Top 8 Skills A First-Year Investment Banking Analyst Needs

The importance of necessary skills in a finance professional’s life cannot be understated. In today’s world, employers look forward to several attributes in their employees. An investment banker is a highly educated professional who has sharp analytical and critical thinking skills. These deep thinkers pay close attention to detail and deal with complex mathematical and statistical problems.  

If you also want to enter the investment industry and want to know the must-have skills of a first-year investment banking analyst, we guide you to make your mark in this competitive field.  


What is a First-Year Investment Banking Analyst? 

The first-year investment banking analyst is an entry-level job in the investment banking industry. These analysts manage assignments as a team member or work under a senior analyst’s supervision. Their role involves: 

  • Conducting financial research and analysis 
  • Carrying out preliminary research and preparation on the banking deals 
  • Studying the latest financial trends 
  • Conducting financial valuations 
  • Researching economic data  
  • Finding ways to mitigate risk 
  • Assisting in deal  
  • Developing detailed analyses based on historical and current market performance.  
  • Participating in meetings to understand the details of the assigned deals and later make presentations and pitches. 

Top Skills Needed for First-year Investment Banking Analyst 

The analysts require a variety of skills: 


Research Skills 

Research skills are the most important part of the analyst’s day-to-day job. This skill allows them to mine correct data and conduct thorough analysis. This skill requires the analyst to first identify a problem or scenario, list all the required questions or concerns, and determine their answers. An analyst with good research skills stays attentive, compiles findings, and devises solutions to match the client’s profile.  


Analytical Skills 

Another imperative part of the skillset, the analysts must demonstrate their ability to think logically, collect the right data, and look at the data from different perspectives. However, analytical skills cannot be developed in a day. If you aim to become a good analyst, you need to read books, evaluate different scenarios, gain experience, and develop proficiency in databases and Excel.  


Computer Skills 

A financial analyst needs a host of computer skills like good knowledge of programming languages like SQL, Python, R, SAS, etc. Honing your skill and knowledge in these languages will allow you to handle complicated and huge volumes of data. Also, you should learn the advanced concepts of MS Office, including MS Excel and MS PowerPoint. This makes investment banking analysts pro in valuing equities, data management, navigating company databases, managing complex securities and fixed-income instruments, and carrying out complex calculations.  


Communication Skills 

As an analyst, working on your written and verbal skills is important. Investment analysts deal with clients, company management, stakeholders, etc., and must explain complex financial terms in simple language. To do so, they need to have strong communication skills. It will help them represent their firms and stay confident while presenting their reports and while speaking to the concerned.  


Mathematical and Statistical Skills 

The job of a financial analyst revolves around numbers and graphs. An entry-level analyst must conduct equity research and value companies using tools like Discounted cash flow, market comparables, etc., leveraging their mathematical skills. Certain fixed-income analysts value complex assets like credit default swaps, etc. This requires them to use complex formulas and mathematical concepts.  


Leadership Skills  

Though a senior analyst leads a team of analysts, even the first-level analysts need leadership skills to create a collaborative and successful team. Since entry-level analysts are involved in project management with other team members. Effective communication and leadership skills are important for them to build a teamwork culture and motivate others.  


Strategic Thinking and Decision Making 

If you aspire to work in the ever-evolving finance industry, you must make sound decisions and stay ahead of your competition. The right decision-making can help investment banking analysts find the companies for a merger, tackle complex problems, understand complicated business models, manage taxes, and more.  


Networking Skills 

The ability to build a good professional network can grow an analyst’s career. This helps them build good bonds with clients, fostering a great work environment and chances to get promotions. To build relationships, analysts must consider attending industry seminars, joining communities, pursuing investment banking certification, etc. 


Wrapping Up 

An investment banking career path is demanding but rewarding. Investment banking analysts work long hours and may have to perform mundane tasks. However, in this early career stage, you will learn a lot and build the necessary skills to grow yourself in the investment banking field. 

To become a first-year analyst, grow your professional skills and soft skills. Focus on creating a robust professional network and advance your career.