Choosing a career in quantitative analysis

September 19, 2018

With the changing needs of global economies, today’s world of finance will be facing a considerable increase in risk. That’s why investment banks, hedge funds and private equity firms are always on the lookout for professionals like quantitative analysts who have the necessary skillsets to do so. Let’s look at the reasons why this career path might be a good choice today.

Quantitative analysts create and use complex mathematical models that allow companies to make decisions in risk management, investments, pricing and other areas. Other analysts choose to be experts in a specific area, like statistical arbitrage, derivative pricing, quantitative investment management, algorithmic trading, etc.

Responsibilities will differ according to the specifics of the company you work for, product focus and your level of expertise. But in general your tasks would be to:

This is by no means a full list and ‘soft’ skills like presenting and interpreting data to senior management, being a good team player and capable of managing projects successfully will also be high on a potential employer’s list.

If you arm yourself with a full set of strong analytical abilities and are prepared to keep learning along the way, you’ll find this a rewarding career. You will find the role demanding. The higher your expertise, the better your prospects. You might land an entry-level position in the field right after graduating with a bachelor’s degree. However, if you want to progress, you should consider getting a master’s degree or even a PhD, acquiring experience doing independent research and designing mathematical models.

Quantitative finance jobs are not only intellectually rewarding but also financially. Salaries tend to be high (into five digits for a highly-qualified professional, with a tendency to grow), with most available roles concentrated in the major financial centres of Paris, London, New York or Hong Kong.

Finally, if it happens that you’re willing to switch into a role which demands greater interaction with customers, from a role of quantitative analyst you can become an investment banker, consultant, auditor, trader and more. But coming from those roles, it’s much more difficult to get into quantitative finance.

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