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Career Definition of an Investment Banking Associate
An investment banking associate is a client-facing role in the financial industry. These associates work with clients to identify their financial needs and develop ways to meet their short and long-term goals. They do so by evaluating data from both companies and various industries to create a portfolio of investment opportunities for their clients. Investment banking associates may serve as the first point of contact for clients. These associates usually work full-time at financial services agencies.
One of the primary tasks for an investment banking associate is maintaining relationships with current clients, as well as cultivating new ones. In addition to relationship development, investment banking associates can be responsible for securing new funding sources. General job duties may include creating marketing collateral and presenting financial information, conducting valuation analyses, and managing the creation and execution of client transactions. In some companies, these associates may act as a mentor to junior associates or analysts within their department. They may also conduct due diligence for clients on transactions like mergers and acquisitions.
|Educational Requirements||Bachelor's degree|
|Job Skills||Excellent analytical abilities, initiative, strong communication skills, effective attention to detail, and good technical skills|
|Median Salary (2017)*||$63,780 (Securities, Commodities & Financial Services Sales Agents)|
|Job Outlook (2016-2026)*||6% (Securities, Commodities & Financial Services Sales Agents)|
Source: *U.S. Bureau of Labor Statistics (BLS)
A bachelor's degree will be suitable to work as an investment banking associate. Relevant coursework can include economics, finance, or business. Job seekers may be required to have relevant work experience. However, some employers may accept a master's degree in lieu of relevant work experience. In addition, an investment banking associate will need to become licensed through the Financial Industry Regulatory Authority, which involves passing several tests.
A career as an investment banking associate requires excellent analytical abilities. These associates must be able to research and evaluate financial data and translate it into a strategy for clients. Investment banking associates will need strong communication skills in order to guide clients through the investment process, including presenting and explaining investment options. They will also need effective attention to detail to ensure that investment options meet clients' needs. These associates should have good technical skills in order to utilize spreadsheet and word processing applications during financial modeling or analysis.
Career Outlook and Salary
An investment banking associate would fall under the U.S. Bureau of Labor Statistics (BLS) category of 'securities, commodities, and financial services sales agents'. The 2017 median annual salary for this category was $63,780, and they expected to experience an average growth of 6% from 2016-2016.
Job seekers should possess excellent analytical abilities to work as an investment banking associate. Other careers that involve financial analysis may include a real estate transaction broker or a financial advisor.