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MBA in Financial Services: Prospects & Career Options

Jun 15, 2016 17:27 IST
    MBA in Financial Services: Prospects & Career Options
    MBA in Financial Services: Prospects & Career Options

    Needless to say, the motive and purpose behind pursuing education ultimately revolves around money.

    So what better job can you have other than handling/managing that money?

    In this extravagant world, saving and investing are the two pillars supporting every business. With a degree of MBA in financial services, you can be the platform on which these piers stand.

    Financial services can be comprehended as the money-related services offered by various parties such as:

    1. Banks,
    2. Credit card companies,
    3. Stock brokerages,
    4. Private equity and
    5. Venture capital,
    6. Insurance and accounting companies,
    7. Investment funds etc.

    The sole purpose of the wide-ranging finance industry is to perform adequate management of money. And the sole intention of MBA in finance services is to identify and train high potentials for the domains of banking, insurance and investment.

    So, if you are lured by entrepreneurial interests, social impact arenas and traditional rings in financial services, then seeking this post-graduation program will be a right decision. 

    As cited by John Bruton, late Irish politician,  

    The purpose of this comprehensive article is to impart you with the relevant information pertaining to this most sought-after specialized course of finances. You will find here the following topics:

    1. An Introduction to Financial services
    2. Rationale for choosing a career in Financial services
    3. Eligibility criteria for pursuing MBA in Financial services
    4. Syllabus taught in Financial services
    5. Career Options/Opportunities after Financial services
    6. Pay Packages offered to Financial services
    7. List of Top/Best Colleges to Financial services
    8. List of Top Recruiters that hire Financial services

    What is MBA in Financial Services?

    In the gamut of Master in Business Administration programs, finance piques the curiosity of most of the students. It is deemed as one of the top most popular courses.

    MBA in finance services prepares the students with business and financial skills through the pedagogy of statistics, economics, marketing, management and leadership. Apart from theoretical knowledge, the students are provided with opportunities of internships at top MNCs and workshops for practical excellence.

    The scale of subjects in this educational program extends from commercial, investment, banking, insurance, risk management and real-estate studies.

    Why MBA in Financial Services?

    The financial sector in India has witnessed rapid expansion over the years with new entrants and acceleration of existing firms. The banking sector is the predominating entity in this wide sector with commercial banks acquiring 64% of the total assets seized by the financial system and stands at 1.06 trillion US dollars.

    Whereas, the mutual fund industry has acquired a market size of 185 billion US$ in 2016, the life insurance industry accounts for 15.75 billion US$. This size is further expected to reach at 350-400 billion US$ till 2020. As of now, the life insurance shows the growth of 18.3%. 

    The total household savings invested in the banks reaches over 95% among the other financial firms, portraying the success of the banking sector. This sector has observed transformational changes in terms of the services provided, where the traditional branch banking has evolved to digital banking (SMS and Mobile banking).

    The mobile banking is gaining popularity among the users where the adoption rate is increasing day by day, portraying the development of banking sector. India accounts for 53% of mobile banking users, which opens new opportunities in this domain.

    Source: Bain/research now NPS surveys, 2014

    Figure: Percentage of mobile banking users

    When considering the growth in deposits and advances in the banking sector, the curves of success and failure are wavering. As seen in 2014, this growth has observed a downfall of 10% due to the increase in non-performing assets.

    Source, KPMG Union budget, 2015

    Figure: Growth in deposits and advances

    On the other hand, the banking sector of India is anticipated to be the fifth largest by 2020. The outstanding loans to retail and the industry are anticipated to grow at 15% CAGR till FY25. Also, the RBI is projecting an increase in the credit growth with 15% till FY15-16.

    Source: KPMG Union budget, 2015

    Figure: Outstanding loans to retail and the industry

    Apart from this, the sector encompasses insurance and capital markets and non-banking financial firms. As an achievement of India’s financial system, the progression of national savings are anticipated to reach 1,272 billion US dollars by 2019. The insurance sector in India is ranked at the position of 10 among 147 life insurance markets in the world.

    The life insurance growth is expected to show a growth of 15% CAGR by FY19. A change in the system is brought upon, where the insurance distribution will adopt open distribution framework with banks playing the role of brokers.

    Source: KPMG Union budget, 2015

    Figure: Life insurance total premium (INR trillion)

    When considering the capital market, the asset management industry has attributed to immense growth.  The total asset under management (AUM) with mutual funds has reached 215.4 billion US dollars in FY16. It has witnessed a growth of 12.8 percent from FY07 to FY16. The government is still taking initiatives to ensure the success of the industry.

    Source: IBEF, 2015

    Figure: Assets under management

    Backed by the exponential growth of the finance system in India, MBA in financial services is a course that promises a bright future of students who aim to succeed. This platform is perfect for those who are inclined towards finances and its diversified dimensions.

