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Why MBA in Finance? Is it a lucrative career option in 2023?

Why MBA in Finance? Is it a lucrative career option in 2023?
A 9 min read

MBA Finance or Masters of Business Administration in Finance refers to an MBA concentration that contains a group of courses related to finance. it is generally a 2 years course.

An MBA in finance opens up various opportunities for students in the financial world like careers in private equity, investment banking and management, corporate accounting, and many more.

MBA Finance covers various subjects like financial management, financial planning, cost of capital, corporate budgeting, portfolio management, etc. You not only learn how to manage money but also how to acquire it.

The average salary at the top 20 MBA colleges in finance is between $120,000 – $170,000. However, to get admission into top MBA colleges for finance, you require a competitive GMAT score. A 600+ GMAT score is a competitive score, but the average GMAT score for the top 20 business schools in finance is between 680 – 734.

MBA in Finance 2023 – What to expect?

MBA Finance management is a two-year postgraduate course that involves the study of finance, analytics, and budgeting. The MBA Finance syllabus is designed in such a way that it enables the student to analyze and forecast the financial report and economic trends, managing and maximizing investment portfolio, balancing risk and profitability, and making stock profitable.

Here is a brief overview of what you can expect if you plan to pursue an MBA in Finance:

Duration2 years
EligibilityBachelor’s degree and standardized test scores
Entrance Exam AcceptedGMAT or GRE
Best MBA ProgramsSome of the best MBA programs in 2021 are at Wharton School of Business, Columbia Business School, Cornell SC Johnson School of Business, Harvard Business School, and Stanford Graduate School of Business  
MBA Fees$73,200 (Average top 20 colleges)
Average Salary$ 1,43,191 (Average top 20 MBA colleges)
Career OpportunitiesPrivate Equity/Venture Capital, Investment Banking Organizations, Investment Management Companies, and Diversified Financial Companies  
MBA Finance JobsFinancial Analyst, Manager, Senior Business Analyst, Senior Financial Analyst, Relationship Manager, Accountant, and many more  
Top RecruitersHDFC Bank Pvt Ltd, Accenture, EY, Tata Consultancy Services, Morgan Stanley, ICICI, Genpact, BCG, etc  
MBA Finance subjects Financial Accounting and Management, Financial markets, Financial reporting, Rick analysis, etc

This article discusses why the MBA in Finance is a good option, its scope, average salary, syllabus, and eligibility requirements.

MBA in Finance - 2021 complete guide

What is MBA in Finance?

MBA Finance is a master’s in business administration degree that contains specialized courses related to finance. The course tends to start similarly to other MBAs, with core courses in various business disciplines. As the student progresses through the core courses of the MBA, they begin to start taking concentration courses in Finance.

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MBA Finance is a bit different from the Master of Finance. Here is how:

MBA in Finance vs. Master of Finance 

The Master of Finance vs. MBA’s primary difference is that the MBA equips students with broader knowledge and skills in business. In contrast, Master of Finance programs are more finance specific.

An MBA in Finance generally takes 1-2 years to complete, whereas a Master of Finance is usually a 12-month program. Here are some of the differences between the MBA and Master of Finance:

ComparisonMBA in FinanceMaster’s in finance  
Duration1-2 years1 year
Work ExperienceThree yearsNo work experience
Scope of Finance coursesWideNarrow  
Average Salary starting$100,000$85,660

Check out the difference between MBA and PGDM here.

MBA in Finance – Is it a good option?

At the stage where the world is fighting against the COVID-19 pandemic, the GMAC annual report for corporate recruiters suggests that although graduate management talent is not immune to the epidemic’s impact, employers remain confident about their skills. The hiring projections are likely to rebound in 2021, and the median salaries will be around $105,000.

If you are having doubts about whether an MBA still offers a lucrative salary, here is a positive outlook. The hiring trends of MBA are projected to increase to 89% in 2021 compared to 86% in 2019. Have a look at the bar chart below:

Learn more about why you should pursue an MBA in 2021.

Students who are interested in finance can opt for concentrated financial courses to gain in-depth knowledge. Besides, jobs in financial services are highly paid. They are always on demand, which is evident from the employment report of top business schools.

Average Salary for Top MBA Colleges in Finance

Look at the salary and percentage of students hired in the financial industry from Top MBA colleges in finance 2021:

MBA colleges% of students hired in the Finance industryAverage Salary
Wharton School of the University of Pennsylvania36.20%$150,000
NYU Stern33.50%$150,000
Columbia Business School33.20%$142,000
Stanford GSB33%$170,000
Harvard Business School34%$150,000
Cornell Johnson34%$139,752
Yale School of Management24.10%$130,000
Georgetown McDonough School of Business245$122,722
Tuck School of Business21%$150,000
UNC Kenan-Flagler19%$150,000
Emory Goizueta Business School31%$120,000
MIT Sloan School of Management16.70%$150,000
Duke Fuqua School of Business18%$139,354
UCLA Anderson school of Management14.90%$125,000
UC-Berkeley Haas14.50%$150,000
Michigan Ross School of Business11.90%$150,000
Chicago Booth school of business34.70%$150,000
Kellogg School of Management14.90%$150,000
Darden School of Business24.40%$145,000
Tepper School of Business20.90%$130,000

