4 Reasons Why You Should Become a Quantitative Analyst

This article is sponsored by EMLYON Business School.

While finance seeks to meet the needs of today’s globalized modern economies, it must also face a considerable increase in risk. In order to conduct activities in this complex and changing environment, investment banks, hedge funds and private equity firms are always on the lookout for professionals able to identify profitable investment opportunities and manage risk. Quantitative analysts have the necessary skillset to do so.

What is a quantitative analyst?

A quantitative analyst or “quant” is a specialist who applies mathematical and statistical methods to financial and risk management problems. S/he develops and implements complex models used by firms to make financial and business decisions about issues such as investments, pricing and so on.

To apply for quantitative analyst jobs, you will need:

• Strong abilities in mathematics and statistics
• Solid skills in data mining and data analysis
• Extensive financial knowledge
• Programming skills

Drawing on these skills, you will be able to transform raw data into smart business strategies.

The job description didn’t scare you off? So, you might be up for the challenge of becoming a quantitative analyst! Here are four reasons why you should definitely follow this career path…

1. Demand for quantitative analysts has grown…

The financial sector is characterized by constant change and innovation. Over the past few years, securities have become more and more complex. Specialists who are able to understand the mathematical models behind security pricings to generate profits and reduce risks are highly valued in the market. The growth of hedge funds and automated trading systems is another trend that has positively impacted on demand for quants.

2. …And  demand will certainly continue to grow

The 2008 crisis exposed some of the limitations of financial systems. To reduce risk and prevent future crises, policy-makers have implemented financial reforms. Regulatory authorities are now requiring unprecedented risk transparency reporting, and investors are demanding better risk infrastructures to protect their investments. Since the crisis, the risk management industry has been experiencing dramatic growth and it will continue to grow to meet increased regulatory standards. This represents a real opportunity for quants wishing to pursue a career in this field of expertise.

3. Quantitative analyst jobs are highly stimulating… 

Having a career as a quantitative analyst is intellectually challenging, as an important part of your role is to solve complex problems while under pressure. Working in quantitative analysis involves research, the development and implementation of mathematical models, data analysis, general financial knowledge, and many other elements that make this job very stimulating. You need to be able to thrive in an environment with little supervision and under considerable pressure. Quantitative analyst jobs are highly competitive and demanding, the hours are long – but unlike many other jobs, success in this field is based on merit, dedication and knowledge rather than networking or politics.

4. …And this career path is financially rewarding too

Quantitative analyst jobs are rewarding both intellectually and financially. Salaries in the financial sector tend to be very high. Due to the challenging nature of the work and the skills required to succeed in this kind of position, quantitative analysts are generally very well compensated, especially if they work for a hedge fund.                Moreover, quantitative analyst jobs are mostly found in major financial centers such as New York, Hong Kong, London and Paris, where average salaries are higher than in secondary cities. For example, the average pay for a quantitative analyst is £61,828 per year in London (England) and $102,000 in New York (US)*.

Is becoming a quantitative analyst your dream?     

Gain the scientific, technical and financial skillset to start your dream career in quantitative analysis with EMLYON Business School’s Specialised Programme in Quantitative Finance. This 12-month full-time program, delivered exclusively in English by one of Europe’s top business schools, has been developed to help graduates with a strong background in mathematics, computer science, physics and similar areas of expertise, who want to launch a career in quantitative finance.

This program is based on three key areas: knowledge of the markets and their products, knowledge of the appropriate computing techniques, and knowledge of the relevant quantitative methods for this field.

From September 2016 onwards, the Specialised Programme in Quantitative Finance will take place in Paris, one Europe’s leading financial centers. After a semester of courses given by permanent professors from EMLYON Business School, international lecturers and highly ranked professionals from the world of finance, you will complete a six-month internship, in France or abroad, to put your academic knowledge to the test, and acquire tangible experience within the industry.

“Following the Specialised Programme in Quantitative Finance, I was accepted for a trainee position as assistant trader at Crédit Agricole CIB in Paris, and now I am carrying out a V.I.E (Volontariat International en Entreprise) as a market risk analyst for BNP Paribas in Tokyo. This would have been impossible for me without the Specialised Programme in Quantitative Finance.” – Pierre Maret, Market Risk Analyst – BNP Paribas, Tokyo (Japan)