Are you aspiring to be an MBA with specialization in Finance? Or are you a current MBA student deliberating about taking Finance as a specialization? Aspirant or Student, you must be curious about the various profiles being offered to MBA Finance Students – Here we bring to you the comprehensive list of Job Profiles in Finance after MBA.
Job Profiles in Finance after MBA
Investment Banking is the field of banking that assists companies in acquiring the funds they need for their businesses. Investment Bankers help the business to know the most suitable way to manage the assets of the business and make use of the financial leverage a company has.They also have the job of tracking the market in order to be able to offer advice to a company about the ideal time to release IPO or FPO.
Many people choose a career in investment banking industry because of its potential for high earnings. A career in this field is competitive and time intensive. One needs to travel a lot, work round the clock on a more or less regular basis. They also need to be cutting edge and ready to fight in this cutthroat competition.
Consulting is the job of helping organizations improve their business performance, primarily through the analysis of existing organizational problems.
What do they do?
Consultants search for the problem, do a need gap analysis and finally provide solutions.They generally work for consultancies.
Consultancies provide organizational change management, development of coaching skills, technology implementation, strategy development, operational improvement services, etc. Management consultants generally bring their own proprietary methodologies or frameworks to guide them in the identification of problems and to serve as the basis for their recommendations. This provides for more effective and efficient ways of performing work tasks.
This is one field which primarily involves financial advice and services for large corporations and HNWI individuals. They invest their own capital in client companies and provide fee-based advice services for mergers and acquisitions, issuing letters of credit, trade consulting and co-investment in projects involving trade of one form or another among other services they provide. Also they work as financial institutions with its prominent role being that of stock underwriting.
Risk Management is the task of assessing and quantifying business risks such as liquidity, operational or credit risk, capital risk and then taking measures to control or reduce them. It is often a part of the compliance function. For example, Minimum Capital Adequacy Ratio, SLR, CRR, etc. for banks and provisioning for bad investments or Non Performing Assets for other businesses.
It is an integration of banking, investment and other financial services provided by banks to private individuals investing sizable assets. In addition to providing exclusive investment-related advice, private banking goes beyond managing investments to address a client’s entire financial situation. Services include: protecting and growing assets in the present, providing specialized financing solutions, planning retirement and passing wealth on to future generations.
The Services offered are
1. Saving & Investment Planning
2. Liability Planning
3. Insurance Planning
4. Retirement Planning
5. Estate Planning
6. Tax Planning
Private Banking customers have a dedicated relationship manager (RM) and service manager/officer to advice and service accounts. Many of the private banking clients are owners /promoters of business, thus the private banking RM works closely with corporate banking RM to personal as well as business banking needs of the customers. Cross Referrals between private banking and corporate banking business are very important. Along with this Private Banks depends on Bank’s Treasury and asset management companies that provide them innovative products that provide them a competitive advantage
The single-biggest problem for growing wealth management businesses in India is supply, as the talent pool of financial advisers is very shallow. Despite the large number of graduates, the talent pool of financial advisers is very shallow, and every firm is chasing them. Demand from clients is there and there is the right delivery mechanism in terms of an evolving array of products. However, there are nowhere near enough advisers to service this demand. And thus creating a large number of opportunities for employment in this field
Asset Management is the professional management of various securities and assets in order to meet investment goals of the investors. Investors may be institutions (insurance companies, pension funds, corporations, charities, educational establishments, etc.) or private investors (both directly via investment contracts and more commonly via collective investment schemes. e.g. Mutual Funds or Exchange Traded funds.)
Project Finance is the financing of long-term infrastructure, industrial projects and public services based upon a non-recourse or limited recourse financial structure. Here project debt and equity used to finance the project are paid back from the cash flow generated by the project.
In other words, project financing is a loan structure that relies primarily on the project’s cash flow for repayment, with the project’s assets, rights, and interests held as secondary security or collateral.
Project finance is especially attractive to the private sector because they can fund major projects off balance sheet.
Private Equity/Venture Capital
Institutions which provide entrepreneurs with seed capital to startup firms and small businesses with perceived long-term growth potential are known as Venture Capitalists. This is a very important source of funding for startups that do not have access to capital markets. It typically entails high risk for the investor, but it also has the potential for above-average returns.
Venture capital can also include managerial and technical expertise. Most venture capital comes from a group of wealthy investors, investment banks and other financial institutions that pool such investments or partnerships. This form of raising capital is popular among new companies or ventures with limited operating history and which cannot raise funds by issuing debt. The downside for entrepreneurs is that venture capitalists usually get a say in company decisions along with a portion of the equity.
At the end, we would like to say that doing a specialization in Finance does open doors to many lucrative jobs with high packages. However, work-life balance may take a toll at times for few of the above mentioned profiles. So, you need to take a call between money and work-life balance sometimes! 🙂
Hope the article helped you in understanding major Job Profiles in Finance after MBA.
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