Do you know anything about careers in banking in the Fort Wayne area? I’m considering going back to school for finance and getting a certificate in bank management as well
Important Correction: Analysts do not go on to get an MBA in order to become an IB associate and then move to a PE/HF role. Rather, they will move directly as an analyst to either a PE associate or IB associate position. There is no reason why an analyst would get an MBA to become an IB associate when they can be promoted internally without one. People in finance who were unable/chose not to do banking directly out of undergrad will have to get an MBA and then become an IB associate. However, post-MBA associates are generally expected to stay at the bank for the long run and will face much more difficulty moving to a PE/HF role as those firms do not generally recruit IB associates.
Thank you for clearing this up. My brother works in wealth management. He makes his 80-90k and still has a life outside of work, and I think that’s what I’d like to pursue as I finish my finance degree as well.
@@overthemoonflorist9135manage portfolios (difficult, managing & increasing assets), evaluate risk & determine financial decisions for your clients (many), hedge/derivatives, make sure EVERY client receives due diligence & try to never lose cash, advise clients business or personal, accounting, volatility, some computer science, study/evaluate markets & statistics (math), then think about how dreadful life is after a hard day of work. I’m stressed & barely into it
About the "elite" part, Another way to rethink the issue is the value they look for. In Europe engineers from prestigious colleges and with prestigious degrees can be scouted. The value they look for is an overachieving mindset coupled with the best markers for learning a lot fast.
Thank you so much for the informative video! I graduate in two semesters with finance and am still on the fence about what route I have wanted to undertake - this helped significantly. Take care and look forward to future videos.
What career advice do you have for someone who: - graduated in economics from a target university - values a great work-life balance - seeks to manage own fund and/or business in the long-term (not endowed with the required capital) - secured a rotational finance graduate program in a f500 (m&a, trading, controlling, etc.) - Proceed with the f500 finance graduate program? Stay in an f500 or switch to IB? - get a CFA/ CAIA? - What roles allow to generate the required capital the fastest, while still maintaining a work load below 60h/week? -- IB? -- hedge fund? -- asset management? -- energy/ commodities trading? I know this is pretty random, but I just try my luck :-) any oponion is appreciated.
If you want a good work life balance and I am assuming low stress with it, I would stay in the f500 program and get the CFA. To make good money in IB, trading, or hedge funds will require a lot of work and stress compared to f500 job. Working at a f500 will also give you enough experience to see how a firm operates if you want to start a business later down the road.
@@DimitriBianco Thanks, I also see it as a trade-off between the capital you accumulate per year vs the stress level. My concern is that you may get bored later down the road in an f500, but then it's maybe too late to switch. On the contrary, you can always leave IB. That's why I consider to work for an m&a advisory group after the program, unless the company makes an offer that is too good to turn it down. Edit: the company made an offer I couldn't turn down :-)
Hey Dimitri! I’m a 16 year old high school student looking to plan out my future. I am highly motivated by money and that’s why I am so interested in the world of finance. First of all, thank you very much for this video. It really helped me understand a typical finance career path. I’m going into my junior year, and I feel like I have a great shot at getting into those “target schools” you mentioned. The dream is Penn (Wharton), but if not, then definitely NYU (Stern) or Columbia. I was wondering what you think about this career path for myself: June 2020 - Graduate High School May 2021 - Complete Freshmen Year of College May 2022 - Complete Sophomore Year of College May 2023 - Complete Junior Year of College Summer 2023 - Internship at Investment Bank May 2024 - Graduate College with BBA May 2024 - Apply for Job as Investment Bank Analyst August 2026 - Leave Job as Investment Bank Analyst August 2026 - Begin MBA Program May 2027 - Complete first year of MBA Program May 2028 - Graduate with MBA May 2028 - Apply for Job as Investment Bank Associate May 2030 - Leave Job as Investment Bank Associate May 2030 - Apply for Job as Hedge Fund Analyst Sounds typical to me. Just want to earn a lot of money with the skills I have. Your opinion would be highly appreciated, along with any suggestions along the way. Thanks so much!
While your plan looks straight forward and follows the most traditional route, my advice would be advice I received from an industry professional many years ago. "Goals are never met linearly." While you have a plan that looks reasonable life is always random. Better opportunities might arise, bad luck can occur, and personal interests will change. In college I wanted to be a trader more than anything. Upon graduation I realized the industry I loved only existed in the 80's and 90's. Trading had changed however I want to work in quant trading which lead me to financial engineering. Again more information lead me to pursue other areas of quant finance which has lead me to risk management. I would continue to pursue your goal to work for a hedge fund if this is your passion but be expected for life to change directions. As a side note, I would encourage you to research what it's like to work at a hedge fund. You might discover many hedge funds are quant funds which means they hire Masters and PhDs in quantitative areas not traditional finance however there still are traditional funds out there. You might find my quant finance career paths interesting. th-cam.com/video/ptd4XicBUnY/w-d-xo.html
As someone who interned at Goldman and rejected full time offer to go to med school, your life plan will change significantly over time as you LEARN more. Investment banking or finance is an absolute low value added service to society - you only get one life and out of EVERYTHING, that is what you are boxing yourself into before you even start your undergrad? Take your time and learn about what you want in life first. These investment banks (And I only applied to Goldman which is the most competitive) do not sound as good when you are actually in.
@@DimitriBianco If by trading you mean trading in stock market or as a day trader then you are so wrong my friend. Trading has just got better with technology and information on the Internet and there is so much scope in this field if one chooses to make it a career.
Also, PE/HF analysts do make loads more than the base numbers you/the report states. those numbers are deflated greatly by non-top programs, and you are talking about the top programs.
Hi, this might seem like a silly question but I’m new to this so bear with me. How does the consulting mentioned in this video ( which I’m assumais financial consulting) differ from management consulting?
