Difference between Financial Analyst and Business Analyst

With businesses relying on data-backed decisions and embracing data analysis into their everyday operations, aspirants have been interested in getting into a business analysis role for promising career aspects. In reality, financial analysts and business analysts are a closed part of any business’ ecosystem as they both are responsible for analyzing and optimizing technological systems for maximum productivity. That said, both of these roles have a well-defined scope and immense possibilities in the market currently because of the potential of data analysis and how it can work in setting the right course for a business.

The Emergence of Analysis:

Today, data analysis is the driving force behind many industries, and the financial sector is one such domain that has remained hugely benefited from recent technological developments. In the last five years, the finance industry has seen piling data volumes generated from consumers, without any idea of putting it to good use. Be it the volume, velocity, or variety, the available data needs to be analyzed by business and financial analysts, respectively, for interpreting helpful insights and forecasting trends. The moot objective of calling out analysts lies in introspecting the market and helping clients make the right investment in the correct period for higher ROI. The business models, the study strategy, technical systems, and processes are all streamlined in any business based on the research provided by business analysts collectively by working through and sorting data in the least time.

Real-time analytics has helped companies draw inferences, observe trend patterns in the shortest period, and make predictions beforehand to accomplish their set targets. Over time, the analytics would make decision-makers have a micro-level and high-level look into their enterprise, thus tapping into regions that weren’t touched before. Such deep probing via data can make companies self-sufficient and value their customers even more (since they’re the source of this valuable data) and be better-equipped at making tactical decisions.

Business Analyst Role

A business analyst is a professional responsible for the everyday functioning of a business. With the help of data-backed insights, business analysts are the architects of an enterprise, taking it to function in its optimal scale. According to Payscale, they can have an average salary of $59,468 per annum and are projected to grow at 7% in the coming years. Apart from getting involved in the day-to-day operations of a business, they are also responsible for assisting managers and directors with their new and innovative ideas and problem-solving skills necessary for the company. The overall role of a Business Analyst and the perks associated with it has led to a huge increase in individuals getting upskilled by taking up a Business Analyst Certification Training to advance their career.

Their job responsibilities include:

  • Understanding the need for business and figuring out techniques to maximize productivity
  • Conducting extensive research into the market value of an organization
  • Brainstorming effective operational strategies for the effective running of the organization
  • Making creative presentations and insights for decision-makers.
  • Constant review and processes management to enforce quality work

Financial Analyst Role

On the other hand, a financial analyst is responsible for researching, analyzing, and deriving key accounting insights from customer data, mainly rooted to finance. The financial analysts curate periodic financial reports to observe the company’s economic growth and look after the selling and buying of industrial assets and liabilities. They are also known for modeling the capital structure and budgeting of companies and are more specialists in nature than business analysts. The industry is currently powered by the high-end technology of big data analytics, which can help resolve financial emergencies in no time since it can predict any significant setback. They are individuals who are also known for weighing out risks involved in the investment opportunities and provide counsel on the right decision. Their job responsibilities include:

  • Determining business valuedoe
  • Interacting with clients and helping them to identify right investment opportunities
  • Curating financial reports and models
  • Constantly access market conditions
  • Performance check on stocks, bonds for clients

According to BLS, on an average, the job market would open up to as much as 32,200 jobs for financial analysts in between the years of 2016-2026, with the top industries hiring being securities, technical services, and credit intermediation.

Key Differences

Financial Analysts Business Analysts
Education Required: Bachelors’ (minimum) in economic statistics, finance management, accounting and related tools. A masters’ degree would be preferred in the above niche. Education Required: Bachelors in business management, accounting and IT tools. Companies also prefer a masters’ degree in the above niche for an ideal candidate.
Skills required: Adept in juggling number, data input and recording, planning and statement analysis Skills required: Planning strategizing, execution and work on qualitative data
Average Salary: US$ 53,000 to US$ 66,000 Average Salary: US$ 54,750 to US$ 69,000
Projected Growth: 6% for financial analyst Projected Growth: 14% for management analyst

Conclusion

The career goals of business analysts and financial analysts have a lot in common. However, the major difference lies in the way that they both work together in symbiosis in an organization. Whether it’s working hours, income, or even a favorable job market, both the roles have similar undertones and possibilities in the future. In choosing a suitable position, it all comes down to the deciding factor: what is the domain in which you feel more confident? The vertical you’d choose should come from your personal strength and ambitions since both of the roles have a promising future ahead. Good luck!

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