Financial Analysis After LIS: Your Path to a Successful Career

If you love financial statement analysis, numbers and data and helping organisations make sound economic decisions, a career in financial analysis is perfect. The job market is booming, and there’s high demand for skilled professionals and competitive salaries. 

LIS is a great starting point for students who want to excel in finance jobs. From learning interdisciplinary skills to participating in internships and leveraging career support, LIS ensures you have a foundation to stand out in this job market. 

This guide explores how LIS can be a starting point for your career in financial analysis and what to expect as a professional. 

Table of Contents

• How LIS Is a Starting Point for Financial Analysis Careers
• Core Skills Every Financial Analyst Needs
• Career Opportunities in Financial Analysis Post-LIS
• How to Secure a Job in Financial Analysis
• Freelance vs. Corporate Financial Analysis: Pros and Cons
• The Future of Financial Analysis: Trends and Innovations

The London Interdisciplinary School (LIS) takes a different approach to education. Our BASc degree focuses on interdisciplinary learning that not only equips students with a wide range of critical skills in core areas but also focuses on practical training. 

Here are a few of the modules financial analysts would find value in:

• Quantitative Methods 1b: Thinking Through Data - Learn to think through data using concepts such as data science, statistics, and machine learning. 
• Problems 2b: Focus on knowledge surrounding urban futures, including project management, prototyping and collaboration. 
• Problems 2c: Explore independent research, mixed research methods and professional communication. 
• Intermediate Quantitative Modelling: Students learn about dimensional analysis, calculus, mathematical modelling, differential equations and computer simulations and how to use these to solve real-world problems.
• Capstone Project: This final-year project offers students a unique opportunity to pursue financial analysis as part of a research project that tackles a problem they are most passionate about or interested in. 

Working as a financial analyst involves more than managing a company's financial statements. Professionals must possess various technical and soft skills to help businesses maintain positive financial health. 

Having the right skills employers look for makes it easier to secure a job after graduation. 

Here are a few of the expertise every financial analyst must have. 

Technical Skills for Data-Driven Decision Making

Data-driven decision-making is critical for financial analysts to determine a company's financial performance and how to optimise it. 

Here are the key skills professionals need to accomplish this:

• Data Analysis: Professionals will inspect, clean and model data to discover valuable insights, inform conclusions and support strategic decision-making. 
• Financial Analysis: This refers to assessing the viability, stability, and profitability of a project, investment, or overall business. 
• Critical Thinking: This skill helps professionals consider complex questions regarding a company's financial health and determine the best solutions. 
• Risk Management: Financial analysts must know how to leverage research, identify potential risks, and design strategies to maintain future performance. 

Essential Financial Modeling and Forecasting Techniques

Financial analysts must have technical skills and know how to use financial modelling and forecasting techniques when conducting financial analysis. 

Here are a few of the top strategies these professionals can implement:

• Regression Analysis: Determines the relationship between the expected return of an asset and the market risk premium. 
• Sensitivity Analysis: Measures the effect of input variables on target variables. Professionals use this forecasting technique to support accurate risk management. 
• Three-Statement Model: This model combines the three core financial statements—the income statement, the balance sheet, and the cash flow statement. 
• Horizontal Analysis: Comparison of financial data from one accounting period (usually a recent year) to a base year (typically the year before). 

The Role of Software and Tools in Financial Analysis

Financial analysts must use software and tools to simplify processes, store sensitive information and automate tasks. 

These are a few standard software and tools used in financial analysis:

• QuickBooks: Accounting software for payroll processing, invoicing and reporting in small to medium-sized businesses. 
• Microsoft Excel: Versatile tool for financial analysis. Professionals can create various statements and record critical information. 
• Oracle Essbase: Enterprise-grade solution for financial performance management and business intelligence. 
• Tableau: Data visualisation software to help professionals identify trends and patterns. 
• Xero: Accounting software primarily focused on payroll and invoice processing for small businesses. 

Whether you study our bachelor’s degree programme or our master’s pathway, you can gain all the soft and practical skills you need to excel when finding a financial analysis job. 