Hey Dimitri, I love your videos, very condensed and informative. Can you comment please on science -> finance route, like going with PhD in Theoretical Physics to HF or AM firms. Is that possible to do just straight after graduation or an additional statistics/finance degree is necessary? Are there any benefits of having a PhD in a unrelated field (like theoretical physics) in quant finance?
Financial consulting meaning a financial advisor is fairly straight forward. After undergrad you'll want to write a solid resume and then just apply. Getting a CFP or CFA would help increase your chance at getting a job more quickly. The CFA is respected more in the finance industry as a whole so I would go for that over the CFP.
Hey Dimitri, great video, I do have a dilemma for finance and quantitative finance, if I pursue a com sci degree I could either jump in to these 2 categories am I right? Since STEM degree have much math rigorous compare to solely just finance degree?
CS undergrad will set you up for a masters which is required for quant finance. There are also implementation jobs in quant finance and many companies will hire CS undergrads for this. As for traditional finance, most companies want a finance it accounting degree. It's possible to work in finance with a CS degree but unlikely.
@@DimitriBianco but as we are moving to digital age, don't those traditional finance firm hire those CS undergraduate? For say one report saying Goldman Sachs replaced traders with engineers. Since machine could out-do conventional models by running algorithms? Correct me if I'm wrong
Great video! For someone interested in statistics, math and finance , do you recommend finance path in undergrad or do you recommend taking math or finance in undergrad.
Hey Dimitri - great vids! What advice would you give somebody who didn’t choose a major that is applicable to the finance industry in his undergrad, but is highly interested in a finance career? Is a Masters in Finance enough to get a foot in the door? Or is a successful change unrealistic?
It possible to switch over. I would take a look online at banks and find jobs that have your current skills. I've seen people start in some other department and then work there way over. A masters or MBA would be an easier path but more expensive.
Great video! Do you have a video about using quantitative skills for retail trading? Your video about SAS, R, and Python in banking was also very helpful!
I do not. For retail trading, diversification is a better approach as individuals will lack the technology, time, and other resources to make a consistent risk adjusted profit.
Hey Dimitri, thanks for the video. I'm currently at university for an econ undergrad with specialization on finance, however I'm really interested in quant finance. I'm planning to do an math undergrad after I've got my bachelors degree in econ. I'm from Germany and have the option to either study pure math or "Wirtschaftsmathematik" which is mostly applied math with some econ courses. If I'm planning to do a quantitative finance master afterward, would it be enough to study Wirtschaftsmathematik or would a pure math degree be the better option?
I saw your video about the racing cars engineer and the one who race using the car etc.., with that being said ,do you think as an engineer that it will be time those engineers will design a car that it drive it self and affect all that jobs in this video by cutting jobs lowering the salaries etc.. . Thank you.
No I don't think the modeling process (quant finance) will ever truly be automated. Many new tools and processes will be automated however the problem with finance is we model people and people are always changing. Hard sciences are easier to model because things like physics have actual rules that don't change. I think those in traditional finance will be replaced with quants who automate their jobs on the analytics side. Traditional finance adds value through relationship building and working with clients which will always be needed. The traditional finance side is falling behind quant finance in analytics. Just look at returns between quant hedge funds and traditional hedge funds.
Hi Dimitri, nice video here. A question though, I did my undergrad in a non-finance course and I want to switch over to finance. Does taking an MBA in finance increase my chances of I should do a fresh degree?
Bos Fa depends on the type of fund. If it's an algo or stats arb type fund it's quant. If its working at a big bank like Citi, it would fall under investment banking or wealth management.
Hi Dimitri, I have a question about transitioning into investment banking with a non-traditional background. I currently have a bachelor's degree in Economics and Finance and 3-4 years of experience working in the IT industry as a Data Analyst, Product Analyst, and Data Scientist, including at consulting firms and startups. I'm planning to pursue a Master's in Computer Science and then an MBA from a top-tier program like Stanford, INSEAD, or Mannheim Business School.Given my background and future plans, do you think this experience would be suitable for landing a classic investment banking associate role in the US or Europe? Should I consider going for the MBA immediately after my master's, or would it be more beneficial to gain an additional year of work experience first? Any advice on how to best position myself for a successful transition would be appreciated!
Hi Dimitri, I'm from Italy and i'm about to take a BCs in CS and I would like to work in finance. What would you suggest to do in order to take this career path? As I come from an Italian university, isn't my uni seen as a target school? Would suggest to take a Master Degree in Finance or Quant or CS/AI ?
Target schools are schools that banks choose as their main areas for recruiting. I'm not sure how it is in Italy however in the US schools such as the top finance/business programs are usually the target schools. As for the Masters, it depends on what interests you and what you really want to do. If you want to work in traditional finance I would suggest a Masters in Finance. If you like the idea of finance however you prefer to do math and stats, then I would get a degree more related to quant. If you like the idea of finance but prefer CS, then I would get a Masters in CS. The AI degrees are a mix of stats and programming but I'm not sure how many banks and finance companies are hiring pure AI degrees.
Hey what about hard skilled workers? I read that other than Investment Banking like say mortgage underwriting, mortgage loan officer, auto loan underwriting etc, or credit analyst, budget manager, I’m an undergraduate in accounting and I’m learning in addition to accounting the world of finance. I personally would rather be CFA or FRM as a main goal which is business finance. As for how I’ll get to it? After accounting I’ll go for my bachelors in finance and try to work at least in some higher level of finance maybe not commercial banking but maybe in business finance.
So the typical route to get to private equity is:undergrad, 2 years investment banking, MBA, 2 years investment banking as an associate, then Private equity?