Top colleges offering MBA Financial management courses

Best MBA colleges for Finance

Here are Top 20 best colleges for MBA in Finance:

  1. Wharton School of the University of Pennsylvania
  2. NYU Stern
  3. Columbia Business School
  4. Stanford GSB
  5. Harvard Business School
  6. Cornell Johnson
  7. Yale School of Management
  8. Georgetown McDonough School of Business
  9. Tuck School of Business
  10. UNC Kenan-Flagler
  11. Emory Goizueta Business School
  12. MIT Sloan School of Management
  13. Duke Fuqua School of Business
  14. UCLA Anderson school of management
  15. UC-Berkeley Haas
  16. Michigan Ross School of Business
  17. Chicago Booth school of business
  18. Kellogg School of Management
  19. Darden School of Business
  20. Tepper School of Business

Take a look at the average GMAT score and MBA fees for the top MBA colleges in finance:

MBA collegesGMAT scoreFees
Wharton School of the University of Pennsylvania722$80,432
NYU Stern723$76,780
Columbia Business School726$77,376
Stanford GSB733$74,706
Harvard Business School730$68,440
Cornell Johnson700$71,940
Yale School of Management720$72,350
Georgetown McDonough School of Business691$60,894
Tuck School of Business720$77,520
UNC Kenan-Flagler694$66,840
Emory Goizueta Business School690$134,200
MIT Sloan School of Management720$77,168
Duke Fuqua School of Business700$70,000
UCLA Anderson school of Management706$65,124
UC-Berkeley Haas727$64,246
Michigan Ross School of Business710$71,048
Chicago Booth school of business724$73,440
Kellogg School of Management705$74,871
Darden School of Business703$72,800
Tepper School of Business680$34,000

Getting into Top MBA programs in Finance requires a competitive GMAT score

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The total tuition fees to pursue an MBA in Finance at the top 20 business schools is between $34,000 – $80,400. However, this does not incorporate other expenses like books, supplies, travel, and living costs.

To get into these business schools, the average GMAT score required is between 680 – 734. We can help you achieve a 700+ on the GMAT. Why don’t you try out our FREE Trial? We are the most reviewed online GMAT Preparation company in the GMATClub with more than 2000 reviews as of January 2021.

Check out our list of Top 10 business schools in finance based on the percentage of students hired in the finance industry.

Learn about the best business schools for Marketing, Operations, Human Resource, Technology, Entrepreneurship, Business Analytics, and Consulting.

MBA in Finance – What are the career opportunities in the finance industry?

Different Types of Careers in the Finance Industry

Careers in the finance industry are a perennial favourite for many MBA aspirants. Besides the prestige that comes with working in financial institutions such as Goldman Sachs and Morgan Stanley, a career in finance also offers lucrative starting pay and other compensation (including signing and year-end bonuses).

For many, a career in the finance industry presents a dynamic and rewarding career path that might be a springboard for many future opportunities.

Careers in the finance industry can be sub-categorized into the following more granular classification:

Let us look at each and the organizations that operate in each industry.

Private Equity/Venture Capital

What is private equity? Private equity is a source of investment capital that comes from high-net-worth individuals or firms. These individuals or firms buy shares (i.e., equity) of private companies or public companies to take them private.

What is Venture Capital? Venture Capital is financing given to Startups and small businesses that have high growth potential. In exchange, the Venture Capital firm receives equity in the startup or business. Venture Capital is generally found in high growth industries such as biotechnology or software.

Some of the top Private Equity/Venture Capital Organizations are:

  • Andreeson Horowitz
  • Khosla Ventures
  • Accel Partners
  • TPG Group
  • The Carlyle Group
  • Bain Capital
  • The Blackstone Group
  • Kohlberg Kravis Roberts
  • Apollo Global Management
  • Warburg Pincus
  • Advent International
  • EnCap Investments
  • CVC Capital Partners
  • Vista Equity Partners
  • KKR
  • Sequoia Capital

Investment Banking

What do investment banks do? Investment banks help organizations and companies to raise capital by issuing securities such as stocks or bonds. They also deal with the placement of these securities with investors in a process known as underwriting.

Besides financing, investment banks facilitate mergers and acquisitions (M&A) by providing guidance and other services to parties on either side of the potential transaction. Additional services may include company valuation, strategy formation, and deal negotiation.

Some top investment banking organizations are:

  • Blackstone Group
  • Evercore
  • Harris Williams & Company
  • Moelis & Company
  • JP Morgan Chase
  • BMO Capital Markets
  • Piper Jaffray
  • CIBC World Markets
  • Williams Blair
  • CitiGroup
  • Morgan Stanley
  • Bank of America Merill Lynch
  • Centerview Partners
  • Greenhill & Company

Want to learn more about the different Post-MBA careers and salaries offered to graduates of top MBA programs? Read this article.

Investment Management

Investment management refers to the buying and selling of investments within a portfolio. This is done to meet particular investment goals for the benefit of the investor. These investors may be individuals (private investors) or Institutional investors such as pension fund corporations, insurance companies, etc.