Here is an overview of the financial analysis of the job market outlook and the top sectors that are hiring professionals.

Job Market Outlook and Industry Demand

Financial analysts in the UK are in growing demand.  On average, there are 32,000 openings for financial analysts annually – this figure is projected to stay relatively stable until 2031. 

Financial analysis is one of the best-paying jobs in finance, with professionals earning around £34,684 per year. Entry-level professionals can expect to make about £27,630, and mid-career financial analysts have an earning potential of £40,376. 

Financial analysts have promising career growth as these professionals assess a company's ability to make strategic economic decisions. As a result, financial analysts play a critical role in organisational development and helping businesses generate revenue. 

Top Sectors Hiring Financial Analysts

Because of how critical financial analysts are to businesses, they can secure jobs in many sectors. A few of these sectors include:

• Government: Professionals in this field help government agencies make sound economic choices. 
• Insurance: Companies in this sector rely on financial analysts for accurate risk management. 
• Investment: Firms and exchanges hire financial analysts to help them buy and sell stock strategically. 
• Banking: Whether major banking institutions or hometown banks, these organisations rely on financial analysts to evaluate risk for lending, liquidation, and similar services. 

Securing a job in financial analysis requires more than just technical skills – it's about how you present yourself and your expertise to potential employers. 

Professionals must develop an outstanding resume, be well-prepared for interviews and stay ahead of job alerts. 

Here is how to land a job in financial analysis after graduation. 

Building a Standout Resume and Cover Letter

Your resume and cover letter showcase all your skills, so it's critical to perfect them. Your resume and cover letter are a significant part of whether employers choose to hire you or not. However, in addition to listing your expertise, resumes and cover letters must always be professionally designed, neat, and well-structured.

To design a winning resume and cover letter for financial analysis jobs, you must:

• Emphasis on your practical experience and the financial models and techniques you've worked with.
• Present projects that you've worked on and organisations that you've worked with. Highlight how you've solved real-world financial problems.
• Showcase all your qualifications and certifications.

Ensure your resume has all these components to boost your chances of securing a job after graduation. Employers look for candidates with hands-on experience and all the skills they need to maintain a company's future performance. You should consider these aspects when crafting your resume and cover letter. 

Must-Know Interview Questions for Financial Analysts

Financial analysts typically undergo three interview rounds. The first is with an HR representative, and department managers lead the final two. Each interview will determine if you'll:

• Be a great fit for the company and integrate well with company culture.
• Deliver the technical skills required to complete tasks.
• Offer value to the business.

Between these interview stages, there are many questions interviewers can ask. Preparing for these questions and practising your interview answers is essential to increase your chances of securing a job. 

Here are some common financial analyst interview questions to expect:

• What is a cash flow statement?
• What is ratio analysis?
• How do you calculate the WACC?
• What is EBITDA?
• Why is quarterly forecasting important?
• What is EPS and its types?
• What is your greatest weakness?
• What is your greatest strength?

Of course, interviewers may ask more complex or specific questions about the job role. So, professionals must research the company and job description to determine and prepare for potential interview questions.

Best Platforms to Find Financial Analysis Jobs

Finding a financial analyst job is easier if you use the right platforms. These are some of the best sites to look for job openings:

• LinkedIn: This is a trusted platform for job seekers. Here, you can showcase your skills and experience and earn badges to verify your expertise. It's also simple to upload and share your resume, and you can network with professionals and companies in your industry. 
• Indeed: This job board is ideal if you want a simple solution to finding vacancies and sharing your resume. 
• eFinancialCareers: This platform advertises career opportunities in finance across North America, Asia-Pacific, the Middle East and Europe. It is designed for companies and job seekers. 
• Simply Hired: This platform makes finding jobs in your area straightforward. You can also upload your resume and share it with potential employers. 

Like most jobs nowadays, financial analysts can work as freelancers or full-time employees. The best option for you depends on your career goals, ideal working conditions and earning preference. Here are the pros and cons of working as a freelance financial analyst vs. a full-time employee.

