Can You Really Use Business School to Re-Brand Yourself and Break Into Finance?
“Just go to business school.”
“Go to a top MBA program.”
“With HBS on your resume you can do anything you want.”
It’s one of the most common pieces of advice given to anyone interested in consulting or finance: get into a top MBA program.
Even if you went to a no-name undergraduate, did nothing finance-related since then, and you don’t know anyone in the industry, a top MBA program will let you break in.
Or will it?
The Short Answer
Getting into a top MBA program may narrow the gap between you and former bulge bracket investment bankers.
But it won’t level the playing field.
Business school is often thought of as a magic bullet – a way to break into finance when all else has failed or when you have no shot normally.
There’s some truth to that – but there are also a lot of problems with it.
“Non-Target” Programs
Ranking banks, schools, and anything else is a massive waste of time and brain cells – which is why there will never be “rankings” of any kind on this site.
But the relative “prestige” of your business school is important, even if the specific “rank” doesn’t matter: if you don’t go to a school that banks recruit at, you’re wasting your time and $150K.
So even if something seems prestigious on paper or it’s in “The Top 10″ you need to go there in-person and ask students how recruiting really works.
There’s a less obvious conclusion as well: if you have a very small chance of getting into the top programs, then you’re better off pounding the pavement to get in.
Start with informal and unpaid internships and temporary positions at smaller places, and then leverage that to move up.
Cold-calling may not be fun, but it’s a far better use of time than going to a school where no banks recruit and where no alumni are in finance.
Part-Time vs. Full-Time
Until recently, there wasn’t much respect for part-time programs.
This is starting to change, but they’re still not on-par with the most well-known full-time programs.
If you can’t afford to go back full-time and are only looking at part-time options, you need to visit the school in-person, walk around and ask students and faculty how many banks actually recruit there – otherwise you’ll end up with $150K in debt and access to 0 recruiters.
Running Away From Your Past
If you’re coming from an unknown school, you have a lower GPA, or you have less “prestigious” schools or companies on your resume, you might feel like The Fugitive: you didn’t do anything wrong, but you’re always running away from your past anyway.
But here’s the problem that often gets overlooked: your past will still come back to haunt you, even if you get into a top program.
There are some people in finance who just don’t understand anyone who’s not from a wealthy, blue-chip background, and you’ll always have to deal with it if you have the misfortune of running into them.
Getting into a top business school may reduce your sentence, but it won’t clear you of all the false charges.
Geography
“What about top MBA programs in Europe / Asia? Are they as recognizable as ones in the US?”
The short answer: the best programs are still well-known, but no, they are not viewed the same as Harvard/Wharton/Stanford etc. if you want to work in the US afterward.
It’s not because they’re “worse” – it’s just that most US positions are taken by people who go to US business schools. Recruiting is a lot easier when you don’t have to cross multiple oceans for an interview.
If you can get into top schools in Europe / Asia, but can’t get into the top US programs, then sure, go abroad.
No Network
You might be motivated to go to business school if you don’t have a great network and don’t feel like cold-calling dozens of firms each week to get into a local boutique and then working your way up.
On-campus recruiting is convenient, but it’s almost too convenient. The temptation is to sit around and wait for companies to come to you – but that doesn’t work when everyone else at your school is also impressive.
So you need to start building your network even before you even get there. Start calling alumni, say you’re going to attend XYZ school next year and wanted some advice, and take it from there.
Experience: Too Much vs. Too Little
Another dilemma: you might have too little experience or too much.
Going straight for an MBA right after undergraduate is a losing proposition (yes, there’s Harvard 2+2 but that is new and unproven) – you need at least a few years of experience and often more than that to be competitive.
I get emails every week from students asking, “Should I go for a top MBA program right after I graduate?”
No. Bad idea.
Many Associate-level resumes have 5 or more years of work experience – even if you get into a top school, it’s tough to compete with that.
You can also have “too much” experience to make business school useful, but this is less of a problem than having too little.
If you’ve been working for, say, 15 years, it’s almost easier to work your way to the top in another field and then move into finance at a much higher level.
The Solution?
All these pitfalls go back to the original point made in the beginning, and something that Kevin and Jerry brought up on Management Consulted (Why Harvard Business School Does NOT Equal McKinsey):
Going to a top MBA program helps, but that alone will not solve all your problems.
It’s Just Like Breaking In As an Undergraduate
I still get a lot of questions on the CFA and other certifications, despite repeatedly bashing them in the past.
Many students think that adding these lines to their resume will seriously boost their chances, forgetting that they’re just small pieces of the big picture.
And yes, business school is different and much more than just another certification, but the same principle applies: a top school and access to recruiting there will improve your chances, but you need to do more than just go to a good school and drop $150K to break in.
What to Do?
Let’s say you are committed to going to a top MBA program to re-brand yourself and then using that to break into finance – what should you do to make sure it’s not a waste of $150K and 2 years of your life?
