Essential Skills for First-year Investment Banking Analyst

What is an Entry Level Investment Banking Analyst?

The analyst is one of the most common entry-level jobs in an investment bank for recent graduates. An entry-level investment banking analyst may carry out their assignments as part of a team or under the supervision of a senior analyst.

The role of an entry-level investment banking analyst is similar at virtually every investment bank and involves conducting financial research and analysis in support of banking deals. Responsibilities include researching financial trends, valuations, and economic data related to deals to evaluate risk, arrive at a value, and assist in marketing the deal.

Investment banking is demanding and often stressful. By default, getting recruited straight out of college or switching to investment banking from another industry means that you must be prepared for a lot of grunt work and long hours. Despite all the mundane tasks, you will have learned a great deal and have a pretty good idea of whether investment banking is for you.

What does a First-year Investment Banking Analyst do?

Because of the wide variety of responsibilities, entry-level investment banking offers significant learning opportunities. It is typical to spend 2-3 years as an analyst before advancing. While investment banking candidates are still in the process of preparing interview questions and updating resumes and cover letters, it’s important to have a good idea of what investment banking jobs entail and the skills that are necessary to succeed.

Full-time analysts are usually assigned one or more projects immediately. The role is very intense, with analysts regularly working more than 80-100 hours a week. Despite impressive educational backgrounds and stellar qualifications, analysts are tasked with many mundane projects.

Typical Investment Banking Career Path

Responsibilities of Entry-level Analysts in Investment Banking

• Observing market trends: Investment banking analysts spend a lot of time analyzing stock market developments to provide up-to-date and reliable information to their clients and colleagues. This information helps more senior bankers respond quickly to market fluctuations and develop new financial products.
• Developing and maintaining detailed analyses: Analysts research the historical and current performance of stocks, bonds, and markets to obtain and evaluate financial data, which makes it possible to evaluate opportunities. They also create portfolios, transactions, and predictive reports using existing financial models and often create new ones.
• Participate in meetings: Senior bankers bring investors and capital-seeking companies together, and analysts sit in on meetings to understand the details of the deals they are assigned to. The information gained from these meetings is used to inform presentations and pitches.
• Create pitch books: One of the most common projects for analysts is working on pitchbooks and developing Powerpoint presentations used to market deals to investors. Excellent command of Powerpoint is a great advantage going into an analyst role.

Essential Skills for First-year Investment Banking Analyst

The analyst position requires a variety of skills:

1. Professional skills: Analysts should be financially literate and comfortable working with numbers. To master accounting, financial modeling, and valuation skills necessary for a first-year analyst, enroll on our online investment banking course. You’ll receive the same training as new hires to the top four investment banks.
2. Entrepreneurial and business skills: Despite the discipline and structure built into the investment banking industry, entrepreneurial skills can help investment analysts approach a problem or deliver a solution in a novel manner.
3. Analytical thinking: Investment banking is all about intellectual curiosity and agility, whether it is related to absorbing new data, managing a project, or meeting a new client. You should thrive in high-pressure situations and be able to quickly wrap your head around new information or a new concept so you can apply it in your work. The ability to pitch an idea and deliver a plan effectively is a crucial prerequisite for advancement to top positions in finance.
4. Communication and Presentation skills: Investment banking demands higher-level communication and public speaking skills, as there is a significant focus on pitching to clients. Good presentation skills enable investment banking analysts to share complex financial information more effectively with teammates and clients.
5. Collaboration and Leadership skills: The ability to manage and lead others is an essential component in banking. Not only will this contribute to advancement, but it can help you work more efficiently. In an entry-level role, financial institutions may expect you to assume responsibility, seek help from internal departments, and establish relationships with external suppliers and partners.
6. Networking skills: Strong interpersonal skills are essential to attract and retain clients. As an investment banking analyst, you will have a responsibility to profitably market your firm’s services. Connections play a significant role in finance, and networking with other professionals is critical. Successful bankers have strong social skills, including the ability to deal with different personalities in stressful situations while also demonstrating an understanding attitude and building strong client relationships.
7. Resilience: Investment banking is a high-pressure job, with long hours, tight deadlines, and high stakes. Resilience, or the capacity to bounce back when challenges arise, is integral to success.
8. Innovation: Investment bankers offer original financial solutions to their customers. They’re enthusiastic about new ideas. You can be a great resource to an investment bank when you contribute innovative ideas to the firm.
9. Overall planning ability: As an entry-level analyst, you’ll receive a variety of assignments from associates, vice presidents, and managing directors. An ability to prioritize is vital.

Conclusion

The day-to-day life of an investment banking analyst is demanding, fast-paced, and stressful. Principal responsibilities include producing supporting materials and analyses to pitch new business to clients and executing deals. First-year investment banking analysts have the opportunity to work in the heart of the financial services industry and learn about a broad range of financial instruments. Investment banking analysts need to have strong professional skills, an entrepreneurial bent, and an ability to think analytically as well as communication and presentation skills. Teamwork and leadership are essential.

To understand the typical investment banking career path, access the career path download.

Additional Resources

How to Become an Investment Banker

Everything You Need to Know about Investment Banking Spring Weeks

3-Statement Model

What Makes a Good Financial Model?