When to do an MBA if you want to work in banking in South Africa

It’s a dilemma faced by all new graduates in economics, finance or business administration: is it better to look for a job straight away and gain precious experience, or to go for a post-graduate degree and gain insight and depth of knowledge? In the South African financial services sector in particular, how important is it to have an MBA and to what extent does it help in clinching that dream job?

We have asked the advice of some of the country’s top recruiters and the answer seems to be that an MBA is by no means essential, but can act as a tie-breaker between candidates with similar qualifications and skills. “Very few of our clients ask for an MBA,” says Michael Fraser, manager of financial services at Robert Walters SA. “So I would say it is not critical, but it can certainly be an advantage.”

For a young person who wants to get into banking an MBA “is not important at all,” says Phryne Williams, managing director of Capital Assignments, a specialist financial services recruitment firm. “An MBA is more useful for management roles, while good practical experience with a top institution is more valuable to an employer.”

The consensus seems to be that, as a rule, practical experience at a reputable bank is the most important factor when it comes to choosing a candidate. “Having an MBA is not that important, it is more critical to get experience,” says Andrew Miskell,  manager of financial services and human resources at Michael Page South Africa.

MBAs, however, come into play later and can be a crucial help in furthering one’s career after a few years’ experience. “In the current environment  a financial qualification, like a CFA (Chartered Financial Analyst) will definitely open doors and be seen as more important than an MBA,” says Tine Erasmus, managing director of Network Finance, a specialist recruitment agency in Pretoria. “MBAs are more of a help when you already have a job and an established position: then it acts as the cherry on the cake and can help you move forward and up.”