Dimitri, thanks! One more question..Which one you think is better for a quant? Masters in Applied Statistics and Operational Research vs Masters in Mathematical Finance You can find their modules on these webpages, by scrolling to the Button "Read more about modules": Mathematical Finance : www.bbk.ac.uk/study/2020/postgraduate/programmes/TMSMATFI_C/ Applied Statistics and Operational Research : www.bbk.ac.uk/study/2020/postgraduate/programmes/TMSSTAPP_C/
It depends where you want to end up and what companies in London think of the programs. Risk management for example is mainly statistics. It is common to see those with a statistics background working in risk management. If you want to work more with derivative products, then the mathematical finance degree would be better as it would be more specific. Again, it depends on how companies in London view the programs. I've seen banks and investing firms who have no idea what financial mathematics is. They assume it is like finance and so they won't hire students. Other firms understand financial mathematics degrees and prefer them as they are typically more focused on financial applications of stats, math, and CS.
I would first think about what interests you. I would also consider how pretentious the area of work would be. For example, if you dream job is to work in investment banking I would apply as you never know if you'll get an offer however realize they are more concerned with where and when you got the degree. Corporate finance in general is more broad meaning you'll run into more people who are understanding of the decision to be a homemaker as a job for some time. I would even list on the resume that you were a homemaker. With covid and how the markets are changing, I think more people are understanding of the decision to be a homemaker. A colleague of mine actually took off a few years to be a stay at home mom but is now looking to jump back in.
like what is other reasons of getting into a particular career? its mostly money/compensation lol. Just that you get experience, knowledge and network as an added advantage of working lol. I hate how people demonize THE BAG.
Can you describe the difference between wealth management and financial consulting (eg CFP)? Will I end up pushing people to buy annuities and life insurance in wealth management?
Wealth management is for advising people about investing. Financial consulting is where you work at a large consulting firm and advise corporations on their financial problems.
I have never seen a list but a lot of companies hire locally. For example if a company is head quartered in Chicago you're better off going to a school in Chicago than somewhere else.
It depends on the school that's offering the degree. Some applied programs are too focus on random industry problems. I typically like seeing a more theory based degree as you'll have a better understand of the core concepts.
Dimitri, how marketable will my undergrad in finance from Ohio State be? Also, what are my best options in Columbus, OH? What does my path/ladder look like if I work for an insurance company like Nationwide who is headquartered here? If you have any better ideas or advice I would appreciate it thanks.
I'm not sure about the insurance side specifically however OSU has a good reputation in general (I'm saying this as a Michigan grad lol). If you can get into an insurance company they can be great to work for due to the job stability and the work is usually interesting. If you do corporate finance/financial analytics you should have options later down the road to look at other industries as well. If you end up in the actuary side, the exams will determine your title and pay grade which is nice because it is predictable.
Do corporate earnings follow any distribution? Could quantitive finance be useful to estimate future earnings to find the value of a stock? if yes then quants can do the job of financial analysts better than them.
Every distribution of corporate earnings is different so some might be stationary and have a specific distribution while others will be non-stationary and the distributions will change over time.
Private equity (PE) is usually done after a few years working at an investment bank. It is possible to go from school straight to PE but it's much harder. A well ranked MBA can help make the process easier.
If im doing my Bcom degree of 3 years in a local university while pursuing acca so im confused for after 3 yrs since i do want to get in a target school so what do i do ???
Hey, if I started out rough in high school which left me with a community college as my beginning option, is there any hope for me in appearing competitive?
Joshua Joshua yes there is hope. The key is going to a better undergraduate university. I went to an average state university for my undergraduate but ended up in a great grad program. The same can happen with a community college.
It's possible but there are multiple factors at play. The name brand of your school will make it easier or harder depending on if it is a target school. Your GPA, resume, and interview skills will also play a role. If you are asking the question, "is the CFA equivalent to an MBA?" The answer is no. Getting a well ranked MBA teaches you networking skills and gives you access to people within the industry. Many MBA's also have the CFA which makes it more competitive and the MBA's will get preference for management jobs. Many undergrads work in investment banking for a few years, get an MBA, and then build their career from that point.
There isn't much math in a finance masters so a strong math background isn't required. It would be easier if you know about traditional finance before you start but it should be approachable without the background.
I am lakshay from india i did my bcom and working in foreign bank from last 4 years as bank teller . What will be the job prospects if i will do mba now ?
This depends on what your goal is. Top MBA programs in the US require 2 years of work experience before applying. If you just want a general MBA and a job then you can go straight from undergrad to an MBA. If you are someone who wants to work on Wall Street or a top consulting firm then it is better to get a top MBA.
If you've finished a 4 year undergraduate degree, then no you don't need work experience. If you are in college then you need a combination of college years and work years that total at least 4 years.
Yes you can skip the two years of work experience between undergrad and an MBA however you won't get into a top MBA and will end up working at a small company for a lot less money. The reason people get 2 years of experience and pay a lot for a top MBA is to get the network contacts to work at companies like BCG, McKinsey, Goldman Sachs, and Google.
HI Dimitri, Great Video!! Just wanted to know your opinion on how a person with Masters in Data Science along with a CFA certification can break into Finance and what kind of roles are they best suited for? Thanks..Please making more videos!!
It depends on the job you want. If you want to work in traditional finance I would go back to school and get an MBA. If you want to do CS at a bank, they have jobs for you with your current degree. If you want to do CS at a hedge fund, they often prefer CS masters. If you want to do quant finance then you would need a masters or PhD in something quantitative like quant finance, statistics, or math.
Dimitri Bianco what do you recommend me to take? I will be starting my first year study in finance and accounting from october. Would appreciate if you could help me choose.Thank you.
I'm in an undergraduate in accounting the main path is to get certified like CPA, CFP or PFS so if you want to enter the accounting profession of finance aim for a Cetified Public Accountant but be warned it's brutal not like a CFA but it's still 18 hours for the uniform test.
Focus on the intro classes when you start. Usually universities have a list of classes that must be taken in order. I personally liked the accounting class on financial analysis however this was after I took the basic accounting pre-requisite courses.
