MBA Banking Career

Here’s Why Goldman Sachs, Citi, Credit Suisse Are Snapping Up IESE B-School MBAs...

Pascal Michels likes to think of himself as a market maker. For some MBAs, technology firms have replaced banks as the employer of choice. But while investment banking is down as a career, it’s not out. “We make sure we educate MBAs about the opportunities,” says Pascal, associate director of career services at Spain’s IESE Business School. And the opportunities are seemingly plentiful. Investment bank recruitment has surged at IESE, beating all records since before the financial crisis in 2007/08. Bank of America Merrill Lynch, Citi, Credit Suisse, Deutsche Bank, Goldman Sachs, Morgan Stanley, and Nomura are all recruiting, Pascal says. Thirty-one job offers were made by investment banks in 2016 to IESE’s MBAs, up from 22 the year before. Of the 61 IESE MBAs who applied for jobs at investment banks, 19 received at least one offer. Some received as many as four. Elle Connor, an associate recruiter at Morgan Stanley in London, says IESE is one of the investment bank’s three elite target schools. “The MBA profile brings something a little more niche to the floor, and has a more mature approach to certain situations. That’s why we continue to grow our MBA hiring,” she says. It is a similar story at Nomura. Sam Price, a Nomura graduate recruitment associate, says: “We target IESE Business School” along with two other European-based schools. Nomura values MBAs, he says, because “they can bring in some experience. The traditional route to the associate level would be through years as an analyst. An MBA is already at the associate level”. Andrea Hayem joined Morgan Stanley in June 2015 as a summer associate. The IESE MBA believes the business school was key to her landing the job. “Career services supports you throughout...

Why an MBA may not be enough to get you the banking job you desire...

Before the financial crisis, investment banks were some of the biggest recruiters of MBAs. I was one of the people recruiting MBAs on their behalf, writes Derek Walker, an independent careers consultant, a former director of campus recruitment at Barclays, and a former director of staffing for the investment bank Merrill Lynch. In 2008, Lehman Brothers’ many investment banks were amongst the top hirers of MBAs globally. Eight years on, and the picture is very different. Now consultancies have taken over as main employers. London Business School’s most recent MBA employment report for 2014 shows that the biggest hirers of its MBAs were McKinsey & Co, the Boston Consulting Group, Bain & Co and A.T. Kearney. Collectively, these firms hired 71 students. By comparison, the biggest banking hirers (Citi, Bank of America, Merrill Lynch, Goldman Sachs, Morgan Stanley and Nomura) hired as few as 25 people. Ten years ago, banks often hired MBA associates into IBD – that means M&A and corporate finance roles – and also into sales and trading, equity research, private banking and wealth management. Now, most MBAs are mainly hired into IBD. Trading floors rather focus on students from financial masters programmes and undergrads. If you think you have a strong academic and professional background and still want to go into banking, Walker suggests a number of areas where to put the focus of an application: Demonstrate some understanding of financial modelling. If you aspire to work in banking after the course is over, you really need to attend some extra-curricular or online modelling classes while you’re studying. You need to know about the firm and the deals they’ve been doing – and be able to discuss market reaction to the aspects of the firm’s...

Morgan Stanley pays MBAs the most

Business school is a profitable investment for almost anyone, but some MBAs are getting more dollar value out of their degrees than others. MBAs who worked in financial services several years out of school earned more than their peers in every other industry, and the best paychecks overall were doled out by investment banking firm Morgan Stanley, a Bloomberg survey of thousands of B-School alumni showed. Bloomberg News reports that as part of our annual ranking of business schools, Bloomberg surveyed 12,773 professionals six to eight years after they graduated from business school. The MBAs who work at Morgan Stanley took home the largest compensation packages, followed closely by alums at Goldman Sachs. Bloomberg asked alumni who graduated from 2007 through 2009 about their current employer, base salary, and bonus. To figure out who pays the most, we focused on companies where we polled at least 20 MBAs. Graduates working in finance – which includes people in accounting and banking – took home a median $210,000. Read full story:...

How to use an MBA to get a job at Goldman Sachs, JP Morgan, or Morgan Stanley...

