Increasing competition from business schools in financial orientation masters

The objectives of the study of corporate finance

From OUR EDITORIAL STAFF we have gone out in search of the degree of importance that is given, both by candidates for postgraduate studies and by business schools and employers, to master’s degrees in financial orientation. We know that the requests of students in different schools throughout the main countries of the world that offer this type of training, among which, of course, is Spain, have been constantly increasing. But it is also that business schools are also fighting their particular battle, since they are facing both quantitative aspects (how many quality programs exist in a certain region) and of course qualitative aspects (what are the curricular contents of those) versus greater competence in financial training.

A Master in Corporate Finance prepares students to face complex financial challenges, providing solid technical knowledge and skills, as well as the transversal competencies required in today’s financial environment

 

Today, the strategic role of Corporate Finance has become increasingly important due to the increased focus that managers are devoting to capital raising, financial planning, risk management and investment activities.

A Master in Corporate Finance prepares students to face complex financial challenges, providing solid technical knowledge and skills, as well as the transversal competencies required in today’s financial environment. Participants in any of these programs will gain a thorough understanding of the conceptual and empirical tools needed to respond to emerging financial challenges.

The objective of the programs with this financial orientation is to train young professionals who want to pursue a career in corporate finance divisions of large companies, in investment banking divisions of financial institutions, or in financial consulting firms.

Is a Master in Finance a good degree?

A Master of Finance can help you enter the exciting world of finance and prepare you for long-term career success in all industries. Graduates of these types of programs land some of the highest-paying finance jobs at big-name firms like JP Morgan and Goldman Sachs.

What can you do with a Master in Finance?

The professional field of action for a postgraduate of a master with financial orientation is very wide. And this has an explanation: the choice of position, function and responsibility can range from corporate investment banking to large industrial and consumer corporations. It covers a wide spectrum in which investment specialists who are managing large company accounts and have to take advantage (financial return) of large volumes of operations, thanks to this type of specialized training, are in better conditions than other professionals to discover how companies can make money and improve their financial position. In general, the positions of certain responsibility in this area correspond to the functions of financial analyst and financial advisor.

Is a master’s degree in finance useless?

In general, a finance degree is not useless, as it will provide a foot in the door for a wide range of potentially high-paying jobs. The main thing to keep in mind is that this is a highly mathematical title with stressful jobs, but also very well paid and that usually have to assume responsibilities for investment management, the allocation of operating capital, the sources that originate profitability of the organization, etc. In other words, managing and taking responsibility for high risks is part of the job.

The objective of the programs with this financial orientation is to train young professionals who want to pursue a career in corporate finance divisions of large companies, in investment banking divisions of financial institutions, or in financial consulting firms

 

How difficult is a master in finance?

It is not recommended that students pursue a degree in a full-time program while trying to hold down a full-time job, as the requirements are challenging and demanding. The experiences of postgraduates in different schools, for example, both in Spain and in our European environment, we often see that they are surprised by the amount of work they have to do outside the classroom while they are studying the program.

Is it smart to get a master’s degree in finance?

Managing money means you need to have stellar analytical skills and market knowledge. A master’s degree in finance brings a wealth of knowledge and experience to help you stand out in such a competitive, global and in-demand job market. This includes in-depth knowledge in areas such as investments.

How do you become a CFO?

Here are 6 steps in a CFO (Chiel Financial Officer) career to gain the right skills and experience:

– Obtain extensive financial experience.

– Expand your commercial and operational experience.

– Expand your customer service experience.

– Deepen and master everything that implies the understanding, as well as the application of technology.

– Of course, this requires completing a complete financial orientation MBA course, although with a conventional MBA, accrediting experience in the financial sector, you can also make a career to become a CFO.

– Being able to apply for positions of financial controller and of different functions in the treasury area.

It covers a wide spectrum in which investment specialists who are managing large corporate accounts and have to take advantage (financial return) of significant volumes of operations

 

Is a finance manager a good job?

In its ranking of the best jobs of 2021, U.S. News & World Report ranked CFO No. 3 in the Best Business Jobs, No. 16 in the Best Paying Jobs and No. 17 in the Top 100 Jobs.

Are finance students happy?

Overall, finance students rate their satisfaction with their degree at 3.1 out of 5. This is low compared to other degrees that average a rating of 3.28 across all degrees.

What is the difference between an MBA and a Master in Finance?

An MBA is broader than finance and equips graduates with knowledge of different aspects of business. Meanwhile, the financial is more specialized, offering students in-depth knowledge of finance, such as investment banking, asset management, and corporate finance.

Finance Degree Salaries: Is A Finance Master Worth It?

Jobs in the finance industry are some of the most attractive to business school graduates, offering rapid career progression, a fast-paced work environment and high salaries.

