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Day: September 18, 2020

What’s the Difference Between an Equity Analyst, Financial Analyst, and Financial Advisor

Posted on by Imarticus Learning

The demand for analysts is growing more than ever nowadays because a lot of firms/companies are realizing the importance of data analysis. Modern tools and technologies are also making analysis easier. There are different types of analysts like equity analysts, budget analysts, Financial analysts, etc. All have various specified job roles. In the field of finance, there are many professionals, let us see the difference between an equity analyst, Financial analyst, and a financial advisor by comparing their job descriptions & roles.

Equity Analyst

An equity analyst can be hired by an investment bank, brokerage firms, money managing firms, etc. Their job is to manage and analyse stock portfolios in such a way that it results in profit. Equity analysts also analyse and build financial models. Their research helps in stock recommendations to their clients. They do market research by reading news, making predictions, talking to clients, etc. They recommend their clients about selling, buying, or holding equity.

They are well aware of the market conditions and know when the right time to do make a financial decision is. There are two types of equity analysts that are Buy-side & Sell-side analysts. Buy-side equity analysts work with mutual fund firms, financial advisory firms, etc. and help in researching portfolios and making recommendations on whether to buy or sell equity. Sell-side equity analysts work with big investment firms/banks and try to find potential profit opportunities.

Financial analyst

A Financial analyst is also hired by investment banks, big firms, etc. and are responsible for assisting their clients in making better financial decisions. They are not fully involved in portfolio management like equity analysts, they have to analyse and build financial strategies. They make sure that any financial decision results in the growth of the business. Risk identification & management is also the job of a financial analyst where he/she tries to minimise the financial vulnerability of any particular financial decision.

Data analysis is a must required skill in a financial analyst and he/she should also be able to communicate the financial strategies to his/her co-workers/superiors. A Financial analyst is an expert in reading and analysing financial statements and can also perform budget analysis. However, some firms hire analysts only for budget analysis purpose but it can be done by a Financial analyst too. Financial forecasting is also done by a Financial analyst where he/she predicts trends and opportunities.

Financial Advisor

A financial advisor can work as a freelancer or for any firm/company. A financial advisor helps his/her clients by assisting them with investment opportunities, selling, or buying resources. They are well informed about the market condition and current opportunities in the market. One does not need to have excellent numerology & mathematics skills as compared to equity analysts and Financial analysts. A financial advisor should be good with people and good in analysing market trends.

A financial advisor has good communication skills and he understands the client’s needs and then does market research based on his/her client’s needs. A client who doesn’t know about the financial rules & regulations seeks help from a financial advisor who makes sure that all the rules & regulations are followed. The working culture of a financial advisor is also very good and one can earn a lot in this sector.

Conclusion

A lot of companies are hiring analysts for different roles because of the emergence of new-age technologies & tools which are making analytics easier and more accurate. You can learn about the skills required in these sectors by taking up a financial analyst course or certification courses available on the internet. This was all about the difference between an equity analyst, a Financial analyst, and a financial advisor.

Also Read: Difference Between Financial Analyst & Business Analyst

What are the Career Path and Qualifications for Credit Risk Analyst?

Posted on by Imarticus Learning

What is a Credit Risk Analysis?

Credit Risk, as the name suggests, is the study or analysis that is done with the motive of ascertaining the creditworthiness of a borrower. The main aim of this analysis is to determine the total amount of risk that the lender is exposed to.

The task of credit risk analysis is taken over by a specialized credit risk analyst in any of the lending institutions like lending houses, commercial banks or other financial institutions.
Generally, a lender has to deal with two types of credit risks namely the concentration risk and the institutional risk. The former involves the risk of money lent depending upon the performance of a particular sector or industry. To quote it as an example, a lender who has lent out money to various manufacturers like the cement manufacturer and the brick company must be receptive to risks in times of any shocks to the construction industry. The latter deals with risks involved with the functioning of an institution acting as the supervisor of the contract. It can be any legal entity.

Role of a Credit Risk Analyst

Apart from the basic role of analysing the financial statements of clients, a credit risk analyst has the following roles and responsibilities.

  1. Recommendations: After assessing the financial data of a client, it is the role of credit risk analysts to recommend the client to be lent out money based on the overall assessment conducted.
  2. Staying updated: Dealing with a variety of data, an analyst needs to stay updated about all the present-day changes and upgradations in the working pattern.
  3. Being observant: A credit risk analyst is required to be observant while assessing the financial data and must have a keen eye to figure out discrepancies or falsies in the information.
  4. Systematic functioning: Being systematic is important in this field of work. Maintaining data of past and present borrowers is important.

