5 Industries that Employ Financial Analysts (2024)

5 Industries that Employ Financial AnalystsJocelyn2023-11-15T18:29:28+00:00

5 Industries that Employ Financial Analysts (1)

Industries For Financial Analysts

A financial analyst can be employed by many different industries. This is because most industries need analytical professionals who can dissect matters relating to the flow of finances, both on a macro and micro level. These five industries provide excellent employment opportunities for all levels of financial analysts.

1. Banking

From major financial institutions to hometown banks, the banking industry is one of the largest employers of financial analysts. These analysts help banks evaluate risk for:

  • lending
  • liquidation
  • other key services banks provide to the general public

They can specialize in certain types of loans, such as real estate or business. They analyze the financial health of the organization. A financial analyst working at a bank may also play a critical role in finding and evaluating new investment opportunities.

2. Insurance

Financial analysts are needed in risk management, which is one of the core concerns of insurance companies. Analysts in insurance evaluate financial data from claims to help companies screen applicants and underwrite insurance policies. They put together and update cash flow models. They generate regular reports on market trends. This allows insurance companies to be successful and provide coverage to those who hold policies with them.

3. Investment

According to the Bureau of Labor Statistics, a large number of financial analysts work in investment firms and exchanges. Investment is a field that hires financial analysts into positions focused on the buying and selling of stocks, bonds and other investments. A financial analyst’s analytical skills along with knowledge of past and present market trends makes them well-equipped to make investment decisions and give sound investment advice. Financial analysts can work on their own as independent financial advisors as well. They can help clients make good investment decisions and create investment portfolios. Financial analysts who work for private clients typically work as financial planners or advisors.

4. Business

Most businesses, from manufacturing to consumer goods, need financial analysts on some level. Businesses typically employ financial analysts to assess the investments of a business. Analysts can also evaluate all aspects of a business’s finances to provide advice on:

  • operational changes
  • product launches
  • marketing techniques compared to cost
  • other financial concerns a corporation might have

Financial analysts working in business are usually tasked with preparing reports and explaining complex financial subjects to management. Business is one of the most varied industries that employ financial analysts.

5. Government

Financial analysts are hired by governments, too. They assist governments in investing and using financial data to predict future trends in the overall economy. This information can be very important when preparing to draft legislation or write a budget. Government finances are important for the well-being of many people. Financial analysts who work for the government often have the satisfaction of knowing their contributions really matter. Financial analysts working for the government may also be called upon to evaluate financial criminal activity.

Financial analysts, at the end of the day, have a solid core skill set and perform a wide range of functions. This allows them many different opportunities in different industries.

Related Resources:

5 Industries that Employ Financial Analysts (2024)

FAQs

5 Industries that Employ Financial Analysts? ›

Financial analysts work in banks, pension funds, insurance companies, and other businesses. Financial analysts guide businesses and individuals in decisions about expending money to attain profit. They assess the performance of stocks, bonds, and other types of investments.

What industry do financial analysts work in? ›

Financial analysts work in banks, pension funds, insurance companies, and other businesses. Financial analysts guide businesses and individuals in decisions about expending money to attain profit. They assess the performance of stocks, bonds, and other types of investments.

What industries can a finance major work in? ›

Although having a finance degree will enable you to pursue roles in the finance and banking sector, there are also many specialized careers for finance degree holders in other sectors, including government, nonprofits, consulting, and health care.

Who uses financial analysts? ›

Given the value of their role, financial analysts can be employed by large corporations such as investment banks, insurance companies, mutual funds, hedge funds, pension funds, securities firms, investment firms, private equity groups, venture capital firms, government agencies, and similar types of organizations.

Which industry is best for finance? ›

Risk Management
  • Retail and Commercial Banking.
  • Insurance.
  • Financial Advisors and Brokerage Firms.
  • Hedge Funds.
  • Other Financial Services Companies.

Who works in the finance industry? ›

Careers include financial planner, financial analyst, actuary, securities trader, portfolio manager, and quantitative analyst (quant).

Which state employs the most financial analysts? ›

New York

What are the four major career areas of finance? ›

Finance is the management of money which includes investing, borrowing, lending, budgeting, saving and forecasting. There are four main areas of finance: banks, institutions, public accounting and corporate.

Which industry in finance pays the most? ›

What are the top 5 highest paying jobs? The top 5 highest paying jobs in finance are investment banking, hedge fund management, CFO roles, private equity, and actuarial positions. These careers typically offer substantial salaries and the potential for significant bonuses.

What major does financial analyst fall under? ›

Financial Analyst Education Requirements

The CFA Institute recommends a finance-related major such as a bachelor's degree in finance, accounting, statistics, economics or general business.

Why do companies hire financial analysts? ›

You might hire a financial analyst to:

Monitor financial status by comparing datasets with projections. Thoroughly analyze financial data to improve fiscal health and develop actionable insights that drive business performance. Develop forecast models based on metrics to implement improvements as the business grows.

Who uses financial analysis? ›

Financial statement analysis is used by internal and external stakeholders to evaluate business performance and value. Financial accounting calls for all companies to create a balance sheet, income statement, and cash flow statement, which form the basis for financial statement analysis.

Who can work as a financial analyst? ›

About Financial Analyst Course
ParticularsDetails
Course IndustryCommerce, Finance and management
EligibilityBachelor's degree with 50% pass
Job OpportunitiesCharities, financial institutions, manufacturers, retailers, international enterprises, and organisations from the public and private sectors.
2 more rows
Aug 16, 2023

What are the top three industries that employ financial analysts? ›

Financial analysts are most often employed by the Securities, commodities, funds, trusts & other financial investments industry. The average yearly wage for Financial analysts was $132,960 in 2022.

What are the top 5 companies of financial sector? ›

The Top 10 NBFCs in India, 2024
  • LIC Housing Finance Limited. ...
  • L&T Finance Holdings Limited. ...
  • Aditya Birla Finance Limited. ...
  • Cholamandalam Investment and Finance Company Limited. ...
  • Mahindra & Mahindra Financial Services Ltd. ...
  • Bajaj Finance Limited. ...
  • Tata Capital Finance Service Limited. ...
  • Shriram Finance limited.

What industries do finance majors work in? ›

In the field of finance, there are three main categories of the industry: public, corporate, and personal. From financial planning to investment banking to insurance, people who pursue careers in finance power the world.

What is the field of financial analyst? ›

Financial analysts can work for financial companies like banks or investment companies, or within businesses. They commonly have academic backgrounds in finance, economics, accounting, or statistics. It can be a fascinating and well-paid career if your skills align with a desire to pursue this field.

Does financial analyst fall under accounting? ›

While there is some overlap between these two professions, they focus on different areas of money management. A financial analyst looks to past and current trends to help achieve a future reality, while an accountant may review a company's financial data on a day-to-day basis.

What is another title for a financial analyst? ›

Financial Analysts can hold various job titles such as Securities Analysts, Portfolio Managers, Real Estate Analysts, Military Financial Officers, Actuaries, Environmental Accountants, and Entertainment Accountants, each with its own unique job responsibilities and required skillset.

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