Am I too old for a Masters in Finance?

January 16, 2012 4:11 AM

With extensive experience as a software developer in Investment Banking am I too old at 37 for it to be worth my while to take a Masters in Finance as a prelude to trying to change from technology to the business side?

I have worked as a software developer in and around the Investment Banking industry for 10+ years primarily Tier 1 institutions in the City of London. At the ripe old age of 37 I am considering taking some sort of Masters level course in finance and/or banking in order to broaden my knowledge and skills with a view towards trying to move towards the business side.

The obvious path is to try and seek a technology role with greater business alignment but my interests are leading me more towards the analytical side (fund management or perhaps investment research).

Having looked at various Masters programmes they strike me as being rather like mills to thresh people in their mid to late 20s into associate programmes at the bigger banks. Will it be a waste of my time to pursue one of these expensive courses as my age will rule me out for serious consideration for business side roles?

Has anyone been down this path or have better ideas?

posted by zemblamatic to work & money (3 answers total)

Hey there, I did something similar myself when I was roughly about your age. My undergrad was Math and Computer Science and most of my banking career (also with Tier 1 firms) before I took my Masters was spent on trading desks building models under the direction of a trader. I also got involved in hardcore business activities (i.e., CDO structuring, etc) which moved me very, very close to the finance side of banking, and out of IT altogether from an org chart perspective. When I finally took my first Masters (MSc Quantitative Finance) in 1998 although I was already very much a part of the business and had been for years, the degree just solidified that position.

But moving into a "pure" business role? Might be very tough, especially so at Tier 1 firms as they like to take on graduate trainees. Lateral moves like you're describing are always tough, unless you can set yourself apart somehow. For example, do you write market commentary or are you managing your own money? If you can prove yourself to have lots of profitable insight it might just be possible.

However your background, augmented by a Masters, would be of interest to other types of banks, consultancies, funds, fund managers or ratings agencies. A "pure" business role might be achievable if you were to consider working at such a firm.

Here's the thing though: you're always going to have these IT skills, so I would respectfully suggest you're best suited in hybrid roles where you can leverage both. This approach has lots of benefits - think of it this way: single skill set, whether IT or the business naturally has a limited domain. That limit constrains not only usefulness to the firm but also your earning power. By moving into a hybrid role where both domains are utilised you're sharply gapping up your utility to the bank and your earning power - always a good thing, but especially so in this market where there is intense pressure to reduce headcount (of course its not all about earning power, but I always viewed work, especially banking work, as a means to acquire my own capital, so I could do whatever the hell I wanted to later in life - which is exactly what I'm doing now.)

In terms of Masters programmes you're correct - there is a huge variation in the UK when looking at quality and name recognition across the Universities, not to mention the plethora a private business schools that have recently emerged. The good news is you can finish a UK Masters in one year which will constrain your loss of earnings. Bad news is you're now looking at a September start so if you were looking to make a hop right now, it probably ain't gonna happen. But thats ok as you really don't want to rush into a Uni only to find out the hard way it wasn't an appropriate choice.

Finally, as it seems you're looking for a way to move directly into the business so I'd suggest an MSc in the area of finance. Popular programmes these days seem to be the MSc Investment Banking or MSc Portfolio Management areas. The Universities are all marketing heavily these days, they seem to look at each others offerings and follow suit, so these things tend to move in and out of vogue. I also have an MBA which on its own is a remarkably versatile degree, but it might not suit your goal (I took it after I left banking). I only mention this degree as lots of Universities offer MBA Finance or MBA Investment Management, but if you're taking 24 classes and only six or so are finance (the rest being HR, Marketing, etc) it might not help you achieve your goal. By contrast most of the MSc programmes I'm familiar with will require eight classes (plus dissertation), six or seven of which will be finance oriented, allowing for a greater focus.

If you'd like to discuss specific programmes drop me a mail and we can go vocal. I'm in London mostly but terribly busy with Uni (now taking a PhD in Finance, fun never ends!) however definitely can talk and might be able to get together some weekend.
posted by Mutant at 5:46 AM on January 16, 2012 [5 favorites]

Thanks for such a detailed and balanced answer - this chimes fairly heavily with my own analysis at the moment. I think trying to edge towards a more hybrid role may be the only well-hedged approach.

Some more information and thoughts from my current perspective:

I don't come from a quantitative background; my degree is in Philosophy(!) and while most of my time has been spent working on front office systems it has been from an infrastructural angle (market links/execution flow). One of my motivations for doing an MSc is to get some formal quantitative skills.

I feel like I have miscued things over the last 18 months. After finishing an epic high-profile integration project that came out of the leading edge of the crunch I decided I wanted to sharpen and update my technical skills and have worked a couple of contracts that took me out of front office and then for the last 6 months out of banking. I was sort of wondering about using this as a chance to reboot.

I am considering seeking out opportunities in technology at a buy-side firm.

I will deffo take you up on the opportunity for a chat. Many thanks!
posted by zemblamatic at 11:48 AM on January 16, 2012

Recruiter (in US and not in your field) talking here ...

You have spent 10+ years climbing up one particular career ladder. Finance is a different career ladder from IT. The fact that you're thinking you'll stay in IB is irrelevant.

Anytime you step from one career ladder to another, your value (translation: compensation) falls. In your case, I would suspect precipitously. Even after your additional graduate education, you will still be competing (essentially) with other fresh grads who have no more experience on the financial side of IB than do you.

Investigate what compensation is for that individual (they are paid well). If you can continue to live your current lifestyle, than the change is worth considering.

Also, remember that the issue is not your age, per se. It's that you have the same level of experience (almost none in what you want to do) as someone 15 years younger.
posted by John Borrowman at 3:57 PM on January 16, 2012 [1 favorite]