Should I study a Master or an MBA?

If you want to break into investment banking or if you simply want to boost your career prospects and build a deeper expertise in finance, you may ask yourself what are the pros and cons of going to study an MBA or a Master. In reality, those degrees are very different: not only in terms of content, but also on terms of cost and job opportunities on graduation.

The Academic Content: Master for Specialists and MBA for Generalists

A master degree in Finance or Accounting (Msc Finance, or MSc Accounting & Finance) is an advanced degree in a very specific topic that trains specialists, and will go in depths into finance, accounting, economics, statistics, etc. A Master has therefore Merit if you need to specialise in a very niche area (i.e. Renewable Energy Finance, Oil & Gas Finance, Quantitative Finance, etc.). Don't study a Master for the sake of adding a degree to your CV, as this may do more harm than good to your CV if the purpose is not clear! Do your research beforehand to be sure that the study is relevant to what you want to do.

To contrast, an MBA is a generalist degree that trains managers and business leaders. That means that while you will study accounting and finance as well, you will also study operations management, leadership, business law, economics, human resources management, etc., which are important skills for investment bankers. Your grades will partly be based on exam performance, but also on various projects and contribution to class discussions, therefore banks feel that MBAs are well rounded people that have strong skills in different areas.

More Prestige and better Job Opportunities for MBAs

An MBA at a top Business school, if you can afford it, is the degree that is the most suitable for people that want to break into investment banking, want to change their careers or want to work in different countries. This is because:

- An MBA carries much more prestige than Master Degrees because they are much more selective and the application process is typically more complex

- An MBA will not only teach students about finance but will be training "leaders" that will have a global and broad view of how to conduct business. Also, if you want ot specialise in some topics, you still have the opportunity to do so as you can choose to major in some areas (i.e. private equity, asset management, corporate finance, strategy, etc.)

- An MBA gives you a very extensive network that Master degrees do not provide. Experiences outside the classroom are the most important and valuable part of the MBA experience, as it will help you learn from people from different backgrounds and deal with new situations. This network will make a substantial difference in your career when you become more and more senior. Also, all the banks and top firms will come to top Business School campuses, giving you many networking opportunities with potential employers and clients.

- In recognition of the above advantages, MBA students will immediately start at the associate level, as opposed to analyst level for the large majority of Master Degree students that have no investment banking experience.

Cost: Master Degrees are much cheaper, but it does not mean they are a good return on investment!

Master degree are typically shorter (1 year or less) and much cheaper than MBA courses (2 years). MBA tuition fees are higher, the lost earnings from not working is higher, and daily expenses, travelling, etc. also tends to be much higher for MBA students given the number of activities MBA students take part in.

However, rather than cost, you should consider your Return on Investment. MBA study typically pays off quite quickly given the boost it gives to your career. Before enrolling, do the maths, comparing your current salary and the MBA salary statistics published by MBA schools.