How To Become A Financial Analyst

Becoming a financial analyst is an attractive career path for individuals with a strong interest in finance, business, and data analysis. An analysts play a critical role in helping businesses and investors make informed decisions by analyzing financial data, market trends, and economic factors.

The demand for skilled financial analysts continues to grow, with the Bureau of Labor Statistics (BLS) projecting a 9% growth in employment for analysts from 2021 to 2031, which is faster than the average for all occupations. To become a financial analyst in 2025, you need to understand the steps, types, and skills required. This guide will provide you with the essential steps and strategies needed to pursue a career as an analyst.

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Financial Analyst Course

A financial analyst course is designed to provide individuals with the knowledge and skills necessary to succeed in the field of financial analysis. These courses cover a broad range of topics, including financial modeling, valuation techniques, accounting principles, and investment strategies.

Whether you are just starting your career or looking to advance your skills, taking an analyst course can help you gain a deeper understanding of the financial world and prepare you for real-world challenges.

Also Check: Role of Financial Markets in Investment Growth

Types of Financial Analyst Courses

Online Courses: Platforms like LinkedIn Learning offer flexible online courses that can be completed at your own pace.
Degree Programs: A bachelor’s or master’s in finance or accounting often includes specialized courses for aspiring financial analysts.
Certifications: The CFA Institute offers a series of exams and courses that help individuals work toward the Chartered Financial Analyst (CFA) credential, a highly respected certification in the field.

Steps to Become a Financial Analyst

Many also wonder how to be a financial analyst and what be financial analyst qualifications. Here are a few steps to becoming a financial analyst

Step 1: Obtain a Bachelor’s Degree

The first step to becoming an analyst is earning a bachelor’s degree. This degree provides the foundational knowledge needed for the field. While general courses in economics, statistics, and mathematics are valuable, a more targeted degree, such as a Bachelor of Science in Finance, is often ideal.

This focused education will prepare individuals for financial analysis roles, equipping them with essential skills in financial modelling, forecasting, and analysis.

Step 2: Pursue Licensing and Certifications

After completing a bachelor’s degree, many financial analysts begin their careers at accounting, investment, or banking firms. While some positions may not require immediate certifications, obtaining certain licenses and credentials can be crucial for advancing in the field.

One of the most prestigious certifications for financial analysts is the Chartered Financial Analyst (CFA) credential, offered by the CFA Institute. While not legally required, earning the CFA designation significantly enhances a financial analyst’s career prospects. The CFA certification requires:

A bachelor’s degree in finance or accounting
At least four years of qualified work experience in a related field
Passing three levels of exams, which test knowledge in areas like investment analysis, portfolio management, and ethics.

Additional specialized certifications in areas such as risk management or financial planning may also be pursued to further specialize.

Also Check: Who is a Risk Analyst?

Step 3: Gain Relevant Work Experience
Work experience is a crucial component of becoming a successful analyst. Many employers place significant value on hands-on experience in finance, accounting, or economics. The more relevant experience an individual has, the more likely they are to be considered for higher-level positions.

Internships and entry-level positions at financial firms, banks, or investment companies provide valuable experience that can set candidates apart. According to O*Net data, relevant work experience is often a determining factor for hiring financial analysts, and individuals with previous work in these fields may have a competitive edge in the job market.

Search for Entry-Level Roles: Entry-level positions are designed for individuals who are just starting their careers. When looking for job opportunities, consider titles such as:

Junior Financial Analyst
Associate Financial Analyst

Also Check: Accenture Senior Analyst – Financial Planning and Analysis Jobs

Step 4: Enroll in a Course:

Enhance your expertise in a specific area by enrolling in a course. For example, the IBM Data Analyst Professional Certificate can help refine your data analysis abilities. while Yale University’s Financial Markets course offers a deeper understanding of finance.

Step 5: Consider Earning a Master’s Degree (Optional)

While a master’s degree is not required to become a financial analyst, pursuing one can enhance career prospects, particularly for those who want to specialize further or move into higher-level positions. Many analysts opt for a Master of Business Administration (MBA), but some choose a Master of Science in Accounting (MSA) to deepen their knowledge in specific areas such as auditing, financial reporting, and strategic analysis.

