The Rise of Tech for Finance MBAs
When you think of finance, you probably think of Wall Street. But that reality is quickly transforming.
With the value in work-life balance among the younger generation and the growing popularity around tech, there’s been a 40% dip in interest for a career in banking, according to the Financial Times.
In a new article, Seb Murray, a contributor at Find MBA, recently discusses new MBA careers in finance that are arising.
What is one of the hottest industries for finance professionals? Financial technology.
In recent years, a number of school have rushed to create Fintech programs. At schools like UC Berkeley Haas, NYU Stern, and USC Marshall, specialized courses in Fintech are blowing up.
According to a spokesperson from NYU Stern, the Fintech specialization has consistently been a top five viewed specialization, out of all 25 total, since it was announced.
“Fintech is disrupting the traditional financial services sector, especially in asset management, payments and insurance,” Margaret O’Neill, head of MBA admissions and careers at Cambridge Judge Business School, tells Find MBA.
The Fall of Traditional Finance Sector
In recent years, traditional finance jobs, such as investment banking, have been seeing a decline.
At Wharton, the number of MBAs going into the financial services industry has reached a new record low, falling to 32.7% of the graduating class, as reported by P&Q. Just five years ago, 41% of Wharton’s MBA’s were being hired by firms in the financial sector. Investment banking and brokerage jobs saw the biggest decline, which took just 12.7% of the class, down from 16.1% a year earlier.
A Shift Towards Tech
Maeve Richard is the assistant dean and director of the Career Management Center at the Stanford Graduate School of Business. In an interview with Find MBA, Richard says the decline in traditional finance job interest is, in part, due to the rise of interest in another fast-growing sector.
“This shift is a reflection of the attractiveness of opportunities and growth in the tech sector that, little by little, exerted a stronger pull on graduates,” Richard tells Find MBA.
According to Transparent Career data, companies like Google and Amazon top the list for most “followed” companies by registered users.
As P&Q reported, of the nearly 2,000 users who’ve opted to follow companies, 17.6% chose to follow Google. Second highest was Amazon at 16.7%.
Goldman Sachs? It came in after five tech firms in terms of popularity amongst users.
“Honestly, even though I know that tech is hot, these stats really make you realize just how attractive the industry has become for MBAs,” Kevin Marvinac, Transparent Career’s co-founder and chief operating officer, tells P&Q.