Are you interested in analytics, statistics and mathematics, as well as finance and the inner workings of stocks, trades and investing? If this sounds intriguing, you might want to consider a career in quantitative analytics. In this guide, we’ll explore popular careers in this growing field, the educational background needed for success and methods to help you determine whether a quantitative career is right for you.
What Is Quantitative Analytics?
Quantitative analytics is a method that uses mathematical and statistical models to analyze financial data to understand trends and make informed decisions about financial and investment matters. It’s also a way of collecting information to understand how a business is performing.
As explained by the Corporate Finance Institute, businesses historically relied on experience and intuition for decision-making. However, with today’s abundance of data and advanced technology, quantitative analytics offers a far more accurate approach to making business decisions.
Educational Background and Certifications Needed to Work in the Field
To work in this area, you’ll need a strong background in math, statistics, computer science and related fields. In many cases, a master’s degree is strongly preferred or required, either in quantitative finance, applied mathematics, statistics or data science. Some positions may even require a PhD.
Relevant certifications are also important as they can provide additional experience and increase your earning potential. Popular ones related to quantitative analytics include Chartered Financial Analyst, Financial Risk Manager Certification and Certified Financial Data Professional. You can also supplement your education with data science bootcamps and programming and software certifications.
Skills Required for Success
It shouldn’t be a surprise that you’ll need strong math and computer skills, but there’s more to quantitative analytics than just crunching the numbers. To start, you’ll also need a solid foundation in finance, economics or engineering. Proficiency in programming languages, linear algebra, risk management, financial reporting, calculus and financial modeling can also be extremely beneficial.
Beyond the technical skills, it’s important to think critically, solve problems effectively and communicate complex ideas clearly.
Types of Careers in Quantitative Analytics
Professionals in quantitative analytics are often called quantitative analysts or “quants.” They typically work at a variety of financial institutions, including commercial banks, investment banks, hedge funds, insurance companies and wealth management firms.
Other types of careers in the field include:
- Data scientist
- Risk analyst
- Actuary
- Quantitative researcher
- Portfolio manager
- Operations research analyst
- Market research analyst
- Quantitative developer
8 Ways to Access Your Interest in Quantitative Analytics Work
Are you ready to see if a career in quantitative analytics is right for you? Here are some recommendations:
- Enroll in an online course.
Consider an introductory course in data science or statistics. Platforms such as Coursera, edX and Khan Academy offer free or low-cost options, which can help you figure out if this is the right career move for you without a large financial commitment.
- Explore data analytics tools.
Take some time to become familiar with popular data analytics tools such as Tableau, Power BI, Apache Spark, TensorFlow, R, Python and SAS. This can help you determine whether you’re interested in hands-on work with large datasets.
- Take a closer look at your hobbies.
Are you someone who thoroughly enjoys puzzles, logic games and online math challenges? Are you addicted to Sudoku, problem-solving and brain teasers? If so, that’s a good sign, as many people who work in quantitative analytics enjoy these kinds of challenges.
- Participate in a hackathon.
A hackathon is an event where computer programmers come together to solve a problem or complete a particular large project. These in-person or virtual events are often hosted by technology companies, colleges and universities or healthcare institutions.
- Attend webinars and workshops.
Similar to online courses, webinars and workshops offer low-cost, low-commitment ways to learn more about quantitative analytics. These events often feature expert speakers and practical demonstrations, which can help you learn more about quantitative analytical topics.
- Conduct informational interviews with professionals in the field.
An information interview is a low-stakes conversation with someone working in a particular field or job that you’re interested in. The Muse, a popular career resource hub, describes it as part networking opportunity, part info session and part job interview. If you don’t know any professionals in the field, consider connecting with people on LinkedIn, online forums and discussion groups. These steps can help you build a network that may lead to informational interviews in the future.
- Take a career assessment.
Don’t underestimate the value of a career assessment, as it can help narrow down your areas of interest. Additionally, staffing and recruitment agencies often provide more in-depth assessments that can offer further insights.
- Read books and articles on the topic.
Explore topics such as data analytics, financial modeling or statistical methods through books and magazine articles. This can provide a deeper understanding of the field and further help you determine if it’s a career area worth pursuing.
Evaluating a career in quantitative analytics starts by assessing your own interest and skills. At the end of the day, these steps can help you make an informed decision about whether this field aligns with your personal and professional goals.