Quantitative analysts, or “quants,” are often hailed as the “the rocket scientists of Wall Street.” Their expertise in mathematics, finance and technology is highly sought after, leading to lucrative career opportunities.
If you’re eager to dive into an exciting field that blends your passion for numbers and tech, keep reading.
What Is a Quantitative Analyst?
Quantitative analysts are professionals who use statistical methods and mathematical knowledge to assess and manage financial and risk management problems. Quants are in particularly high demand in the world of investing and securities trading because of their ability to develop valuable insights intended to give their employers a competitive edge.
What Does a Quantitative Analyst Do?
A quantitative analyst designs and applies mathematical models to determine the pricing of assets like derivatives, stocks and bonds. They also construct risk management models to evaluate and reduce financial risks, which in turn help businesses and organizations make strategic business decisions.
Often their core responsibilities revolve around using advanced quantitative methods to scope out opportunities and evaluate risk. The work of a quantitative analyst is nearly always connected to quantitative research.
Quantitative Analyst Career Outlook
Quantitative analysts are in especially high demand in the trading world. According to the U.S. Bureau of Labor Statistics, overall employment for financial analyst jobs — which includes quants — is expected to grow 8% between 2022 and 2032, adding approximately 27,400 openings each year, on average, over the decade. While many of these positions will replace those who retire or leave the workforce, the career outlook is still higher than the average for all other occupations.
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How Much Does a Quantitative Analyst Make?
Six-figure salaries are the norm for quantitative analysts. While figures tend to vary widely (and estimates from employment websites are often updated in real time), reports of $100,000+ salaries are consistent across the board.
The U.S. Bureau of Labor Statistics reports the following average salaries for financial and investment analysts by sector:
- Securities, commodity contracts and other financial investments and related activities — $139,750
- Investment pools and funds – $146,640
Additional examples of quantitative analyst salaries include:
How to Become a Quantitative Analyst
Becoming a quantitative analyst involves a combination of education, skills and experience. If you’re interested in this career path, here’s a step-by-step guide to help you get started.
- Obtain a bachelor’s degree in statistics, mathematics, economics, finance, computer science or a related field. Many quants have a master’s or Ph.D.; advanced degrees in data science, applied mathematics, mathematical finance, probability and statistics and financial engineering are highly beneficial.
- Acquire and develop relevant skills such as an understanding of statistical models and advanced mathematics, programming languages and proficiency with tools and libraries used in data analysis.
- Gain financial acumen and practical experience. Since the majority of quantitative analyst positions are in the finance, banking and investment sectors, it’s important to understand the ins and outs of financial markets and investments. Internships at investment banks, hedge funds or financial technology companies can provide crucial knowledge and hands-on experience.
- Obtain relevant certifications, such as Chartered Financial Analyst (CFA) or the Certificate in Quantitative Finance.
- Harness the power of networking by joining professional organizations such as the International Association for Quantitative Finance and attending conferences and workshops.
- Look for entry-level roles such as a data analyst, researcher or junior quantitative analyst.
- Learn and stay informed about the latest advancements in the field. As you gain experience, seek out advanced roles such as a quantitative analyst, quantitative strategist or portfolio manager.
Companies Hiring Quantitative Analysts
Quants are employed by a broad spectrum of financial industry organizations, including securities firms, commercial banks, investment banks, wealth management firms and hedge funds. But it is possible to find quantitative analyst positions in other sectors and industries such as insurance, accounting, management consulting and entertainment.
A recent LinkedIn search provides a look at some of the top companies and organizations seeking quantitative analysts (and related positions):
Finance, banking and investments
- American Century Investments
- U.S. Bank
- Brighthouse Financial
- Northwest Bank
- JPMorganChase
- Northwestern Mutual
- Freddie Mac
- Citi
- Morgan Stanley
- Fidelity Investments
- Goldman Sachs
Health care
- Oregon Health & Science University
- Beth Israel Lahey Clinic
- American Heart Association
- St. Jude Children’s Research Hospital
- Humana
Social media, retail, entertainment and sports
- PGA Tour
- Fan Duel
- Genius Sports
- TikTok
- Walmart
- SiriusXM
Utilities
- San Diego Community Power
- NextEra Energy, Inc.
- Evergy
Quantitative Analyst Hard Skills
Quantitative analysts need specific technical abilities in order to succeed. Essential skills include a comprehensive understanding of mathematics and statistics, including calculus, probability and statistics and knowledge of programming languages, such as Python, R and C++. They must also understand data analysis, statistical software, big data technologies and different types of simulation and modeling techniques. Since most quants work in finance, an understanding of the industry is often preferred, if not required.
Quantitative Analyst Soft Skills
As in many higher-level analyst and data science-related jobs, well-rounded soft skills are also essential, with many job listings emphasizing excellent written and verbal communication skills. This is because, in addition to generating high-value work products, analysts must be skilled at documenting and presenting their findings to others within their organization.
Desired soft skills for quantitative analysts include:
- Teamwork and collaboration
- Problem solving
- Research proficiency
- Leadership capabilities
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Paths to Become a Quantitative Analyst
There is some non-degree-oriented training you can do to enhance your chances for career success, but most quantitative analyst jobs require a master’s degree, and in some cases, a doctorate.
If you elect not to pursue some type of higher education, you can gain knowledge and technical skills through online courses and bootcamps, as well as by obtaining industry-recognized certifications. Choose programs specifically geared toward programming, data analysis and machine learning. Additionally, consider consulting or freelancing to gain practical experience, and participate in open-source projects related to financial analysis.
Regardless of whether you choose to learn on your own or apply to a master’s degree program, it’s important to network, attend industry events and engage in relevant forums and online discussions to stay on top of trends in the field.
Quantitative Analyst vs. Data Scientist
Both roles involve analyzing large amounts of data to extract meaningful insights, but one of the biggest differences is that data scientists work in a variety of industries — including healthcare, education, technology, marketing and more — whereas quants are primarily employed in sectors focused on finance and risk analysis.
As such, quants typically work on more specialized financial problems, whereas data scientists tend to work on a variety of issues, such as detecting anomalies within large data sets and understanding consumer insights.
While both positions require data-specific knowledge and experience, quantitative analysts often have more expertise in financial modeling, statistics and math; data scientists, on the other hand, typically have more of a background focused on machine learning, programming, data mining and data visualization.
Quantitative Analyst vs. Financial Analyst
While a quant specializes in developing models for pricing, trades and risk management, a financial analyst examines data to identify opportunities and makes recommendations to clients about their portfolios and buying and selling individual investments.
They tend to look closely at historical and current data and the latest financial trends. While it’s a position that does “crunch the numbers,” it’s also one that includes managing client relationships, writing reports and making recommendations based on the latest financial information.
A data science master’s degree, such as the online Master of Science in Applied Data Science, provides a strong foundation in both technical expertise and essential soft skills. These skills are highly valuable for aspiring quantitative analysts, as well as for analysts and data scientists aiming to break into finance. The best programs engage graduate students in hands-on learning opportunities, emphasizing critical areas like programming, data visualization and advanced analytics.