Freelance Financial Analysis 

Freelance financial analysts often work remotely and on short-term projects. Once hired, these professionals complete tasks or projects for the client, and the contract concludes. Some freelancers are paid hourly or weekly, while others may get paid monthly—this is up to the freelancer and client agreement. 

Pros:

• Flexibility: Freelancers often choose their working hours, allowing them to control their schedules. This is ideal for professionals who want to travel while working or maintain a work-life balance. 
• Diverse Opportunities: As freelancers work on multiple projects, they have more opportunities to work with companies in varying sectors and broaden their understanding. 
• Tax Deductions: Freelance financial analysts can deduct business-related expenses, such as home office equipment and travel expenses. 

Cons:

• Income Instability: A significant drawback of freelancing for financial analysts is the lack of income stability. Because you'll work on short-term projects, planning your finances is challenging. 
• Self-Management: While this can benefit some, it's more commonly a setback for others. Self-management is complex, and professionals must know how to manage their time, tasks, and working conditions. 
• Work Fluctuations: Unfortunately, freelance work isn't always guaranteed, and finding clients can be challenging. Freelancers often have to set up new projects in advance to avoid spending time without work. 

Corporate Financial Analysis

Corporate financial analysis is ideal for professionals who want to commit to companies and work on long-term projects. These professionals are employed full-time until their employers decide to terminate their contracts. 

Pros:

• Income Stability: Full-time employees receive a set salary on a specific day every month, making it easier to manage your finances. 
• Structured Work: Professionals can benefit from structured working hours and a predictable workflow. 
• Employee Benefits: Companies offer valuable benefits to full-time employees, such as a retirement fund or medical aid. 

Cons:

• Monotonous Work: Some professionals may not enjoy the fact that corporate financial analysis is tedious and lacks diversity. 
• No Flexibility: Employees don't have any flexibility in their working hours or conditions. 
• Commuting: Depending on where they have to work, travelling to an office can be costly and inconvenient for some professionals.

Working as a freelance financial analyst or full-time employee has benefits and disadvantages. The best choice depends on what works for you and your preferences. 

Technological innovations, cyber security, and how companies manage digital assets influence financial analysis. Here are a few of the top trends shaping financial analysis career paths:

Digital Assets

Digital assets are a massive step forward in developing a borderless economy. They allow users 24/7 easy access to capital. These assets typically exist on distributed ledger technologies (DLTs) and blockchain, offering various use cases such as payments and investments. The trick is that regulatory frameworks must be established for the financial sector to leverage blockchain digital assets. Blockchain technology lacks these solutions, resulting in the fragmentation of financial transactions across different regions. 

Digital Trust

Trust is a pivotal aspect of finance and must evolve with finance technology. Self-custody systems allow users to manage their digital assets without much reliance on intermediaries. In addition, Self-sovereign identities (SSIs) give users complete control over their information. These solutions foster trust in individuals and financial institutions. Adopting trust frameworks enables firms to optimise customer experience and support transparent transactions. 

Generative Artificial Intelligence (AI)

Generative AI has transformed finance. This technology lets financial firms personalise their products and services, delivering in-depth insights into customer behaviour and purchasing patterns. Ultimately, this streamlines how businesses satisfy their customers, identify industry trends, and ensure their products and services remain competitive. 

Enhanced Open Banking

Open banking delivers faster, more secure transactions between customers, banks, and third-party providers. As a result, it is a massive evolution for financial institutions, allowing them to offer customers an improved payment solution. Businesses will, in turn, receive payments much quicker, making this an ideal option for both customers and finance firms. 

Get Started on Your Financial Analysis Career Today

LIS is a valuable stepping stone for students who want to start their careers in financial analysis. Rather than only providing students with the skills they need to progress in finance, LIS helps students gain critical skills in core areas, giving them a headstart in this industry. 

With so many job opportunities and growth in finance, there’s no better time to start your career than now. Ready to kickstart your financial analysis career? Contact LIS today.