Why is an MBA enough in the US to become Associate?

Why do the Banks in the US allow people to directly start as an associate with an MBA? I mean an MBA does not compare with the experience as an analyst at all... Why does it make sense for a bank to hire associates that way? Is it because associates do not need to have a good grasp of technicals but are more process managers?

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1) Attrition. They need spots to fill at the associate level. Where else might they get them?

2) You alluded to it, technical prowess becomessecondary. After a certain level of competency, IB becomes a relationship and sales job VP+.

3) The MBA itself not only provides a base of financial acumen, but more importantly it simply outsources HR. If you get into a top 15 program, you have already passed hurdles (GMAT, GPA, Interview, Work Exp). By the time the long recruiting cycle even begins, banks can be assured they are searching for associates in pools of talented, capable, and driven people.

4) Network. MBAs at these programs make connections in a variety of industries that can pay dividends down the road.

^ obviously an analyst is going to be a better associate to start, but the long view and responsibilities of a career banker change.

 

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