As those with a business background prepare to enter the world of graduate schools, those who work in finance have on key question in mind: What, exactly, is the difference between a Master’s in Finance and an MBA in Finance? The programs might seem the same on the outside: They both are offered by business schools, with a significant focus in the world of finance, and they both present graduates with renewed opportunities for further advancement in the world of financial and business management. These similarities are real, but the programs themselves are quite different in terms of their delivery, content, and implications for those who graduate with either master’s degree.
The Master’s in Finance: More Theory, Less Practice, Less Management
A master’s degree in finance might allow those in the finance industry to advance to a management role, but that’s not its primary function or one of its most desired outcomes. Instead, a graduate-level degree in finance is a very narrow, highly focused program of study that teaches financial professionals how to be better at the job they’re already performing. They learn more about the ethical concerns of the financial sector, and they learn more advanced methods of investing, trading, advising, and managing the financial balance sheet of the corporation for which they work.
A graduate-level degree in this field eliminates the various management courses of an MBA and instead focuses on advanced financial policy. As a result, graduates are primed to do their job more effectively, advance into senior financial roles with their existing employer, or perform more consultative work among multiple businesses. Management skills may come later, as may management promotions, but that’s not the primary goal of those who begin this program.
The MBA in Finance: A Program for Managers and Leaders in Finance
Think of a Master’s in Finance as a program for those who simply love doing what they already do, but wish to do it better and with more advanced tools at their disposal. In contrast, think of the MBA in Finance as a program designed for those who have lofty ambitions of managerial or executive-level work, according to CBS News. The MBA program will require students to take the same core courses regardless of their finance concentration, and they’ll learn about strategic management, marketing and accounting management, human resource management, organizational development and leadership, and entrepreneurship. The concentration in finance, or in any other field, will typically involve only three or four additional classes.
The MBA is a very broad program, and it’s designed to create leaders. While the limited selection of finance classes in this program is still a strong way to learn more about advanced financial management, advising, or consulting, it’s largely an afterthought in comparison to the program-long focus on managerial tasks. Graduates of this program are certainly free to keep doing the same job that they had prior to enrollment, but most will immediately look for mid-level or senior management positions where they can oversee teams of financial advisors, an entire company’s finance department, or the activities of a large group of corporate financial consultants.
Related Resource: Ph.D in Finance
The Difference Between These Programs is a Contrast of Broad vs. Narrow
An M.S. in Finance is a narrow, specialized program designed to create better financial professionals who can work at a senior level in that line of work. An MBA, by contrast, is a broad program designed to create great managers who might take a significant interest in the world of corporate or personal finance. The difference between a Master’s in Finance and an MBA in finance prepares graduates for different careers and different trajectories, and it’s a difference worth exploring as application deadlines draw closer.