- First, make sure that banks actually recruit anywhere you’re seriously considering. Visit in-person, meet with students and career services, and see what the real story is.
- If you come from a more “random” background then start addressing “objections” to your background even before you arrive at school.
- You also need to start networking long before you ever get to business school – all the former bankers will have a big advantage over you otherwise.
Think about pre-MBA programs in finance – if you can, take time off to do an unpaid or part-time job related to finance.
Think about activities and professional organizations that might take you closer to business, or at least ones that let you spin your resume more aggressively.
And start contacting alumni and going through referrals in the months before you arrive so that they know who you are when it’s summer recruiting season.
But Sometimes You Have to Go
Business school is not a magic-bullet solution, but sometimes you pretty much have to go just to have any shot of breaking into finance.
Recent graduates would be better served by going to boutiques and then working their way up to larger banks – but if you have 5-10 or more years of experience, banks only take you seriously if you’re coming from an MBA program.
And if you had a completely random background that had nothing to do with business – like a traveling bard – then you might have to go just to have more than a 0.000001% chance of getting in.
Business school admissions goes beyond the scope of the site, but you can click here to learn all about how to get into top 10 business schools.
Got Brand?
There’s always a temptation to buy more degrees, certifications, or anything else that gets you more “prestige” and makes you seem more qualified.
But not only does HBS not equal McKinsey, it also doesn’t equal Goldman Sachs, JP Morgan, or any other top bank.
Think of recruiting as a court case, with your key witness representing business school: a great testimony can push the odds in your favor, but you need plenty of “supporting evidence” as well.
That might be informal work experience, anything that can be spun into sounding like business, or a solid network.
So make sure you have both the supporting evidence and the key witness – otherwise, you’ll end up with a hung jury and no offers.
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Hi,
I went to a target undergrad school in Europe (average GPA though),
didn`t get into IB, and I`m currently doing private banking for a top tier BB.
How hard will it be to get into a top 10-15 MBA in the US/Europe
As long as you have solid essays, recs & GMAT I think you should have a decent shot.
We’re not MBA admissions consultants so you might want to consult them
Hi,
I am currently 19 yrs old and have done 3 years in Information Technology, currently working for a fortune 500 company in Canada. I have interest to get into business and finance. What should i do? get admission into an undergraduate program here in Canada?
Which schools do you recommend? and what should i look into their curriculum? does the name and prestige of the school matters?
How about studying for undergraduate in India ( I have heard that IIM and ISB are good, but tough to get into)
and which skills should i work on? Be a math geek, personal skills, or speak more languages ( i currently speak 4) or learn at free time more about finance and markets as there are many open courses from Yale,Stanford,MIT and other schools at iTunes U.
Thanks and Regards!
Top schools like McGill in Canada can help.
Not sure about schools in India.
Skills – ability to analyze financial statements; ability to model; ability to sell; ability to multitask; strong leadership, networking, communication, organizational & interpersonal skills, etc
Being from a target school will help
I think this question came up a thousand times:
What is better to get started into Investment Banking (I am 31 years old and working in a Bank, but not in the Investment area)
Master of Finance or MBA? (ceteris paribus)
MBA may be better, but only an MBA from a target school
Thanks for the quick answer.
In Germany we have only four universities with an “EQUIS”-approved MBA. I think nobody will know them in USA or UK. You think there is any chance to be competitive with one of those?
I don’t think they will be as reputable as the target schools in US & UK if you want roles in US & UK
Hello,
I am currently working in KPO in India.My field is reconciliation and verification of booked forex trades for a major Investment Bank In US.I just started working.MY GPA is 3.00 in BS computers.Can i use studying in BS maths and MA economics to build Alternative transcript? My plan to do MBA is 5 yrs down the line.
Alternative Transcript means where i can replace my original marks by the new and better ones? Will it help to build the profile?
I am not sure about that one but I don’t think they would “replace” your existing GPA. Earning better grades the second time around may help improve their initial image of you and will only help your case.
Ok,so which one is better? MA economics or BS mathematics.Both the above courses are provided by Indias Central govt.distance education University.
I don’t think it matters in your case
Hi! I posted a rather lengthy question in the IB hierarchy thread. I still need some advice on those questions, but reading here also brings up some additional questions:
Is my experience in commercial finance (4 years in sales and not real estate/mortgage related) considered experience in finance and will I be able to leverage it after getting an mba to get an associate position? I know it’s not really investment banking, but you mention it should be pre-mba finance experience–so is this the kind of finance experience that will be enough or does it need to be IB analyst work? Will I be viewed as a career switcher instead, and does that mean I will be looking at entry level analyst positions when I graduate, or is an associate position still possible? If is is possible, what else do I need to do?
Thanks!
J
Yes – depends on what kind of sales. Perhaps a relationship management role at an asset management/private wealth m’gmt firm will be a better fit if you have had sales experience. Institutional sales may help too but tougher to break in these days
So yes I can get an associate position after I get an mba because of my experience? The kind of sales my experience is in: commercial equipment leasing/finance. I mentioned it in the airplane leasing thread. Not specialized in a particular type of collateral or industry but decisions are very credit/financials driven.