Great video. I’m a fresh Medical doctor with an autonomous financial background. How can I switch in the financial area? And how can I use my MD to get an advantage? Thanks 🙏
Switching careers comes down to showing your skills and how they apply to the new industry (finance). For writing a resume, the key is having relevant skills while not listing non-relevant material. As for an advantage...look at doing finance at a medical institution or a firm that specializes in valuing medical or pharma firms.
You can always apply but its unlikely you'll get a job in investment banking. Investment banks love hiring business students from target schools like Wharton, Ross, Harvard, Stanford, Columbia, Haas, and etc.
These are pretty sorry hedge funds sub 100k base. Not sure where's he's pulling his data but Unless they are exploring a new asset class like "crypto" or just became legally a "hedge fund" and are very small it's probably best to stay away from them. A legitimate fund that's interested in you that has been around awhile (albeit it will be VERY difficult to land) will compensate you for your efforts.
I'm in ARTS stream completing my 11th and 12th studies. I have planned to do BBA and then an MBA in finance. Will that help me with becoming an Investment Banker or do i have to complete some other courses of study to get into investment banking?
I'm not a fan of online degrees but if you are going to get one, I would look at the top finance rankings and then search to see if any of them have online programs. www.usnews.com/best-colleges/rankings/business-finance
The top business schools such as: Wharton, Kellogg, Harvard, Sloan, Booth, Stern, Haas, Columbia, Ross, and etc. While at Ross we had all the big banks and companies wanting to hire our students. The companies brought food for the students and made presentations about why we should work for them. Some examples included, Goldman Sachs, JP Morgan, Deutsche, Baird and Company, Rothschild, KPMG, BCG, Citadel, Amazon, Drop Box, and etc.
this video seemed unbiased. I also greatly enjoy that you didn't try to sell me anything.
Do you know anything about careers in banking in the Fort Wayne area? I’m considering going back to school for finance and getting a certificate in bank management as well
Unfortunately I don't know much about the Fort Wayne area.
fyi,...The coronavirus reveals vulnerabilities in global financial markets l.linklyhq.com/l/2Hu #coronavirus #finance
Finally a finance youtube channel that I can appreciate
Important Correction:
Analysts do not go on to get an MBA in order to become an IB associate and then move to a PE/HF role. Rather, they will move directly as an analyst to either a PE associate or IB associate position. There is no reason why an analyst would get an MBA to become an IB associate when they can be promoted internally without one. People in finance who were unable/chose not to do banking directly out of undergrad will have to get an MBA and then become an IB associate. However, post-MBA associates are generally expected to stay at the bank for the long run and will face much more difficulty moving to a PE/HF role as those firms do not generally recruit IB associates.
Very true.
Why do they not recruit IB associates?
Thank you for clearing this up. My brother works in wealth management. He makes his 80-90k and still has a life outside of work, and I think that’s what I’d like to pursue as I finish my finance degree as well.
Robin’ Hood Rookie what are u doing now
@@T6ix23 I think he's still in his degree he only commented that a month ago.
can u tell me what actually person in wealth management has to do? as a fresher what would be the first thing they are going to do?
Hey bro, how are you doing today?
@@overthemoonflorist9135manage portfolios (difficult, managing & increasing assets), evaluate risk & determine financial decisions for your clients (many), hedge/derivatives, make sure EVERY client receives due diligence & try to never lose cash, advise clients business or personal, accounting, volatility, some computer science, study/evaluate markets & statistics (math), then think about how dreadful life is after a hard day of work. I’m stressed & barely into it
About the "elite" part,
Another way to rethink the issue is the value they look for. In Europe engineers from prestigious colleges and with prestigious degrees can be scouted.
The value they look for is an overachieving mindset coupled with the best markers for learning a lot fast.
MBA/ IB Associate are not necessarily needed anymore to jump to PE (2 years as analyst is sufficient)
MBA is worth nothing?
How did someone I know go from undergrad to Private Equity?
Thank you so much for the informative video! I graduate in two semesters with finance and am still on the fence about what route I have wanted to undertake - this helped significantly. Take care and look forward to future videos.
This is the first description of investment banking I heard that made sense!
Thank you for breaking it down in such a simple manner, means a lot
This is an amazing video. Thank you!
I watched this video first time being here, man and I love it. Thanks for the wisdom again.
I'm glad you found it helpful.
How can anyone dislike this video? Dimitri, you have earned yourself a new sub! Keep up the good work!
What career advice do you have for someone who:
- graduated in economics from a target university
- values a great work-life balance
- seeks to manage own fund and/or business in the long-term (not endowed with the required capital)
- secured a rotational finance graduate program in a f500 (m&a, trading, controlling, etc.)
- Proceed with the f500 finance graduate program? Stay in an f500 or switch to IB?
- get a CFA/ CAIA?
- What roles allow to generate the required capital the fastest, while still maintaining a work load below 60h/week?
-- IB?
-- hedge fund?
-- asset management?
-- energy/ commodities trading?
I know this is pretty random, but I just try my luck :-) any oponion is appreciated.
If you want a good work life balance and I am assuming low stress with it, I would stay in the f500 program and get the CFA. To make good money in IB, trading, or hedge funds will require a lot of work and stress compared to f500 job. Working at a f500 will also give you enough experience to see how a firm operates if you want to start a business later down the road.
@@DimitriBianco Thanks, I also see it as a trade-off between the capital you accumulate per year vs the stress level. My concern is that you may get bored later down the road in an f500, but then it's maybe too late to switch. On the contrary, you can always leave IB. That's why I consider to work for an m&a advisory group after the program, unless the company makes an offer that is too good to turn it down.
