Running Head: Changes in Finance Curriculum for Successful Careers

Changes in Finance Curriculum for Successful

Careers
Vinod Krishna U. Makkimane
Institute of Business Management &
Technology
Banashankari 3rd Stage, Bengaluru.
Changes in Finance Curriculum for 2
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Abstract
The term ‘globalization’ means integration of economies and societies through cross country

flows of information, ideas, technologies, goods, services, capital, finance and people. The

impact of globalization has increased the need for managers in business establishments across all

the sectors of the economy who can take up the challenges of global business environment.

Knowledge is the driving force in the rapidly changing globalised economy and society. Quantity

and quality of specialized human resources determine their competence in the global market.

Emergence of knowledge as driving factor results in both challenges and opportunities. It is well

known that the growth of the global economy has increased opportunities for those countries

with good levels of education. Globalization has a multi-dimensional impact on the system of

education. It promotes new tools & techniques in this area like E-learning, Flexible learning,

Distance Education Programs and Overseas training. Globalization will mean many different

things for education. In the near future, it will mean a more competitive and deregulated

educational system modeled after free market but with more pressure on it to assure that the next

generation of workers is prepared. I will be trying to bring some points with respect to Finance

specialization curriculum and what we need in MBA/PGDM Finance specialization to make our

students more employable in the growing Banking, Financials Services and Insurance Sector in

today’s globalized economy. Finance is the life blood of any business, whether local or global. A

manager needs to have a clear idea about the most basic aspects of finance and accounting. But

he should also have clear understanding of finance in the international context. We need to

understand what corporate wants from a management graduate with finance specialization. If

they are in need of a core finance person, generally they will get a ICWA or a CA or CFA. The
Changes in Finance Curriculum for 3
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scope for a MBA/PGDM Finance person to get into core finance areas in corporate is tough. So,

the finance specialization curriculum should have a clear bifurcation on Core Finance and

Financial Services subjects. A basic level coverage of core finance subjects like financial

accounting, cost accounting, management accounting, capital budgeting, costing, etc., in the first

semester (under common subjects) and a through comprehensive coverage of financial services

subjects like Capital Markets, Money markets, Debt markets, functioning of Banks, NBFCs,

Foreign exchange, will make the student corporate ready. Also, students should be well versed

with the working of Mutual Funds, Commodities market, International financial markets,

Insurance, Re-insurance, new concepts and innovations in financial products, global financial

markets, Risk management in finance etc. We need to give more ‘professional’ and ‘practical’

exposure on these subjects rather than ‘academic’ or ‘theoretical’. Curriculum with global

context and a right mix of theory and hands-on practical exposure using the latest technologies to

deliver the content is the need of the hour.

Changes in Finance Curriculum for 4
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Changes in Finance Curriculum for Successful Careers

The term ‘globalization’ means integration of economies and societies through cross country

flows of information, ideas, technologies, goods, services, capital, finance and people. The

impact of globalization has increased the need for managers in business establishments across all

the sectors of the economy who can take up the challenges of global business environment.

Knowledge is the driving force in the rapidly changing globalised economy and society. Quantity

and quality of specialized human resources determine their competence in the global market.

Emergence of knowledge as driving factor results in both challenges and opportunities. It is well

known that the growth of the global economy has increased opportunities for those countries

with good levels of education. Globalization has a multi-dimensional impact on the system of

education. It promotes new tools and techniques in this area like E-learning, Flexible learning,

Distance Education Programs and Overseas training. Globalization will mean many different

things for education. In the near future, it will mean a more competitive and deregulated

educational system modeled after free market but with more pressure on it to assure that the next

generation of workers is prepared.

I will be trying to bring some points with respect to Finance specialization curriculum and what

we need in MBA/PGDM Finance specialization to make our students more employable in the

growing Banking, Financial Services and Insurance Sector in today’s globalized economy.

Finance is the life blood of any business, whether local or global. A manager needs to have a

clear idea about the most basic aspects of finance and accounting. But he should also have clear

understanding of finance in the international context. We need to understand what corporate

wants from a management graduate with finance specialization. If they are in need of a core
Changes in Finance Curriculum for 5
Successful Careers

finance person, generally they will get a ICWA or a CA or CFA. The scope for a MBA/PGDM

Finance person to get into core finance areas in corporate is tough. So, the finance specialization

curriculum should have a clear bifurcation on Core Finance and Financial Services subjects.

Students pursuing Finance specialization should have specialized papers in either core finance or

banking and financial services in the third semester (at least 6 papers – 2 from banking, 2 from

financial services and 2 from insurance) and choose advanced papers and project in the

specialized area (banking or financial services or insurance) in the fourth semester.

A basic level coverage of core finance subjects like financial accounting, cost accounting,

management accounting, capital budgeting, costing, etc., in the first semester (under common

subjects). The current Financial Management paper in the first or second semester is sufficient.

Banking and Financial services papers could be in working of banking system basics, loans and

deposits, working of credit card, stock market – cash and derivatives, derivative strategies,

commodities market, currency futures, interest rate futures, working of mutual funds, marketing

strategies for financial services, risk management and insurance etc.

In the fourth semester depending on the stream they choose in the third, they will learn advanced

and latest with more industry related contents. Most important subject should be on marketing

financial products, financial planning, and risk management.

