Overview on MBA in Finance
The Master of Business Administration with a major in finance allows students to emphasize in one or a combination of the following areas:
- corporate finance
- investments and portfolio management
- financial institutions and capital markets
- international finance
As an MBA specialization Finance is one of the most popular choices among the students. Finance department is the core of any organization, especially during these times of uncertain market trends and fragile economies. An increasing number of students are opting for this major as a many opportunities are now open to them.
The sorts of challenges that have to be met by companies today are different from those that were present in the past. Hence companies need employees that have a deep understanding and knowledge of the markets and its financial trends, and those able to take decisions quickly. Here, the more intimate knowledge of an MBA-finance graduate is useful as compared to that of a normal MBA graduate.
Today every company has separate financial managers who are given the responsibility of not only preparing reports but also to manage the investment policies of the company and plan for the future of a business so that there is a positive cash flow. It also requires administrations and maintenance of all the financial assets of the company. A finance manager also has to seek out and tackle financial risks as well.
Ideal financial management is a process that deals with a balance of planning and control. It involves taking into account all the funds that are available and planning expenditures, so as to maximize returns on any investments. Control refers to keeping an eye on the cash flow. A financial manager is basically responsible for managing the incoming funds as well as their expenditure.
In any company, goals are set to be achieved in any given time frame. The Finance manager has to work to achieve these goals using the available resources efficiently so as to generate maximum profits for the company.
MBA finance concentrates on the financial aspect of a business allowing students to meet the challenges faced by the companies in the fragile markets today. The degree will arm them with in-depth knowledge of the markets and familiarize them with financial principles employed by corporate in present times. Students of MBA finance are better able to understand the market situation than any ordinary MBA graduate.
Focus on banking strategies in the curriculum makes MBA finance student’s experts in dealing with banks. This is vital for the smooth running of company financial affairs.
This is a core subject taught to students of MBA finance that keeps them up to date with all the financial instruments and strategies that they can make a part of their arsenal in dealing with the various financial challenges they face.
With the amount of practical study, case studies, current business trends and workshops being organized in MBA finance schools, the students are ready to deal with everyday financial problems apart from taking major financial decisions, by the time they get their degrees.
In order to pursue MBA in Finance, one must have a basic graduation degree from any stream. There is no separate testing being done for admission to MBA-finance programs. Admission is through the usual methods for any MBA degree, i.e. one need to take any of the usual MBA entrance examination like CAT, MAT, CMAT etc. There are many colleges in India and abroad which offer MBA in finance.
Some of the top MBA colleges in India offering MBA in Finance include IIM (Ahmadabad, Bangalore, Calcutta and Lucknow), SP Jain, and Symbiosis Center for Management and Human Resource Development, etc.
Upon completion of MBA with specialization in Finance one can work in any financial department of a company. As mentioned earlier, financial experts who can react quickly in situations and have a good knowledge about current financial trends and economies are in great demand. After obtaining the degree, one may opt to be a financial analyst, corporate controller, chief financial officer, company treasurer, risk and insurance manager, investment banker, management consultant, credit specialist etc. The number of opportunities in this field is endless because of the massive scope of the field of work. Finance job are exciting and offer tremendous job satisfaction in addition to high pay package.
Here, we look at two examples of the role played by MBA-Finance graduates in –
- Commercial Banking
This is a core sector of the economy and involves multiple levels of expertise. One can enter the industry as a credit analyst where the duties are to evaluate loan applications of consumers and businesses. One can also become a loan officer where it is required to sell loans of the lending institution to the public. This requires a good skill in selling and an understanding of different businesses. Then there is the job as a trust officer where the person is required to advise customers while selling financial products, for which it is required to have knowledge of investment, taxes and estate planning.
- Corporate Finance
Corporate finance requires handling the funds of a company, planning mergers, acquisitions and planning future investments. Skill requirements involved are strong analytical skills as well as ability to motivate people, along with the ever necessary knowledge of current trends.
An MBA degree was a guarantee for success in career in the past. With the number of business schools and fresh graduates that are being churned out every year increasing, saturation level in inevitable. It is already evident in the cases where students pay huge sums of money as fees to B-schools and then end up disappointed when they do land up with jobs they’ve dreamed about.
It is hence imperative that one spends time to choose a B school that is not only worth their time and money for two years, but also helps to secure their future.There are a number of factors that any aspiring student needs to keep in mind before finalizing on any business school.
Accreditation by AICTE:
The most crucial of all factors is the affiliation of the college with AICTE, Ministry of HRD, and Government of India. If the college is recognized by AICTE, one third of the competition is won as a lot of value is given to degrees from institutes recognized by the AICTE.
Reputation and Quality
It is important to know the reputation and history of the college in the business school world, its placement as well as the quality of education being imparted to the students. All this information can definitely be found online and can also be gathered by interacting with professionals in the field.
Quality of Faculty
You are only as good as the knowledge you hold. Teachers are the best source of knowledge. Research and find out as much as possible about the qualifications of the faculty at the school you’re interested in. A good faculty has practical experience and is up to date with current events in the world. The will impart their knowledge freely and their experience, if shared, will be invaluable.
Teaching Material and Methods
As economies and industries keep changing, never the same, so must the curriculum. An up to date curriculum and resources are important for an effective learning of business management in the financial sphere.
For fresh graduates, it is highly important that their grades are in a format suitable for industry comparison. They should be on a scale that is familiar to those who use the grades to form an impression of the candidate prior to hiring them. Hence, find out what sort of grading system is being employed.
While theoretical knowledge is important, nothing can prepare one better for a crisis or challenge than practical application of the theory they learn. Hence workshops and interactive activities are necessary to instill in the candidates the confidence to face the situation they learn about.
In conclusion, an MBA in Finance is a valuable asset to add to one’s resume. This obviously requires one to enjoy working with financial instruments and isn’t for those who do not like to deal with money and make financial decisions. It is a powerful and important field with tremendous scope in the present global conditions where economies are on a delicate balance and everyone is desperate for the one person who can insulate and save them from crises.