There are several types of master’s degree programs that can prepare you to enter a role — or advance your existing career — in the field of finance or business. Two of the most popular options for graduate students are the Master of Business Administration (MBA) and the Master of Finance (alternately abbreviated MiF, MSF, or MF).
An MBA provides a comprehensive business education that covers diverse topics like leadership, entrepreneurship, accounting, and marketing, while an MF degree specifically deals with financial theory and coursework. This guide compares the Master’s in Finance vs. MBA, including careers to pursue with each type of degree, to help you determine which graduate program is the better fit for you.
Table of Contents
- What is a Master’s Degree in Finance?
- What is a Master’s Degree in Business Administration (MBA)?
- Key Differences Between MBA and Master’s in Finance
- Master’s in Finance vs. MBA Skills
- Industry Demand and Trends
- Should You Pursue a Master’s in Finance vs. MBA?
- About NU’s Online MBA and Masters in Finance Programs
What is a Master’s Degree in Finance?
A Master of Science in Finance (MSF, MF, MiF) is a graduate program designed to equip students with specialized knowledge and skills pertinent to the financial sector. Most MF programs are full-time and generally take students one to two years to complete, depending on factors like program credit requirements and whether accelerated study options are available.
While each program is unique, an MSF program typically covers topics like financial theory, risk management, investment strategies, mergers and acquisitions, and various aspects of domestic and global financial markets. A master’s degree in finance can equip you for roles within banking institutions, investment firms, regulatory agencies, or corporations and enterprises. Later in this guide, we’ll cover five popular careers you can pursue with a master’s degree in finance.
What is a Master’s Degree in Business Administration (MBA)?
A Master of Business Administration (MBA) is a comprehensive graduate program that educates students on multiple aspects of domestic and international business. While program specifics vary by school, some examples of typical topics covered include business ethics, business communication, team leadership, investing, accounting, and microeconomics. For example, the MBA program at NU offers courses and concentrations in business operations management, team management, supply chain systems, and strategic marketing.
MBA programs can vary in length. Some accelerated MBA programs can be completed in as little as one year, while the average full-time MBA program lasts closer to two years, and a part-time MBA program may require anywhere from around three to five years to finish.
Key Differences Between MBA and Master’s in Finance
While both are rigorous graduate degrees, there are also some important differences between MBA and MSF programs when it comes to areas like the curriculum covered, the essential skills needed, and the long-term return on your investment.
Comparing Coursework
Graduate finance programs are tightly focused on economic- and finance-specific topics and courses, such as financial analytics, risk management, international banking, and business calculus. By comparison, an MBA provides students with a broader, more wide-ranging business education that covers subjects ranging from how to motivate and manage teams to how to market emerging brands. For example, students who enroll in the MBA program at National University have the opportunity to specialize in areas like leadership studies, human resource (HR) management, and entrepreneurship.
Return on Your Investment
Obtaining a master’s degree is statistically shown to increase earning power. According to BLS data, the average weekly pay for employees with bachelor’s degrees is $1,493, compared to $1,737 for employees who hold master’s degrees.
But which type of master’s degree offers the best return on investment (ROI), an MBA program or a master’s degree in finance? Let’s compare a few factors, like tuition costs, salary expectations, and typical time invested.
- Tuition Costs — Tuition for MBA and MF programs varies by university, depending on factors like program length, financial aid, and geographic location. MBA programs generally cost more than MF programs, but choosing an online degree and applying for scholarships can decrease the cost substantially. Additionally, some employers may provide financial assistance for employees pursuing an MBA.
- Program Length — A typical MF program requires one to two years to complete, and a typical full-time MBA program takes around two years. Some programs offer a part-time study option, which gives you more scheduling freedom but also increases the length of time the program takes to finish. However, you can advance faster by enrolling in an accelerated or online program, like the online MBA at National University. Not only is earning your degree online convenient and flexible, but it is also cost-efficient, eliminating expenses like commuting plus room and board.
- Earning Power — MBA graduates often command higher starting salaries, which can offset the initial tuition investment over time. For example, in one study highlighted by Fortune, researchers found that MBA graduates earned an “average salary of about $154,000, whereas… master’s in finance candidates had an average starting salary of about $86,000.” You can find more detailed salary data in the careers section of this guide.
Master’s in Finance vs. MBA Skills
Here’s an at-a-glance comparison of the essential core skills needed for MBA vs. MSF programs.
MBA Skills
- Analytical and critical thinking
- Leadership and management skills
- Communication and teamwork skills
- Presentation and public speaking skills
- Adaptability and creative problem-solving
- Project management and organizational skills
MSF Skills
- Quantitative research skills
- Attention to detail and sharp analytical abilities
- Financial modeling and trend forecasting
- Risk assessment and management
- Investment and portfolio management expertise
- A deep understanding of financial regulations and regulatory compliance
- Ability to analyze and interpret complex data sets
Industry Demand and Trends
MSF program graduates emerge well-positioned for specialized roles in finance, such as quantitative analysis and portfolio management. Students who successfully complete MBA programs, on the other hand, graduate prepared for a wide range of roles, from consultant to manager to business owner. Here are eight in-demand careers to consider pursuing with your MBA or MSF degree, including salary data and an overview of each role.
Three Career Paths for MBA Grads
An MBA degree or online MBA empowers you to explore diverse careers. Let’s explore a few examples:
- Management Analyst
- Investment Banker
- Marketing Manager
1. Management Consultant
Management consultants, also known as “management analysts,” provide businesses and other organizations with expert advice on improving performance, increasing profitability, and streamlining or eliminating inefficiencies.
