How to Become an Investment Banking Analyst in 2024

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Wondering how to become an investment banking analyst in 2024? We’ve got you covered.

Academic Related has discussed how to become an investment banking analyst in 2024 the investment banker’s average salary, and how hard it is to become an investment banker.

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Establishing a career in investment banking is one of the best choices to make in life. To do this, you must have occupied an investment banking analyst position first.

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The job of an investment banking analyst is intense. It expects the individual to have the ability to multi-task, pay exquisite attention to detail, think on his/her feet, and bid farewell to a traditional work-life balance. But guess what? The rewards you will receive are worth the sacrifice.

For those who dream of an investment banking career and lifestyle, in your finance career, landing and succeeding as an analyst in an investment banking position is your key to bigger and better opportunities all through.

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What Does an Investment Banking Analyst Do?

Before becoming an investment banking analyst, you must have a little insight into what an investment banking analyst does.

Investment banking analysts do more administrative duties, such as responding to clients, creating excel and PowerPoint deliverables, and tracking buyers and sellers.

They are also responsible for valuation calculations, providing market updates, and working on financial models.

This role is an entry-level role in investment banks.

You may also be wondering what investment banking is. So let’s briefly discuss that also.

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What is Investment Banking?

An investment bank is a bank or financial institution section that assists governments and non-governmental organizations in raising capital for investment.

Aside from helping these organizations with capital, they also provide financial advice to them, as well as assist with financial transactions.

Also, investment banks act as intermediaries between investors and corporations.

The step-by-step guide toward becoming an investment banking analyst includes the following:

Step 1: Earn Your Bachelor’s Degree

Completing your undergraduate degree is the first step in learning how to become an investment banking analyst.

The common majors for intending investment banking analysts include accounting, finance, and math.

But analysts could be seen coming from other majors and still having pretty success in investment banking.

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Step 2: Networking and Internships

Somebody knows you, your skills, and your experience, which prompts opportunities.

Two great avenues towards how to become an investment banking analyst are making you and your abilities more visible through networking and internships.

Networking opportunities will be needed throughout your career; hence, it is not just a skill for securing your first job but a critical career-long skill that will often bring opportunities you might not have known existed.

Your network determines your net worth!

Internships are among the answers to how to become an investment banking analyst; and are advantageous for the following reasons:

Provision of real-world practical experience to the intern.
Building practical experience and skills that can get you hired for a job.
Provision of a valuable environment for the purpose of connecting and building your network.

Step 3: Register with FINRA and Pass Applicable Securities Exams

To be licensed for operation as an investment banking analyst, you are expected to register as a representative of your bank with the Financial Industry Regulatory Authority (commonly called FINRA).

Furthermore, depending on the nature of the duties you will be executing, you need to prepare for and scale through any applicable securities (series) licensing exams to qualify for registration.

Step 4: Stand out with the CFA® Charter

The Chartered Financial Analyst® (CFA®) Program is one prospective investment banking analysts are advised to undergo and can be started while they are still in school or soon after graduation.

The CFA charter is internationally recognized as the most respected investment management designation one can earn and focuses heavily on investment valuation, company analysis, and portfolio management.

You must scale through three levels of exams to earn the CFA charter.

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Step 5: Leverage Your Network to Capture Opportunities

Here, you are to leverage your network to capture opportunities in the area of job hunting.

It’s expedient not to forget that networking is a two-way street, and the universe isn’t waiting to assist you in finding a job.

You have to be proactive in looking for ways to assist your colleagues by recommending them to someone who could help in some way.

In these colleagues of yours reciprocating this kind gesture, your name gets remembered and is brought up when the right opportunity arises in the same manner.

Investment Banker Average Salary

Yearly, an investment banker earns an average starting base salary that ranges from $75,000 and $96,000.

Be that as it may, a first-year banker can add to this amount in a significant way with bonuses, and the better such a fellow performs, the more money he/she makes.

