Why Should Finance Professionals Consider an MBA Degree?

mba for financial professionals

A Master’s in Business Administration, or MBA, is a common path for finance professionals looking to enhance their experience and boost their competitive edge. A Master’s in Business Administration, or MBA, is a common path for finance professionals looking to enhance their experience and boost their competitive edge. And, combined with significant work experience, a Master’s in Business Administration can help up your salary. From gaining international experience, to opening the door for a career change, here’s why finance professionals should consider a Master’s in Business Administration.

MBA VS Master in Finance

Before looking at an MBA in depth, we need to address a question many people ask. That is, “Why get an MBA and not a Master in Finance? What s the difference? The answer is that they are two ways to look at the same type of careers: those involving figures, mathematical data, and other things related to finance.

The Master in Finance looks at the area through a narrow lens. Its focus is completely on advanced topics in finance, and its methodology is quantitative. That is, it works with the “what and how” of finance. Courses included might be things such as financial accounting, finance modeling and investment analysis.

The MBA is a broader program. It looks at the “what” and how” of finance, but also at the “why.” Its focus is the strategic component of finance. Courses might include behavioral finance, corporate finance and equity management.

Both programs prepare people for finance careers, but the MBA is more flexible, allowing people to move between areas of finance and to progress from one to another with little adjustment. Additionally, salaries for people with the Master’s in Finance degree are slightly lower than those for people with an MBA. Here are some more reasons professionals might choose the MBA over a Master’s in Finance.

There are many doors that open to a career in finance or business, so no one degree type is right for every professional. With the increase in globalization, however, it pays to be someone with many different skills and knowledge fields. This article looks at the MBA degree and focuses upon the ways it can be an advantage to business careers.

It Gives You International Experience

finance mba

What are employers looking for in MBA graduates? According to a 2017 survey by the Financial Times, employers are looking for candidates who can manage their time effectively and work well with a wide variety of people – which also includes being able to manage in today’s global world.

Globalization Trends

Throughout the last century, the field of international economics has involved the “haves” selling to the “have-nots.” Goods, services and even capital crossed borders, but mainly in one direction: from large, advanced nations to emerging ones. In fact, according to the website BBVA Open Mind, until recently, the output of countries like the US, western European countries and Japan was more than 60 percent of the world’s economy. Now, however, those “emerging countries” account for about half of the world’s output of goods, services and investment holdings.

Another factor giving these nations a seat at the table is that it is cheaper to produce goods in these locations. Additionally, the supply chain has become global. So, now goods are traveling from these nations to the advanced countries. Business have found it profitable to have international presences.

Advances in IT have made it possible for a startup in a smaller country to compete on the global market almost from inception. The world of international business has changed dramatically.

Skills You Need in a Global Economy

Successful players in the international economy have several skills in common. They are good communicators. Don’t all degree programs stress communication skills? They do, but global finance requires that people communicate using a knowledge of cultural differences. Professionals need to be sensitive to the attitudes and customs of people from different countries. They also must demonstrate respect and use diplomacy when working with them. Additionally, successful finance professionals need a grasp of international laws governing commerce.

These professionals also need to be networkers who can identify business partners who are “good fits” for their companies. Successful professionals must be collaborators and team members who understand how to influence others. They have to be able to think creatively and have flexibility and resilience. They have to be people with the confidence to make mature and considered choices. A new addition to business jargon is the term “EQ.” of course “IQ” refers to one’s intelligence, but employers are looking for employees with a high “emotional quotient.”

Business schools are responding, by expanding their curricula to include coursework that focuses on the Chinese economy, for example. Some schools are even introducing a specialized certificate where students are sent on exchange to a business school in another country and also learn the local language.

Global economies are more intertwined than ever. A business degree that shows you have an advanced knowledge of these trends can make you more attractive to your current employer – or to another company.

It Helps Prepare For A Career Change

Dissatisfied with your current role? A Master’s in Business Administration can help you prepare to shift gears to a new career.

Business degrees are becoming increasingly attractive to firms outside the financial sector, from nonprofits to healthcare companies and tech giants.

Amazon, Apple, Google, and even Facebook are all evaluating candidates who have business degrees. In fact, Quartz reported in 2016 that Amazon hired over twice as many business school graduates as Microsoft. If you’re interested in moving to a different industry, a business degree could be the way to do it.

Traditional Careers with an MBA

Many sources agree that twenty years ago business professionals needed to earn only a bachelor’s degree. As more people earn them, however, they are losing their value and, although the value of MBA degrees is debated by some, they are still the “gold standard” in the industry. Aside from a generalized MBA, you can earn the degree in a plethora of specialties. Some of these are IT, accounting, business management, eBusiness, entrepreneurship and healthcare management among others. The traditional career path with these degrees includes, of course, banking, investment management, accounting and marketing.

