Financial Times Master in Finance pre-experience ranking 2023

Introducing the top 10 business schools for a Master in Finance in 2023, according to the Financial Times.

  1. ESCP Business School
  2. HEC Paris
  3. ESSEC Business School
  4. Skema Business School
  5. Tsinghua University School of Economics and Management
  6. London Business School
  7. IE Business School
  8. University of St.Gallen
  9. EDHEC Business School
  10. Oxford University’s Saïd Business School

What is the Financial Times Master in Finance ranking?

The Financial Times (FT) is globally recognized as one of the most trustworthy and influential sources of business news and analysis. Its Masters in Finance ranking is just one of many reports on higher institutions that the newspaper publishes annually. To be more relevant in the data it shows, the FT separates its Masters in Finance rankings into two subsections: 

  • Pre-experience programs that require little to no professional experience.
  • Post-experience programs that are only open to students who have previously worked in finance.

 

The FT did not publish a 2023 post-experience ranking due to insufficient graduate survey responses. However, for pre-experience courses, it received full data from a total of 82 schools this year. 

The rankings indicate the quality of educational institutions and their programs, and are utilized by prospective students, academic institutions, employers, and recruiters.

For prospective students, they serve as a valuable resource in making informed decisions about which programs to pursue. Academic institutions use the rankings to evaluate and improve their programs. Finally, employers and recruiters refer to the data when seeking top talent, as they signify the quality of education and training that candidates have received.

As The Economist has discontinued its rankings, and Forbes hasn’t published any since 2019, FT is the only leading international authority left in this domain.

What criteria does the Masters in Finance ranking use?

According to the FT, courses must first meet a set of basic criteria to qualify as a Masters in Finance. 

The program has to be full-time and cohort-based, with at least 30 graduates from three years ago. On an institutional level, the business school also needs accreditation from either AACSB (the Association to Advance Collegiate Schools of Business) or Equis (EFMD Quality Improvement System).

If a school qualifies, then data is collected from the school and alumni to calculate its score.

Business school data

The Financial Times collects some data directly from participating schools. The data here constitutes 44% of the business school’s score in the ranking.

  • Female faculty — 5%
  • Female students — 5%
  • Women on board — 1%
  • International faculty  — 5%
  • International students — 5%
  • International board — 1%
  • International work mobility — 7%
  • International course experience — 6%
  • Faculty with a doctorate — 5%
  • Carbon footprint — 4%

Alumni data

Most of the score depends on a survey of alumni who graduated three years ago, in this case, the class of 2020. This represents 56% of the total ranking score.

  • Salary three years after graduation — 16%
  • Salary percentage increase — 10%
  • Value for money — 6%
  • Career progress — 6% 
  • Aims achieved — 5% 
  • Alumni network rank — 3% 
  • Careers service — 5%
  • Employed within three months — 5%

Changes to the criteria for the Financial Times Masters in Finance ranking 2023

As business dynamics shift, so do the criteria of the Financial Times Master in Finance ranking. Compared to 2022, the FT has adapted its methodology to represent global priorities better.

The FT has applied similar changes to the criteria of its other rankings. While the minor details vary, overall shifts point to greater trends toward sustainability and remote work in the wider world.

The introduction of carbon footprints

The carbon footprint factor is one of the most noteworthy additions to the 2023 ranking methodology. It has a 4% weight and is based on the school’s net zero target year for carbon emissions and a carbon audit from the last three years. 

The addition of this category reflects the increasing importance of sustainability and environmental consciousness. As climate change remains a pressing global issue, businesses are under growing pressure to adopt more sustainable practices. Educational institutions, being instrumental in shaping future leaders, are now rewarded in the rankings for setting positive examples in sustainability.

A new focus on alumni networks

Another new arrival in the 2023 Financial Times methodology is the alumni network category, which carries a weight of 3%. This criterion assesses the effectiveness of the alumni network in career opportunities, entrepreneurship, idea generation, staffing, and event information. 

The inclusion of alumni networks reflects the increasing value of networking in the modern business landscape. The ability to forge strong connections and collaborate across borders is more important than ever.

Adjustments to weightings of traditional categories

In addition to the new categories, there have been slight adjustments to the emphasis of existing categories. For instance, the weight of the current salary decreased from 20% to 16%. While salary increase remains the most important factor, there’s a shift toward putting it in the context of wider society. 

Similarly, the weights for international work mobility and international course experience have been slightly reduced. This can be read as be a response to the changing nature of international business in the wake of the COVID-19 pandemic. The rise in remote work and virtual collaboration have altered traditional mobility patterns and lessened the need for physical travel.

Key takeaways of the Masters in Finance ranking 2023

Sifting through the data, we’ve extracted some of the most important talking points from the Financial Times Masters in Finance ranking for 2023.

ESCP takes the crown from EDHEC

The most notable shift this year is at the top of the table. ESCP Business School claims the top spot, ending HEC Business School’s five-year dominance. It is welcome news for Léon Laulusa, who became Executive President and Dean of ESCP in May 2023. The school has seen a spike in applications this year, with students looking for increased impact and employability.

France reaffirms its dominance

Perhaps unsurprisingly, French business schools have performed well in general. Five appear in the top ten and four crowd out the top five positions. Over the years, French institutions have earned a reputation for high employment rates and starting salaries. Both factors contribute positively to the FT ranking and attract prospective students.

Notable improvements

Compared to 2022, Rotterdam School of Management, Erasmus University, jumped six places from 31st to 25th. This could be down to the introduction of the carbon footprint category in which Rotterdam ranked third overall.

But the biggest leap came from ISEG — Lisbon School of Economics and Management. Jumping from 34th to 23rd place, it showed a marked improvement in student diversity and alumni reaching their aims.

Explaining the absence of American business schools?

Conspicuous by its absence, MIT: Sloan has entirely disappeared from the list. Often the only US flag bearer in the top 10, this is likely due to a lack of data provided, rather than a drop in quality. 

Even so, it draws attention to the surprising lack of US representation on the list. Despite the international renown of Ivy League institutions, they struggle to take the best positions in the FT ranking. This is partly due to their eye-watering tuition fees, reaching $82,000 at Yale, for example. Compared to Cambridge at around $65,000, and with higher living costs in the USA, that represents a significant jump. 

These high fees impact the value-for-money rating and contribute to unequal opportunities and a lower international student representation. As well as creating unequal opportunities among US citizens, high tuition costs also cause a lack of international student representation. 

Wrapping up our analysis of the 2023 Financial Times Masters in Finance ranking, we see a landscape in flux. The new criteria, particularly those focusing on sustainability and networking, underscore the evolving expectations of today’s finance students and professionals. This year’s rankings also highlight the rise of European, especially French, business schools. They also hint at the need for the American institutions to adjust to these new evaluation parameters. We look forward to seeing how these dynamics play out in future rankings.

Find out more about the institutions mentioned in this article directly from MASTERGRADSCHOOLS Ambassadors.