Investment Banking Tutorials
- Investment Banking Careers
- Investment Banking Interview Questions (with Answers)
- How to get into Investment Banking?
- Investment Banking Analyst
- Investment Banking Job Description
- Investment Banking Division (IBD)
- Investment Banking Associate Salary
- Analyst vs Associate
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- How to get an Investment Banking Internship?
- Top 10 Finance Certifications Programs
- Investment Banking Lifestyle
- Investment Banking Exit Opportunities
- Investment Banking Case Studies
- Top 10 Best Finance courses (with Online Certification)
- Investor Relation Job Description
- Financial Analyst Job Description
- Investment Banking vs Equity Research
- Investment Banking vs Asset Management
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- Investment Banking vs Private Equity
- Investment Banking Basics (44+)
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- Top Banks (42+)
- Mergers and Acquisitions (45+)
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Difference Between Analyst vs Associate
Analyst and Associate are job titles used mainly in consulting companies and investment banking firms and are the first two tiers of the organization followed by Associate Vice President (AVP), Vice President (VP), Senior Vice President and Managing Director. Both these Analyst and Associate job positions may sound similar but the educational, job requirement and salary structure are different.
- Both these Analyst and Associate job positions can be entry level but the position of an associate is considered to be one position higher than the analyst. These designations are used in all major investment banks like JPMorgan, Citi, HSBC, Credit Suisse and KPO’s which help these investment banks follow a similar designation hierarchy.
- Also note, that these terms may also be used interchangeably by different organizations. For example, the Boston Consulting group entry-level employees are called Associates and the second tier employees are called as Consultants. This terminology may be confusing to understand. however, it is more important to understand the job requirement rather than the terminology.
- There are often clashes between employees working together with these two roles. An analyst has to perform tasks assigned to him by the Associate. If the Associate is an entry level in the bank and the analyst is experienced then this creates a rift between the two since the Associate is still learning and assigning tasks to the analyst, the nature of the tasks may be intimidating and time-consuming for an experienced analyst.
Key Roles and Job Description of an Analyst
- Investment Banking analyst spends most of the time analyzing transactions, past data and creating presentations and offers advice to bankers. Investment Banking analyst also performs other administrative duties like arranging calls and meetings with clients.
- Mainly the project analyst work for and their duties depend on the organization they work for and the projects they are involved in. The analyst typically has to work for extended hours and can end up to 100 hours per week.
- Main responsibilities include the assessment of transactions and financial research. Keeping with the trends such as the performance of stocks and bonds as well as the trend in the markets. An analyst might not be involved in the decision-making process but they do provide all the data and research required for making the decision.
- An analyst is expected to have knowledge of different databases and should also be comfortable with Excel, Powerpoint and other software like Bloomberg, Factset, and Reuters. An analyst is also expected to track companies and also generate daily newsletters, keep to the schedules. At times they may also require to write macros in VBA. Core skills required are research, analyzing and interpreting data. A good analyst always observes and thinks.
Key Roles and Job Description of an Associate
- The role of an Investment Banking Associate is of a Mid-level operations role with exposure and experience in high-end finance. It involves interacting with various senior investment professionals on a daily basis. One of the vital responsibilities includes mentoring a team of Analysts and reporting to an AVP.
- An associate is also responsible for checking Analysts work to ensure it is client ready and serves as a point of contact for clients. The job role is not limited to a sector and a single asset class.
- Key tasks include creating and building financial models and valuations. Conducting financial analysis is also an important part of the job. Creating research and equity research reports and also performing a consequence analysis of the merger.
- The Analyst Program is an integral part of Associate recruiting strategy wherein an analyst is promoted on the Associate level after completing three years.
Analyst vs Associate Infographics
Here we provide you with the top 6 difference between Analyst vs Associate
Analyst vs Associate Head to Head Difference
Let’s now look at the head to head difference between Analyst vs Associate
|Analyst mainly has an entry-level post at the firm and are responsible for a small part of a big project. In some firms like McKinsey, analysts are not considered as permanent employees. After they spend three years in the firm Analyst are either promoted to an associate position or they leave the job to pursue higher education||Associates are considered as permanent employees and are responsible for managing the team of analysts and are the leaders of the projects.|
|Analyst requires a minimum of a bachelors degree to get in. Sometimes, even engineering degrees are accepted. There may be cases that an analyst is promoted to an associate position without an MBA||It is necessary for an Associate to have an MBA, mainly in finance. Sometimes, other degrees which are related to their experience and role are also accepted|
|Entry-level analysts usually receive INR 4,00,000 to INR 5,00,000.As the experience increases the hike in the salary also increases||Associates are usually paid around INR 10,00,000 per year along with a bonus component. This is twice as what an analyst receives. This highlights the stark contrast between them.|
|The analyst is expected to execute all the tasks like making presentations, creating financial models, comparable comps and creating pitch books||Associates, on the other hand, are involved in client interaction, understanding their requirements and help analysts execute their tasks|
|Analyst performs tasks given by the Associate and is also responsible for administrative tasks. An analyst is mainly responsible for doing all the grunt work and making his associate look good||Associate runs a project and assigns tasks to the analyst. He plays a managerial role and provides an opportunity to handle a broad range of responsibilities and management tasks|
|The analyst is promoted to the Associate level after three years or after getting an MBA||The associate is promoted to the position of an Associate Vice President after completing three or four years in a particular organization. It may also depend on the policies of the organization|
If one is interested in Investment Banking or Private Equity which has a similar hierarchy, it is very helpful to start your career as an Analyst immediately after graduation and get hands-on experience after which an MBA or CFA may help in getting deep insides and help you start working as an Associate.
This has a been a guide to Analyst vs Associate. Here we also discuss the top difference between Analyst and Associate along with infographics and comparison table. You may also have a look at the following articles –