Edit: the company made an offer I couldn't turn down :-)
Hey Dimitri! I’m a 16 year old high school student looking to plan out my future. I am highly motivated by money and that’s why I am so interested in the world of finance. First of all, thank you very much for this video. It really helped me understand a typical finance career path. I’m going into my junior year, and I feel like I have a great shot at getting into those “target schools” you mentioned. The dream is Penn (Wharton), but if not, then definitely NYU (Stern) or Columbia. I was wondering what you think about this career path for myself:
June 2020 - Graduate High School
May 2021 - Complete Freshmen Year of College
May 2022 - Complete Sophomore Year of College
May 2023 - Complete Junior Year of College
Summer 2023 - Internship at Investment Bank
May 2024 - Graduate College with BBA
May 2024 - Apply for Job as Investment Bank Analyst
August 2026 - Leave Job as Investment Bank Analyst
August 2026 - Begin MBA Program
May 2027 - Complete first year of MBA Program
May 2028 - Graduate with MBA
May 2028 - Apply for Job as Investment Bank Associate
May 2030 - Leave Job as Investment Bank Associate
May 2030 - Apply for Job as Hedge Fund Analyst
Sounds typical to me. Just want to earn a lot of money with the skills I have. Your opinion would be highly appreciated, along with any suggestions along the way. Thanks so much!
While your plan looks straight forward and follows the most traditional route, my advice would be advice I received from an industry professional many years ago. "Goals are never met linearly."
While you have a plan that looks reasonable life is always random. Better opportunities might arise, bad luck can occur, and personal interests will change. In college I wanted to be a trader more than anything. Upon graduation I realized the industry I loved only existed in the 80's and 90's. Trading had changed however I want to work in quant trading which lead me to financial engineering. Again more information lead me to pursue other areas of quant finance which has lead me to risk management. I would continue to pursue your goal to work for a hedge fund if this is your passion but be expected for life to change directions.
As a side note, I would encourage you to research what it's like to work at a hedge fund. You might discover many hedge funds are quant funds which means they hire Masters and PhDs in quantitative areas not traditional finance however there still are traditional funds out there. You might find my quant finance career paths interesting.
th-cam.com/video/ptd4XicBUnY/w-d-xo.html
@@DimitriBianco Honest response. Subscribed.
As someone who interned at Goldman and rejected full time offer to go to med school, your life plan will change significantly over time as you LEARN more. Investment banking or finance is an absolute low value added service to society - you only get one life and out of EVERYTHING, that is what you are boxing yourself into before you even start your undergrad? Take your time and learn about what you want in life first. These investment banks (And I only applied to Goldman which is the most competitive) do not sound as good when you are actually in.
@@DimitriBianco If by trading you mean trading in stock market or as a day trader then you are so wrong my friend. Trading has just got better with technology and information on the Internet and there is so much scope in this field if one chooses to make it a career.
How is it going Andrew
ya no esta disponible tu video de IB :(
Awesome video, really appreciate your effort!
Also, PE/HF analysts do make loads more than the base numbers you/the report states. those numbers are deflated greatly by non-top programs, and you are talking about the top programs.
Hi, this might seem like a silly question but I’m new to this so bear with me. How does the consulting mentioned in this video ( which I’m assumais financial consulting) differ from management consulting?
For this video I'm using consulting as a broad term which would include financial consulting, accounting, and management consulting.
Hey Dimitri, I love your videos, very condensed and informative. Can you comment please on science -> finance route, like going with PhD in Theoretical Physics to HF or AM firms. Is that possible to do just straight after graduation or an additional statistics/finance degree is necessary? Are there any benefits of having a PhD in a unrelated field (like theoretical physics) in quant finance?
Hey Dimitri, great video! Could you tell me how to go about Financial Consulting career path after undergrad?
Financial consulting meaning a financial advisor is fairly straight forward. After undergrad you'll want to write a solid resume and then just apply. Getting a CFP or CFA would help increase your chance at getting a job more quickly. The CFA is respected more in the finance industry as a whole so I would go for that over the CFP.
Great! Thank you so much. :)
Hey Dimitri, great video, I do have a dilemma for finance and quantitative finance, if I pursue a com sci degree I could either jump in to these 2 categories am I right? Since STEM degree have much math rigorous compare to solely just finance degree?
CS undergrad will set you up for a masters which is required for quant finance. There are also implementation jobs in quant finance and many companies will hire CS undergrads for this. As for traditional finance, most companies want a finance it accounting degree. It's possible to work in finance with a CS degree but unlikely.
@@DimitriBianco but as we are moving to digital age, don't those traditional finance firm hire those CS undergraduate? For say one report saying Goldman Sachs replaced traders with engineers. Since machine could out-do conventional models by running algorithms? Correct me if I'm wrong
Thank you very much! Awesome content!
You're very welcome!
great video! I wish i had found it sooner! you described everything in a friendly, understandable, and honest ways with great heads up!
Great video! For someone interested in statistics, math and finance , do you recommend finance path in undergrad or do you recommend taking math or finance in undergrad.
I would recommend getting a statistics undergrad. It is a good mix of math, stats, and programming. If you want a minor then I would add finance.
Hey Dimitri - great vids! What advice would you give somebody who didn’t choose a major that is applicable to the finance industry in his undergrad, but is highly interested in a finance career? Is a Masters in Finance enough to get a foot in the door? Or is a successful change unrealistic?
It possible to switch over. I would take a look online at banks and find jobs that have your current skills. I've seen people start in some other department and then work there way over. A masters or MBA would be an easier path but more expensive.
Thank you for being honest!
Can u give me a list of undergrad colleges I should pursue for these careers
A top 20 from the list linked below would make all of these career paths easier.
www.usnews.com/best-colleges/rankings/business-finance
Awesome video. Thanks for the info.
Great video! Do you have a video about using quantitative skills for retail trading?
Your video about SAS, R, and Python in banking was also very helpful!
I do not. For retail trading, diversification is a better approach as individuals will lack the technology, time, and other resources to make a consistent risk adjusted profit.
@@DimitriBianco thanks!
