Investment Banking Analyst

Investment Banking Analyst

Investment banking analysts, also known as security analysts, were earning an annual salary of at least $100,000 including bonuses, according to Careers in Finance. Investment banking analysts research investments for fund managers, so decisions can be made on portfolios that the bank manages.

To be an analyst, you need a bachelor’s degree in finance or economics. Working in the investment banking industry is a stressful job that requires precise detail. You must be prepared to work long hours that usually go beyond 40 hours every week.

Investment Banking Analyst
Investment Banking Analyst

Role Of An Investment Banking Analyst

Investment bankers are responsible for a wide range of duties including raising capital, providing advisory services for mergers and acquisitions (M&A) and other corporate transactions, completing valuation work, and marketing the value of the banks’ expertise to client companies.

How to Become an Investment Banking Analyst

Investment banking analysts influence financial decisions and can determine in which companies their clients should invest. This article looks at the typical duties they perform and the job prospects and income expectations for this career.

Investment banking analysts help their clients develop and maintain effective investments that will meet their goals. One of their initial tasks is to assess the needs of the client. They clarify their goals and then research potential investment opportunities. If the client already has investments, they assess those investments to determine which ones are performing well and what investments they should consider replacing.

These analysts will investigate other investment options and make recommendations to clients about potential investments. They may also concentrate on evaluating investment possibilities on behalf of their institution. In this capacity, the investment banking analyst will scrutinize businesses within an industry.

What To Look For In A Job Interview Of An Investment Banking Analyst

Bank analyst candidates should be prepared to tout their experiences, either in their academic studies or in their careers. Be prepared to discuss your analytical and problem-solving skills. Interviewers will also likely ask you to define and elaborate on your interpersonal skills, your work ethic (those 80-hour weeks may or may not come up, but prepare like they will, and have a good response ready).

Investment firms will give an edge to candidates who can speak multiple languages (Chinese, Spanish, and German are highly favored these days), and to candidates who have a firm grasp on technology and social media.

When you do get to the negotiating table, know that the average entry-level annual salary for investment analysts is $62,645, while financial analysts usually command $54,488 right out of the gate. Additional compensation, such as signing bonuses or yearly performance-based bonuses, is usually available, but these payouts will vary greatly depending on the employer.

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A bonus tip: while you can launch your banking analyst job search on any date on the calendar, Wall Street firms usually deliver their yearly bonuses in December, after which some analysts may decide to jump ship. Thus, start your search in November, and intensify it in December and January, just as hiring managers are looking to make a move.

If you’re a college graduate looking to break in, Wall Street firms often provide job fairs, “Super Saturdays” (recruiting events held on Saturday at the financial institution) and networking socials to break the ice – usually in the spring months. Check with your college jobs and careers office for details.

Investment Banking Analyst Career
Investment Banking Analyst Career

Required Education For Investment Banking Analyst

At least a bachelor’s degree is needed to become an investment banking analyst. Those who complete a master’s degree may find that they have more job opportunities. Employers look for individuals who have studied finance or related disciplines, such as business or economics. Earning Chartered Financial Analyst (CFA) certification or other financial certifications may also be an asset and improve job prospects.

Required Skills For Investment Banking Analyst

Accuracy is important in the work that investment banking analysts do, so they must pay close attention to details. They need strong analytical skills to evaluate data effectively. They also need to have good research skills to ensure they have the necessary information to reach informed conclusions about investment opportunities. Problem-solving skills are important when they are looking for ways to improve a client’s portfolio, and they also need to have decision-making skills to produce clear recommendations. Presenting findings to business leaders is a typical part of the job, so strong communication skills are a must.

Career Outlook and Salary Of Investment Banking Analyst

Investment banking analysts took home median incomes of $67,046 per year, according to February 2018 data from Payscale.com. The U.S. Bureau of Labor Statistics (BLS) provides occupational data for financial analysts, which includes investment banking analysts. From 2016 to 2026, the BLS expects financial analysts to see job growth of 11%. This is faster than the average job growth of the BLS estimates for all occupations from 2016 to 2026, which is projected to be 7%.

Investment Banking Analyst’s Related Careers

There are many careers in the financial industry that involve comparable skills and training or duties that are similar to those performed by investment banking analysts. If a career as an investment banking analyst sounds appealing, then you may want to use the links here to learn more about related career options.

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