Banking is hot again at top MBA programs
Investment banking is making a huge comeback at top MBA programs. It is now more desirable than tech, and banks are hiring MBAs like crazy. This is the opposite of when I was in b-school. So what has changed since then?
A few thoughts on this.
The MBA tech boom was the direct result of the financial crisis and the rise of big tech in its aftermath, such as the 2012 Facebook IPO and the explosion of unicorn startups. With banks downsizing and relying more on college graduates and lateral hires, tech became an attractive opportunity for MBAs. Because tech was a mature industry by that point, companies needed people in finance, marketing, product, corporate development, not just software engineers. Combined with strong compensation and great hours, tech became hot.
But in the past few years, the dynamic has shifted. The economy recovered, with the Trump economy (pre-China virus) being a huge boon for financial services. Also, enough time had passed from the tech boom of 2010-2013 that MBAs could compare the career and financial trajectory of those who joined tech firms vs. those who joined banking. The numbers don't lie. The MBAs who joined banking made more money and enjoyed better exit opportunities than the tech people. And the MBAs also realized from talking to alums that MBA graduates at tech firms play second fiddle to the engineers. This wealth of information and data, in conjunction with the strong economy, have made banking once again a very desirable post-MBA destination while tech has lost its luster.
Then why do all analysts complain about how incompetent their MBA associates are? That can't be top talent
Why the MS. MBA associates are useless
What data do you have to back this up?
This is patently false. In fact, you’ll find more MBAs clamoring for tech jobs as the industry will show to be much more resilient to economic shocks once the COVID-19 pandemic dissipates.
I don’t need data to back my claims, as I lived the MBA experience. Just look at the number of elite programs that have just recently adopted STEM-designation. Stop with this misinformation.
The STEM adoption has nothing to do with tech. It's a move by top MBA programs to keep attracting international students who have been increasingly turning away from US MBAs since the Trump administration came to power. As someone on STEM, I can tell you that many of us do not go into tech and still pursue traditional banking/consulting roles.
Yes. It does. It is a huge ordeal that needs to be addressed by faculty and a university’s board of regents. Not a single international student enrolls in STEM-designation to go work in corporate finance, marketing, or general management. There would be no inclusion of STEM-designation if tech wasn’t as popular as it is today.
While STEM-designation assists in visa efforts for international students, it certainly assists MBA candidates in competing for the ever coveted product manager roles at Apple, Facebook, Amazon, Microsoft. You think engineers working at these firms want to be led by someone who can’t speak to the technical nuances of their product and job? This is feedback that programs have received from tech employers. Additionally, as I noted above, demand for tech is increasing, and STEM-designation provides a competitive edge for those willing to buckle down for an extra six months to a year.
I think you need to be more specific as to which MBA programs you are referring to. I go to a T15 program and I can tell you this is categorically false. In fact, this past Fall recruiters from banks across the spectrum (BB, EB, MM) posed the question multiple times as to where all the interested candidates were. This is a pattern that has (apparently) continued for a number of years.
Interest in banking may be up at some programs, but not all.
The STEM designation has nothing to do with tech recruiting (not like taking a handful of additional classes makes your average MBA student any more tech literate). It’s entirely for international students entering the visa lottery
This is a complete joke. I go to a top MBA feeder for IB (Booth/CBS/Wharton), and there are definitely more people interested in tech than in IB.
If you add up all finance jobs (IB/PE/VC/HF), then you may have more interested students than for just tech, but buyside jobs have not changed in popularity over the past decade.
Just compare the employment reports for the class of 2009 and the class of 2019 - there are fewer students going to IB at every top school, and the attrition pretty much matches the increase in students going to tech.
You can probably compare Finance vs. Tech, but it's hard to reinforce IB vs. Tech. Tech includes corporate development, corporate finance, strategy & ops, product management, product marketing management,treasury, software engineering, etc.
That being said we got an MBA associate from Tuck who kept pestering our intern for help on an LBO model because he was too timid to ask me questions. And he should have, hes a competitor and I want his position.
Entire post is filled with false information. Trump supporter for sure no doubt. The eye-grabbing highlight is obvious "China virus". OP (an Asian China hater) has no interest in MBA or finance or tech. He just wants to remind people of how strong the economy was, because of Trump.
But before you do that, you should first attend Kellogg, where you will learn advanced marketing skills so that you can effectively continue on with your disgusting propaganda. Thanks to China Virus, Kellogg just waived GMAT requirement so you actually have a shot of admission this year.
Kellogg is also reversing rejections from this cycle so they really are just begging people to come.
That was a dick move to people stuck on the waitlist.
Banking. So hot right now. Banking.
Not at all. Don't spread false info. - T15 2nd year.
Did you learn this from HBS with your white wife?
I don't think we call H1N1 American Chick Flu, or HIV American Sex Disease.
BTW Spanish Flu started from America. It seems some people are just good at blaming others when shit hit their own fans.
This is historically incorrect.
But the question still remains - Is "Spanish flu" a racist term?
You could argue either way, but I think it would definitely be insulting to call HIV African Sex Disease and would encourage racism towards people of that ethnicity
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