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The differences between investment bankers and analysts can be seen in a few details. Each job has different responsibilities and duties. It typically takes 2-4 years to become both an investment banker and an analyst. Additionally, an investment banker has an average salary of $162,715, which is higher than the $73,007 average annual salary of an analyst.
The top three skills for an investment banker include financial services, discounted cash flow and capital markets. The most important skills for an analyst are customer service, troubleshoot, and data analysis.
| Investment Banker | Analyst | |
| Yearly salary | $162,715 | $73,007 |
| Hourly rate | $78.23 | $35.10 |
| Growth rate | 10% | 11% |
| Number of jobs | 28,460 | 253,138 |
| Job satisfaction | - | - |
| Most common degree | Bachelor's Degree, 69% | Bachelor's Degree, 67% |
| Average age | 43 | 44 |
| Years of experience | 4 | 4 |
An investment banker is responsible for selling and issuing securities and financial assets to the stock markets to generate money and raise capital for organizations and financial institutions. Investment bankers also work with private clients to advise them of investment options and financial transactions according to the market's condition and clients' interests. They handle the clients' investment portfolios and create propositions for acquisitions and company mergers. An investment banker must have excellent knowledge of the financial and stock industry, as well as having excellent analytical skills to review statistical data and determine the best financial strategies.
Analysts are employees or individual contributors with a vast experience in a particular field that help the organization address challenges. They help the organization improve processes, policies, and other operations protocol by studying the current processes in place and determining the effectiveness of those processes. They also research industry trends and data to make sound inferences and recommendations on what the company should do to improve their numbers. Analysts recommend business solutions and often help the organization roll out these solutions. They ensure that the proposed action plans are effective and produce the desired results.
Investment bankers and analysts have different pay scales, as shown below.
| Investment Banker | Analyst | |
| Average salary | $162,715 | $73,007 |
| Salary range | Between $95,000 And $276,000 | Between $53,000 And $99,000 |
| Highest paying City | Boston, MA | Jersey City, NJ |
| Highest paying state | Alaska | New Jersey |
| Best paying company | Citi | The Citadel |
| Best paying industry | Real Estate | Technology |
There are a few differences between an investment banker and an analyst in terms of educational background:
| Investment Banker | Analyst | |
| Most common degree | Bachelor's Degree, 69% | Bachelor's Degree, 67% |
| Most common major | Business | Business |
| Most common college | University of Pennsylvania | Northwestern University |
Here are the differences between investment bankers' and analysts' demographics:
| Investment Banker | Analyst | |
| Average age | 43 | 44 |
| Gender ratio | Male, 76.2% Female, 23.8% | Male, 52.4% Female, 47.6% |
| Race ratio | Black or African American, 5.5% Unknown, 4.1% Hispanic or Latino, 11.5% Asian, 12.4% White, 66.2% American Indian and Alaska Native, 0.2% | Black or African American, 7.4% Unknown, 4.4% Hispanic or Latino, 8.5% Asian, 14.3% White, 65.2% American Indian and Alaska Native, 0.2% |
| LGBT Percentage | 6% | 12% |