What's the difference between Finance and Banking and Finance.
I wanna know too
Thank you so much, learn a lot from your video.
Great video
I Will study economy, can I get an internship for an investment bank?
It's possible if you network enough. Getting into IB can be challenging if you don't go to a target school.
Hey Dimitri, thanks for the video. I'm currently at university for an econ undergrad with specialization on finance, however I'm really interested in quant finance.
I'm planning to do an math undergrad after I've got my bachelors degree in econ. I'm from Germany and have the option to either study pure math or "Wirtschaftsmathematik" which is mostly applied math with some econ courses. If I'm planning to do a quantitative finance master afterward, would it be enough to study Wirtschaftsmathematik or would a pure math degree be the better option?
I would do applied math as quant finance is really a subset of applied math.
Thank you very much for the answer@@DimitriBianco
Can you make a video about skills that you need to know
Yeah, I'll add it to my production list. The video will be focused on traditional finance which is what this video covers.
Great video, you adviced the computer science degree in order to get into the quant industry. What's the degree you recommend to follow this path?💪
I actually have a video on Quant Finance Career Paths:
th-cam.com/video/ptd4XicBUnY/w-d-xo.html
very helpful, thanks
this is great thank you.
You're welcome
I saw your video about the racing cars engineer and the one who race using the car etc.., with that being said ,do you think as an engineer that it will be time those engineers will design a car that it drive it self and affect all that jobs in this video by cutting jobs lowering the salaries etc.. .
Thank you.
No I don't think the modeling process (quant finance) will ever truly be automated. Many new tools and processes will be automated however the problem with finance is we model people and people are always changing. Hard sciences are easier to model because things like physics have actual rules that don't change.
I think those in traditional finance will be replaced with quants who automate their jobs on the analytics side. Traditional finance adds value through relationship building and working with clients which will always be needed. The traditional finance side is falling behind quant finance in analytics. Just look at returns between quant hedge funds and traditional hedge funds.
Hi Dimitri, nice video here. A question though, I did my undergrad in a non-finance course and I want to switch over to finance. Does taking an MBA in finance increase my chances of I should do a fresh degree?
An MBA would allow you to transfer into finance.
What about financial controlling?
It would fall under corporate finance.
Thank you for all these informative videos!
Dear Dimitri, Do i need to learn data analytics if I'm pursuing a degree im corporate finance and accounting.
Hi Dmitiri, could you do a similar video for us quantitative finance/MFE people ?
I do plan on making a similar one for the quants.
Will that cover Equity research/Strategy roles? Do they fall under the quantitative banner?
Bos Fa depends on the type of fund. If it's an algo or stats arb type fund it's quant. If its working at a big bank like Citi, it would fall under investment banking or wealth management.
Hi Dimitri, I have a question about transitioning into investment banking with a non-traditional background. I currently have a bachelor's degree in Economics and Finance and 3-4 years of experience working in the IT industry as a Data Analyst, Product Analyst, and Data Scientist, including at consulting firms and startups. I'm planning to pursue a Master's in Computer Science and then an MBA from a top-tier program like Stanford, INSEAD, or Mannheim Business School.Given my background and future plans, do you think this experience would be suitable for landing a classic investment banking associate role in the US or Europe? Should I consider going for the MBA immediately after my master's, or would it be more beneficial to gain an additional year of work experience first? Any advice on how to best position myself for a successful transition would be appreciated!
@user-oi8vu1zu5u since you already have experience, go straight for the MBA. I'm curious on why you're getting a CS masters as well.
Hi Dimitri, I'm from Italy and i'm about to take a BCs in CS and I would like to work in finance. What would you suggest to do in order to take this career path?
As I come from an Italian university, isn't my uni seen as a target school?
Would suggest to take a Master Degree in Finance or Quant or CS/AI ?
Target schools are schools that banks choose as their main areas for recruiting. I'm not sure how it is in Italy however in the US schools such as the top finance/business programs are usually the target schools.
As for the Masters, it depends on what interests you and what you really want to do. If you want to work in traditional finance I would suggest a Masters in Finance. If you like the idea of finance however you prefer to do math and stats, then I would get a degree more related to quant. If you like the idea of finance but prefer CS, then I would get a Masters in CS. The AI degrees are a mix of stats and programming but I'm not sure how many banks and finance companies are hiring pure AI degrees.
Hey what about hard skilled workers? I read that other than Investment Banking like say mortgage underwriting, mortgage loan officer, auto loan underwriting etc, or credit analyst, budget manager, I’m an undergraduate in accounting and I’m learning in addition to accounting the world of finance. I personally would rather be CFA or FRM as a main goal which is business finance. As for how I’ll get to it? After accounting I’ll go for my bachelors in finance and try to work at least in some higher level of finance maybe not commercial banking but maybe in business finance.
Erik P.T. those would be considered corporate finance. It's just in a banking setting.
Statistics or finance ? The more demande between this two (sry 4 my eng)
There are more jobs in traditional finance than quantitative finance (stats, math, and CS).
So the typical route to get to private equity is:undergrad, 2 years investment banking, MBA, 2 years investment banking as an associate, then Private equity?
Yep. Sometimes you can jump right in after an MBA though.
Dimitri, thanks! One more question..Which one you think is better for a quant? Masters in Applied Statistics and Operational Research vs Masters in Mathematical Finance
You can find their modules on these webpages, by scrolling to the Button "Read more about modules":
Mathematical Finance : www.bbk.ac.uk/study/2020/postgraduate/programmes/TMSMATFI_C/
Applied Statistics and Operational Research : www.bbk.ac.uk/study/2020/postgraduate/programmes/TMSSTAPP_C/
It depends where you want to end up and what companies in London think of the programs. Risk management for example is mainly statistics. It is common to see those with a statistics background working in risk management. If you want to work more with derivative products, then the mathematical finance degree would be better as it would be more specific. Again, it depends on how companies in London view the programs. I've seen banks and investing firms who have no idea what financial mathematics is. They assume it is like finance and so they won't hire students. Other firms understand financial mathematics degrees and prefer them as they are typically more focused on financial applications of stats, math, and CS.
