How to become a financial analyst: degrees, skills and career steps

How to become a financial analyst: the path in brief

The usual route runs in five stages: earn a relevant undergraduate degree, ideally a 2:1 in a numerate subject; build your skills in finance, accounting and data analysis; gain experience through internships, a placement year or an apprenticeship; choose a specialisation such as capital markets, corporate finance or sustainable finance; and consider a professional qualification like the CFA or the IMC before applying for entry-level analyst roles.

Before you start: in the UK, the entry point is a bachelor's degree, usually a 2:1, rather than a master's. Graduate analysts typically earn between £30,000 and £45,000 a year, and the qualifications that strengthen a profile are the CFA, recognised worldwide, and the IMC, the UK entry-level benchmark approved by the Financial Conduct Authority.

What does a financial analyst do?

A financial analyst is the person who examines the financial data of a company or a market to guide investment decisions. They gather information, analyse it with financial models, then give a clear view: buy, hold or sell a security.

Core responsibilities

A financial analyst reads company accounts, builds forecasting models, values businesses using discounted cash flow or comparable multiples, and tracks the markets and sectors they cover. The work ends in a recommendation, set out in a written note and defended to the desk. Reporting and keeping clients or managers informed are part of the daily routine.

Who they work with

Analysts produce research for the people who make decisions: traders, portfolio managers, company directors and, on the advisory side, clients. The audience shapes the work. A note for an investment desk is shorter and faster than a valuation paper for a board reviewing an acquisition.

Types of financial analyst roles

The job changes with the setting, which is why the choice of specialisation matters.

On the sell side, in investment banks and brokers, the analyst produces research sold to investors, usually covering listed companies and sectors. This is equity research and market analysis. On the buy side, in asset managers and funds, the analysis serves the firm's own investment decisions and the performance of a portfolio. In a company, within a finance team, the analyst supports internal decisions, investment projects, and valuation, a role often labelled FP&A.

The credit and risk analyst is a close but separate job, focused on a borrower's ability to repay and on limiting losses. It draws on the same training and is a common first step into finance.

What skills do financial analysts need?

The job needs a solid technical base and good communication skills.

Technical skills

Financial analysis and accounting come first: reading a balance sheet and an income statement, measuring profitability, judging how a business is financed. Financial modelling, usually in Excel, valuation methods and forecasting follow. Employers increasingly expect data skills too, from SQL and Power BI to some Python, alongside market tools such as Bloomberg. Strong applied statistics and good financial English complete the set.

Professional skills

Accuracy and judgement matter, because a flawed analysis leads to a poor decision. The analyst also has to turn a complex file into a clear view, then present it well to people who are not specialists. Curiosity about the economy, composure under pressure and confident stakeholder management make the difference when employers hire.

What A-levels and degree do you need?

This is the central question. In the UK, the entry point is a degree, not a postgraduate qualification.

A-levels and choosing a degree

At sixth form, maths and economics are the most useful A-levels, and they keep the widest range of degrees open. Employers favour degrees in finance, economics, accounting, mathematics or statistics, though analytical graduates from other subjects are also considered. Most graduate schemes ask for a 2:1 or above, and some set a minimum number of UCAS points. For an undergraduate route taught in English, the Global BBA at SKEMA, a four-year bachelor's in management, offers a Corporate Finance specialisation and lists financial analyst among its career outcomes.

University, apprenticeship or graduate scheme

University is the common path, and a degree with a placement year gives a clear advantage when applying. Two other routes work well in the UK. A degree apprenticeship, such as the Investment Operations Specialist Level 4 or the Senior Investment and Commercial Banking Professional Level 7, lets you study while working for a bank or an investment firm. A graduate scheme in an investment bank or asset manager is the third option, and trainees usually have to pass an exam recognised by the Financial Conduct Authority.

When a master's degree is worth it

A master's is not required, but it helps if your first degree is not financial, or if you want to specialise before entering a competitive field such as capital markets. SKEMA's Masters of Science set out the specialisations available after a first degree, each taught in English.

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Which finance specialisation should you choose?

Three families structure the field, and each maps to a postgraduate route.

For capital markets and investment, choose a programme built around markets, asset management and investment. SKEMA's MSc Financial Markets & Investments prepares you directly for financial analyst, fund manager and asset manager roles, and includes a CFA preparation track on its Raleigh campus. The programme was ranked second in the world in the 2025 Financial Times Masters in Finance.

Corporate finance is about valuation, financing and investment decisions inside companies. The MSc Corporate Financial Management leads to financial analyst, credit analyst and risk analyst roles, with all of its 2023 graduates in work within six months.

Sustainable finance and fintech turn ESG analysis into a career in its own right. The MSc Sustainable Finance & Fintech prepares for ESG analysis and leads to the EFFAS Certified ESG Analyst qualification, through a partnership with the Société Française des Analystes Financiers.

Do you need the CFA? CFA, IMC and FCA explained

Beyond the degree, two qualifications shape the profession in the UK.

The CFA, or Chartered Financial Analyst, awarded by the CFA Institute, is the international benchmark. It has three exam levels, all demanding. The Level I pass rate sits around 41% on a ten-year average. Registration starts at about $1,140 per level, and most candidates spread the programme over several years. It is a strong asset for analysis and investment roles, and at SKEMA, the MSc Financial Markets & Investments includes a preparation track for it.

The IMC, the Investment Management Certificate from CFA UK, is the entry-level benchmark for the UK market. It demonstrates competence for regulatory purposes and is an FCA-approved qualification for managing investments. It has two units, takes around 244 hours of study and has no entry requirements, which makes it a practical first step.

The Financial Conduct Authority sets the regulatory framework. Trainees in market-facing roles usually have to pass an FCA-recognised exam, and the IMC is one of the qualifications that meets this standard. It is the UK equivalent of the professional certifications required elsewhere.

How much do financial analysts earn?

Pay rises quickly with experience, specialisation and location.

A graduate analyst typically earns between £30,000 and £45,000 a year, with London salaries around £32,000 to £40,000 and lower figures, roughly £28,000 to £33,000, elsewhere in the UK, plus bonuses. With experience, pay reaches £65,000 to £100,000, and senior analysts earn above £110,000, again before bonuses. London carries a clear premium.

Investment banking and asset management are among the better-paying settings. The bonus, sector expertise and qualifications such as the CFA push salaries higher, most of all in London.

Career progression and related roles

Financial analysis sits across the whole investment chain, which opens broad options. After a few years, an analyst can move into portfolio management, investment advice, risk management, leading a research team or a finance director role. Banks, asset managers, insurers, audit and advisory firms, corporate finance teams and rating agencies all hire analysts, so the skills travel well between sectors. Progression rests on technical command as much as on the ability to brief decision-makers.