It’s not as easy to ‘leverage’ an MBA and end up with a job in an investment bank as it was. These days, banks hire fewer MBAs than they used to, particularly into sales and trading roles. They also seem to be a lot more fussy about who they hire. Having said that, banks are still recruiting MBAs: the 2015 associate class is now in place at most leading US investment banks. Based upon the profiles of those who were hired this year, this is what it takes to convert your Masters in Business Administration into a job at a leading US investment bank now. 1. You’ll need to go to a top school There are plenty of rankings of top MBA courses for banking jobs, so it’s no surprise that the world’s top investment banks like to hire the world’s top MBAs. Rami Rankoussi, a new associate at Goldman Sachs, came from the London Business School. Zachary Upcheshaw, another associate at Goldman, came from Darden. Nancy Jiang, an investment banking associate in the TMT team at J.P. Morgan came from Kellogg. Zichao Du, an investment banking associate at J.P. Morgan in Hong Kong, came from MIT Sloan… 2. You’ll probably need past exposure to finance An MBA is supposed to be a vehicle for a change of career, and you can use the course to re-orientate your role, but most of the associates in our sample had some prior finance experience. Take Kate Lee, a Morgan Stanley associate who took an MBA at the Stephen M. Ross School of Business at the University of Michigan and previously spent five years working as an associate in at Woori Securities and Daiwa Capital Markets. Or take Rankoussi, who was a...

Banks’ Big Data Boom Brings New MBA Job Opportunity...

In the depths of a 20,000 sqm vault on the outskirts of Madrid, Spanish bank BBVA is hoarding rows of computer processors. Instead of storing bullion, Spain’s second largest lender is stockpiling data. BBVA, which between 2011 and 2013 spent an average of €850 million a year investing in technology, infrastructure and software development, is an example of the way finance institutions are beginning to bank on big data. “Banks are starting to realise the full potential of digital technologies and their potential to disrupt and transform the banking industry,” says Richard Lumb, group chief executive for financial services at Accenture, the consultancy. The big data boom in finance has started to bring new job opportunity at banks. “Demand for big data experts is strong,” says Adam Jackson, managing director at leading City of London recruiter Astbury Marsden. He says this has become an important focus as more data exchange with consumers is conducted via the cloud. But there is a skills shortage of analytics talent across the financial services industry, according to Accenture. Technology is becoming increasingly important for banks and they are battling technology groups for the best talent. All industries are scrambling to figure out ways to harness the power of data, which they are using to drive decision making. Finance is one sector that has been ahead of the curve. “I have seen both the insurance and financial services areas make the early moves,” says Michael Goul, chair for the Department of Information Systems at W. P. Carey School of Business. Dustin Pusch, director of business analytics at George Washington University’s business school, says big data is becoming particularly important for banks’ credit departments. “The use of big data is increasingly necessary for firms to...

Consultants lure MBA interns with better pay than investment banks...

Choosing an internship should never be about the money, particularly for MBAs who likely have a fairly clear plan in place for their career. That said, who isn’t curious about what other people are taking home during their internship? And if you are struggling between two different industries, like say investment management and investment banking, compensation isn’t the worst tiebreaker in the world. Below is recently released data from New York University’s Stern School of Business. It details the average weekly base salary its students earned during their internship, categorized by industry. These are internships that students who are scheduled to graduate in 2015 undertook between their first and second year in business school. The main takeaway is that MBA interns make fairly strong salaries in most industries, though it’s important to point out that Stern is a top 10 U.S. business school on most lists, so adjust your expectations accordingly. It’s ranked the third best U.S. graduate school for getting a job in finance on one list. We rank it as the ninth best school for getting a job in investment banking globally. Plus, as Stern is located in the heart of New York City, most students likely worked close to home where wages are inflated to help meet the cost of living. Stern didn’t break the class down by city, but noted that 83% of students interned in the Northeast. Roughly 94% worked in the U.S…Read full story:...

Harvard MBA Index Flashes ‘Sell’ Warning...

Designed by a former banking analyst and Harvard Business School alumnus named Ray Soifer, the Harvard Business School Index looks at what portion of Harvard Business School graduates take “market-sensitive jobs” The best and the brightest young business minds in America are once again flocking to Wall Street”and tripping an offbeat alarm bell for the markets along the way. More Harvard M.B.A. graduates took jobs on Wall Street last year than the previous year, when the financial sector was still reeling from the crisis of 2008. Thirty-one percent the class of 2010 took jobs in “market sensitive” positions in the financial sector. This means that the threshold of the famous Harvard Business School Index has been tripped. Designed by a former banking analyst and Harvard Business School alumnus named Ray Soifer, the Harvard Business School Index looks at what portion of Harvard Business School graduates take “market-sensitive jobs” ” a subset of the financial services category that includes investment banking, investment management, private equity, venture capital and hedge funds. When the portion exceeds 30 percent, it’s a sell signal. If the number is below 10 percent, it is a long-term buy signal. A record 41 percent of the class of 2008 went into market sensitive positions ” foreshadowing the financial crisis. The 2009 class was less Wall Street focused, with only 28 percent taking market sensitive careers. That shifted the index from a “sell” to a “neutral.”…Read full...