Masters In Finance One-Year Program On The Rise

An increasing number of Business schools are introducing Masters in Finance one-year program following steady rise in demand from students and the industry, despite the fact that not all of the graduates choose to work in the sector.

The program saw increased interest especially after the financial markets meltdown of 2008 that made many sit up and realise the need for specialised understanding of the sector.

From the students’ point of view, the Master’s program is far less costly than MBA programs. The 12-month duration of the Masters program also work in favour of the student, especially in the US, where most of the B-schools offer two-year programs. Besides the huge savings in tuition fees and other necessary expenses, students could return to work in far lesser time than in a full-time MBA program.

Heidi Pickett, Director, Master of Finance program director at MIT Sloan told FT,com that students found it a good opportunity to gain in-depth knowledge of the subject at a far lower cost than an MBA.

From the students’ point of view, the Master’s program is far less costly than MBA programs. The 12-month duration of the Masters program also work in favour of the student, especially in the US, where most of the B-schools offer two-year programs. Besides the huge savings in tuition fees and other necessary expenses, students could return to work in far lesser time than in a full-time MBA program.

This year, MIT Sloan received a record number of 2,083 applications for the program, an increase of 22% over 2015 that translates to 17 applicants for every available seat.

Unlike an MBA, no prior work experience is required for the Masters in Finance that works to the advantage of fresh graduates who need not forsake academics to gain work experience for a few years and especially in the case of a 2-year MBA program, forced to stay away from the workplace for an extended period.

The burgeoning demand for Masters in Finance could be seen when Minnesotta’s Carlson School of Management introduced the program aimed at early career professionals to transition into or accelerate their careers in corporate finance, security analysis and portfolio management, investment and commercial banking, risk management etc. It received 150 applications for 27 seats even before advertising the course.

Even in the FT rankings this year, the number of institutions offering the Masters in Finance program has gone up from 50 to 55.

Masters in Finance is also among the top choices for international students. The Lancaster Business School in UK has the current batch made up entirely of students from other countries. The schools in UK are concerned at changes in visa regulations adversely affecting their student intake.

In the US, Business Schools have accorded Masters in Finance STEM (Science, Technology, Engineering and Maths) status to get around visa restrictions. Students from other countries in this category are allowed to remain an additional 24 months in the country.

Apart from Finance, Business Analytics is also much in demand. New modules on entrepreneurship and crowdfunding are also being introduced to meet the requirements of students seeking openings in fintech start-ups.

Prior to 2008 crisis, the emphasis was on skills needed for mergers and acquisitions, says Diane Morgan, associate dean of programmes at Imperial Business School. At one time, the school even had Investment Bank officials were called in to help in creating specialised programmes. However, after the crisis, the situation has changed and at present, asset management is more in demand.

Imperial’s central London campus is located close to the banking and technology hubs, the latter often termed as the world’s biggest cluster of start-ups, several of them dealing with new models of delivering financial services.

For those wanting to follow entrepreneurship, assistance is offered by Imperial Innovations, an investment and commercialisation business created within the college. In the banking sector, Barclays is among the biggest employers, taking in 30 to 40 graduates every year, Morgan says.

Meanwhile, the increasing demand in the sector is creating dilemmas for the schools on increasing the number of seats without compromising on the quality of teaching or students. (Image Courtsey: director.pascalmindlin.com)