An MBA in Finance is a Master of Business Administration program specifically designed for those interested in an in-depth understanding of the financial sector. Those pursuing this degree better understand areas like investment banking, corporate finance, and budget analysis. A typical MBA in Finance will offer financial accounting, financial management, portfolio optimization, derivatives markets, and banking risk management classes. It also provides specialized elective courses that may explore more specific topics such as mergers and acquisitions, international portfolio diversification strategies, private equity investing, U.S. healthcare economics, or banking system regulation and compliance. After completing an MBA in finance program, graduates can pursue a career as a chief financial officer or other high-level executive roles in industries like business consulting or investments.
What Are the Benefits of Earning an MBA in Finance?
Earning an MBA in Finance can be the perfect way to gain the skills and knowledge necessary for a successful career in business. The long-term dividends from an MBA in Finance could far outweigh the investment that you put into it – making it a worthwhile decision for today and tomorrow. The benefits of earning an MBA in Finance include the following:
Move Up in Your Current Organization
Earning an MBA in Finance can provide invaluable knowledge, skills, and connections that could be essential for helping you secure a promotion within your current organization. The deep understanding of finance, financial planning, and analytical frameworks gained from a rigorous business education will provide the groundwork to help you move quickly up the corporate ladder. From the ability to interpret and analyze financial data, formulate strategies for diminishing risk, and set profitable goals, a successful MBA program will build upon existing knowledge to open doors previously unseen.
Learn Transferable Skills
The knowledge and skills learned in an MBA program in Finance are incredibly transferable and can be applied across many industries. With this degree, you’ll gain the business acumen necessary for success in the world of finance and beyond. Not only do you learn the fundamentals of finance and how to apply them to real-world situations, but you also gain experience with problem-solving and analyzing data. You’ll be able to understand financial principles and regulatory requirements while developing an ability to make complex economic concepts easier to explain. These skills will be invaluable, no matter what your professional future holds.
Increase Your Versatility
Earning an MBA in Finance can open up new opportunities and increase your versatility in the workplace. MBA programs cover intelligent money management, corporate finance, and investing – all of which are vital skills for anyone interested in a career within the finance industry. With an MBA in Finance, you’ll gain experience with data analytics and financial modeling that is essential to today’s global business environment. The knowledge and skillset acquired make the program highly valuable and will help you stand out from other candidates when applying for all kinds of positions.
Build a Great Network
You’ll have plenty of opportunities to expand your professional network while working toward your MBA in Finance. You will get to interact with like-minded finance professionals in the classroom setting and be part of larger organizations and clubs where you can build up invaluable contacts. Your future colleagues, employers, or clients may have started their MBA journey with you; developing those relationships can lead to mutually beneficial outcomes for everyone involved.
Improve Your Job Security
By earning your MBA in Finance, you can gain the skills necessary to remain agile, confident, and competitive in a quickly changing financial industry. Establishing yourself as a knowledgeable professional can help you prepare for unpredictable challenges and take proactive steps to reduce career risk. Earning an MBA in Finance exposes you to financial trends, strategies, and practices that give you a better understanding of how business works and how it affects organizations that make hiring decisions. With this invaluable insight, you can position yourself as an indispensable asset to employers who seek people with deep finance backgrounds.
How Much Can You Increase Your Salary After an MBA?
MBA holders generally attain substantially higher salaries than those in comparable roles without one. In a corporate recruiters survey from 2021, the Graduate Management Admissions Council (GMAC) found that the median starting salary of MBA grads in the United States was $115,000, a full $50,000 more than what bachelor’s degree holders could expect.
What Can Influence Your MBA Salary?
Actual salary will vary based on a variety of factors, such as:
Working in a specific industry can significantly impact how much money an MBA degree holder earns. Certain industries pay higher wages than others, so it’s advisable to research which industry offers higher salary potential and take classes or pursue a specialization that can help position you for roles in that industry. For example, those working in financial services or consulting tend to make more than those who work for major corporations, nonprofits, or even startups.
Depending on the state and city where you find work, your salary as an MBA graduate can differ significantly. Geographical areas that are hubs for business and commerce typically result in higher pay due to increased competition between employers, while lesser-known locations tend to lead to lower salaries. This doesn’t mean making a successful living in a smaller area is impossible. Rather, it suggests that this should be considered when searching for job opportunities if you’re aiming for higher remuneration.
The graduate school you attend will directly impact your earning potential. Some MBA programs are more esteemed than others in the business industry, and employers will recognize those credentials on your resume. The better the recognition or rankings of a particular program, the greater a person’s future earning potential can be due to the trust that designation carries. Other considerations include the school’s accreditation, the kinds of courses they offer, and whether you have the chance to specialize.
