Financial Seals of Approval
By Jonathan Raviv

So were the words crooned by a contender for the venerable Mr. SAIS crown; a stanza that received a particularly large ovation from the crowd in his song to the tune of American Pie. These words and the reaction they engendered point to the misunderstandings about finance-minded students here at SAIS.
 
But why gang up on the finance folks? What is the source of this distaste for the “finance kids”? Why do the non-finance types find comfort in the fact that they are “keeping it real” and not “selling out” by choosing Economics of Public Policy over Global Investment Management? 
 
Perhaps it is a defense mechanism employed by an increasingly rare breed: a non-finance SAIS student. 
 
Undoubtedly, the popularity of finance courses and jobs has increased over the past five years. This semester, every finance course except for one went to bid, and it is hard to deny that the allure of high-paid jobs and exciting workflow outshines the low-paid boredom of its public sector alternatives.
 
Yet the allure of an education in finance and its pay-offs does not mean that all these students who study finance at SAIS “should’ve just gone to business school,” where they could focus exclusively on these topics, and expect an easier transition into a post-school career. 
 
|The truth is that they should not have.  In terms of pure academics, the finance program here is as robust as any found at any MBA program and the quality of finance instructors is unquestioned.

It is in the realm of jobs that justifying a SAIS “finance” education over business school becomes tricky.

We take finance classes here, we pass finance classes here, we spend literally 10 straight weeks doing problem sets and modeling. But what is it all for?

As is the case every April and May, one gets the strange feeling that “it” is all for the post-graduation job. Because when it comes to earning a “terminal” Master’s degree, not everything we do in our two short years here can be purely “academic.”

Our beloved second-years are now grouped into two distinct groups: the haves and have-nots. And out of the latter, every last one of them is now more concerned with career than class. 
 
And rightfully so. Loans to pay off, lifestyle to support – you’re not a student anymore so you must be doing something with your life. Finance fills the gap; makes you feel you’re learning something tangible. When it comes to defending doing the “finance thing,” simple utility comes to mind. Finance classes mean finance jobs. Right?

Wrong. Taking every class at the school with a course-name including the word “finance,” or some derivation thereof, does not secure you anything anywhere. And the Professors are quick to tell you that. Anyone who has taken a course with Professors Bodnar or Leeds knows that day one includes introductions followed by a brief yet thoroughly disheartening discussion about how you will have a tough time finding work in “finance,” “private equity,” or whatever industry is currently enjoying a hot streak.  
 
And as far as numbers go, we can’t hold a candle to MBA programs. Every major bank recruits at Wharton, CBS, or Harvard. Perhaps one bank bothers to come to SAIS, and even then the interviews yield little.
 
These gaps do not exist for lack of effort. Everyone from Career Services to the finance department to the students themselves is putting in a lot of effort to sell the SAIS name, and people do break through. Whether it is the IFC, the World Bank, the Fed, or the FRBNY, we have several alumni working in some pretty prestigious financial institutions. Even the venerable “bulge bracket” investment banks have some SAIS-ers running around their halls. But not many. Indeed, the battle to get into these institutions, and especially into the major firms, is uphill all the way. 
 
The biggest obstacle to get over is the firm itself. Big banks specialize in one thing: minimizing risk. They make money, and lots of it – but they do it in a very regimented and established way that resists significant change.

It’s also cheaper and more efficient for big banks to recruit only at top MBA programs – there are plenty of talented individuals there who will do just fine, if not extremely well at these banks. There is little track record in terms of success with our school to rationalize the expense and time it would take to tap SAIS specifically.
 
In addition, our track record may even work against us. When it comes to entry-level analyst positions, banks assume that the typical SAIS student is overqualified and will not be content with the job given to them. Numerous SAIS graduates have secured analyst positions, but have become sufficiently fed up to jump ship after only a year (read: after their bonus check clears). With so many other options available to the SAIS graduate, the bank is uneasy about relying on them for a two-year commitment. 
 
And in the unlikely event that you can convince them that you will be happy with your analyst lot, banks still won’t be interested because there are a lot of other kids who fit the mold better than you do. And the mold is simple: ambitious, smart, academically accomplished, and the king requirement of all: recently graduated. 
 
When it comes to gunning for the more advanced associate positions, SAIS students simply can not compete with MBAs. Yes, we have a commensurate academic training, but on average we lack the background. An MBA is a SAIS student with relevant work experience.  Looking at this experience gap and the need for recruiting efficiency, the bank’s choice is clear. And our students know this, and are prepared to fight harder to break in. They also know that the tools they pick up in their classes, both finance and politics, are useful, and they market them during their job search.
 
Perhaps I would like to see more banks take the chance. Acknowledge our diversity in experience and learning, and pit us against any newly minted MBA. I think that would be a fight worth watching. We are informed, well-read, and curious. We can write, we can analyze, and we can understand. We would make half-decent bankers, traders, and researchers. But the banks just don’t know how to take advantage of the SAIS graduate, and are scared to try.  
 
In finance, as in any industry, there is a heavy reliance on the past. We scored big on the PMFs because we have a proven track record throughout the government. We do well in the State Department because they know how well our predecessors have done. Almost every other person in the international affairs section at the Treasury Department went to SAIS. Our school is a seal of approval in those places. 
 
Our class gift this year is a scholarship endowment that will help future generations to attain the valuable SAIS education. I propose another class gift as well: upon graduating, pick up the slack no matter where you end up. Go into your job knowing that you are not just representing yourself, but every future SAIS graduate as well. This way, we can also help future generations attain the valuable career benefits that a SAIS-educated student deserves 
 
Our current class gift will help a future student go to school. But it requires money on your part. 
 
This new class gift will help a future graduate go to work. And they’ll pay you for it, too.

Jon Raviv is a 2nd year MA candidate in Strategic Studies