MBA vs. MS Finance Compendium

Many students have presented questions regarding an MS Finance degree as a substitute or stepping stone to an MBA. Now seems as good a time as any to address this important topic.

First, some broad generalities

1) Master of Finance degrees take less time than US-style MBA programs (Roughly 1 year for the MS Finance vs. 2 academic years for the MBA)

2) The Master of Finance degree will have much lower work experience requirements than a high cluster MBA program (many MS Finance programs have no work requirement at all)

3) The Master of Finance will place far less emphasis on leadership or leadership potential than the typical "high cluster" MBA

4) The Master of Finance will tend to be far more specialized than even MBA programs that allow students to develop a "track" or "specialization"

5) Quantiative skillls are even more highly prized in Masters of Finance programs than in the typical MBA program

6) It is generally more difficult to find comprehensive employment data for MS Finance graduates

Second, note that MSF programs come in many different "flavors." Here are some broad types of MS Finance programs

1) Mathematical Finance

"The program creates an integrated curriculum spanning four disciplines: economics, mathematics, econometrics/statistics and computational/numerical analysis." USC

2) Financial Engineering

"Financial Engineering is a multidisciplinary field that request familiarity with financial theory, the methods of engineering, the tools of mathematics and the practice of programming." Columbia

3) Comprehensive Finance

"Unlike mathematical or computational finance Master programs, we teach all of finance. This means for instance that we teach accounting, corporate finance, behavioral finance, etc., in addition to stochastic calculus, derivatives pricing, financial engineering, etc. We believe that our broad multidisciplinary approach to finance is an important advantage of our program, and that our placement record reflects it." Princeton

Third, universities have different administrative structures for running MS Fin programs. Here are some examples:

1) Finance programs sponsored by the Mathematics or Engineering department (e.g. University of Chicago and Columbia University)

2) The Hybrid programs that are shared between Mathematics/Engineerng and the Business School or Economics Department (e.g. University of Southern California)

3) The Finance program provided through the Business School or Department of Economics (e.g. University of California Berkeley)

This is all very nice but is a Masters of Finance the better program for me . . .

You can think of an MBA as having two major components beyond Networking: Academic Skill Acquisition and Personal Development. The Academic Skills portion would include understanding financial products, valuation, forecasting, etc. This can easily be obtained in a quality MS Finance program. On the other hand, MS Finance programs are not intended to develop leadership or management skills. In addition, you will receive little exposure to other disciplines such as Marketing.

The value of these leadership skills is contingent on your career path after finishing the program. If you intend to take a staff position within a financial services firm, your lack of leadership skills will probably not be particularly relevant. If you wish to take a line management position in a manufacuring firm, of course, the lack of these general management skills could be very important.

"I'm a young applicant with little work experience so I am considering an Masters of Finance program. However, virtually everyone knows what an MBA is but not that many people know what a Masters of Finance is - I am afraid that no one will hire me with this strange degree. Should I just go to a lower ranked MBA program or enter a Masters of Finance program?"

Again, this really depends on the exact MS Finance and MBA program and what you plan to do in the long run. However, if you feel that your admissions profile will improve over time, it might be wise to defer entering an MBA program in this circumstance. Since many MBA programs are reluctant or unwilling to accept students for a second MBA you should use your one chance at getting an MBA carefully. Indeed, it might be a good idea to hold off on higher education until you are ready to enter an MBA program that matches your ambitions. Note, however, that MS Finance programs do not have the same "degree preclusion" effect of a first MBA. This would allow you to gain important academic skills in just one year in your MS Finance program and then work on your general management skills years later when you have a greater work experience to draw upon when you take an MBA. In addition, high grades in your MS program would be a good way of demonstrating your academic ability to the MBA admissions commte.

Very good discussion on MSc.'s. I am myself attending one such program and I must say that as compared to the MBA stream, the MSc. is much more intensive. This is not to take away any credit to the MBA but given its longer time span, MBA's can afford to be slightly more laid back in the first year whereby networking skills are given a particular emphasis. We, on the other hand, do not have that luxury and will head straight to the book right off the first term.

In general, although the MSc. figures for various schools are more obscure, those of LBS are very clearly published: http://www.london.edu/mif/careerimpact.html
http://www.london.edu/assets/documents/ ... port-1.pdf
The recruitment stats are similar to those of any top b-school with about 90% securing a job within 3 months after graduation and with a 78% reporting rate. I myself spoke to some alumni of the 2005 class and according to rumors, the numbers are expected to be even better as the economy is picking up. Just remember that no matter how high or good the stats are, you will have to work very hard on your part as well to find and secure those jobs. Although Msc.'s are very number intensive, they also put great emphasis on networking skills whereby many get togethers (sundowners) are organized and it is crucial to get to know your classmates.

Hello,
Im from India. Im doing my Final Year undergrad. I have only 15yrs of education. but most of the univs require 16yrs of education.
i would like to know if a 1yr Diploma course in Financial Management will be valid as 16th yr of education?

I would also like to know more about the MS Finance Program.
Does it have a good value?
Im also planning to do CFA after MSc.

can some1 please explain me more about MS Finance program and CFA?

thanks

sinc

The treatment of a 1 year Diploma course varies from business school to business school. Some schools require a 2 year masters, some accept 1 year of graduate studies, and some accept the 3 year Bachelors are sufficient for admission.

See the following link for information the treatment of 3 year degrees by major business schools:

http://www.gmatclub.com/phpbb/viewtopic.php?t=14834

I am looking at several MS Finance schools. I will already have a BBA so I want to concentrate on Finance & Statistics exclusively.

resp. sir,
I have done my engg. in ECE with good percentage and right now wrking with a bank.Sir I have plan to do MSF from some pioneer but I dont have any relevant information about this program . So please provide me all the information about the same and whether I have to take GRE or GMAT.
Please provide me all the possible details I'll be very thankful to u.
Thanking u
Deepak Gupta

Hjort,

Regarding the “preclusion effect” of the MSF degree: Since the programs you listed are “comprehensive finance” programs (as opposed to mathematical finance or financial engineering programs) does that mean that there is a greater risk that a particular school will not be willing to consider for an MBA an MSF graduate from one of these programs?

I am from Kazakhstan, I am going to apply for MSc too, and I think it is right choice for unexperienced students.

I would like to know the answer too.

If you don't know the exact area, stick with MBA

I had never really heard of a masters in finance before but I am now considering it, being that finance is a good business field (income wise), and investment banking has always interested me, but my big question, if someone can actually answer it, is would this degree increase my chances of getting into a top ranked MBA or EMBA program? because if it does I would definitely be much more interested.

what is different this two title in finance MS and MBA? i think they are the same,,





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Tax Problems

is this thread dead ? I needed the answer too.

Hello
i have done my BBA 4years majors finance and then one year mba in marketing now i am planning to go to US, should i go for ms in finance or mba in finance? i have very little work experience though my gpa in bba and mba are above 3.3, currently i am preparing for GMAT. I want to pursue my professional career in finance. What do you people prefer?
THanks Regards

If one has to develop a excellent career in Finance and Investment , I strongly recommend MS finance. The MBA although provide specialisation course in Finance, is not depth enough to meet current world economic conditions. In other word MBA graduates cannot withstand the MS finance graduate in the field of finance.

MBA be in in marketing, HR or Finance is generic in nature.

Thanks.

You are right.MS is always will give you best career opportunities.But that should be from reputed institute.

Hello everybody,

I have already a MS in finance from a french business school, and i will attend a MBA in the coming fall. Do you think a CFA on top of that would worth the investment in term of time and money?

thanks for the information...it is really helpful