As we speak, financial modelling jobs are becoming the new hot trend for industry job growth in global job markets. These jobs will increase by 58% in the next 5-years. This level of growth highlights not only the expanding horizon in finance, but also the opportunity for professionals eager to accelerate their careers. Financial modelling jobs offer you a very popular and in-demand role, and are also an opportunity to develop professionally. This blog will explore the potential of financial modelling jobs, the trend of financial modelling job growth, and how financial modelling jobs can help accelerate your career development. For those interested in financing or who are already in finance, understanding the obvious change in the financial modelling landscape could facilitate your career growth. Let’s explore this opportunity together, see its potential, and understand how it may help you pursue your ambitions in finance.
Using the Power of Financial Modelling to Shape Your Career
If you are in the finance industry, or considering a career in finance, you cannot ignore the growing importance of financial modelling. With more organisations valuing the predictive aspects of financial models in managerial decision-making, a career in financial modelling is growing in popularity and prestige.
Here are some of the reasons why a career in financial modelling could be right for you.
- Job Market Growth: A new report indicates that financial modelling jobs will increase by 58% over the next five years. With all of this growth, not only do financial modellers have increased job opportunities, but they will also likely see significant salary increases.
- Skills Transferability: A career in financial modelling also provides transferable skills. You’ll learn financial data analysis, in addition to building models that can be used in multiple industries and functions. Therefore, you will be useful in any sector.
- Strategic Influence: Financial modellers are critical for executing and shaping key parts of business strategy. Your financial models will allow organizations to make important decisions based on data and to use as a contingency for risk mitigation; leaving you with an expanded influence in the organization.
- Professional Development: Financial modelling jobs will allow you to keep learning and developing professionally. Overtime, financial markets will change, and in-turn modelling methodologies will shift, to keep your skills fresh.
To summarize, professional opportunities in financial modelling provide job security, transferable skills, strategic influence, and professional development. If you can master the financial modelling skillset, you have a go-to career paved in opportunity, rewards and satisfaction in the finance business.
Mastering the Financial Analysis Skillset
With the increasing complexity of business, it is no surprise that knowing how to read and understand financial statements is now considered a must-have skill for those pursuing financial modelling jobs. You need to develop the ability not only to read but to interpret the financial solvency of a company to pass the entry-level threshold.
What are financial statements: The first element of your financial analysis skills is knowing how to read the three financial statements: balance sheet, income statement, and cash flow statement. These documents offer an overview of a company’s financial health and forecasts for its future.
Budgeting and forecasting: Another essential skill involves creating budgets and forecasting future financial outcomes accurately. Budgeting and forecasting provide a business with a way to determine the future while making important decisions to provide financial security.
Financial software skills: As businesses now rely on financial software for a majority of their operating activities, having the skills with key pieces of financial software or programs like Microsoft Excel, QuickBooks and SAP can put you ahead of the competition when applying for jobs that involve financial modelling.
Financial report writing: Being able to write financial reports that are clear, concise and exhaustive is another important trait to possess, and this is especially true given that financial reports often help guide major decisions in a business and implications based on these decisions can be serious if the financial report is wrong or misunderstood.
All in all, if you build these financial analysis skills, you will give yourself a greater statistical chance of landing financial modelling jobs. You will also increase your personal marketability, while preparing yourself to take advantages of opportunities in a growing field.
Unleashing the Potential for Valuation Modelling
With the changing landscape of finance, it is projected that financial modelling jobs in the newer decade have the potential to rise a staggering 58% over the next five years! One of the predominant skills in financial modelling is valuation modelling, which is a comprehensive approach used to assess the financial value of an asset or a company.
Valuation modelling combines many techniques to assess the intrinsic value of a company or investment including; Discounted Cash Flow (DCF) Modeling: This approach projects the future cash flows that an investment will generate and discounts those to the present.
Comparable Company Analysis (CCA): This method assesses one company’s value against it’s peers in the same industry.
Precedent Transaction Analysis: This looks at past sales of similar businesses as part of the analysis.
Valuation modeling is one of the numerous financial modeling skillsets that is used across a range of jobs in finance, including, but not limited to, investment banking, equity research, and corporate finance because it is such a vital part of the decision making process when considering mergers, acquisitions, or investments.
| Skills Key to Valuation Modeling | Relevance |
|---|---|
| Financial Modeling | Important for analyzing a business’s financial health and viability |
| Business / Industry Knowledge | Important for meaningful comparable company analysis |
| Accounting Knowledge | Important for creating credible financial models |
Navigating the several complexities involved with any type of valuation modeling requires some combination of analytical thought, financial knowledge, and informed judgment. There is significant turnover within the finance landscape and as the finance landscape continues to change, finance professionals workforce equip with some combination of these executive skills and competencies will be leaders in their area.
Addressing the Increasing Need for Financial Modeling Skills in the Workplace
The evolution in the job market for financial professionals has flushed to the surface the increasing need for professionals to get jobs in financial modeling. As businesses struggle to navigate a complicated global economy, the demand for talented professionals to forecast financial outcomes, and make informed decisions and recommendations is at an all time high. Some primary drivers of this trend include:
- More frequent use of data: As a result of the digital revolution, many organisations now have access to larger volumes of data than ever before. This means businesses need finance professionals who can interpret data and provide insights.
