How hard is it to go from engineering to finance with the help of an MBA?

Graduate School Business School - MBA
1

Hi everyone,

I am thinking about making a career change from engineering to finance. I have applied to different MBA programs and been accepted into some, but recently I have been rethinking getting an MBA because of something a friend told me about it being difficult to get a job in finance after graduation coming from an engineering background, even though I will have an MBA specialized in finance.

How true is this?

Is it worth going through all the trouble of perusing an MBA if I am not sure I will land a decent job afterwards?

Any comment is appreciated.

Thank you.

2

Do not base your decision regarding whether or not to earn an MBA degree on a friend’s comment. Contact the MBA programs to which you have been accepted and ask them about their job placements.

I have no idea why it would be difficult for an engineer with an MBA–finance concentration to get into the finance field. In fact, an engineering background could be a plus depending upon the specific job & employer.

I have several relatives with engineering degrees (EEs) who thrived after earning their MBAs, although none are in finance.

3

Some financial firms hire right out of engineering programs. They want your quant skills. It’s absolutely not the case that engineering plus a finance MBA would be an issue. Do an internship in finance while you get your MBA.

4

I think you should be able to move quite easily into corporate Finance with an MBA from a top school such as BU. What might be difficult is moving into high finance IB, VC, HF and AM

5

@perazziman
Why exactly is that? Is it because of the engineering background or the school?

6

I agree with @Publisher, and generally think engineering plus MBA is a strong combo which will not prevent you from getting a job in any area of finance. Have you spoken with BU career placement office and looked at the jobs grads have gone into? As in your last thread though, if you want a really competitive area like IB et al, it will be very helpful to secure a summer internship in a relevant job.

7

@Collegesufer093

The IB recruitment process begins during sophomore year in college. Consequently, those who get hired in IB have a couple of summer internships under their belts, even before they finish college. After college, they usually work as Analysts for a couple of years prior to going for an MBA. After completing their MBA they are hired back as Associates. However, some of them don’t return to IB and move into HF, VC etc. So banks go hunting to elite schools to hire a few new MBAs to replace them. The banks train them during the summer at the end of first year, then hire them after they graduate with an MBA.

The banks usually target schools such as Wharton, Columbia, Harvard, Northwestern, NYU, MIT Princeton Chicago and Cornell etc. They will usually hire candidates who may have interned at an IB before joining the MBA or may have earned a level or two of a CFA or worked in a smaller / foreign bank etc. After all they are trying to replace someone who has worked and interned with them for nearly 4 years

It is very unlikely that they will hire an engineer at a non target MBA Program after the first year when he hasn’t even taken any specific MBA Finance electives. Nothing is impossible.

8

I could name a couple dozen people in finance with engineering degrees including all the top banks, vcs and hedge funds. It’s an utter non-issue. Take a look at who comes to MIT to recruit.

9

IBs recruit MBAs. The short term issue is that the MBA grad had to pay for an MBA and will make less than 24 year olds who graduated with a finance BS two years ago. But, it does not matter in the long run. So yes, do it, but go to a top school! Careful what you wish for … 16 hour days and 30 day months take a toll on the the body and psychological well-being. 38 years ago I had a ticket to Wharton but chose to stick with engineering and have no regrets.

10

Some IBs may pay for the second year of MBA tuition for returning interns (interns who have accepted an offer of full time employment after finishing MBA school).

11

The ambitious ones see IB as just a stepping stones to bigger things. My son graduated from undergrad Wharton and he has no regrets as he didn’t mind long hours when he was starting out. He’s at a hedge fund after 3 years of IB and is home everyday by 5:30PM. No MBA needed as well.

As for the OP, it is very common for engineers to get MBA. If you want to work in high finance, make sure you go to targeted programs where the big firms go to recruit. Check out their career offices.

12

OP has a full tuition scholarship to a non-target school in a major US city.

OP is focused on a career in finance, but not necessarily IB.

OP is highly concerned about COA & student loans.

13

It’s the school.
MBA programs are like law schools, the more prestigious programs will give you more options and higher starting pay.
Even though you may not have to pay tuition, you still have opportunity costs and 2 years of living expenses to pay so it looks like you have to do further research as to your ROI after MBA.

