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Citi just announced a major change to its Analyst Program: the firm intends to shorten its analyst track to two years. One major reason for this change is to persuade junior talent to stay at the firm instead of making the switch to private equity, which in many cases can offer higher pay or higher quality assignments. For early talent looking at a career in investment banking, here is everything you need to know about analyst programs and what this change may mean for your future career.
Analyst-to-Associate Pipeline
An investment banking analyst is usually a recent college graduate who contributes to the behind-the-scenes work of a deal, such as creating financial models, making client presentations, and reviewing numbers and paperwork. Analysts are hired as a class that starts together, trains together, and completes the program together. This program typically lasts for about three years, and results in the analysts being promoted to associates. Citi is changing this timeline, shortening their Analyst Program by about a year. With this change (taking effect on January 1, 2027), the firm is hoping to retain more of its junior talent with the incentive of a faster path to promotion.
Why This Change is Happening
A recent article by Fortune mentions a few reasons why Citi opted for this change. The biggest driver is how private equity firms consistently recruit talent from investment banking analyst programs. This recruitment used to take place at the end of an analyst’s first year, but now private equity hiring is happening earlier and earlier. Analysts are being called to interviews for a role that won’t even begin for another two years. These interviews are also happening more abruptly, with analysts receiving little notice before a full day of interviewing.
Investment banks spend a lot of time and money training analysts and don’t want to lose top talent to competitors. This is not a new challenge firms are facing, and these banks are getting creative in how to combat it. Citi has made its move to a shorter path to associate in the hopes that it persuades analysts to stay with the firm. Other firms are utilizing other persuasion methods, with Goldman Sachs requiring professionals to disclose if they have accepted an outside offer. Employees have to certify this in writing every three months. Similarly, JPMorgan has warned analysts that if they accept another job offer within their first 18 months as an analyst, their job may be in jeopardy. If shortening the path to associate works for Citi, other firms may follow their lead in the coming years.
What This Means for Early Talent
If you are a recent graduate seeking a role in investment banking, this change means that your path to associate has been shortened by a year, at least at Citi. There is one less year standing between you and becoming a team lead, joining more client calls, having more responsibility, and taking home a higher salary as an associate. When researching analyst programs, find out the program length at each firm. Citi may not be the only bank to make this adjustment, either—other firms may adopt similar policies to stay competitive.
This adjustment should also be noted if you’re trying to decide if you should complete an MBA before pursuing a career at an investment banking firm. You can complete your MBA and become an associate from there, or you can start as an analyst out of undergrad and work your way up to associate. This change at Citi means you can become an associate after two years of work instead of two years of grad school. If grad school was only appealing because it was a shorter time period, that benefit may be going away. Consider this change when weighing your options.
For college graduates looking at investment banking as a stepping stone to private equity, be sure to read the fine print before accepting an analyst position. With different banks having different rules about outside offers, you don’t want to unknowingly risk your job by taking a private equity interview too soon. However, professionals should also be aware of how soon private equity hiring is happening. If you’re wanting to make the switch, be ready for earlier interviews, as long as your firm doesn’t have restrictions around this.
Investment banking firms and private equity firms have always competed for top talent, so it’s important that you keep track of changes like these that could easily affect your career path.
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