Hey Demitri thanks for the great advice, what would you recommend for a homemaker that's been out of work for year, but has a finance degree?
I would first think about what interests you. I would also consider how pretentious the area of work would be. For example, if you dream job is to work in investment banking I would apply as you never know if you'll get an offer however realize they are more concerned with where and when you got the degree. Corporate finance in general is more broad meaning you'll run into more people who are understanding of the decision to be a homemaker as a job for some time. I would even list on the resume that you were a homemaker. With covid and how the markets are changing, I think more people are understanding of the decision to be a homemaker. A colleague of mine actually took off a few years to be a stay at home mom but is now looking to jump back in.
like what is other reasons of getting into a particular career? its mostly money/compensation lol. Just that you get experience, knowledge and network as an added advantage of working lol. I hate how people demonize THE BAG.
Yay! You finally made it! 😄
It was a great ideas! Thanks for the suggestion.
Can you describe the difference between wealth management and financial consulting (eg CFP)? Will I end up pushing people to buy annuities and life insurance in wealth management?
Wealth management is for advising people about investing. Financial consulting is where you work at a large consulting firm and advise corporations on their financial problems.
can you talk about financial engineering !!
Oliver Alaghbari I'll be making a similar video for the quant side.
Financial Engineering Career Paths: th-cam.com/video/ptd4XicBUnY/w-d-xo.html
Hi, Dimitri. What should students do majoring other than finance, computer science, mathematical things assuming that they have at least CFAs.
Kyungpil Kim for the jobs in this video a finance degree is best. Math and computer science won't help in general finance.
I’m going to take Finance at Central Connecticut States University. Which branch do you think i can get a job more easily ? Please anyone can answer
Do you know how i can find out what target schools are for whatever individual companies I want to join
I have never seen a list but a lot of companies hire locally. For example if a company is head quartered in Chicago you're better off going to a school in Chicago than somewhere else.
Where does equity research fall into these career path categories?
Investment banking and hedge funds
@@DimitriBianco Okay, thank you!
Dimitri, which one is better? Statistics master vs Applied Statistics master
It depends on the school that's offering the degree. Some applied programs are too focus on random industry problems. I typically like seeing a more theory based degree as you'll have a better understand of the core concepts.
If i have a Law degree, im fuckup?
You'll have to show you have finance skills in some way to work in finance. Also, there are lawyers who specialize in financial law.
Dimitri, how marketable will my undergrad in finance from Ohio State be? Also, what are my best options in Columbus, OH? What does my path/ladder look like if I work for an insurance company like Nationwide who is headquartered here? If you have any better ideas or advice I would appreciate it thanks.
I'm not sure about the insurance side specifically however OSU has a good reputation in general (I'm saying this as a Michigan grad lol). If you can get into an insurance company they can be great to work for due to the job stability and the work is usually interesting. If you do corporate finance/financial analytics you should have options later down the road to look at other industries as well. If you end up in the actuary side, the exams will determine your title and pay grade which is nice because it is predictable.
If you are interested in banking, Huntington and JP Morgan have offices in Columbus.
Compliance and risk management?
It depends on the area of compliance and risk. There are quant risk roles and traditional finance roles. These typically fall under banking.
Do corporate earnings follow any distribution? Could quantitive finance be useful to estimate future earnings to find the value of a stock? if yes then quants can do the job of financial analysts better than them.
Every distribution of corporate earnings is different so some might be stationary and have a specific distribution while others will be non-stationary and the distributions will change over time.
got it! Thank you.
Good video! I have a question. In which area can I start and end working on private equity after a MBA. I am study, I graduate next year.
Private equity (PE) is usually done after a few years working at an investment bank. It is possible to go from school straight to PE but it's much harder. A well ranked MBA can help make the process easier.
If a have a CFA, do I need a MBA?
Can I do Ms in financial engineering after persuing enviourmental engineering in India from a top college?
Yes it is possible. There are a lot more financial engineering programs today than there were 5 years ago.
Would trading assistant be considered a good entry level position to get or is analyst the only one?
A trading assistant would be considered the same as an analyst because it is an entry level position. It is a good way to become a trader.
If im doing my Bcom degree of 3 years in a local university while pursuing acca so im confused for after 3 yrs since i do want to get in a target school so what do i do ???
To get into a target school for graduate school (MBA), you'll need good grades from your undergraduate degree and good scores on your GMAT exam.
The same will apply if you are going for a masters in accounting.
but management consulting is probably even snobby than high finance when hiring... right?
Investment banking would be equal to management consulting. The others are more relaxed.
Hey, if I started out rough in high school which left me with a community college as my beginning option, is there any hope for me in appearing competitive?
Joshua Joshua yes there is hope. The key is going to a better undergraduate university. I went to an average state university for my undergraduate but ended up in a great grad program. The same can happen with a community college.
What gpa do you think an Ivy League athlete would need for an entry level investment bank job?
Usually a 3.7 or above.
Amazing
What of doing CFA alone,can it propel one to investment banking?
It's possible but there are multiple factors at play. The name brand of your school will make it easier or harder depending on if it is a target school. Your GPA, resume, and interview skills will also play a role. If you are asking the question, "is the CFA equivalent to an MBA?" The answer is no. Getting a well ranked MBA teaches you networking skills and gives you access to people within the industry. Many MBA's also have the CFA which makes it more competitive and the MBA's will get preference for management jobs. Many undergrads work in investment banking for a few years, get an MBA, and then build their career from that point.
@@DimitriBianco I did engineering and now CFA maybe later FRM am hoping that's a great entry way into finance?
For traditional finance you should be able to find some sort of job.
