How To Become A Financial Analyst In South Africa

Financial analysts examine financial data and use their findings to help companies make business decisions. Often, their analysis is meant to inform the investing decisions of companies.

What Does a Financial Analyst Do?

Financial analysts also called securities analysts and investment analysts are professionals who collect, monitor, and evaluate information to make forecasts and recommendations relevant to their sectors.

Skills A Financial Analyst Needs

Earning a finance degree and taking the steps to become a financial analyst requires specific abilities and the development of specialized skills. Future financial analysts may have a natural tendency toward analysis and organization, but their studies will help direct and expand these skills.

According to O*Net, finance students and future financial analysts should develop the following important skills:

Critical thinking: making well-reasoned judgments based on logical thought processes

Time management: the ability to use one’s time effectively and productively

Research: the systematic investigation of information to establish facts and draw conclusions

Financial Analyst Salaries and Demand

As a range of diverse, new financial products becomes available on a global scale, every industry and market faces new challenges. In most cases, businesses will require the services of financial analysts who have up-to-date knowledge and relevant expertise.

According to Forbes, financial analyst became the most promising job in the finance sector. This appears to be a trend, as BLS has projected an 11-percent growth in the employment of financial analysts between 2016 and 2026.

While markets and economic factors can shift over time, the strong demand and above-average growth potential for financial analysts seem to indicate good earning potential for students who choose to pursue this profession.

BLS reports that the median salary of a typical financial analyst is R 1274034.17. However, salary can vary by industry. Financial analysts who work in securities, commodity contracts, and other financial investments and related activities can earn a higher median salary of1514030.17 while analysts working for insurance carriers and related activities may earn a lower median salary of R 1161592.72.

Below are steps to Become A Financial Analyst In South Africa

Step 1: Earn a Bachelor’s Degree

Earning a bachelor’s degree is often the most important step a future financial analyst takes toward achieving his or her goals.

While general courses in economics, statistics, and other related fields can be relevant to the field of financial analysis, a more targeted degree may be ideal. For example, a Bachelor of Science in Financial Services can be ideal for individuals who are pursuing a career in financial analysis.

Step 2: Attain Licensing and Certifications

Many bachelor degree graduates begin their career working in accounting, investment, or banking firms. While additional certifications may not be necessary at the beginning of their work experience, many professionals obtain licenses and designations later in their career.

Any firm or company providing financial products for sale must comply with specific regulations to protect consumers from fraudulent or unfair practices. Some financial analyst positions involve the sale of financial products and based on the state, licensing is a key component of how to become a financial analyst.

Step 3: Build On-the-Job Experience

Clearly, it’s important to have both the right education and any needed licensing and certifications to become a financial analyst. Beyond these steps, it’s also important for future financial analysts to get work experience in the financial industry as early as possible and work their way up.

Step 4: Earn a Master’s Degree in Accounting (Optional)

While on-the-job experience is necessary, financial analysts have additional options for fortifying their resumes. Many choose to improve their knowledge in order to increase interest from potential employers by obtaining a master’s degree.

Many professionals pursue a general master of business administration (MBA) however, a Master of Science in Accounting degree is an optional step that may help analysts’ stand apart in the job market.

How do I become a financial analyst in South Africa?

There’s no formal qualification required, but many in this position are qualified accountants, most have a postgraduate degree such as an MBA. To become a financial analyst, you’ll need to first complete a four year degree in finance, accounting, economics or a similar area.

What qualification do I need to become a financial analyst in South Africa ?

You will need to have a bachelor’s degree as a minimum, in a finance-related subject such as economics, statistics or accounting. You would have a much broader range of opportunities available if you had a master’s degree in finance or a Master’s of Business Administration (MBA).

What subjects do you need to become a financial analyst in South Africa ?

At a minimum, financial analysts are expected to hold a bachelor’s degree in accounting, finance, statistics, economics, business administration or another related field. A master’s degree is often required for more advanced positions.

Is financial analyst a stressful job?

When it comes to stress in finance, a financial analyst in investment banking gets hit the hardest. Junior analysts regularly pull all-nighters in the office to meet profit goals, and often burn out within their first year of work. Finally, the atmosphere in many investment banks is grueling.

Do you need a CFA to be a financial analyst in South Africa ?

If you want to stay in the financial analyst field, many employers will require you to get the CFA charter for senior level positions. However, it will qualify you for many advanced financial analyst roles. In addition to passing the exams, you will also need 4,000 hours of relevant experience for earning the charter.

Is financial analyst prestigious?

The recommendations of these research analysts carry a great deal of weight in the investment industry, including for people employed at buy-side firms. Perhaps the most prestigious (and highest-paid) financial analyst job is that of a sell-side analyst for a big investment bank.

Is it hard to become a financial analyst in South Africa ?

Earning the certification can be rigorous. To qualify, candidates need to hold a bachelor’s degree, plus they are required to have garnered four years of relevant professional experience. Finally, they need to pass a series of three exams.

What is a financial analyst salary?

Financial Analysts made a median salary of R 1233077.68 in 2019. The best-paid 25 percent made R 1652315.02that year, while the lowest-paid 25 percent made R 934745.12.

Do financial analysts make a lot of money?

National Average Mid-Range Salaries: Median annual salary for financial analysts is R 1294587.98. Top 10% Salaries: R 2523887.39 a year, as of 2018. Advanced-Range Salaries (75%): R1511309.81 a year. Entry-Level Salaries: Varies depending on sector, but generally ranges from $50,000 to over R 1511309.81 a year.

Do financial analysts get bonuses?

Most financial analysts earn an annual base salary plus benefits. There will also be potential to earn bonuses, commissions, and profit shares. Your salary will depend on a variety of factors, including how much experience you have, your level of education, your firm, and the specific area of finance you focus on.