registered trademark of CFA INSTITUTE
FINRA® is a registered trademark of FINANCIAL INDUSTRY REGULATORY AUTHORITY, INC.
SAS® is a registered trademark of SAS Institute Inc.
Excel® is a registered trademark of Microsoft Corporation
FRM® is a registered trademark of Global Association of Risk Professionals
1Bureau of Labor Statistics [accessed August, 2024], Tab #4 How to Become a Financial Analyst and Tab #6 Job Outlook for Financial Analysts. https://www.bls.gov/ooh/business-and-financial/financial-analysts.htm#tab-4
2Additional/different education beyond a bachelor’s degree in finance and/or work experience may be required to obtain a position in this career. It is important to check with employers regarding requirements.
