What is required for a career as financial analyst in investment banking community for lateral entry?

Question

I'm currently a teacher. I'm looking to go lateral entry into the financial services field. I'm absolutely passionate about financial systems, markets, securities, banking, investments etc. and am willing to commit my life to this profession.

There are very few entry level positions available for people like me however. Even though I know have a better work ethic, more ability, and passion for this field....I'm worried that companies will be looking for the typical college graduate.

I did find an entry level financial analyst position available near me. It indicated that they are hiring financial anlaysts in the product control function of their investment banking division.

Do you have any recommendations about pursuing this type of job?

Also, any advice on acquiring a job in equity or securities research? I'm looking for a step in the door....I can do the rest when I get in. Thanks in advance!

Answer 1

Investment banks rarely accept lateral entries, unless they are from another investment bank. Also, an analyst position in an investment bank is simply a stop on the way to a sales position; IB analysts are a dime a dozen, while high-powered salespeople are what makes or breaks an investment bank.

Equity research in brokerage houses is quickly moving away to India. In 2002, there were 300 security analysts in India, now there are 5,700, and it is estimated that there will be about 20,000 in 2011. JP Morgan Chase and Credit Suisse already moved large parts of their research teams to India. Other brokerage houses simply contract their research out to Indian companies like Adventity.

You should consider becoming an investment advisor instead. It's a job that is not going overseas because it requires face-to-face contant with the client. There is a number of large brokerage firms that have local offices and training programs for new advisors. Off the top of my head, Merrill Lynch, Morgan Stanley, UBS, and Ameriprise (formerly American Express Financial Advisors) all have those programs. Some insurance companies do as well.

Alternatively, you could start an investment newsletter. With annual subscriptions starting at $100, some newsletter publishers do quite well...

Answer 2

You're going to need to go back to school and get your Chartered Financial Analyst designation (CFA). Check out:
www.cfainstitute.org

Because you don't have any prior experience in the industry, a CFA is almost essential at this point. However, you can also take a firm's trainee program and become a research associate with the managing director of a certain research focus - for example, the managing director of biotech research or telecom research. The firm will likely assign you to a specific area unless you have a lot of experience in a specific industry or a broad based knowledge of a specific industry. Good luck. Hope this helps.

Answer 3

Have you tried jpmorganchase? they have an investment bank division. Usually they hire from universities, but you could enter their webpage to find out about their recruiting policies. There are plenty of banks with investment banking divisions.