Qualification Required for Being a Credit Risk Analyst

For being a credit risk analyst, an associate degree is required in any field of studies like accounts, finance or economics. There may be fewer chances of the job options available just after an associate degree as different positions require a different educational qualification. Some positions in the same field may seek new-comers with a minimum of an under graduation degree in finance, accountancy or economics.

If you wish to work your way up in the same field, a master’s degree in business administration may be mandatory.
Although there isn’t any specific certification as a lawyer or a chartered accountant, after gaining a three-year experience in the same field of work, the Risk Management Association can provide you with a Credit Risk Certification (CRC) that can be a proof of your continuous experience in this particular field.

Along with this, an aspirant must possess comprehensive knowledge of financial terms, mathematical formulas and accounting ratios with a keen eye to decipher the discrepancies in the data. Being adroit in applications like MS office in addition to technical know-how is significant. For a streamlined banking and credit underwriting career, you should look up at the banking and credit underwriting course provided by Imarticus learning. Imarticus provides you with a detailed and professional insight about this field.

Credit Risk Analyst as a Career

Beginning from the basic level of job in this field with a basic level of qualification, one can be hired for the position of a junior analyst. A junior analyst has to go through the records and documents related to personal and consumer credit and analyse the risks. Candidates with an associate degree along with some experience can be recruited for such positions.
If you want to move up the hierarchy, a university degree is paramount. Getting a degree from a decent university will help you in getting positions involving business credit analysis. With considerable experience and good conduct, you can work in higher positions. Once you gain expertise, being a senior level analyst is not a far cry. Senior-level analysts generally have a team of junior analysts working under them. This role comes with great responsibilities and a knack for healthy supervision and coordination.

Higher-level analysts further get promoted to different positions in financial management which may involve overseeing departmental performances or making credit decisions.

Also Read: What is Credit Risk Analysis and Why It is Important

What Does It Take To Be A Good Data Scientist?

Posted on by Imarticus Learning

What does a data scientist do?

The importance and applications of data science have grown exponentially over the past decade. Data science is still in its nascent stage and there’s a whole lot to be identified about this discipline. Businesses have started implanting strategic decision-making tools that leverage data science.

Data helps businesses by providing them with hidden insights and helps them predict the future outcome of their decision. This helps organizations to make a better business decision.

Let’s delve deeper into what these data scientists do and how it helps the organizations.

  • Finding a solution to business problems

Data ScienceOne of the most basic and key responsibilities of data scientists in an organization is to identify existing challenges and problems that a business is facing and finding solutions to remedy the situation. This might seem like a generic responsibility of every important professional but the main difference here is that data scientists use tons of relevant data to find the problem.

They try to come up with solutions after properly assessing the situation using various analytical tools that provide them with useful insights. They leverage statistical analysis, data visualization and mining techniques to provide effective solutions.

  • Find out relevant data using complex research

Data Science CareerThe 21st Century businesses are complex than ever, there are various factors that determine the fate of an organization. With the number of complexities that exist, it’s very difficult to figure out what impacts your business and how it does that.

Data scientists simplify this for organizations by studying all variables affecting a business. They use complex research work to identify the variables that have a maximum impact over the business and which are highly relevant.

  • Identify patterns and trends

Another important work of a data scientist that helps businesses is to identify patterns and trends. Data scientists use sophisticated data analysis techniques to find trends and patterns from the data sets at hand. These data sets are generally historical records of the organization. It helps them to identify the existing patterns and trends which is used to make predictions regarding the future movement of the variables.

How to become a data scientist?

Data Science CourseData science is one of the most in-demand skills in the industry and given the wide range of applications that it has, the demand for a data science professional will continue to rise in the future. One of the most common questions in the minds of data science aspirants is how to become a data scientist? There is no specific answer to this particular question. It depends on what stage of your career you are at and the skillset that you have.

A data science course by reputed institutions such as Imarticus Learning guarantees placement with top-notch firms in the industry in addition to providing relevant knowledge and skills. It also helps you provide guidance from the industry experts who are highly experienced in this domain.

Let’s delve deeper into some of the most prominent skills for data scientists that you should hone if you are planning to opt for a career in this field.

Analytical skills

One of the key skills that are required in this profession and that forms the base of all your work is your analytical skills. One should have an analytical mindset and should be able to identify trends and patterns from a big chunk of data. You should be able to assess a situation from a different perspective to reach a successful conclusion. One should be trained to work with software like Python and R and should be equipped enough to handle large volumes of data.

Problem-solving skills

Another important skill that you need to work on is your problem-solving skills. You need to use data to figure out challenges that exist in the business. After you have figured out the problems you will have to provide a solution using data analytics tools that will help the business to achieve its goals and objectives.