Why is Financial Analyst One of the Most Demanded Jobs in the UK?

If you’re looking for a flexible global career in business that allows you to work in almost any industry, becoming a financial analyst in the UK might be a good choice. As a financial analyst, you can help your company with future planning, regulatory compliance, assessing the success of advertising campaigns, and more. 

Before pursuing this career, it’s important to understand what financial analysts do, how to become one, the typical salary, and answers to frequently asked questions about the role. This article provides all that information.

Qualifications Needed to Become a Financial Analyst in the UK

To become a financial analyst:

Obtain a degree

While a specialized financial analyst degree is not a must, employers generally prefer an undergraduate degree in economics, finance or a related field such as accounting or statistics. Having a fundamental understanding of accounting, economics and investments is crucial for a financial analyst. Pursuing a master's degree, such as a Master of Business Administration or a Master of Accounting degree, may also be helpful.

Gain practical experience

Many organizations and financial institutions offer graduate schemes or internship programs that provide practical experience and professional development opportunities. Employers often prefer to hire candidates who have completed such programs.

Obtain a certification

While entry-level candidates may not be expected to have obtained certifications and licences, earning certifications such as the Chartered Financial Analyst (CFA) may enhance your CV and make you more attractive to future employers.

Choose a field of specialisation

Financial analysts may advance their careers by specializing in specific industries or segments of the business world, such as the energy sector or foreign exchange. You can learn more about the possibilities for specialization as you work in the financial industry.

Stay informed

Read essential publications to stay up to date on the latest trends, risks, and opportunities in the business world.

Skills Required for a Financial Analyst in the UK

  • Communication: Financial analysts need excellent communication skills to effectively convey complex financial concepts to clients through verbal and written communication. 
  • Data Analysis: Financial analysts must have the ability to accurately and swiftly analyze numerical data to identify trends and patterns that could impact financial decisions. Strong analytical skills are also essential for drawing meaningful conclusions from the data.
  • Problem-solving: Financial analysts should possess problem-solving abilities and lateral thinking skills to identify potential problems with investments and deals and recommend effective solutions to clients.
  • Teamwork: Collaboration and teamwork skills are necessary for financial analysts who often work with colleagues from different departments to conduct research and analyze financial factsheets. 
  • Accounting: Financial analysts have a strong knowledge of accounting principles, including budgeting, forecasting, modelling, cost analysis, reconciliation, and cash-flow management.
  • IT literacy: Financial analysts should be familiar with contemporary accounting software and spreadsheet software to perform calculations quickly and accurately. Most employers prefer financial analysts with a strong working knowledge of common accountancy software.

Job Opportunities

There are various job opportunities for Financial Analysts in the UK. Some of the job titles are mentioned below. 

  1. Investment banking analyst
  2. Financial planning analyst
  3. Corporate finance analyst
  4. Risk management analyst
  5. Credit analyst
  6. Equity research analyst
  7. Fund analyst
  8. Portfolio analyst

Benefits

Financial Analyst Salary in the UK: In England, the typical annual base salary for financial analysts is £38,156. The average annual salary for financial analysts in the United Kingdom is £42,500, based on 10,000 reported salaries. Entry-level positions typically start at £32,722 per year, while the most experienced workers can earn up to £60,000 per year. This equates to an hourly rate of £21.79.

The benefits of being a Financial Analyst are:

  • Financial analysts can obtain in-depth industry knowledge and uncover insights about a company’s financial performance and overall outlook, which can open up new opportunities for them.
  • The role of a Financial Analyst in the UK economy is dynamic and involves meeting with various stakeholders, which can expand their professional network and help them develop personal connections for future assistance.
  • Financial analysts receive higher remuneration than other professionals at the same level, including a fixed salary, bonus, and commission.
  • The demand for financial analysts is growing in double digits, providing many opportunities for those pursuing a career in finance, including other industries that rely on data science.
  • Financial analysts have a steep learning curve and require staying up-to-date with new information, which helps build their knowledge base and prepares them for future job roles.
  • Financial analysts have job security due to their access to crucial company information and the sophisticated nature of their role, which makes them less prone to job loss in uncertain times.
  • Financial analysts have a good work-life balance with normal business hours, unlike other finance jobs that require working long hours.
  • Working as a financial analyst offers numerous benefits, including work-life balance, access to crucial company information, and high earning potential, making it one of the most rewarding career opportunities.

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Conclusion

Financial Analysts use financial models to analyze complex data, in order to improve business performance and support decision-making. They work in a range of industries, including the public and private sectors. The role of Financial Analysts has become increasingly important in the wake of the pandemic, as they are required to use their analytical skills to predict outcomes in an uncertain financial landscape.

Frequently Asked Questions

Are financial analysts in demand in the UK?

Yes. Financial analysts are in high demand in the UK and are projected to remain so.

What is the job of a financial analyst in the UK?

Financial analysts in the UK organize information, analyze financial results, forecast and make projections, develop recommendations, and perform risk analysis.

What is a financial analyst's salary in the UK?

The average annual salary for financial analysts in the United Kingdom is £42,500, based on 10,000 reported salaries.

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