Articles from eFinancialCareers

Why an MBA won’t get you the banking job you want. And what you can do about this...

Do you aspire to a job in an investment bank in order to recoup the tens of thousands you’ve spent on your MBA? Before you hit “submit” on your application, here are a few things you should bear in mind about looking for a job in investment banking in Europe with an MBA. 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. In 2008, Lehman Brothers was one of the top 5 hirers of MBAs globally. Merrill Lynch, where I’d also worked, was one of the top employers too. Eight years on, and banks have fallen away. Instead, the consulting firms are the biggest recruiters of MBAs from top schools. For example, 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 just 25 people. Banks generally hire MBAs into a far narrower range of roles than previously. Ten years ago, banks often hired MBA associates into IBD (M&A and corporate finance) sales and trading, equity research, private banking and wealth management. Now, most MBAs are hired into IBD. A few are hired into wealth management and commercial banking roles, but not many. Trading floors tend to focus on students from financial masters programmes and undergrads. Although banks are looking for relatively small numbers of MBAs, you don’t necessarily need to have worked in banking prior to the MBA. However, banks behave as most employers would...

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...

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:...

When’s the perfect time to take an MBA to advance your finance career?...

s there a sweet spot in your finance career when taking a few years out for an MBA is most beneficial? No, insist business schools, which say they accept old and young students alike. Yes, suggest the statistics and – privately at least – graduate recruiters in investment banks. The theory is that undertaking an MBA is pointless, or at least of minimal benefit, if you have little to no work experience in the real world. Equally, it seems an odd decision to start at a business school with decades of experience under your belt. The most recent classes of top business schools suggest that the optimal level of experience is five years, and the perfect age for starting an MBA is 28 Share on twitter. The class of 2016 at London Business School has an average age of 29 and mean work experience of 5.5 years – the youngest person is 23 and the oldest 38. At Columbia, the average work experience is 5 years, and the oldest person is just 30 Share on twitter, while at Insead the average age is 29 with six years’ of experience. At New York Stern University, where 27% have a background in banking or finance, the average amount of work experience is 4.3 years…Read full story:...

Meet eight new MBA recruits at Morgan Stanley. How did they get the job?...

Getting a job as a newly-minted MBA in an investment banking associate programme in London is no easy task these days. While banks in the US continue to hire the best and brightest business school graduates, European firms are tending to bring in more analysts through graduate programmes for in-house training Share on twitter, or are simply laterally recruiting MBAs rather than indulging in formal associate programmes. Two banks that remain active on campus in Europe, according to the MBA careers officers we speak to, are Deutsche Bank and Morgan Stanley. The latter has just registered its new associate class on the Financial Conduct Authority website. What do these recruits tell us about what investment banks look for in their MBA recruits? 1. Arturo Rueda Ávila Arturo is an associate in Morgan Stanley’s investment banking division, and graduated this year from a two-year course at Columbia Business School. Interestingly, despite studying in the US, his summer internship was at J.P. Morgan in London and this follows seven years’ work experience in Spain and Panama. This is not financial services related, however. Having spent a brief stint working for holiday company Butlins, most Arturo’s professional experience was gained at Spanish construction firm Sacyr Vallehermoso, where he was latterly a quantity surveyor. His Masters in Civil Engineering from Universidad de Granada no doubt also helped bolster his credentials with financial services companies. 2. Raphael Bihler Raphael is a graduate from INSEAD in France/Singapore and has just joined Morgan Stanley’s IBD. He worked for Morgan Stanley for two years before undertaken his MBA last year and rejoining as an associate, suggesting that the bank could have taken the now unusual step of funding his degree. Raphael also has numerous internships under his...