Depending on the industry, an MBA graduate with a few years of professional experience may earn double what someone with the same degree but newly entering the professional world might make. An MBA graduate should consider their years in the workforce when negotiating their salary packages from prospective employers. Having more work experience can provide leverage for higher pay. If you already have prior managerial experience, your MBA credentials could lead to even higher salaries as organizations look for candidates with both educational qualifications and proven leadership abilities.
When considering any job offer you receive, it is essential to assess a total compensation package – not just the base salary number. Your compensation package includes benefits and bonuses, which can significantly boost your overall take-home pay. A competitive package with quality benefits may consist of generous vacation days and health insurance in addition to a competitive salary, making a particular offer more attractive than others with higher base salaries but few or no additional benefits.
What is the Job Outlook for Candidates Who Earn an MBA in Finance?
Earning an MBA in finance can be a great way to create a solid career pathway within the field. With an MBA in finance, individuals can gain a strong understanding of topics such as accounting, portfolio management, and financial analytics. An MBA in finance also equips graduates with invaluable networking opportunities and exposure to the business world. The job prospects for those who possess this degree are strong; they are often able to land positions at large financial companies and banks due to their advanced education and ability to contribute expertise and experience in various areas. And according to MBA.com, the average MBA in Finance salary is almost $139,000.
Careers for Finance MBA Graduates
An MBA in Finance can open the door to many professional opportunities. Individuals with an MBA in Finance may find lucrative positions in many lucrative roles, including:
A financial manager is an essential resource for businesses of any size. They provide crucial insight and guidance on a company’s finances, overseeing budgets, bookkeeping, payroll, taxes, and investments. Financial managers often need highly developed analytical skills to identify areas where costs can be cut or money can be saved through better usage of resources or assets. Having an experienced financial manager review the structure and processes of an organization can significantly reduce risk exposure and increase profitability. Financial managers are trusted to make decisions that keep their companies financially secure by considering both short-term and long-term objectives when making recommendations on financial matters.
According to the Bureau of Labor Statistics (BLS), financial managers make a median salary of $131,710, with a projected job outlook of 17%, much faster than the average for all occupations.
Investment bankers specialize in finding new avenues for companies and individuals to raise capital. They typically work with private businesses, high-net-worth individuals, and governments looking to purchase large amounts of stocks, bonds, commodities, and other investment products. Investment bankers use their financial expertise to help their clients find funding opportunities, securities investments, mergers and acquisitions deals, public offerings, and more. As such, they are critical to helping these entities succeed in their investment needs and ensure that money is used efficiently.
According to GlassDoor, investment bankers make an average salary of $133,919, with a projected additional pay of $154,472 annually (which can include things like cash bonuses, commission, tips, and profit sharing). That means the average total compensation each year for an investment banker is $288,391.
A management consultant helps companies with strategic decision-making, designing business plans, developing strategies, and solving operational problems. Although many management consultants specialize in specific industries and services, their overall objectives remain to improve organization performance by identifying areas for improvement and devising innovative solutions for problem areas. Management consultants often work on a project basis to provide specialized advice and assistance to organizations during transition or growth. Their skills can range from organizational strategy to evaluating processes and systems or developing transformation programs meant to improve efficiency and competitiveness.
According to the BLS, management consultants (sometimes called management analysts) make a median salary of $93,000 annually, with a projected job outlook of 11%, much faster than the average for all occupations.
A financial analyst is an investment expert who studies and evaluates current and past financial data. They interpret this information to help companies make strategic decisions with their finances. The end goal of a financial analyst is to suggest ways for an organization to improve its profitability and minimize risk. Financial analysts can also be part of private ventures such as day trading or mutual fund management. Their knowledge aims to create long-term value for their clients by researching stocks, analyzing financial statements, projecting future cash flows, and advising businesses on markets or investments ripe for growth.
According to the BLS, financial analysts make a median salary of $95,570 per year, with a projected job outlook of 9%, faster than the average for all occupations.
Chief Financial Officer
A chief financial officer (CFO) is a senior-level executive responsible for overseeing a company’s economic activities and monitoring its financial health. The CFO plays a vital role in enabling an organization’s long-term success by helping create planning strategies that guide the company’s approach to operations, finance, and growth. This includes creating and managing budgets, analyzing business models, working with external partners to secure financing and investments, providing strategic advice on short-term and long-term investment decisions, and developing and maintaining accounting procedures.
According to GlassDoor, chief financial officers make an average base pay of $185,789, with a projected additional pay of $134,170 annually (which can include things like cash bonuses, commission, tips, and profit sharing). That means the average total pay each year for an investment banker is $319,959.
Start Earning Your MBA in Finance at UTC
Pursuing an MBA in Finance at The University of Tennessee at Chattanooga Gary W. Rollins College of Business is an excellent choice for anyone looking to chart a successful career path in finance. With online and flexible MBA options, you’ll be able to customize your degree program to your schedule – not to mention our three career-focused concentrations—Business Analytics, Finance, or Healthcare Administration. Contact us to learn more, or apply today!