MBA: Consulting vs. Finance - Unpacking the Top Career Paths

Consulting

Finance

 Management Consultant: Helps organizations improve performance by analyzing existing problems and developing improvement plans.

Strategy Consultant: Focuses on long-term planning and strategy development to help clients achieve their business goals.

Operations Consultant: Optimizes internal operations to enhance efficiency and productivity.

 IT Consultant: Provides advice on technology and systems to improve business processes and information systems.

 Investment Banker: Assists companies in raising capital, mergers and acquisitions, and other financial advisory services.

Financial Analyst: Analyzes financial data to support decision-making processes in corporations or investment firms.

Private Equity Associate: Evaluates and manages investments in private companies.

Venture Capitalist: Invests in early-stage startups and supports their growth.

Asset Manager: Manages investment portfolios for individuals or institutions.

Comparison

Finance

Consulting

Area

Specialist

Generalist

Career Options

Investment Banking,
Corporate Finance,
Equity Research,
Private Equity,
Risk Management,
Quantitative Analysis,
Project Finance,
Technical analysis

Strategic Consulting
Management Consulting
IT Consulting and other areas

Hard Skills Required

Microsoft Excel, PowerPoint, Financial Modeling, Valuation Methods, Sensitivity Analysis, Accounting, Corporate Finance, Fixed Income, Derivatives,
Corporate Law

Microsoft PowerPoint (heavy), Microsoft Excel (less), Analytical Skills, Process vast data, Business Modeling, Business Strategy, Operations, Human Resource, Supply Chain

Soft Skills Required

Ability to work for an extended period (80-100+ hours a week), Excellent Communication Skills Required, Writing Skills, Negotiation Skills

Ability to understand Client’s Requirements, Communication Skills, Excellent Presentation Skills, Taking Ownership, Ability to work in a Team.

Top Firms

Blackstone,
Goldman Sachs & Co
Morgan Stanley
Bank of America Merrill Lynch
Credit Suisse
Citibank
Deutsche Bank
HSBC
UBS
J.P.Morgan Chase & Co

McKinsey & Company.
Boston Consulting Group,
Bain & Company
Booz & Company
Deloitte Consulting LLP
Monitor Group
PricewaterhouseCoopers LLP
Mercer LLC
Ernst & Young LLP
Accenture

Work-Life Balance

It depends on which subdomain in Finance you are working for. Investment Banking – it’s brutal! Equity Research is still OK. Buy-side Analyst has a balanced work life.
Depending on the area, you may have to work for 10-18 hours a day.

In consulting, the working hours vary depending on the client and project.
On average, it is around 12 hours per day

Travel

Mostly they are not required to travel much. You can safely assume that 90% of the time is spent in Office.

Consultants travel for 25-75% of their time

Key Words

Financial Modeling, Valuations, M&A, NPV, IRR

Top Level analysis, Insights, Findings, Facts

Exit Opportunities

Depending on the chosen area of interest, there are some amazing exit opportunities within the Finance sector.

Become senior executives in the sector you are consulting

Networking Opportunities

Mostly work within the Financial Industry. The alumni network is strong but not varied as found in Consulting.

Consultants work for diverse industries – they get immense opportunities to network with diverse groups of businesses, academics, governments, and countries. They also have a powerful alumni network which helps them connect across various levels.

Popular Certifications

CFA,FRM, PRM, CFP, CIMA, CMA, ACCA, CPA and more

CMC

Job Security

The chance of spending 15-20 years in the Finance field is a bit lower (especially in Investment Banking)

chances of having a 15-20 year career in consulting look a lot higher