What Is a Quantitative Analyst? Roles, Responsibilities, and Career Outlook

Key takeaways

Quantitative analysts use mathematical models and analytical tools to inform financial decision-making to minimize risk.

• According to Glassdoor, quantitative analysts in the United States earn a median total pay of $200,000 annually [1].

• To become a quantitative analyst, consider developing skills like proficiency in Python, knowledge of financial markets, and strong math skills.

• You can qualify for a quantitative analyst role by earning a bachelor’s degree, but often employers will expect a master’s or a PhD from their candidates.

Explore what a quantitative analyst is, how much quants get paid, and the preferred skill set for a quantitative analyst to determine if this is the right career path for you. Ready to start building relevant skills? The Data Analysis and Visualization Foundations Specialization from IBM will help you learn to use tools for analyzing data, such as Excel, and create visualizations to communicate insights from your analysis. 

What does a quantitative analyst do?

Quantitative analysts, also called quants, are financial analysts who rely on math, statistics, and coding to assess financial decisions and manage risk. Industries such as investment and commercial banking, as well as hedge funds, commonly hire quants, but they’re valuable in any field that can benefit from high-level financial insights, including insurance, consulting, and retail. 

The responsibilities of a quantitative analyst include analyzing data sets using various techniques and mathematical models to help their employer make informed decisions. To do this effectively, quants use skills such as Python and R programming languages, statistical software, and knowledge of financial markets.

What does a quantitative analyst’s workday look like?

What your typical daily work as a quantitative analyst looks like can vary based on the types of projects you work on, where you work, and the amount of experience you have. For example, the job duties of a quant who works in investment banking are going to look slightly different from those of a quant working in consulting. However, common quantitative analyst job duties can appear as follows:

• Applying scientific, mathematical, and statistical techniques to data to assess risk, investment strategies, and pricing. 

• Developing reports and documentation highlighting findings from financial research and analysis.

• Researching market trends and testing new analytical tools and software that you can implement for different financial analysis use cases.

• Deciphering your analysis and communicating the results to shareholders and decision-makers in upper management.

• Developing data visualizations to help you show and share key insights.

• Supporting leadership with decision-making and implementing strategies, considering various risk factors and investment opportunities.

Is quantitative analyst a hard job?

Working as a quantitative analyst does have some challenges, such as a competitive work environment and long workdays. However, plenty of benefits are present as well, such as the high earning potential and demand for quants throughout many industries, giving you the opportunity to work in a wide range of environments.

What skills do you need to be a quantitative analyst?

As a quantitative analyst, you’ll need to develop a broad skill set focusing largely on various areas of mathematics, financial markets, and tools for analyzing data, as well as key workplace skills that can positively influence your ability to work as part of a team and make difficult decisions.

Technical skills

• Calculus

• Probability and statistics

• Programming languages such as Python, R, C++, and Java

• Knowledge of financial markets and systems

• Machine learning

• Data analysis

• Data mining

• Quantitative and financial modeling

• Risk management

Workplace skills

• Research

• Problem-solving

• Teamwork

• Communication

• Emotional intelligence

• Creativity

• Presenting

What is the salary of a quant analyst, and what is the job outlook like?

According to Glassdoor, the estimated median total pay for quantitative analysts in the US is $200,000 per year, with the legal, financial services, and technology industries offering the highest salaries [1]. This figure includes base salary and additional pay, which may represent profit-sharing, commissions, bonuses, or other compensation. Along with the industry you work in, your salary as a quant analyst is influenced by factors such as your level of education and where you work, with New York City and San Francisco ranking as the highest-paying cities for quants[2].

Do quants make a lot of money?

Quants are very well-paid, typically earning higher salaries than standard financial analysts [1, 3]. To maximize your earning potential as a quantitative analyst, you can pursue a position in technology, consulting, or finance, which rank as the highest-paying industries [2].

How to become a quantitative analyst

To become a quantitative analyst, the minimum education requirement is a bachelor’s degree in an area like math, statistics, computer science, finance, or economics. Around 53 percent of quants reported earning one of these degrees [4]. In some cases, you may need a more advanced degree, like a master’s or a PhD, to enter the field. Around 9 percent of quants reported holding a doctorate, while 36 percent reported having a master’s degree [4]. Your coursework should include subject matter such as financial reporting, calculus, statistical analysis, and financial modeling. 

In addition to meeting the education requirements, you’ll need to develop relevant skills like data analysis and programming, as well as knowledge of financial markets, which you can acquire through internships or earning a certification, such as a Chartered Financial Analyst (CFA). 

What is a quantitative analyst career path?

The typical career path for quantitative analysts entails starting in an analyst role, then transitioning to the junior or associate level, and eventually moving into management roles. Even in entry-level roles, employers still expect you to have strong skills in quant modeling and programming languages, and progressing to more advanced positions will likely require a master’s degree or a PhD.

By progressing to senior management roles, you’ll see your responsibilities grow, moving toward guiding decision-making, developing your own research, and establishing financial plans. One advantage you will find in working as a quantitative analyst is the ability to transition to roles in fields that interest you, whether that's an area like financial technology, equity firms, or crypto startups, among others.

Read more: What Is Financial Analytics? Skills, Jobs, Salary, and More

Explore our free resources for analysts

Interested in pursuing a career as an analyst? Check out some of our free resources, like our LinkedIn newsletter, Career Chat, to learn more.

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