For the first year, the investment banker’s average salary is $140,000, generally referred to as a good total income goal for an investment banker.

You must remember that lots of hours and work are required to receive this investment banker’s average salary.

Anyone who does not have the capability or isn’t comfortable working for weeks that frequently run for more than 80 hours should probably pursue another career.

In some banks, there are even rooms with bunk beds; these are for investment bankers who, due to work, were at the office at midnight or later but realized that they still needed to be at their desks before the next morning’s opening bell.

Certain investment banks have worked towards improving work-life balance as part of a cultural overhaul they hope can rehabilitate the industry’s image following the 2008 financial crisis.

Nevertheless, the day when investment banking is a Monday-to-Friday, nine-to-five career is a long way away if that ever becomes the case.

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How Hard is it to Become an Investment Banker?

To the question, how hard is it to become an investment banker? The answer is that it is not hard. It can only be hard if you are not getting it right!

Oftentimes, people have said that it is hard to become an investment banker due to the rigor involved in getting in becoming an investment banker, which includes:

Joining a target University
Applying for 100s of these investment banking workshops, seminars, and internships and applying for more if the previous application was turned down.
Put up a well written Curriculum Vitae (CV)

Other factors that make it seem hard to become an investment banker include the following:

No networking
No internship
Not leveraging your network to capture opportunities

With these in place and being optimistic and focused, becoming an investment banking analyst will not be hard.

Frequently Asked Questions (FAQ)

How much does an investment banker make a year?

Investment bankers average a base salary of $60,416 yearly, and some salaries can range from $14,000 to $166,000 annually.
The base salary is just a portion of compensation for investment bankers, but it is their most reliable source of income and is most likely to be captured in the report on salary reports.

Do investment bankers make a lot of money?

Yes, Investment bankers make a good amount of money since they sell companies for huge amounts while earning a generous commission and spending hardly anything in the process.

Do investment bankers have a life?

The average day in the life of an investment banker is known to be long and stressful, and there’s no surprise about that.
Nevertheless, the individuals who survive the adjustment period usually have long and financially rewarding careers.

Can investment bankers become millionaires?

Some certainly become millionaires by age 30 by getting a job in investment banking out of college.
The starting salaries are quite good, but the real money is in bonuses

Do investment bankers get holidays off?

In the ranking for investment banking analysts, junior bankers don’t take many vacations.
For investment banking analysts, there was something called “block leave,” which required that investment banking employees take 5 business days off in a row for each calendar year. Investment banking analysts get lots of vacation time.
Many don’t take quite all the days they are given but do take the most time.

Is investment banking hard?

Yes, investment banking can be difficult, but those who endure that period usually move to a successful career.
Investment bankers usually work for up to 100 hours a week.
Investment banking is one of the most difficult career paths in the banking industry.
This will not scare you or make you change your mind about becoming an investment banking analyst.
No, rather now you know how to become an investment banking analyst; it will help you prepare yourself for the job ahead of you.

Is investment banking allowed in Islam?

Yes, investment Banking is allowed and even encouraged in Islam.
So, if you once thought it was haram, change that mindset; it’s not.

How much sleep do investment bankers get?

Investment banking divisions (IBD) have a reputation for lengthy hours.
This is where people work 80-100 hours per week and are regularly at their desks until 1 am.
To give you an insight into what it looks like to be an investment planning analyst, one 20-something London analyst sleeps four hours on weeknights and catches up at weekends.

Conclusion: How to Become an Investment Banking Analyst

Before I end this article, Muslims reading it should know that, inasmuch as investment banking is not haram in Islam, working in a conventional bank may be.

I believe you found this article on how to become an investment banking analyst beneficial.

Academic-related wish you the best in your endeavor to start a career in investment banking.

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How to Become an Investment Banking Analyst in 2024 | Courses, Jobs, Salary, Scope

Table of Contents

What Does an Investment Banking Analyst Do?

What is Investment Banking?