How to become an investment banking analyst
An investment banking analyst is an entry-level position that attracts many candidates due to its competitive compensation and the career opportunities that it offers. Keep reading to learn how to establish a solid foundation for entering this rewarding career.
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What does an investment banking analyst do?
An investment banking analyst connects businesses with investors and advises organizations on areas such as equity, debt issuance, and mergers and acquisitions. While they mainly assist senior investment bankers with tasks such as creating presentations, this experience can be a launching pad to a successful career in finance.
Key skills for investment banking analysts include proficiency in financial modeling, financial analysis, negotiation, Excel, and reporting.
Steps to become an investment banking analyst
The good news is that becoming an investment banking analyst has much lower barriers to entry than other professional career paths like lawyers and doctors. Simply put, it doesn't require advanced degrees to get started. However, holding a bachelor's degree can help you stand out in the field.
Here are the common steps many investment banking analysts follow:
Step 1: Earn your bachelor's degree
Earning a bachelor's in finance, business, or a related field can prepare you for a career as an investment banking analyst. Programs typically offer courses on finance, accounting, statistics, and economics. Be sure to make connections with classmates, professors, and members of the business community to help build your professional network.
Step 2: Gain work experience
You can stand out from the crowd by gaining practical work experience.
During your undergraduate degree, apply for finance internships. Some investment banking internships may offer the opportunity to land a full-time position after graduation.
Step 3: Become certified (optional)
After earning your bachelor's degree and having several years of experience, you may wish to earn a certification such as the Chartered Financial Analyst® certification from the CFA Institute. You must pass multiple exams to earn the certification, but it can help you distinguish yourself in a competitive labor market.
Step 4: Pursue further education (optional)
Many investment banking analysts choose to pursue advanced education such as a master's in business administration (MBA) or a master's in finance, with a focus on trading, tax laws, bond valuation, and risk management.
An advanced degree can help you qualify for specialist positions in investment banking.
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