Differences Between a Financial Analyst and an Investment Banker

Who Is a Financial Analyst?

Who Is an Investment Banker?

Investment Banker Vs Financial Analyst – What Are the Differences?

There are some key differences between a financial analyst and an investment banker in terms of the duties they perform and the skills they possess.

Here is a tabular comparison of their skills and job roles.

Parameters of Differences

Financial Analyst

Investment Banker

Skills

Financial analysts usually research companies and industries to gain insight which influences investment decisions.

Investment bankers can analyse financial statements and identify potential acquisition targets.

Job Duties

Financial analysts provide organisations with the best financial course of action by researching demographic information about the client and market. They offer future projections regarding revenue and expenses to the client.

Investment bankers advise corporations about mergers and acquisitions. This helps them decide whether or not to buy a company or not. They assist people with high net worth with private equity transactions.

Employment

Financial analysts work in insurance companies, banks, pension funds etc.

Investment bankers offer their services to established organisations and even government agencies.

Salary

The salary of a financial analyst in India ranges from ₹2.1 lakh to ₹12 lakh per annum. Their average salary is ₹4.5 lakh per annum.

Investment bankers get between ₹2 lakh to ₹27 lakh per annum. ₹4 lakh is their average annual salary.

What Is the Role of a Financial Analyst?

What Are the Roles of an Investment Banker?

Financial Analyst Vs Investment Banker- Whom to Choose?

Frequently Asked Questions:-

What qualities to look for when hiring a financial analyst? up-arrow

A financial analyst who understands the current trends of the financial scenario can help your business grow. When you hire an analyst, look for qualities, such as analytical ability, decision-making power, communication skills, technological proficiency and attention to detail.

Which organisations typically opt for the services of investment bankers? up-arrow

Several small businesses, investment banking firms etc., hire the services of an investment banker. Some companies hire them permanently, while others do so on a freelance basis. Some of the leading organisations that hire investment bankers are Goldman Sachs, JP Morgan, Accenture, etc.

How much does it cost to avail of the services of financial analyst vs investment banker? up-arrow

The money that an investment banker and a financial analyst may charge will depend on location, experience and market conditions. It will also change based on whether you want to avail of the services on a temporary or permanent basis.