- More emphasis on risk management: In an unpredictable economic environment, emphasis on risk management is significant. Financial modelling helps businesses identify potential risks and plan accordingly.
- Technology advancements: New industry-leading technological advancements and effective software to model finance has also contributed to demand for finance professionals with skills in financial modelling. New technology allows finance professionals to build more accurate and efficient financial models.
In fact, a recent report states that jobs related to financial modelling are going to grow a staggering 58% over the next 5 years. This expected growth opens doors for opportunities and advancement in the field. There are many opportunities to advance your career whether you are an experienced finance professional or a student preparing to enter the working world.
To summarize, financial modelling jobs are in high demand because of doing business in increasingly more-datadriven and risk-sensitive environments. By recognising the environment now and in the future, finance professionals can safely expect a great future in the ever-evolving industry of finance.
Navigating the Opportunities in the Changing World of Finance
Through the changing landscapes of the finance professional, there is expected to be greater demand for financial modelling jobs. Experts predict a growth of 58% over the next five years, meaning the future looks exciting!
But why the growth?
- Technology: The utilization of technology in existing finance roles is improving, creating more complicated and detailed financial models and developing a demand for financial modelling professionals.
- Strategy: Strategic decisions depend on financial modelling. Financial models help decision-makers assess risks for their businesses, determine investment strategies, and provide businesses with the insights they require to thrive in an evolving industry.
- Compliance: As various regulatory agencies continue to create and enforce stricter financial standards, businesses are utilizing financial modelling to demonstrate compliance. Due to this compliance work around modelling, financial modelling jobs are on the rise, particularly in the banking and finance sectors.
This is great news for individuals working towards a career in financial modelling. However, it is important, as this field continues to evolve, to develop one’s skills to keep up and understand future trends in business.
| Skills Necessary for Future Jobs in Financial Modelling |
|---|
| Advanced Excel Skills |
| Data Analysis & Interpretation |
| Understanding Financial Statements |
| Understanding Regulatory Compliance |
| Proficiency in Financial Modelling Software |
To summarize, there is an exciting future of work in financial modelling. Finance professionals and graduates alike should be guided to perfect their skills in preparation for the future of work in financial modelling. When it comes to finance, there isn’t anything more fundamental than financial modelling. This is one of the most critical capabilities involved in making any high-level decision, whether it be a decision about an investment strategy or value of an asset. If you are considering getting started in finance, or continuing your career in finance, the best financial modelling course offered by Imarticus Learning is a tremendous option. This course has been very carefully developed and it is industry-relevant, and our blog will deal with industry-relevant skills, and it provides great training in financial analysis. This financial modelling course is a great way to prepare for a difficult career in various financial modelling jobs. What makes the Imarticus course distinct is that it is practical – it combines theory and application so you will be prepared to apply that knowledge in real-world situations. Not only will the Imarticus Learning make you better at your job, but it will also provide you with tons of opportunities in the dynamic finance sector. Experience it for yourself to see why it is the best in its class.
Frequently Asked Questions
What are financial modelling jobs?
Financial modelling jobs involve creating mathematical models that predict or forecast the financial results of a company. Financial modelers rely on these models to understand historical performance, to execute a decision based on current financial performance, and to predict future financial performance. A financial modelling job typically require strong financial theoretical knowledge as background, excellent mathematics skills, and experience with financial modelling software.
Why are financial modelling jobs expected to grow by 58% over the next five years?
The growth of financial modelling jobs is anticipated for a number of reasons. To begin with, there is a growing awareness among businesses of the significance of data-driven decision making. Financial models are an organised way of dealing with large quantities of data, and of course, they can be very useful for businesses. Secondly, the continued development of financial technology also leads to growing opportunities in financial modelling. Financial modelling is a niche skill that continues to gain traction, and as financial technology also gets ever more nuanced and sophisticated, the need for people who can create and read financial models will only continue to grow.
How does the growth of financial modelling jobs increase my career opportunities?
The anticipated increase in financial modelling jobs means there are lots of opportunities. If you already work in finance, learning financial modelling skills can open up new career paths and career advancement. If you are looking to switch careers, financial modelling may be a good way into a rewarding and high-demand career. The skills you will build as you learn financial modelling – data analysis, problem solving, and strategic level thinking, are very transferable, and there is a very high demand for those skills across a range of industries.
What skills do I need for financial modelling jobs?
Financial modelling jobs usually require a solid understanding of finance, mathematics, and statistics. The specific technical software used in the financial modelling process is often critical, and in many cases, knowledge of Excel is essential. Additionally, professionals in the area of financial modelling should have superior analytic talent, and the ability to comprehend complex datasets in order to reach conclusions. Communication skills are also essential, as you won’t be writing for a technical audience and you will be required to explain your findings to colleagues and stakeholders who may not have any financial knowledge.
What is the salary of financial modelling jobs?
Salaries for financial modelling jobs can vary tremendously, depending on the level of experience, the complexity of the role, and the industry. However, since financial modelling jobs require a unique and highly developed set of skills, and financial modelling jobs are becoming more sought after, they tend to be well above the average salaries for other finance jobs. According to multiple job sites, the average salary in the UK for a financial modeller is between £50,000 – £70,000 per annum.