According to the Bureau of Labor Statistics (BLS), the median salary for a management consultant is around $99,400 per year, with the top 10% earning salaries over $172,000. Management consultancy is a potentially high-paying career and in high demand, with the BLS projecting 11% job growth through 2033 — a growth rate the BLS considers “much faster than [the national] average,” which is only 4%.
2. Investment Banker
The BLS categorizes investment bankers as a specialized type of types of “securities, commodities, and financial services sales agents,” a group which also includes:
- Brokers
- Floor brokers
- Investment banking sales agents and traders
- Financial services sales agents
According to the BLS, investment bankers — along with other types of securities, commodities, and financial services sales agents — earn a median salary of $76,900, with the top 10% earning more than $212,000. The field is expected to experience 7% job growth in the coming decade, almost double the 4% average.
3. Marketing Manager
As a marketing manager, some of your typical tasks might include assessing the demand for various products and services, performing competitor analysis, identifying market gaps and target audiences, and implementing effective strategies to help boost customer acquisition and retention.
The BLS reports that the median salary for marketing managers is $157,620 per year. Some of the highest-paying industries for marketing managers include information services, oil and natural gas, and water transportation.
Professional Associations for MBA Holders
Consider joining a professional organization like the Association of MBAs (AMBA), which describes itself as “the world’s leading specialist MBA and post-graduate management education quality assurance provider, and global student and graduate network.” AMBA provides accreditation for MBA programs, hosts events for members, offers a career development center, and offers other networking and educational resources for MBA graduates.
Here are a few other examples of professional associations to join with an MBA degree:
- Association for Supply Chain Management (ASCM)
- Sales and Marketing Executives International (SMEI)
- Society for Human Resource Management (SHRM)
Five Career Paths for MF Grads
Here are five careers to explore with a master’s degree in finance:
- Financial analyst
- Corporate finance manager
- Portfolio manager
- Risk manager
- Quantitative analyst
1. Financial Analyst
According to the Bureau of Labor Statistics (BLS), financial analysts “assess the performance of stocks, bonds, and other types of investments” to help their clients, who can be individuals or businesses, manage and grow their wealth. For example, some of a financial analyst’s typical tasks include evaluating financial statements, recommending portfolios, and identifying economic trends.
BLS data shows that financial analysts earned a median salary of almost $99,900 in 2023. The field is expected to grow by 9% through 2033, “much faster” compared to the national average of 4% job growth.
2. Corporate Finance Manager
As a corporate finance manager, you’ll perform tasks like preparing business reports and financial statements, ensuring regulatory compliance, tracking market trends and behavior, and identifying opportunities for corporations to minimize costs, losses, and other inefficiencies or vulnerabilities.
Not only is the field of corporate finance management potentially lucrative, with median salaries around $156,000 — it’s also rapidly growing, with high demand for financial managers expected over the coming decade. The BLS projects finance management jobs to grow by 17% through 2033, which is “much faster than [the] average” rate of 4% reported by the BLS.
3. Portfolio Manager
Portfolio managers (PMs) go by many names, including “asset managers,” “wealth managers,” “investment managers,” and “financial advisors.” Whichever term you prefer, the role involves working with businesses or individuals to help them make sound, strategic investments that align with their financial goals. For example, you might help a client diversify their portfolio in order to limit the resulting financial harm in case one of their investments fails or underperforms.
The BLS reports that, as of 2023, the median salary is over $99,500 for personal financial advisors and over $156,000 for financial managers.
4. Risk Manager
As a financial risk manager or financial risk specialist, your chief tasks are to evaluate — and advise how to mitigate — potential threats to the “assets, earning capacity, or economic state of an organization.”
BLS data shows that risk specialists earn a median salary of $100,000, with the top 10% of earners commanding salaries closer to $171,000.
5. Quantitative Analyst
In research, qualitative data relates to non-measurable information, such as a person’s subjective or emotional experience. In contrast, quantitative data relates to hard numbers and objective, measurable information, such as a person’s height or age.
As a quantitative analyst, you’ll be performing quantitative research for banks, lenders, corporations, or other organizations in order to help them spot financial risks — and target opportunities. Risk managers, who we covered in the previous section, are a subcategory of quantitative analysts.
While the BLS doesn’t currently provide salary data for quantitative analysts, reports submitted to Glassdoor suggest that the average salary for this profession is around $124,680 per year.
Professional Associations for MF Grads
After completing your MF program, consider joining professional associations for finance professionals. For example, you may wish to enroll and register with the Chartered Financial Analyst (CFA) Institute, which offers the CFA designation — a globally recognized professional designation awarded to individuals “who have completed the CFA Program,” which is a three-part exam, “and completed acceptable work experience requirements.” The CFA Institute provides networking opportunities and professional development resources for finance professionals, such as scholarships, study aids, and practical skills modules.
Here are a few other professional associations to consider joining once you obtain your master’s degree in finance:
- American Finance Association (AFA)
- Association for Finance Professionals (AFP)
- Professional Accounting Society of America (PASA)
Should You Pursue a Master’s in Finance vs. MBA?
There is no objective or “best” answer to the question of whether to pursue an MBA or MSF. Ultimately, it depends on factors like your professional goals, your academic background, your skills and aptitudes, and your personal interests. For example, if your aim is to start your own business or help launch new brands, an MBA program is likely more aligned with your goals. On the other hand, the MSF degree might make a better fit for students who want to become financial analysts, portfolio managers, actuaries, or accountants.
About NU’s Online MBA and Masters in Finance Programs
New technologies like AI and blockchain are changing the way businesses operate. Stay ahead of the curve and future-proof your career with a master’s degree from National University. We offer more than a dozen accredited programs in accounting, finance, and economics, including the Master of Accounting (MAcc), Master of Science in Marketing (MSM), and the online MBA at NU. Contact graduate admissions to learn more, or apply to NU online today.