Career Definition of an Investment Banking Analyst
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. They will consider things such as business assets, earnings reports and industry-related variables to determine whether or not they recommend investing in a company. It's common for investment banking analysts to specialize in a specific field, such as healthcare, and focus on companies that are in that industry. Once they have gathered and processed sufficient data, they produce their conclusions. They regularly present information to clients or to other professionals in their bank.
|Educational Requirements||Bachelor's degree|
|Job Skills||Attention to detail, analytical skills, computer skills, investigative skills, communication skills, ability to meet deadlines, decision-making skills, problem-solving skills|
|Median Salary (May. 2020)*||$67,900|
|Job Outlook (2018-2028)**||6% (all financial analysts)|
Sources: *PayScale.com; **U.S. Bureau of Labor Statistics
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.
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
Investment banking analysts took home median incomes of $67,900 per year, according to May 2020 data from Payscale.com. The U.S. Bureau of Labor Statistics (BLS) provides occupational data for financial analysts, which includes investment banking analysts. From 2018 to 2028, the BLS expects financial analysts to see job growth of 6%. This is about as fast as average job growth the BLS estimates for all occupations from 2018 to 2028, which is projected to be 5%.
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.