Perhaps CDO sales? Not quite sure how the CDO industry is doing ATM but your skills may be of use. Also look at credit sales roles etc
Hello,
I am 34 years old IT professional, doing well in IT. I am now keen to switch my field and want to break into finance. I have just registered for CFA Level 1 and would take a break to do MSc in Finance in 2014 ie in two years time. Therefore I will be 37 by the time I graduate out of Msc.
What are my chances in the industry?
http://www.mergersandinquisitions.com/age-investment-banking/ should help
To increase your chances, you can try IT roles within finance firms – I think this is your best bet
If your looking to break into investment banking as an Associate what career experience would be more favourable:
If you enter an mba with approx. 3 years of capital markets ops experience such as trading support or reconciliation at an investment bank or 3 years of experience with a corporate finance / strategy experience at a Fortune 500?
If your looking to break into investment banking as an Associate what career experience would be more favourable: If you enter an mba with approx. 3 years of capital markets ops experience such as trading support or reconciliation at an investment bank or 3 years of experience with a corporate finance / strategy experience at a Fortune 500?
Probably about the same, but the 3 years of corporate finance / strategy experience would probably help more with getting into banking because the work is more closely related.
I am 23 years old and graduated from a non-target spanish university. My average socre is 7.1/10. I speak spanish (obviously), have the highest certificate in english issued by cambridge (c2 level) and intermediate/advanced level of german. I have no qualified working experience whatsoever.
In this particular situation, should I start networking for bulge banks, try with boutique banks or get a masters degree in finance? I’m writing this in January, so most application deadlines are closed.
If you have no work experience, you need to get an internship first… but if you can’t afford to go to London and network, consider a top Master’s program in the UK such as LSE.
P.S.: I live in spain (canary islands), should I try with london based banks? Do I have to live there when I apply? It would be very hard and expensive to do that without any income.
P.S.S.: My degree is a 4 year program with only management/economics courses.
Sorry for commenting three times in a row, i thought this info would be relevant.
Hi, this is quite insightful. But my situation is a bit different.
I came from a regional top school with a rather quantitative major in Asia and am now a fund sales in a top asset management firm with 2 years of experience. In fact, I am interested in portfolio management, I do work with people portfolio management for some sales stuff. But I am not involved in the investment process. It is a bit difficult for me to find a relevant job. Do you think going to a top school for an MBA or Master in Finance can help me rebrand myself to shift to the portfolio management or equity research function? Or would you think just networking directly with other portfolio management people is more effective? Thanks.
I think a CFA will help you more than an MBA. I think networking with PMs and switching to more investment-related role would be more useful. You can always try networking in the next few months and apply to business school next fall and see how it goes. If you still can’t break into an investment related role in a year, you can consider going back to school (by the time you’d have applied already so you’ll have a backup plan if you get in). A school like Wharton will help you retool yourself to get into other areas in finance.
Hi Brian,
If I work for Big 4 corporate finance for 2 years now, tried networking around but haven’t had much luck. Should I go for a MBA program to get in? My thoughts are if I were break into banking now, I would still be around 1st/2nd yr analyst and it would take me another 2 years to be associate. If I were to go for MBA next year, then after 2 years, I will be an associate. In this way, I would only save 1 year if I could get into banking now.
What’s your thoughts on this?
Yes getting in MBA before breaking into IB as an associate is a longer route. So if you want a faster route, I’d suggest you to break into banking now if you can, especially since there’s no guarantee you can get a job in IB after your MBA. However, if you don’t get into banking, I’d suggest you to go for your MBA as a backup plan.
Why does everyone want to ‘break in as an associate’? That being said, I have two offers from IB’s and one for a boutique firm that’s a block away from my residence… As the boutique manages just over 5B, should I stick with the boutique due to logistic reasons? It must be noted too that i’m in my 3rd year of university, my gpa is 4.0 and my major is in Finance, double minor in Accounting and ‘Business Economics and Law’.
Your reply and recommendation would be more than unreal to hear.
Regards
Congratulations! Seems like you’re leaning toward the boutique firm. You may want to check out http://www.mergersandinquisitions.com/boutiques-vs-bulge-bracket-round-2-underdog-victory/ Logistic reason is actually a good reason because I assume you’ll be working long hours and if there’s a way you can minimize your travel time this will help.
Perfect. I enjoyed the secondary article as well.
Regards,
PJ
Hey guys – great site. Was just wondering if you could any share insight as to how Canadian investment banks (Big 5) are perceived by top MBA schools?
I think what matter most are your experience, your level of responsibility, and your references. While the big5 may not necessarily have the same level of reputation as “Goldman”, or “Morgan”, the name is not as important as the content – what have you learned there? Did you lead? How were you a team player? Schools will be looking at these factors.