Financial Analyst vs. Data Analyst – Differences/Jobs

If you happen to be a very good student with numbers and have great problem-solving skills, a career as a financial analyst or data analyst would be the most attractive option for you.

These two are well-paying careers and have plenty of jobs as companies look to make the most out of the data they have to make products, cut costs, and improve operational efficiency. The two, however, are slightly different, and you must understand what each entails before you can consider pursuing either of them.

Following is a detailed look at each career option and what kind of personality is best suited to each. You will find this to be quite useful for guiding your decisions and as you consider a career path.

Financial Analyst

A financial analyst needs to look at financial data to enable their employers to make the best decisions when it pertains to investments. They work mostly with financial information to determine financial patterns and guide investment decisions.

For instance, a business will need input from a financial analyst to determine a ripe time to sell or buy securities or even valuate their businesses when they need to sell them.

Responsibilities

Based on the current trends, the financial analyst will review decisions made by a business and provide better options for investment. Making financial forecasts is also another role of the financial analyst and is useful for enabling businesses to project their growth and invest better.

Qualification

A degree in Finance is recommended for data analysis in finance, but Economics and Mathematics are also as useful for this role.

Salary

When it comes to getting paid, the average yearly salary for a financial analyst is between $84,300 and $115,000.

Job Opportunities

There is also growing demand for financial analysts following a surging number of new regulations in the market and greater complexity as huge changes occur in the financial world.

Large firms that have a lot of assets that need to be managed are also required to make better decisions in terms of investments and will usually hire a financial analyst. The financial analyst should be a good communicator and good at teamwork.

Ideal Candidates

Strong skills in interacting with people and leadership ability will also prove useful as the analyst will be expected to prepare reports for various departments precisely. The outlook for this job projects it at a growth rate of 11%. However, competition is still expected for any new positions available since more people are looking for financial analyst jobs than positions to be filled.

Data Analyst

In comparison, data analysts play a similar role, with the only difference being the kind of data they work with. The data analyst may analyze data that is not related to investing decisions.

Responsibilities

Their main role is to increase operational efficiency in a company by studying numbers related to sales, wages, transportation costs, and advertising effectiveness. Making better business decisions is made possible with enough numerical data to work with.

Data analysts don't always have to be good at finances, but they need to have the latest knowledge of investing practices. Additionally, they must have a firm foundation in computer skills. As such, information technology is a must for data analysts, and they will even need to learn a programming language or two.

A data analyst is responsible for spotting trends in huge data sets. They have to be familiar with big data and how to use the information to guide decisions. For instance, targeting various customer segments requires that the company understands the demographics and their preferences.

Hiring, advertising, and expanding into new markets are also major steps a business takes and will require accurate data to ensure that the company invests its resources better. With accurate data, a company can direct itself better. It is upon the data analyst to obtain the data, analyze it, and come up with conclusions that can be used to make better decisions.

Industry Demand for Data Analysis Skills

Data analyst jobs are not tied to any particular industry, and they are in huge demand all over the market. Companies that have realized the value and potential of data are starting to hire data analysts, and the ROI for the companies that hire them is above average.

Any students that are computer-savvy and good at communication should consider data analysis for their career. It is a popular career choice and has reasonable hours. The growing trend of big data makes this role even more attractive as more companies realize the importance of data to keep themselves sustainable and profitable.

Salary

On average, a data analyst can earn between $54,070 to $66,000 annually. It would help if you took on this job, and majors in Economics, Statistics, and Finance are the most suited for this job. Knowledge of computers is also a requirement, and one should be able to understand computer programs beyond basic input and output.

Useful Skills

The data analyst is also required to work with big data, which usually works with cloud solutions. As such, being certified in cloud computing can be another advantage for someone that wants to be a data analyst. It would help if you also were a great problem-solver and good at some of the common programming languages.

You will, at times, have to write basic programs to interface with the huge applications that you will be used to work with big data. Implementing these solutions will be much easier with knowledge of programming languages, and you will be more efficient at your work.

Key Takeaways

Both a financial analyst and a data analyst are great careers to pursue, and they also have great income potential. They have reasonable work hours of between 40-45 hours per week. A financial analyst is more tied in with the investment markets, while a data analyst can work with varied kinds of data.

If you are interested in investment and always keen on Wall Street, being a financial analyst is the best option for you. If you enjoy working with computers in addition to playing with numbers, a data analyst position will be ideally suited for you. You will get to enjoy working with big data and glean useful insights from data to steer companies in the right direction.