Difference Between Analyst and Associate

Analyst and associate are job titles used mainly in consulting companies and investment banking firms. They are the first two tiers of the organization, followed by Associate Vice President (AVP), Vice President (VP), Senior Vice President, and Managing Director. These job positions may sound similar, but the education, job requirement, and salary structure are different.

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  • Both 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, 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 consultants. This terminology may be confusing to understand. However, it is more important to understand the job requirement 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 entry-level in the bank and the analyst is experienced, this creates a rift between the two. Since the association is still learning and assigning tasks to the analyst, the nature of the tasks may be intimidating and time-consuming for an experienced analyst.

Analyst vs Associate Infographics

Key Roles and Job Description of an Analyst

  • Investment Banking analystInvestment Banking AnalystInvestment Banking Analyst works with investment banking team and expertise in the area of Accounting, Financial Modeling, Project financing, Project Valuation, and Financial statement Analysis. These analyst has deep knowledge in Excel and they are good at VBA to analyze the market data and financial modeling. The analytic work consists of building a financial model for different projects like Infrastructure projects (i.e. Power projects, real estate, etc.).read more most of their time analyzing past transactions data, creating presentations, and offering advice to bankers. He also performs other administrative duties like arranging calls and meetings with clients.Mainly the project analyst works 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 and the trend in the markets. An analyst might not be involved in the decision-making process, but they provide all the data and research required to make the decision.An analyst is expected to know about different databases and be comfortable with Excel, Powerpoint, and other software like Bloomberg, Factset, and Reuters. An analyst is also expected to track companies and generate daily newsletters, keeping to the schedules. At times they may also require writing 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 daily. One of the vital responsibilities includes mentoring a team of analysts and reporting to an AVP.He is also responsible for checking the analyst’s 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 classAsset ClassAssets are classified into various classes based on their type, purpose, or the basis of return or markets. Fixed assets, equity (equity investments, equity-linked savings schemes), real estate, commodities (gold, silver, bronze), cash and cash equivalents, derivatives (equity, bonds, debt), and alternative investments such as hedge funds and bitcoins are examples.read more.Key tasks include creating and building financial models in excelFinancial Models In ExcelFinancial modeling in Excel refers to a tool used for preparing the expected financial statements predicting the company’s financial performance in a future period using the assumptions and historical performance information.read more and valuations. Conducting financial analysisFinancial AnalysisFinancial analysis is an analysis of finance-related projects/activities, company’s financial statements (balance sheet, income statement, and notes to accounts) or financial ratios to evaluate the company’s results, performance, and trends, which is useful for making significant decisions such as investment, project planning and financing activities.read more is also an important part of the job. Creating research and equity research reportsEquity Research ReportsAn equity research report is a document prepared by equity research analysts or financial brokers that focuses on a specific stock, industry, currency, commodity, or fixed-income instrument, as well as a geographic region or country. It includes recommendations on why to buy or sell that stock, as well as DCF modeling, relative valuations, and so on.read more and performing a consequence analysis of the merger.The analyst program is an integral part of an associate recruiting strategy wherein an analyst is promoted on the associate level after completing three years.

Analyst vs Associate – Comparative Table

If one is interested in Investment Banking or Private EquityInvestment Banking Or Private EquityInvestment banking is the financial mechanism through which a person receives financial advisory services from the investment banker regarding the share capital. In contrast, private equity funds are investment funds that pool funds from different investors with high net worth to acquire stakes in different entities.read more 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 CFAMBA Or CFACFA focusses on imparting skills associated with Investment Management including Investment Analysis, Portfolio Strategy, Asset Allocation, and Corporate Finance. MBA focusses on overall Management Skills like Marketing, Operations, Finance, Human Resource Accounting, etc.read more may help in getting deep inside and help you start working as an Associate.

This has been a guide to analyst vs. associate. Here we discuss the top difference between analyst and associate, infographics, and a comparison table. You may also have a look at the following articles –

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