Master of Finance vs MBA: Business School Prerequisites by Degree

Is knowledge of financial modelling necessary for beginning a Master of Finance? Is accounting knowledge necessary in order to excel in an MBA? Among different business school programmes, it can be difficult for students to discern what essential skills they'll need to begin and succeed in their chosen course.

Providing online course preparation for business school, Summatic can shed light on what essential quantitative skills are needed for beginning either a Master of Finance or an MBA programme. Identifying different knowledge prerequisites by degree type, this guide aims to help students anticipate the quantitative preparation they might need to undertake before beginning coursework.

Master of Finance

A Master of Finance does not require work experience but often attracts students with backgrounds in finance that are looking to improve on their pre-existing financial knowledge and technical skills within a one-year full-time course.¹

These programmes will often admit students already possessing a financial background that are looking to broaden their knowledge of investments, liabilities and assets through a specialized course.² Admissions for the Master of Finance at some universities will screen applicants based on previous quantitative course experience just to ensure admitted students are equipped for this level of specialization.³

As such, coursework tends to be quantitatively focused, fast-paced and intense, making it critical to ensure that you are well equipped with the quantitative skills to advance with course essentials. Before beginning your Master of Finance course, you'll want to ensure you have an understanding of the following quantitative methods:⁴

Master of Finance Prerequisites:

• Probability
• Calculus
• Accounting
• Matrix Algebra
• Real Analysis

You can expect to draw on these quantitative methods throughout the Master of Finance, as you will be required to engage in coursework related to the following topic areas:⁵

Master of Finance Course Coverage:

• Quantitative Finance
• Macroeconomics
• Investment Analysis
• Financial Modelling
• Financial Reporting

Master of Business Administration (MBA)

Conversely, MBA programmes are less specialized and thus welcome candidates from a broad range of professional backgrounds who are looking to excel in management and business-related careers.

The course is longer in duration (often two-years full time) and is designed to provide those who already possess several years of work experience with an overview of how different aspects of a business fit and operate together.⁶ Most programs look to admit applicants with at least three years of work experience who are looking to advance in their careers.

Admissions for MBA programmes are often less strict on evaluating candidates for quantitative proficiency and instead assess applications more holistically. The breadth of an curriculum can be especially beneficial for those who do not possess an undergraduate degree in either business or finance but are looking to enhance their marketability for high-level management positions.⁷

But a lack of screening for quantitative proficiency in MBA admissions should not be misconstrued to mean a lack of quantitative methods or material in coursework. To successfully engage with an MBA curriculum, it is recommended that students have a solid understanding of the following:⁸

MBA Prerequisites:

• Calculus
• Financial Accounting
• Economic Statistics
• Financial Management
• Operations Research

While an MBA can be less strict demanding prerequisite quantitative skills, the coursework will still require students to engage with essential mathematical, financial, and accounting skills to succeed. For this reason, admissions will often require students to receive an adequate score on the GMAT exam before applying.⁹

Throughout an MBA programme, students can expect coursework related to the some of the following areas:¹⁰

MBA Course Coverage:

• Managerial Accounting
• Operations Management
• Corporate Finance
• Business Strategy
• Business Ethics
• Financial Strategy

Regarding what differentiates the MBA from the Master of Finance, MBA and graduate admissions consultant Esmeralda Cardenal, sums up how the degrees diverge in coverage: "While many MBAs do offer the ability to specialize, the number of courses one can take in any given concentration in a two-year program is never equivalent to that of a specialized master's degree in that same subject."¹¹

How Summatic can Help You Prepare

Whether you're considering applying or waiting to begin business school, you may feel apprehensive about needing to develop your quantitative skill set ahead of starting your course. Summatic can help ease this anxiety.

Now offering individual subscription packages for students, our online comprehensive courses can help you learn, practice, and master essential quantitative skills to succeed both in your graduate course and professional career.

Trusted by students across a range of institutions, our fast, flexible and advanced preparation provides access to unlimited practice questions for mastering quantitative skills, automatic feedback on question attempts, interactive lessons with step-by-step explanations, and coverage of core topics like Finance and Accounting. Learn more about the courses we support and the benefits of our individual subscription packages here to get ahead of your programme today.