5 Industries that Employ Financial AnalystsJocelyn2023-11-15T18:29:28+00:00
Industries For Financial Analysts
- Banking
- Insurance
- Investment
- Business
- Government
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:
- 50 Best Online Master of Finance Degree Programs
- What are Some Good Entry Level Jobs in Finance?
- What are Some Unusual Jobs for Finance Graduates?
- What are the Best Jobs for Someone with a Bachelor’s in Finance?
- What Are the Best Jobs for Someone With a Master’s in Finance?
- What are the Best Jobs for Someone with an Associates in Finance?