A finance bachelor’s degree can help you break into the industry, but a finance master’s degree can open up new opportunities, accelerate your career progress, and give you a significant pay raise.

So, how much could your earning potential grow after you’ve completed a finance-oriented master’s program?

In the first place, it is not only an improvement in the remuneration received by the postgraduate, but in the sense of stability, because there are not many specialists and the time it takes to learn the peculiarities of a business is an investment that the company is also making.

There are a number of roles in finance-related fields that can be accessed with a good financial background. You will be able to start a financial career by helping more senior members of your organization, in roles such as auditor assistant, underwriting assistant or risk management assistant, with respective average salaries that, if we take a professional market as dynamic as the United States , they move in an annual range of between 41,000 and 54,000 dollars per year according to Glassdoor.

Depending on your academic record and work experience history, you could also land a higher-level position as a financial analyst, working to improve the financial performance of insurance companies, consulting firms, and other corporations. According to Glassdoor, the average salary in the United States for this position is $74,000.

But if you want to apply for some of the highest paying and most competitive jobs in finance, such as an investment banker, asset manager, or chief operating officer, you can certainly do so with a master’s degree in finance under your belt.

The experiences of postgraduates in different schools, for example, both in Spain and in our European environment, we often see that they are surprised by the amount of work they have to do outside the classroom while they are studying the program

 

Master of Finance Salary: What Can You Earn?

The median salary for a finance master’s degree for finance majors in the United States is $80,000, according to the 2021 Graduate Management Admission Council (GMAC) Survey of Corporate Recruiters.

That’s already double the finance degree salary you can expect to earn in typical finance sector jobs, say, as a risk management assistant.

But that salary derived from having a graduate degree in finance will also increase significantly in the years after graduation. At HEC Paris, ranked the number one Master of Finance in the world by the Financial Times, graduates can expect a salary of around $156,000 three years after graduation, representing a 92% increase on their previous earnings to the title.

And what is the average salary of a financial director in Spain

The average salary of a CFO is €72,300 gross per year (around €3,920 net per month), higher than €48,200 (+200%) compared to the average annual salary in Spain.

Graduates of a master’s degree in finance from Kozminski University in Poland increase their salaries by 93%, the most compared to any other financially oriented master’s degree in the Financial Times masters ranking.

David Simpson, Director of Recruitment and Admissions for the Master of Finance at London Business School says that “Master’s programs are much deeper and, in many cases, more employment-focused than bachelor’s degrees.”

Contents of a Master in Finance

A finance master’s program will bring you up to speed on the fundamentals of finance, including data analysis, mathematics, and financial accounting, and offer you the opportunity to specialize in a particular area of ​​finance, such as big data, capital risk or risk management.

A master’s degree in finance allows students to pursue more personalized careers in the finance industry, as they can apply for more specialized positions. Additionally, they find exciting roles in areas such as investment banking, asset management, consulting, venture capital, and private equity. And the career field obviously expands for you, because you could land an investment associate position at BlackRock, a risk broker at HSBC, an equity research associate at Morgan Stanley, an asset manager at JP Morgan, or a consultant at Boston Consulting Group. In the Spanish case, it can open the doors for you to enter middle management positions in a Bank such as Santander, or in one of the Ibex 35 companies, assuming a position of responsibility from the outset.

Exposure to real-life business challenges during group projects and internships puts finance masters graduates in a good position to excel in their jobs, accelerate their careers, and secure an upper-middle-grade salary in almost all of their careers. the roles and responsibilities assigned to them.

“The value of an MiF is that it allows a graduate to move up the ladder faster than a bachelor’s degree,” says Laurent Deville, director of the Financial Economics specialty at the EDHEC Business School.

By equipping you with a diverse skill set, a deeper understanding of trends in the financial world, and an extensive network, a financially oriented master’s degree can help you access the more skill-intensive and higher-paying areas of finance such as trading, investing, and finance. and risk management.

As Laurent concludes, “this type of specialty will provide the postgraduate with the experience that is in demand in the profession and is a requirement of the industry.”

In its ranking of the best jobs of 2021, U.S. News & World Report ranked CFO No. 3 in the Best Business Jobs, No. 16 in the Best Paying Jobs and No. 17 in the Top 100 Jobs

 

Both the MBA and the Master of Finance specialty lead to well-paying careers in the financial sector

But what we are going to explain is that there are fundamental differences between the two. Conventionally, anyone who wishes to work in large corporations or in the financial sector itself, that is, in banking, securities agencies, etc., knows that with what they learn in these courses they cover a broad plan of studies especially specialized in finance, in the which will deepen in both the strategic approach and the implementation of actions (management). No less important is the training given to start any new business, in which the postgraduate has to work hard to manage the capital of investors, lenders, etc.

