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Investment banking associate vs finance analyst

The differences between investment banking associates and finance 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 banking associate and a finance analyst. Additionally, an investment banking associate has an average salary of $119,967, which is higher than the $69,887 average annual salary of a finance analyst.

The top three skills for an investment banking associate include capital markets, healthcare and discounted cash flow. The most important skills for a finance analyst are financial analysis, financial models, and financial data.

Investment banking associate vs finance analyst overview

Investment Banking AssociateFinance Analyst
Yearly salary$119,967$69,887
Hourly rate$57.68$33.60
Growth rate9%9%
Number of jobs39,516138,600
Job satisfaction--
Most common degreeBachelor's Degree, 66%Bachelor's Degree, 76%
Average age4040
Years of experience44

What does an investment banking associate do?

An investment banking associate is in charge of performing support tasks for clients, ensuring efficiency and client satisfaction. They are primarily responsible for identifying and meeting clients' needs, assisting them in reaching their financial goals. They typically determine investment opportunities for clients, putting financial histories and records into consideration. They must thoroughly discuss terms, helping clients gain a deep understanding of the subject while building positive relationships. Furthermore, an investment banking associate may perform clerical tasks such as processing documentation and payments, producing progress reports, and performing calls and correspondence.

What does a finance analyst do?

A finance analyst is responsible for evaluating a company's financial data and historical reports to assess investment opportunities and provide accurate financial statements in support of business strategies and company performance prediction. A financial analyst's duties also include suggesting recommendations to boost operations efficiency and grow revenues, researching the current market performance and economic trends to adjust budget goals as needed, and managing client portfolios. Finance analysts must have excellent critical and analytical thinking skills to identify the best actions for the company's profitability.

Investment banking associate vs finance analyst salary

Investment banking associates and finance analysts have different pay scales, as shown below.

Investment Banking AssociateFinance Analyst
Average salary$119,967$69,887
Salary rangeBetween $73,000 And $195,000Between $46,000 And $104,000
Highest paying CitySan Francisco, CASan Francisco, CA
Highest paying stateOregonConnecticut
Best paying companyBloombergThe Citadel
Best paying industryFinanceFinance

Differences between investment banking associate and finance analyst education

There are a few differences between an investment banking associate and a finance analyst in terms of educational background:

Investment Banking AssociateFinance Analyst
Most common degreeBachelor's Degree, 66%Bachelor's Degree, 76%
Most common majorFinanceBusiness
Most common collegeUniversity of PennsylvaniaUniversity of Pennsylvania

Investment banking associate vs finance analyst demographics

Here are the differences between investment banking associates' and finance analysts' demographics:

Investment Banking AssociateFinance Analyst
Average age4040
Gender ratioMale, 78.6% Female, 21.4%Male, 56.2% Female, 43.8%
Race ratioBlack or African American, 5.6% Unknown, 4.5% Hispanic or Latino, 7.7% Asian, 14.1% White, 68.0% American Indian and Alaska Native, 0.1%Black or African American, 5.6% Unknown, 4.5% Hispanic or Latino, 7.7% Asian, 14.1% White, 68.0% American Indian and Alaska Native, 0.1%
LGBT Percentage7%7%

Differences between investment banking associate and finance analyst duties and responsibilities

Investment banking associate example responsibilities.

  • Achieve the highest grades in a bank run 5 day advance equity derivatives course.
  • Manage ongoing maintenance of prospective investor pipeline using SalesForce software.
  • Create valuation models associate with above projects, specifically LBO, DCF and accretion/dilution analysis.
  • Perform extensive valuations of private and public companies through comparable company and DCF analyses.
  • Attend global healthcare conference in Miami and meet with prospective clients/investors
  • Create business analysis regarding the firm's origination and execution capabilities.
  • Show more

Finance analyst example responsibilities.

  • Manage company asset accounts, wire funds to clients and record and structure amounts into QuickBooks.
  • Manage the UAT team involve in the testing of an enterprise accounting and project management software.
  • Manage customer portfolio to department KPI's, target balance, aging metrics, cash recovery and write-off tolerance.
  • Manage contract database and SalesForce for historical research and financial reporting purposes.
  • Manage and maintain information in worldwide-military database which include exemptions, transfers, retirements, and payroll records.
  • Accomplish project accounting functions including project costing, time reporting, project accruals and proper capitalization of development costs.
  • Show more

Investment banking associate vs finance analyst skills

Common investment banking associate skills
  • Capital Markets, 7%
  • Healthcare, 6%
  • Discounted Cash Flow, 6%
  • Private Equity, 4%
  • Capital Raising, 4%
  • Securities, 4%
Common finance analyst skills
  • Financial Analysis, 9%
  • Financial Models, 5%
  • Financial Data, 5%
  • Strong Analytical, 4%
  • Variance Analysis, 4%
  • Hyperion, 3%

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