@@DimitriBianco what of the modern finance
Is doing masters in finance harder for students who don't know about stocks, shares, bonds and also weak in mathematics?
There isn't much math in a finance masters so a strong math background isn't required. It would be easier if you know about traditional finance before you start but it should be approachable without the background.
Is the video content applicable to a Engineering student too who want to make career in finance?
Yes
What will be the path for a Bachelor without any finance degree but with a CFA aiming for private equity? Is MBA must step to be done?
I am lakshay from india i did my bcom and working in foreign bank from last 4 years as bank teller . What will be the job prospects if i will do mba now ?
If you get a good MBA, all of the options for the MBA are possibilities. Many people get an MBA as a way to change careers.
Thanks for ur revert i am planning to pursue from Germany and looking for financial analyst role
Video link u gave is private
The creators must have made it private.
Can I get a master in statistics coming from a finance bachelor?
Yes it is possible. If you get accepted, I would make sure to study the basics before you start the program though.
Great video! What if I do my MBA right after Bcom without working in a company in between. Is that a good thing to do?
This depends on what your goal is. Top MBA programs in the US require 2 years of work experience before applying. If you just want a general MBA and a job then you can go straight from undergrad to an MBA. If you are someone who wants to work on Wall Street or a top consulting firm then it is better to get a top MBA.
Can i take the CFA exam without a work experience?
If you've finished a 4 year undergraduate degree, then no you don't need work experience. If you are in college then you need a combination of college years and work years that total at least 4 years.
you can take level one as senior in college
Can someone go from bachelors degree to MBA to associate analyst?
Yes you can skip the two years of work experience between undergrad and an MBA however you won't get into a top MBA and will end up working at a small company for a lot less money. The reason people get 2 years of experience and pay a lot for a top MBA is to get the network contacts to work at companies like BCG, McKinsey, Goldman Sachs, and Google.
@@DimitriBianco thank you for the advice!
I think this is an oudated career path. MBA degree can be substituted by relevant work ex
Work experience has always been an alternative however in many areas of finance and banking, the MBA will open doors that are unavailable without it.
HI Dimitri,
Great Video!!
Just wanted to know your opinion on how a person with Masters in Data Science along with a CFA certification can break into Finance and what kind of roles are they best suited for?
Thanks..Please making more videos!!
Rohit Kumar a data science degree would be good for risk management or any area with model development.
Hey Dimitri, what should be a career path for a CSE undergrad who wants to end up working at Wall street?
It depends on the job you want. If you want to work in traditional finance I would go back to school and get an MBA. If you want to do CS at a bank, they have jobs for you with your current degree. If you want to do CS at a hedge fund, they often prefer CS masters. If you want to do quant finance then you would need a masters or PhD in something quantitative like quant finance, statistics, or math.
@@DimitriBianco I'd want a job as a Quant trader in a hedge fund. Thinking to go for a MFE. Is my thought in a right direction?
Can a finance major be an Accountant?
Yes, finance majors can be accountants. It's just not as popular as other paths.
Dimitri Bianco what do you recommend me to take? I will be starting my first year study in finance and accounting from october.
Would appreciate if you could help me choose.Thank you.
I'm in an undergraduate in accounting the main path is to get certified like CPA, CFP or PFS so if you want to enter the accounting profession of finance aim for a Cetified Public Accountant but be warned it's brutal not like a CFA but it's still 18 hours for the uniform test.
Erik P.T. Thank you very much. I will aim for CPA just like you said.
Focus on the intro classes when you start. Usually universities have a list of classes that must be taken in order. I personally liked the accounting class on financial analysis however this was after I took the basic accounting pre-requisite courses.
Oh hey old friend :D
Hey Cameron!
Great video. I’m a fresh Medical doctor with an autonomous financial background. How can I switch in the financial area? And how can I use my MD to get an advantage?
Thanks 🙏
Switching careers comes down to showing your skills and how they apply to the new industry (finance). For writing a resume, the key is having relevant skills while not listing non-relevant material.
As for an advantage...look at doing finance at a medical institution or a firm that specializes in valuing medical or pharma firms.
Hey dimitri, can I do investment banking with a computer science degree?
You can always apply but its unlikely you'll get a job in investment banking. Investment banks love hiring business students from target schools like Wharton, Ross, Harvard, Stanford, Columbia, Haas, and etc.
These are pretty sorry hedge funds sub 100k base. Not sure where's he's pulling his data but Unless they are exploring a new asset class like "crypto" or just became legally a "hedge fund" and are very small it's probably best to stay away from them. A legitimate fund that's interested in you that has been around awhile (albeit it will be VERY difficult to land) will compensate you for your efforts.
I'm in ARTS stream completing my 11th and 12th studies. I have planned to do BBA and then an MBA in finance. Will that help me with becoming an Investment Banker or do i have to complete some other courses of study to get into investment banking?
Your plan is the typical route as long as you work 2 years between your BBA and MBA.
The initial investment requirements for hedge fund are often $1 million or greater.
I am interested in pursuing a degree in finance. Which school has the best online program?
I'm not a fan of online degrees but if you are going to get one, I would look at the top finance rankings and then search to see if any of them have online programs.
www.usnews.com/best-colleges/rankings/business-finance
What are the target schools?
The top business schools such as:
Wharton, Kellogg, Harvard, Sloan, Booth, Stern, Haas, Columbia, Ross, and etc.
While at Ross we had all the big banks and companies wanting to hire our students. The companies brought food for the students and made presentations about why we should work for them. Some examples included, Goldman Sachs, JP Morgan, Deutsche, Baird and Company, Rothschild, KPMG, BCG, Citadel, Amazon, Drop Box, and etc.
Hedge funds you need $1M in assets net your house, guy
What?
You are far better off if you just learn a trade (e.g. plumbing, electrician etc.).
How many times do you say finance? Lol