Why does a Banking Job require a Management Degree?

When it comes to the hiring process, the qualifications of a candidate interest the employer largely. Once the employers witness the candidate to have a certain amount of qualifications, they presume the candidate to have qualities essential for managing a basic team and surviving the extremely competitive industry layout. However, a Master of Business Administration (MBA) degree doesn’t necessarily make a candidate exponentially attractive in today’s competitive investment banking job market. A PGDM through distance learning is the best bet in such cases, as it allows you to work along with the program you’ve enrolled for allowing you to exhibit your skills immediately in the industry.


Is a Management degree necessary?

A management degree isn’t necessary to survive in the banking sector, nor is it necessary to get hired. Though, the necessity of skills required to handle a team, be responsible for multiple projects at a time, keeping a check on the market are the abilities expected which can only be taught and learnt while pursuing a management degree. An MBA or a PGDM degree is more valuable for an investment banking job, compared to a bachelor’s degree for profiles such as a portfolio manager or an equity trader.

Skills and Qualifications

The demands being strenuous and intense, the banking sector is difficult to get into. Being able to work under pressure for long hours and forming market models in reaction to constantly changing stock prices are not the common requirements for most jobs. Bankers at times work over 100 hours per week, and some of those hours may be through the night—if the work is not completed during the day.

Creating complex valuation models is a key skill for an investment banker. If this isn’t taught in a college or university, or if it isn’t learnt at a company or organization prior, it’s difficult to study and implement. The NMIMS distance learning PGDM offers a specialization in Banking and Finance which will strengthen your skills further and you’ll be taught the exact tactics to handle the fluctuations in the stock market.

A full time work experience as an analyst or a related position, and being in the financial sector is an extremely important part of your resume. If you have less work experience, then you are less able to compete with other candidates who already hold management degrees.

Having completed an MBA or PGDM suggests that you are well exposed to topics in corporate finance; accounting and can easily interpret forward-minded pricing models. An investment banker needs to be able to look at the future valuation of a company’s stock price from a mathematical perspective as well as based upon key developments in the company’s business model; the viability of the products and services offered by the company in the future; how it will perform in relation to competitors and future competitors that could emerge; and with the hiring and firing of key employees that might affect the quality of management within the company. An investment banker must develop the models, gather information and review the information—but most importantly, he has to be able to take quick judgments depending on the situation, and be practical and spontaneous at the same time.

The ability to handle high-pressure situations with ease is an underestimated quality, but is usually liked and wanted by employers while hiring. However, it is observed that employers hire those with experience, rather than with just a management degree. If the candidate has been in the finance industry for long, he will know the intricacies that need to be handled which aren’t taught in textbooks. Hence, opting for a distance learning PGDM is beneficial as it lets you be productive and enter the finance sector faster than the other candidates that are your competitors.

Career Changers

If you have worked in a sector which isn’t finance, it may prevent you from entering the banking sector. But, a management degree definitely gives you all the skills essential to enter any business, be it tourism or media or IT. There are many skills which are common to all sectors and are taught extensively while pursuing a management degree.