Because the training you receive is a very rigorous and highly topical set of knowledge, referring both to “technical skills as well as transferable skills, such as data analysis, statistics and computing, which are vital for a wide range of financial jobs” . And this is supported by Alex Stremme, director of the Master in Finance course at Warwick, a business school in the United Kingdom.

He says the number of applications for the program is up 12% this year compared to three years ago.

MBA or Master in Finance: what is the difference?

There are fundamental differences between the MBA and the master’s programs in finance. For one thing, finance masters candidates are often fresh out of college with little or no professional work experience and are looking to enter the finance industry. In contrast, MBA candidates typically have several years of experience and are often poised to move into middle management or senior positions.

This also occurs in Spain, where the average age of candidates for financial guidance is between 19 and 25 years, with the characteristic that 45% have no financial work experience. In the conventional MBA, the average student is 30 years old with six years of work experience.

The two graduate degrees also teach a different set of skills, although there is some overlap. An MBA is broader than finance and equips graduates with knowledge of different aspects of business. Meanwhile, finance is more specialized and offers students in-depth knowledge of finance, working capital management, short- and long-term financing, debt management, operations with more or less risk such as investment banking. , the management of financial assets per se and that which corresponds to when said financial assets are leveraged to assume certain investment projects in the year, and in general, all aspects related to corporate finance, such as, for example, is constant monitoring on the unit value of the shares, etc.

In addition, the financial specialty is intended for those who are absolutely certain that they want to start or continue working in the financial sector.

What must be taken into account from the business school is to suggest and/or advise one or another program, since it is the professional objectives of the applicant based on their professional inclination, which, in a very high percentage, will mark the final choice of the Program.

A finance bachelor’s degree can help you break into the industry, but a finance master’s degree can open up new opportunities, accelerate your career progress, and give you a significant pay raise

 

Master in Finance vs. MBA: What do businessmen think?

Employers value the in-depth and specialized financial knowledge of a postgraduate degree with a financial specialty, so giving postgraduates in this specialty a clear advantage over other training, taking into account two things: highly competitive markets and better understanding of part of employers in terms of the knowledge required by the positions they offer to new graduates. In addition, it gives professionals one more step of competitiveness in the international labor market.

However, an MBA gives students more flexibility in their careers than a finance master, whose students may miss out on extensive management knowledge that could propel them to higher positions. They say that the knowledge acquired in an MBA is more horizontal and the knowledge in the financial specialty is more vertical, since having an MBA is a requirement for many managerial positions. In fact, in almost all large corporations, you cannot grow in the top management structure without at least an MBA.

This means that MBA students generally earn more after graduation than finance master candidates.

The typical career process of a postgraduate in finance is that upon entering the financial field as an advisor and/or analyst, they will be able to move on to new positions of responsibility, being able to be appointed in these large banking and financial corporations, also those of large consumption and industrial sectors such as specialists from the finance department, but they may also assume positions of vice president and/or associates, depending on the structure of the company, in fairly short periods of time if viewed in relation to the progress of any professional in their performance and evolution within large organizations.

In other words, what is happening in the market is that postgraduates of an MBA take a variety of professional paths. In consulting, for example, an MBA at the senior consultant level will be hired; in financial services as an associate; and in technology companies, product manager has become a popular position after the MBA.”

There are fundamental differences between the MBA and the master’s programs in finance. For one thing, finance masters candidates are often fresh out of college with little or no professional work experience and are looking to enter the finance industry. In contrast, MBA candidates typically have several years of experience and are often poised to move into middle management or senior positions

 

MBA vs. Master in Finance: What About Tuition Fees?

While MBAs start in higher positions than financiers and are paid more, the degree itself can cost MBA candidates dearly. The MBA program has an average cost higher than the Master in Finance.

This is because the MBA curriculum is broader and offers electives and other extracurricular learning activities. Although the price always influences the choice of school and program, there is another element that must also be taken into consideration: the professional experience and profile of the student is what influences their decision to choose between the two programs.

There is also another important element: that the MBA and the master in finance are not mutually exclusive. Sometimes there are candidates who have already completed a Masters in Finance and who, after a few years of additional work experience, are looking to further progress their careers towards senior management, and end up going back to business school for an Executive MBA. . For these types of experienced professionals, it makes sense to supplement their specialized knowledge with a more general management education. Similarly, MBA candidates can specialize in finance through electives.

Ultimately, both programs offer the potential for well-paying career opportunities in the financial sector, with good progression. But if you are looking to diversify, an MBA is your best option.

This information has been prepared by OUR EDITORIAL STAFF

X