Some of the top Investment Management Organizations are:

  • BlackRock
  • The Vanguard Group
  • Charles Schwab
  • JP Morgan Chase
  • State Street Global Advisors
  • Fidelity
  • Allianz
  • BNY Mellon
  • Amundi

Diversified financial

Diversified financial companies include consumer and commercial oriented organizations that offer a wide variety of financial products and services such as home equity loans, credit cards, securities, and investment products.

Some of the top Diversified Financial Organizations:

  • Fannie Mae
  • Freddie Mac
  • American Express
  • INTL FCStone
  • Icahn Enterprises
  • Synchrony Financial
  • Marsh and McLennan
  • Jefferies Financial Group
  • Ameriprise Financial
  • Ally Financial

MBA in Finance – Salary in India

MBA Finance Salary in India

In India, graduates with MBA in Finance earn an average base salary of ₹710,780. Some of the job profiles that offer a lucrative salary are:

Finance JobsAverage Salary in India
Financial Analyst₹516,000
Finance Manager₹10,00,000
Senior Business Analyst₹10,00,000
Senior Financial Analyst₹627,000
Operations Manager₹799,000
Relationship manager₹532,000

Popular companies that hire Master of business administration (MBA), Finance degrees in India are:

Companies in India that hire MBA Finance graduatesAverage Salary
Tata Consultancy Services₹297,000 -₹20,00,000
HDFC Bank Pvt Ltd₹311,000-₹20,00,000
EY₹320,000 – ₹20,00,000
ICICI Bank₹261,000 – ₹20,00,000

Salary Statistics and Skills required during COVID-19 pandemic

GMAC Corporate recruitment survey 2020 highlights the hiring and salary trends for MBA in finance graduates during the COVID-19 pandemic. The data is taken from two sets – Wave I (February 17-March 17, 2020) and Wave II (June 17-July 17, 2020).  Here are the findings:

  • Most of the leading industries of employment for b-school graduates reported a stable headcount for MBA Finance
  • Projected annual median base starting salary for 2020 new MBA finance hires $115,000 (Wave I) and $105,000 (Wave II)
  • Around 37% of finance industry b-school recruiters remain highly confident about the preparedness of graduates to be successful in an organization, followed by 51% who are optimistic, and 11% who are slightly sure. (Wave I)
  • Around 32% of finance industry b-school recruiters remain highly confident about the preparedness of graduates to be successful in an organization, followed by 53% who are optimistic, and 15% who are slightly sure. (Wave II)
  • There has been an increase in skill importance due to the COVID-19 outbreak in the financial industry. Take a look at the skills required by the financial industry:
Finance Industry Skills Required% of recruiters indicating skill importance
Ability to handle the tricky global business environment47%
Ability to navigate the challenges of technological disruption76%
Versatile skillset65%
Prepared to take on leadership roles26%
Does not require extensive company-sponsored training (able to hit the ground running)56%
Strategic thinking47%
Strong communication skills59%

Getting into Top MBA programs in Finance requires a competitive GMAT score

We can help you achieve a 700+ on the GMAT. Try out our FREE Trial Today! We are the most reviewed online GMAT Preparation company with 2000+ reviews on GMATClub as of January 2021.

MBA Finance concentration courses

An MBA finance program generally offers a mix of core and specialized courses. Some of the core courses in MBA include:

  • Human Resource
  • Strategic Thinking
  • Operations management
  • Marketing management
  • Financial Accounting

Some of the concentration courses for students pursuing an MBA in Finance are:

  • Investment analysis
  • Corporate budgeting
  • International markets
  • Corporate restructuring
  • Fundraising
  • Portfolio Management
  • Securities analysis
  • Hedge funs management

MBA Finance Eligibility Criteria

The admission to MBA finance is similar to the admission process of an MBA degree. There might be some variations. However, generally, these are the following requirements for MBA Finance admissions:

FAQs – MBA in Finance

What does an MBA in Finance do?

An MBA in Finance can prepare you for careers in investment banking, corporate accounting, private equity, and many more. Master in Business Administration (MBA) in Finance imparts knowledge on control and review of the collection, investment, and resources of money.

What is the eligibility for MBA in Finance?

The eligibility criteria for MBA in finance is similar to the admission process of an MBA degree. You should have 50% aggregate marks in Graduation.

What is the best finance school in the world?

The best business schools for finance in 2021 are:
1. Cornell SC Johnson
2. Wharton School of Business
3. Columbia Business School
4. Stanford Graduate School of Business
5. Chicago Booth School of business
Learn more about the best MBA programs for Finance in 2021

What is the duration of MBA in Finance course?

Generally, an MBA in Finance course is for two years.

What are the top MBA Finance jobs?

Some of the top MBA Finance jobs are Financial analyst, senior business analyst, Accountant, relationship manager, finance manager, and many more.

Which are the top companies that recruit MBA finance graduates?

Some of the top companies that recruit MBA finance graduates are Accenture, EY, ICICI Bank, HDFC Bank, and Tata Consultancy Services.

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