Non-Traditional Careers with an MBA

What if you don’t want a traditional MBA career? What if that is where you landed, and you want to “change things up?” There are some exciting opportunities for people with MBA degrees who want a fresh look at their careers. Since the pandemic, supply chains have been disrupted. Not only are things not being produced, but lack of a labor force has stranded cargos on many ships. Companies need supply chain managers who can come up with creative solutions to this problem. Business is also taking a closer look at itself, at its procedures, profits and losses, productivity, and other facets of the organizations, through an ever-increasing field of data. Data management is another MBA career with potential for growth and high earnings. People with an interest in agriculture might find a good career fit in agribusiness. With the current emphasis on making businesses “green,” another great field for someone with an MBA might be working in environmental sustainability or energy technology. Higher education management is another choice. Colleges and universities are increasingly competing for students because of the rise in tuition, and they are struggling to survive because of the increased cost of running an organization. Another great use of an MBA is starting your dream company.

A business degree isn’t just good for a career shift. It can also help you advance at your current company. Business school graduates have made the jump from accountants to top-level managerial positions after they completed their degree. This is also because a business degree can help you solidify what it is you really want to do professionally – especially helpful if you only have a few years of experience. If you’re considering business school, talk to a career mentor at your current job to get their feedback on what to expect after your degree is done.

It might also be important to talk to your current employer; there are many advantages for employers who help employees earn their MBA degrees. For one thing, it allows the employee to assume more responsibilities in the company. Additionally, employees need not quit their jobs to earn degrees. They can study online and , with some modifications in their schedules, successfully work while they complete their studies. Employees who earn MBA degrees also make good project leaders, increasing the probability that projects will be finished successfully, and on time. That saves companies money. Those same employees will be able to step into vacated management positions, making the succession planning simpler for the organization.
Additionally, since the MBA is such a broad platform upon which to build, certifications can help people rise in their company’s hierarchy because they can gain special knowledge in an area where their organization has a deficit. If you already have an MBA, you can add a certification to it. Some of these are:

• CFA : Chartered Financial Analyst. This certification gives people expertise in hedge funds and can help a company acquire clients who need asset management.
• Six Sigma . This certification is earned on six levels, the yellow, green and black belts, the master black belt, the white belt and the orange belt. It is intended to give professionals an edge in problem solving and leadership.
• APICS. This is a certification in operations management, but also focuses on the global supply chain.
• SHRM. Most people are familiar with this human resources certification that can help a company with hiring, retention, compensation and development of employees. A person with an MBA and this certification can be a real asset to his organization.
• National Entrance Test. this certification is intended to provide additional expertise in lecturing and teaching at a university level.
• Spin Selling. This is a certification for people who want to excel in marketing.
There are many more certifications like these that will give someone with a generalist MBA a chance to “shine” among fellow employees in a corporation.

MBA VS Master in Finance

mba vs master of finance

Before looking at an MBA in depth, we need to address a question many people ask. That is, “Why get an MBA and not a Master in Finance?” What’s the difference? The answer is that they are two ways to look at the same type of careers: those involving figures, mathematical data, and other things related to finance.

It Can Help Increase Your Salary

mba increased salary

The coursework that you complete in a business program teaches soft skills like the ability to debate respectfully and see the big picture. These are vital to success in today’s workplace, and showing that you have the chops can translate to a higher salary.

The median starting salary of employees with a Master’s in Business Administration is $100,000 a year.

Other Advantages of an MBA

Courses offered in an MBA degree probably include: accounting, statistics, economics, communications, management, and entrepreneurship among others. Because the field of study is broad, the degrees can be specialized in many ways. Besides the non-traditional careers already mentioned, people can earn MBAs in aviation and aeronautics. Finance is an important aspect of building and maintaining airports and aircraft. There are MBAs in TV and film production as well. Projects such as movies must be completed on time and on budget. People with MBA degrees are hired to manage luxury accommodations as well. There is an MBA in Wine Marketing and Management. As a matter of fact, you can even earn an MBA in Thoroughbred Horseracing. All of these degrees address the financial aspect of the industries where they are found.

Another reason finance professionals earn an MBA is in the perceived value of the degree. While the number of applications for MBA degrees is down, it is still a popular offering. It does require more time to earn than a master’s in finance degree, and applicants are usually required to have some work experience in the field. So, the master’s degree might be a better choice for someone with little or no experience in finance, but the MBA is the gold standard.

Since the MBA is broader, though, people who earn the degree have more capacity to change careers. The MS in Finance degree is a better choice for someone who is absolutely certain he or she will be satisfied with a career in traditional finance areas. Additionally, experts say that people with MBA degrees that focus on strategy and other things besides the quantitative base many be better positioned for future success. That is because many of the tasks associated with the MS in Finance may become automated in the future. The management careers usually held by people with MBA degrees are much less susceptible to automation. The bottom line is that the degree choice is a function of the career direction envisioned, and whether the person seeking the degree is certain of that direction.

A Master’s in Business Administration is a worthwhile choice for any field, but it’s especially worth considering if you work in finance. The networking that you learn how to do in business school can build upon your previous career experience and serve as the launch point for future success.

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