In the third as well as fourth semester, subjects related to new developments in finance like

financial engineering, structured products, creating funds with combination of debt and equity

need to be covered. How financial market functions across major markets around the world need

to be covered. Topics like customer relationship management, risk management in banking,

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financial services and insurance should be included. Backend operations in these institutions

need to be clearly shown either in the internship or in the fourth semester project.

Currently, National Stock Exchange’s Certification in Financial Markets has an extensive list of

subjects for certification. UGC and AICTE should have some tie-up in delivering these courses

to the students and make them corporate ready.

Industry also should be roped in to provide adequate work experience in the internship for the

students and guide them to do some projects which are helpful to the industry as well as

academics. Industry should provide some opportunities for these students after their third

semester to ‘earn while learn’, and this should be in any of the six topics they studied in their

third semester. The internship should provide direction to opt specialization in banking, financial

services or insurance. Today, most of the internship in Banking, Financial Services and

Insurance is nothing but marketing financial products. As such, financial products like mutual

funds, insurance policies, demat accounts are not easy to sell. This is giving wrong signal to

students when they have to decide on their specialization. They think that if they take up finance,

then the job will be just selling insurance or demat account. This trend needs change.

As the topics involved and content to be covered is very vast and dynamic, in one of the seminar,

practicing company secretary and chartered accountant Mr. Gopalakrishna Bhat has mentioned

about having a compulsory industry exposure at least for one or two semesters in the

management program. He spoke about similar kind of industry exposures in CA and CS

programs. I think, this could be a more relevant and cost effective way of providing the latest and

the real live experience for students in finance specialization. The internship in the third semester
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should be continued for full three months or six months as a on job training. This should help the

student to select a relevant specialization in the fourth semester.

Management also should provide a state of the art class rooms equipped with latest technology to

provide students with hands on experience of working in a stock market or commercial banks.

Various software/simulations are available and this helps the students to experience the corporate

life in the class room itself under the watchful eyes of their faculty.

A prominent scientist Kevin Warwick, who explored cybernetics and robotics and conducted

studies on direct interfaces between computer systems and the human nervous system, says that

technology which is inspirational to students can motivate them to learn. If the management is

able to provide these hands on experience in class room, students can grasp things much easily

and more quickly.

Some prominent technologies that are already being used in management colleges around the

world are laptops/tablet computers, ebook readers, open courseware, interactive whiteboards,

learning management systems (LMS), telepresence etc.

Open courseware is a revolutionary concept, popularly known as OCW, is a term applied to

course materials in a virtual learning environment created by universities and shared freely with

the world via the internet.

Learning Management Systems (LMS) are set of software used to manage training and

educational records, distributing courses over the Internet with features for online interaction.

Some of the features include student self-service (e.g., self registration on instructor-led

training), training workflow, and provision for online learning, online assessment, and training
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resource management. Already LMS is used in finance and bio-pharma industry for compliance

training.

Telepresence refers to a set of technologies which allow a person to feel as if they were present,

to give the appearance that they were present, or to have an effect, via telerobotics, at a place

other than their true location.

Today most of the management colleges are providing laptops to students. As our honorable

minister for Human Resource and Development Mr. Kapil Sibal announced a tablet PC priced

around $35 roughly, technology becomes more affordable even for the colleges of rural India.

Along with laptops, management colleges should try to get them some trial versions of online

trading software, some e-journal subscription (may be for the duration of their course) and

teachers acting more as a facilitator should involve in helping the students utilize the given

technology effectively.

For this, all management colleges should conduct ‘training the trainers’ programs to update the

faculties with the changing scenarios and make them a real facilitator for the student. To have

some beginning, at least NCFM certification in various specialized subjects should be made

mandatory for finance faculties. Also, college managements should encourage faculties to have

more exposure and interactions with industry (especially for banking & financial services

subjects). Colleges should also attract more and more industry experienced persons to take up

teaching. For this the discrepancy of remuneration in academia and corporate should end.

Colleges should become more corporatized. This will definitely attract lot of experienced

professionals to take up teaching during their later half of corporate life.

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So, by the time a management student comes out specialized in finance, he/she will know where

to go. The road map for their career will be properly laid out in front of them.

I would like to conclude by summarizing the points.

1. Financial Management as a compulsory paper in the first or second semester is adequate.

But it should also provide some brief inputs about the various career options available for

a finance specialist. It should address ‘what is in it for me?’ factor in the minds of

students.

2. In the third semester, finance specialization should be more of BFSI sector oriented with

six subjects – two from banking, two from financial services market (equity, mutual

funds), and two from insurance and risk management.

3. Internship after third semester should make use of the knowledge got in the third

semester and if possible, a thorough industry experience needs to be undergone.

4. Usage of technology in the class room – through laptops, tablets PCs, multimedia

projectors, interactive whiteboards etc. Also, providing students with subscription for

software/demo trading accounts, e -journals during their course.

5. Conducting ‘training the trainers’ program to update faculties, also attracting more and

more experienced corporate professionals’ to take up academics. Also, increasing the

faculties and corporate interactions.

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6. Looking at the various certifications available from National Stock Exchange under their

NCFM program and working out a tie-up between the Management College and NSE.

Also, getting faculties to take up NCFM certifications in the subjects they handle.