Master’s degree programs generally require 30 to 60 additional credits beyond a bachelor’s degree and typically include coursework in advanced financial accounting, managerial methods, and strategic analysis. Holding a master’s degree may help a financial analyst stand out to employers and increase earning potential.

Step 6: Go for an Internship

Seek internship opportunities with companies that align with your interests in the financial sector. Internships provide valuable hands-on experience, industry insights, and networking connections that could lead to future job opportunities. Platforms like LinkedIn and Indeed are great resources for finding internship openings.

Skills Required for Financial Analyst

To become a successful financial analyst, you need a strong set of both technical and workplace skills. Some key financial analyst qualifications and skills required for financial analysts include:

Accounting Knowledge: A solid understanding of accounting principles and practices is essential for analyzing financial statements.
Analytical Ability: The ability to interpret financial data and identify trends is crucial for decision-making.
Financial Literacy: Proficiency in understanding financial markets, instruments, and concepts is necessary.
Data Analysis: The skill to process and interpret large amounts of data to make informed decisions.
Corporate Finance Knowledge: Expertise in corporate finance principles, including capital budgeting and financial management.
Financial Software Knowledge: Familiarity with financial analysis tools and software such as Excel, Bloomberg, or QuickBooks.
Budget Management: Training in budget planning and management ensures a financial analyst can track and control financial performance.
Financial Reporting: Understanding how to prepare and interpret financial reports for stakeholders.
Financial Analysis Skills: Proficiency in performing ratio analysis, forecasting, and valuation techniques.

Workplace Skills for Financial Analysts

Along with technical expertise, financial analysts must develop strong workplace skills to succeed in their roles.

Communication: Effective communication is key in conveying complex financial information to non-experts.
Negotiation: Ability to negotiate terms with vendors, clients, or stakeholders.
Influencing: Persuading others to act on financial recommendations requires confidence and expertise.
Critical Thinking: Strong problem-solving abilities to assess complex financial issues and make sound recommendations.
Flexibility: Being adaptable to changing market conditions or corporate strategies.
Resilience: The ability to cope with setbacks or challenges in the workplace.
Collaboration: Working effectively with teams, stakeholders, or clients to meet financial goals.
Problem-solving: Identifying and addressing financial problems with effective solutions.

To become a analyst, it is important to combine these technical and soft skills with relevant education. Consider taking a financial analyst course to sharpen your expertise in areas like financial modelling, accounting, or investment strategies.

Also Check: Banker Salary: In India, Per Month, Starting Salary, Highest Salary

Financial Analyst Median Salary

The median salary for a financial analyst in India is projected to be around Rs. 6,80,000 per year in 2025. Salaries can vary significantly based on experience, location, and the specific industry, with ranges typically falling between Rs. 2.19 lakh to Rs. 15 lakh per annum.

Median Salary: The estimated median salary for a financial analyst in India is approximately ₹6,80,000 per year.
Average Salary: The average salary is around ₹6,00,000 per year, indicating a slight variation from the median.

Salary Range

Entry-Level Positions: For those with less than 1 year of experience, salaries can start from Rs. 2.1 lakh per annum.
Experienced Analysts: Financial analysts with 8 years of experience can earn up to Rs. 13 lakh or more, depending on the organization and role.
Top Salaries: In some cases, salaries can reach as high as Rs. 50.7 lakh for highly experienced professionals in prestigious firms

Is Financial Analyst a Good Career?

Growing Job Opportunities: Financial analysts are in high demand in India due to the growing financial markets, increasing investments, and expansion of corporate sectors. Job opportunities are available in banks, investment firms, and multinational corporations.
Competitive Salary: The average salary for a financial analyst in India ranges from Rs. 5-7 lakhs per annum at the entry level, and with experience and certifications, it can rise significantly to Rs. 12-20 lakhs or more in senior roles.
Career Advancement: Analysts in India have clear career progression, with opportunities to move into roles such as senior analyst, portfolio manager, or finance manager. Earning certifications like the CFA can enhance prospects.
High Demand Across Industries: Sectors like banking, insurance, investment management, corporate finance, and fintech continuously need skilled financial analysts, providing job security and diverse career paths.
Skill Development: A career in financial analysis helps develop key skills such as financial modeling, data analysis, and business strategy, which are highly valued in the job market.

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