    Eligibility criteria for MBA in Financial Services

    For choosing the direction of specialization in financial services, one has to be eligible in terms of educational qualifications and skills. Apart from undertaking entrance examinations such as CAT/MAT/GMAT/XAT/JMET etc. to participate in MBA in financial services, students must tick off the following eligibility criterions:

    • Successful completion of 10th and 12th class examinations from a recognized institute with atleast 55 per cent marks
    • A bachelor’s degree in the relevant field from a recognized university, with no back-logs and minimum of 50%.

    Note: The selection to the top MBA colleges is through the series of score card, group discussions and personal interviews

    Skills required for pursuing MBA in Financial Services

    To climb the ladder of success in the field of financial services, one must possess the following attributes:

    Presentable Personality

    An understanding of Financial Analysis

    Numeracy Skills

    Statistical Understanding of Data

    Problem Solving Ability

    Time Management Skills

    Understanding of Business Ethics

    Awareness of Economic Trends

    MBA in Financial Services Syllabus

    This course offers unique specialization in marketing, sales, finance and management, enabling students to make finance decisions in the finance market. After completing the program, the students will have expertise in traditional economics, business operations and international trade policies.

    With the help of internal tests, assignments, trainings, seminar presentations and practical examinations, the individuals can explore their true skills and enhance them. Though the subjects vary as per the college, the following are some of the major subjects taught in the duration of this course:

    MBA in FINANCIAL SERVICES Subjects

    Principles of management and organizational behavior

    Foundations in finance

    Managerial economics

    Accounting and finance

    Financial accounting and reporting

    Marketing of financial services

    Mutual funds and merchant banking

    Investment banking

    Risk management and insurance

    Legal aspects of financial services

    Treasury management

    Asset management

    Mergers and acquisitions

    Business environment and ethics

    Financial intermediaries, financial institutions and regulators

    Corporate finance

    MBA in Financial services: Career options

    Qualifying MBA in financial services presents job opportunities at senior and management levels in various enterprises of financial sector. The employment options in this field are numerous with higher bars of growth due to the diversified sector, which branches out to several domains. It promises fulfilling opportunities in emerging areas of asset management, derivatives, treasury and credit risk management. As an MBA graduate, students can land jobs in

    • Financial institutions (banks, mutual funds and financial consultancies)   
    • Non-profit organizations
    • Real-estate and retail sector firms
    • Industrial firms

    With experience and advanced learning in financial sector, individuals can acquire senior positions at firms and also assist in the development of financial policies. The career options after this program are:

    • Financial analyst
    • Operations manager
    • Investment manager
    • Real estate manager
    • Investment banker
    • Financial controller
    • Chief financial officer

    Pay Packages for MBA in Financial services

    Depending on the university or college of a student, his score, prior work experience and job profile, the pay packages of the individuals also vary. The students from top B-schools are generally placed with packages around 10 to 15 Lakhs per annum. Those starting off as a financial analyst (the basic position) are offered with 3 to 5 Lakhs per annum. Also, if experienced and placed in foreign lands, the packages may extend in Crores.  

    Job Profile

    Average Salary (tentative)

    Financial analyst

    Rs. 354,686

    Real estate manager

    Rs. 519,230

    Operations manager

    Rs. 715,975

    Investment banker

    Rs. 802,748

    Investment manager

    Rs. 900,000

    Financial controller

    Rs. 1,833,011

    Chief financial officer

    Rs. 2,959,188

    Source: Payscale.com

    Top Colleges for MBA in Financial Services

    The Top B-Schools and Universities offering specialization in financial services are:

    1. International College of Financial Planning, Mumbai
    2. International College of Financial Planning, Delhi
    3. Xaviers Labour Research Institute Jamshedpur
    4. Indian Institute of Management, Ahmedabad
    5. S.P Jain Institute of Management and Research, Mumbai
    6. Faculty of Management Studies, Delhi
    7. Jamnalal Bajaj Institute of Management Studies, Mumbai
    8. Institute of Management Technology, Ghaziabad

    Top Recruiters for MBA in Financial Services

    Following is the list of top companies hiring the MBA graduates and experienced professionals:

    1. Axis Bank
    2. LIC Finance Limited
    3. KPMG
    4. Indusind Bank
    5. Muthoot Finance
    6. SBI Capital Markets Limited
    7. Bajaj Capital limited
    8. HDFC Bank
    9. Birla Global Finance Limited
    10. ICICI Group
    11. L&T Finance Limited
    12. Federal Bank

    Share this article with those who are considering the idea to pursue MBA in a niche specialization such as Financial Services.

    If we have missed some important piece of information then kindly share with us your valuable comments and queries.

    For more MBA Career related updates, keep visiting jagranjosh.com

    DISCLAIMER: JPL and its affiliates shall have no liability for any views, thoughts and comments expressed on this article.

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