Difference Between Studying Banking and Finance Degree Course in Malaysia (Banking vs Finance)

Best Banking & Finance Degree Programmes at Top Private Universities in Malaysia

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How to start a career in Banking & Finance in Malaysia? There are numerous lucrative jobs in the  Banking and Financial Services sector that offer high salary and job security but preparing for a career in this field will require a minimum degree in Finance, Banking & Finance, Accounting & Finance, or Economics. The minimum qualification needed for a job in Banking is a bachelor’s degree and possibly some banking or finance professional certifications. The pathway for students after SPM or IGCSE/O-Levels is to pursue a Pre-University course or Diploma before continuing on to the degree programme.

Basically, Banking and Finance are inter-related however there are some differences. Find out what the differences are so that you can choose the right specialisation for your future career in the financial services sector.

In today’s ever-changing world, banking and finance graduates are highly sought-after in a cross-section of industries which each offer a variety of job opportunities. Therefore, having a banking & finance qualification can lead to a rewarding career. A fast-track career in financial services depends on a good understanding of market movements and the diverse investment market.

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Find Out the Difference Between Banking and Finance Degree Programmes in Malaysia

Students who are good in modern maths or additional maths can consider studying Banking & Finance. Having interest in economics, latest world news, stocks, shares and investments would indicate your interest in pursuing a Banking & Finance course.

Furthermore, if you are analytical, patient, able to handle stress, like to deal with people of all levels, possess critical thinking skills and pay attention to details, then a career in the financial services is right for you. Of course, students who want to get rich can go for a course that will give you the insights into how to make money grow!

Basically, Banking and Finance are inter-related however there are some differences. Find out what the differences are so that you can choose the right specialisation for your future career in the financial services sector.

What is Banking?

Many of us require the services of a bank in conducting our day-to-day transactions, which is also the case for small businesses and large firms that also obtain the services of the banking system. The two types of banks include commercial banks and investment banks.

The services provided by a commercial bank are called banking services, which include obtaining deposits from customers and providing loans. The mechanism under which commercial banks operate is simply explained as follows. The bank will obtain deposits from those customers that need a safe place for the surplus funds.

The banks use funds to provide loans to the rest of the bank’s customers that have funding shortages, for a fee known as an interest payment. The services obtained from investment banks include helping firms to raise capital in the stock markets by undertaking to value the company stock, provide underwriting services, conducting road shows to stimulate potential buyer interest and help sell shares to the public.

What is Finance?

Finance deals with efficient allocation and distribution of resources by commercial entities, individuals, as well as other establishments over time taking into consideration the associated risks.

Non banking financial institutions include a number of companies that provide financial services, which include insurance companies, financial research firms, venture capital firms, brokerages, investment funds, pension funds, private equity firms, and so on.

The services provided by these firms differ from each other but are collectively referred as financial services. The main function of the financial services firms is managing investor’s money and assets by predicting the movements and changes in the market and making investments that increase the investor’s return on investment and help accumulate wealth.

Examples of services provided by some of these financial firms are as follows. Insurance companies – provide coverage against a predicted future crisis for a fee known as premium. Hedge funds – Pools of money collected from wealthy investors that are managed in a manner that increases investor wealth. Financial research firms – provide large corporations analysis and insight into investment decisions.

The term called finance can include any of the following areas:

• The process of managing money
• The study of money and other types of assets
• Managing and controlling those assets
• Identifying and handling project risks

If the term finance is used as a verb, it denotes provision of funds for individuals for buying cars or houses and businesses.

The function of finance is to apply a group of techniques which the corporate entities and individuals implement for managing their financial activities, specifically the margin of income and expenditure as well as investment risks.

Finance can be widely categorized into the following types:

• Personal finance
• Business finance
• Public finance

The major sources of financing include:

• Savings
• Loan or credit
• Taxes
• Donations
• Subsidies
• Grants

What is the difference between Banking and Finance?

Basically, the banking industry is most concerned with direct saving and lending while the financial services sector incorporates investments, insurance, the redistribution of risk, and other financial activities.

The services provided by the banking sector and non-banking sector both involve providing investors avenues for managing their wealth in a manner that involves lower risk. The main difference between banking and non-banking financial institutions is that non-banking financial institutions cannot take deposits from customers like traditional banks do.

Banks provide services that include accepting deposits, giving loans, and securities underwriting and offering shares to the public. Finance companies provide a much larger range of services than banking institutions, which include asset management services, insurance services, financial research facilities etc. The institutions under the banking industry are subject to much more stringent regulations compared to the financial services firms.

Why Study Banking & Finance?

Banking and Finance explores the dynamic, fast-paced world of money, shares, credit and investments. Finance is an essential part of Malaysia’s economy as it provides the liquidity in terms of money or assets required for individuals and businesses to invest for the future.

When you choose to study a Banking and Finance degree course at a private university in Malaysia, you will explore the systemised movement and management of money. At companies and businesses, the finance function ensures that activities are funded with equity or debt and the firms can chose value-enhancing project and manage cash flows, risk and liquidity in the interest of their stakeholders. In addition, Financial markets are very important and understanding the pricing of assets and derivative securities is vital. Financial intermediaries such as banks are key players in these financial markets.

