What is better for working in the banking and financial services industry, a Master’s in #Economics or #Finance?
@CFAinstitute @LSEEcon @LBS
A very broad question!
How would you define Finance Roles across FI and Non -Fi Settings?
Finance work is required both within and outside the financial services industry. I can share my collective understanding of roles(that might require Economics or Finance related skillsets) based on my experiences, that I have collected on my CV.
So, after working for a donkey no of years across the banking and mutual fund investment management professions, I can say that neither Finance nor Economics is very helpful these days.
Let's note down some Banking and Finance Specialist Roles that might be of potential interest to you, as given below =>
•Accounting and Auditing? or
•Internal Controls Testing? or
•Financial / Enterprise Risk Management? or
•Investment Management?
•Treasury Markets or
• Capital Markets and Investment Banking? or
•M&A Consulting? or
•Leasing? or
•Microfinance? or
•Islamic Finance? or
•Insurance Risk Management? or
•Derivatives (Structuring, Pricing, Hedging, Modeling and Trading) Market?
If it is a financial reporting and auditing related role, neither a Masters in Finance nor a Master’s degree in Economics will be helpful!
Both back office professions require an advanced understanding of Accounting Standards and Auditing Methods.
Professional qualification would help you instead of getting a master’s degree in either archetypical economics or finance educational programs.
If it is equity research and financial statement analysis, or financial services (product) development or Investment Management, or an Intra-day Market Trading role, you might be better off with a Master’s degree in Finance.
But, again they're no cast-steel guarantees.
If it is a highly quantitative research role within the asset management or Investment Banking Industry, which requires To be Sophisticated Econometric modelling, Data Analysis, Report Writing, Quantitative Investment Portfolio Management, Risk to Reward Ratio Optimization,
and the other dashboard risk analytical work/s than you are better off with a Master’s in Economics (provided you are doing a highly numerate degree)
However, these roles are now being challenged by other hard science grads, esp, drawn from the DS/ ML/Predictive Analytics Domains
However, honestly, if you ask me, either of the two degrees is outdated and do not generate much demand per se!
As they are far too many economists and finance experts rolling up and down in the financial markets.
Look elsewhere perhaps???!
A degree in Data Science, AI, Analytics, and Machine Learning or even training in Financial Engineering, Actuarial Risk or #FINTECH would do you a lot more good, instead of landing up with a basic qualification in either Economics or Finance.
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