Why the MBA in finance is still popular

TopMBA.com examines why the MBA in finance is still a popular choice amongst MBA students.

The QS Global 200 Business Schools Report 2012

A long-standing favorite specialist area for many MBA graduates, finance has taken a hit in popularity amongst applicants in recent years, following the global financial crisis.

However, as business schools continue to react to the ongoing financial events around the world, altering their programs to incorporate the lessons that need to be learnt from such economically game-changing events, employers continue to value the modern approach of MBA graduates to finance.

At The Wharton School at the University of Pennsylvania, which over the years has consistently been rated top in fostering a financial prowess among their MBAs, evolution of their curricula is important.

“Change has occurred both organically, as in the MBA curriculum review we just completed, and reactively, in response to the financial crisis,” explains Michael Gibbons, deputy dean at Wharton. “These changes extend to all academic-related work such as courses, research, seminars, and conferences. In the classroom, Wharton continues to offer an innovative curriculum that reflects its expertise in finance. Students are provided with knowledge that is in-depth but broad enough to be responsive to the vagaries of the market. In the post-crisis financial system, it is apparent that business leaders need to understand government better given increased regulation in the financial sector.”

However, it’s not purely the financial services sector that employ MBA graduates and alumni who are well-versed in all that is finance. Organizations outside of the sector have always required leaders with an in-depth financial know-how, but as the global economy evolves this need is growing more than ever.

“Financial companies offer unique challenges to their leaders and senior managers, particularly on subjects as varied as leadership, trust issues and regulatory framework changes,” explains Professor Steve Thomas, executive MBA course director and professor of finance at Cass Business School, City University London. “Recent global developments offer unusual and substantial challenges to managers in this sector. Anyone planning to run a business with these additional issues present needs to ensure they are knowledgeable and comfortable with a very wide range of management and professional skills.”

When looking into specialist areas taught on MBA programs, it should always be made clear that the MBA qualification has traditionally been seen as a general management degree, and only recently have specialist programs dedicated to the finance profession developed. As most business schools offer numerous finance focussed options, prospective students need to look carefully when trying to differentiate between programs. One effective way is through assessing the strength of the school’s career service links within the financial industry around the world. The Stern School of Business at New York University, for example, regularly attract Wall Street recruiters to campus.

Cass Business School in London has very strong links with financial services MBA employers in the City of London, and consequently appears strongly in the finance specialization rating. In the same way, the European Business School (EBS), based just outside the German financial capital of Frankfurt, returned the highest number of votes of schools in the country. In Asia, the National University of Singapore Business School (NUS) returned highest.

Other business schools that have shown big improvements in how employers value their MBA graduates’ financial abilities include:

IE Business School;

Indian Institute of Management, Bangalore;

IMD;

Indian School of Business;

S P Jain Institute of Management and Research;

Lancaster University Management School;

S C Johnson Graduate School of Management;

Cox School of Business;

Nanyang Business School.

Despite many MBA programs reporting an increase in diversity of working backgrounds in their class, the financial services industry still provides the largest amount of candidates to pursue the qualification across the world. Many students are looking to further their place in the industry and have specific goals, so look to an MBA to help them achieve career progression.

For this reason, many schools offer a large range of finance-specific courses, both as part of their core curriculum and as optional electives. The University of Chicago’s Booth School of Business is well known for its quantitative and analytical finance focus, and traditionally places around 75% of their graduates in finance and consulting jobs. The opening of their executive MBA campuses in the financial centres of London and Singapore has also helped increase their perception among global financial services employers.

MBA candidates may also be looking to move into the financial sector from other industries. With jobs in the sector in great demand, schools that have established internship links with such finance firms can particularly help candidates looking to switch industries. The Wharton School for example, traditionally places many of its students in Wall Street firms for internships at the end of their first year.