Banks in Malaysia, some of which are the largest in Southeast Asia, offer a comprehensive range of banking and financial services. The country’s financial institutions are governed by the Bank Negara Malaysia, which was established in 1959. It serves as the country’s central bank, responsible for promoting monetary and financial stability. Malaysia has 26 commercial banks, 16 Islamic banks, one international Islamic bank and 11 investment banks.

Banking is also a global industry with about 30 banks operating across Malaysia and thousands of institutions and investment houses across the world dealing with money circulation, credit, investments, financing, superannuation and more.

Banking & Finance is continuously changing which makes this course a fascinating area to study.

What is a Finance Course?

Finance studies and addresses the ways in which individuals, businesses and organizations raise, allocate and use monetary resources over time, taking into account the risks entailed in their projects.

Finance is the most encompassing of all business enterprises.  To understand finance you must know about the entire business, indeed the entire economy.

“Finance” is a broad term that describes two related activities:

1. the study of how money is managed
2. the actual process of acquiring needed funds

Because individuals, businesses and government entities all need funding to operate, the field is often separated into three sub-categories:

1. personal finance
2. corporate finance
3. public finance

All three categories are concerned with activities such as pursuing sound investments, obtaining low-cost credit, allocating funds for liabilities, and banking. Yet each has its own specific considerations. For example, individuals need to provision for retirement expenses, which means investing enough money during their working years and ensuring that their asset allocation fits their long-term plans. A large company, on the other hand, may have to decide whether to raise additional funds through a bond issue or stock offering. Investment banks may advise the firm on such considerations and help them market the securities.

As for public finance, in addition to managing money for its day-to-day operations, a government body also has larger social responsibilities. Its goals include attaining an equitable distribution of income for its citizens and enacting policies that lead to a stable economy.

What will I study in a Finance Degree Course in Malaysia?

A bachelor’s degree in finance or a related area of study will prepare you for working in this high-powered field. You’ll be rewarded with skills that can translate directly into entry-level positions in career tracks like banking, accounting and tax preparation. Graduates with a bachelor’s degree in finance will qualify for a wide range of career opportunities in the high paying banking and finance industries in Malaysia .

A 3-year undergraduate degree with a focus on finance will pave the way for a rewarding career in areas such as commercial banking, financial planning, investment banking, money managing, insurance and real estate. Specialized coursework for a finance degree typically includes investments, financial institutions, international finance and managerial finance. Financial analysis degree programs provide advanced instruction in risk management, portfolio management and financial engineering.

The career outlook for moving up in the finance world in Malaysia is good for motivated graduates. With a solid knowledge base, business savvy and excellent communication skills, you will be well positioned to move up the corporate ladder quickly.

What are some of the Subjects in a Finance Degree Course?

The subjects for the Finance degree will vary from university to university and depend on the emphasis. Students should look at the subjects offered to see if they meet your academic and career goals. It is also important to note that some universities have a lot of accounting subjects in their finance degree so if you don’t like accounting, you may not want to go for that university.

• Business Finance
• Computers in Business
• Fundamentals of Financial and Management Accounting
• Introduction to Economics
• Microeconomics for Business
• Organisational Behaviour
• Financial Markets Theory
• Corporate Financial Theory
• Financial Derivatives
• Mergers and Acquisitions
• International Bond and Currency Markets
• Managing Corporate Value
• Equity Markets and Fund Management
• Risk Management and Derivatives
• Contemporary Issues in Finance
• Financial Economics
• Financial Markets: Theory and Computation
• Financial Management
• Financial Mathematics
• Financial Reporting
• Fundamentals of Investment
• Law of Banking and Finance
• Management Information System
• Business Research Methods
• The Financial System
• Financial Planning and Control
• Financial Statement Analysis
• Personal Financial Planning Techniques
• Corporate Finance
• Financial Derivatives
• Financial Modelling
• International Banking & Investment
• Portfolio Management
• Risk Management in Banking

How to Enter the Banking & Finance Degree Programme in Malaysia?

Students after SPM or IGCSE/O-Levels with at least 5 credits including the relevant subjects may enter a Foundation in Business or Foundation in Arts at a top private university in Malaysia for 1 year before continuing on to the 3-year banking or finance degree programme.

Pre-University graduates in Malaysia from programmes such as UEC, STPM, A-Levels, SAM, CPU, AUSMAT and others may enter directly into the degree providing they meet the minimum entry requirements.

Students with at least 3 credits in SPM or O-Levels may go for the Diploma in Accounting or Diploma in Finance and then enter into Year 2 of the accounting, banking or finance degree programme.

Why you Should Study a Finance Course in Malaysia?

You will not just get rich by getting a degree in Finance. It is a combination of your attitude, planning, networking as well as your knowledge and skills. With your knowledge of finance, you are able to budget your daily finances carefully and put the rest into savings or investments to make more money.

To get out of the income trap you must plan your future carefully and that starts first with the course and university that you choose. Choosing to study the degree in finance is a great choice as the career is one of the highest paid in Malaysia.

Another great reason to study finance is because of it’s more narrow focus, but it still allows you to explore a field that has a lot of job opportunities. Being able to set yourself with a finance degree will help you when searching for jobs, especially from a large number of business administration graduates. As a finance degree is harder to attain, it is guaranteed to set you apart.