14

I read your thread in Graduate School section which I don’t usually read because I have no experience in that area. I think you know which b schools offer you better opportunities and it’s up to you to decide whether it’s worth it based on your current salary and advancement opportunities. Your stats are OK even in the top tanked 15-25 B schools. Did you apply to higher ranked schools? It’s still early to hear back for 2019 admissions cycle.

15

@cbreeze

I have also informed OP of some MBA programs such as McCombs and Jones at Rice that place regionally into local boutiques and smaller Investment banks etc.

I have also suggested that he consider taking CFA Level 1 in June to show Fall recruiters he has some interest in the field.

There is no guarantee of landing an IB job but you cannot get one if you aren’t willing to walk the extra mile and try

It is the same with my son. He attended a non target UG school and studied Econ & Math rather than Finance. So chances of getting a position as an IB Analyst after graduating were zip.

So he decided to get CFA Level 1 and 2 then attend UT (target in TX). It still doesn’t mean he will get IB, but at least he will have a fighting chance. If he doesn’t get IB, it isn’t a big deal, the program has 100% placement, so he can find some other good job.

16

@Burgermeister
I don’t believe MBAs are hired as Analysts who are 22-24 yo. They are hired as Associates. This is why OP needs to realize that as an MBA he will be interviewing for jobs for people with two years of IB work experience and a couple of internships. So it is unrealistic to expect banks will select him over those MBA students who have IB internships, work experience and possibly a level or 2 of CFA, if not a BBA from Wharton and studying at HBS

Generally it is said that banks are reluctant to place MBAs with Analysts who would be 4 years younger. if Analyst is the goal then OP should target a 10 month MS in Finance program that is usually considered the equivalent of a 5 year UG dual degree

17

Collegesurfer093 is getting a variety of great opinions here! One last anecdote for you. Told all my kids to reach. I was happy as an engineer but all of them chose financial paths. We all climb our ladders differently.

18

Re #15: Analysts and associates (usually) do different jobs. When I was there it was common to hire new MBAs as associates who had not previously been analysts. Presumably those people did something else previously that was of benefit. They wanted the best people, period.

To get into “big finance” it is more or less necessary to go to a “target” MBA program. if you are regionally focused, go to the program in that region from which MBAs are routinely hired. However, recognize that the regional firms hire relatively few people.

To me the question is not so much if you can get a job, but the character and nature of that job.
Finance is a bigger field than one might think, with a lot of different jobs. Not all of them require optimal pedigrees.
But they are not all the same job, either.

IMO the main challenge for an engineer entering finance is that their main attraction may be their quantitative skills, which may guide them into a permanent-subordinate “financial analyst” track.
As even a young engineer it is common to be given your own jobs, responsibility for your own systems, etc
As a financial analyst you may be tasked with crunching numbers in massive spreadsheets on a never-ending series of support roles for transactions in which you may never play a wider role. You will be well paid for doing this, but in the long run many find it unsatisfying.

When I was in “big finance”, a banker told me the most important course he would encourage his kid to take was not computers, but rather public speaking. Another said the most challenging part of his job was getting a potential client to trust him, and our firm, with their project. These are the types of “soft” skills that are most prized: leadership, salesmanship, etc. You have to have the personality and interests to interact and impress corporate managers who award business. And lead teams of finance professionals and lawyers to accomplish the task at hand. These people are not awed by quantitative skills of an engineer. Many of them have better quantitative skills, actually, they are really smart. Rather they think most engineers lack the soft skills and interpersonal skills to do their jobs. they can crunch numbers for them though.

Engineers have a handicap, in that they are trained to find a quantitative answer. Lots of times there isn’t one, or it is not so clear. One has to believe, persuade, and lead, without a definitive analysis in hand. This can be a problem for some engineers. Likewise, seeing “the big picture” can be a challenge.

If at heart you are a finance guy in engineer’s clothing then go for it. If you are an engineer in engineer’s clothing you can make more money but you might have a more satisfying career staying put. IMO.

19

@monydad : The fifth paragraph of your above post is right on target.

20

Please note that in #17 I am describing a front-office position in an investment bank.
The details would be quite different for a trading floor position. But still you would have to fit those different needs from an interpersonal perspective, and not all engineers do fit.

I cannot comment much on the myriad other types of jobs and firms that are also part of “finance”.
On Monday I plan to go into my local bank branch, where I will encounter tellers, and the branch manager and assistant manager. They are also part of “finance”, and I can’t comment much on their jobs. But I’m guessing an engineering background is not a key prerequisite for those either.