Everything You Need To Know About Becoming an Investment Banking Analyst

Investment banks serve as intermediaries between companies and the financial markets. Investment banks help their clients become publicly traded, facilitate mergers and acquisitions, provide financial advice, trade stocks, and research market trends to help clients make lucrative financial decisions.

The “Fast Path” to Becoming an Investment Banking Analyst

An MBA or Master in Finance from a high-end business school; A heavy graduate school coursework load in bond valuations, options trading and pricing, tax laws and risk management; and. Relevant work experience such as a summer internship at a big investment bank …

  1. Earn a relevant bachelor’s degree. …
  2. Complete an internship in the finance sector. …
  3. Pursue industry certification. …
  4. Get investment analyst experience. …
  5. Gain professional registration and licensing. …
  6. Consider a master’s degree.

Investment Banking Analyst – What I LITERALLY Do

What does an investment banking analyst do?

Investment banking analysts are responsible for:

What is an investment banking analyst?

An investment banking analyst is an entry-level finance professional who reviews investment transactions and recommends investment strategies for their clients or employers. Their primary goal is to assess client or employer needs, project the outcome of potential investments and find opportunities that help clients meet their financial goals.

Skills necessary for investment banking analysts

These professionals need a combination of soft skills, technical abilities and industry knowledge in order to be effective on the job. Here are some of the skills they need and how they use them:

Average salary for investment banking analysts

Investment banking analysts work for an investment bank or firm and often specialize in one particular industry, such as:

They commonly work over 40 hours per week, sometimes 70 to 80 hours, due to the depth and complexity of their tasks. In some organizations, they may also be on-call, needed to provide their colleagues or clients with up-to-date projections on market shifts.

Overall, they spend much of their time working in an office at their desk, though they may travel occasionally to present to clients.

How to become an investment banking analysts

Here are the most common steps you can take to pursue this finance career:

1. Earn a relevant bachelors degree

Employers require at least a bachelors degree, and some of the most common degrees include:

Coursework involves a combination of economics, advanced mathematics and statistics, corporate finance and accounting principles. In these classes, you learn how to use and create models, read and analyze reports, apply economic principles, conduct research and use many more vital job-ready skills.

2. Complete an internship in the finance sector

Apply for internships in investment banks or firms as an analyst or assistant to an analyst. Doing an internship while earning your undergraduate degree allows you to apply the knowledge and skills you learned in class in a real-world setting. You may help analysts develop models, make projections and prepare for presentations, or you might do these tasks under the supervision of an experienced analyst or banker. If you excel during your internship, your employer may offer you a full-time position after graduation.

3. Pursue industry certification

The Chartered Financial Analyst (CFA) certification demonstrates that a financial analyst, including an investment banking analyst, is knowledgeable of financial regulations and practices and is able to fulfill their role with integrity. Many in the industry consider the CFA to be the highest professional commendation, and it can help investment banking analysts better secure jobs and earn higher salaries.

To earn the CFA, you must first meet the preliminary requirements—be in the final year of a bachelors degree program, have a bachelors degree, have at least four years of professional experience or have a combination of experience and education that adds up to four years.

Then, you must pass three exams that assess your knowledge in accounting, ethics, financial management, security analysis and economics. You must take these exams in the correct order:

Since these exams are so advanced, candidates often find them to be very challenging and typically study many hours to prepare.

4. Get investment analyst experience

Though this is an entry-level position, larger or higher-profile employers may prefer candidates to have previous experience in an analyst role. After earning your degree and CFA, work in the industry to further refine your skills and confidence on the job, preparing you for more complex roles and those with leadership responsibilities.

5. Gain professional registration and licensing

All investment banking analysts must register with the Financial Industry Regulation Authority (FINRA) once theyre hired. This registration ensures that you work with integrity and follow all rules regarding investments. Your employer must sponsor your registration, making you a representative of that institution or firm.

In addition to registration, you may also need to pass exams that license you to manage specific securities and investments. Those exams include:

6. Consider a masters degree

Though investment banking analyst is an entry-level role, some employers may prefer candidates to have a masters degree. In addition, those who are applying to investment banking analyst roles in large or high-profile banks and firms may need a masters degree to qualify or compete with other experienced candidates. Consider earning a masters degree after completing your bachelors or after earning a few years of professional experience.

Masters degrees you might consider include:


What degree do you need to be an investment banking analyst?

A bachelor’s degree is the minimum educational qualification required to work as an investment banker. Entry-level analyst positions in the field are typically open to bachelor’s degree graduates, and it is possible to move on to a senior banker role without a master’s degree in many investment banks.

How do you become an investment analyst?

To become an investment analyst, you need a bachelor’s degree in finance, economics, accounting, statistics or a related field. With a bachelor’s degree, you’ll qualify for entry-level jobs in the investment industry, like a junior analyst.

What does an analyst in investment banking do?

An investment banking analyst evaluates and researches investment opportunities with the aim of finding the investment that best meets the goals of their corporate clients. Investment banking analysts assess opportunities and recommend investments based on client needs and goals.

How much do analysts at investment banks make?

An investment banking analyst evaluates and researches investment opportunities with the aim of finding the investment that best meets the goals of their corporate clients. Investment banking analysts assess opportunities and recommend investments based on client needs and goals.

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