Professor Katherine Wood Interview
June 10, 2024
Biography: Katherine Wood studied accounting and finance in her undergraduate years, which is the contents of her background today. After graduating, she worked for RSM (a public accounting firm) in their internal audit department and focused on community banks. While working full-time, she also obtained her CPA.
Then, Professor Wood worked at a small bank as their financial controller, overseeing the accounting and some finance functions. She then received her master's in quantitative finance from the University of Manchester and her PhD from the University of Georgia. Katherine Wood’s research interests focus on community banks, especially in credit access and the applications of Machine Learning in Finance.
Interview Q&A:
Could you summarize your background and how it led you to Bentley?
My background consists of both accounting and finance, as I majored in both during my undergraduate years. At the time, I interned at a public accounting firm, now known as RSM, doing internal auditing and was also exposed to community banking and commercial banking which went on for about two years. After that, I did a short stint at Prudential, which I wasn’t a good fit, so I worked at a small bank as a controller, managing their accounting department as well as working with the CFO for financing needs. Following that, I wanted to focus more on the finance portion of work as opposed to my previous experience, which focused mostly on accounting, and found a one-year master’s program in England, which fulfilled my wish to study abroad. In doing so, I decided to pursue Quantitative Finance, which was a mixture of the math side of Pure Quant and how to manage the Quant. In doing so, I decided at the last minute that I didn’t want to go back into the industry right away, and in turn, applied for my PhD. I pursued a five-year program focusing on Machine Learning in Finance and community banking and banking in general which I graduated from in May of 2023. I had accepted a job at Bentley, and I’ve been here since.
Can you talk more about your role as a Financial Controller and what that entails?
At the small bank that I worked at, I worked in finance as well as accounting, which, at a larger corporation, you may not see. In my role, I looked through financials, ran some of the accounting transactions myself, calculated interest, and entered the information into the company software for statements when dealing with borrowing. I would prepare financial statements such as quarterly call reports, aid in the coordination within the lending department, and help the CFO in decision-making regarding the investments. The investment decisions that I had to undergo consisted of what to do with extra cash–whether we should put it in overnight borrowing, which has lower interests and is flexible, or if we should invest in items such as a 90-day T-bill, a one-year bond, or other things of that sort. In my role, I was mostly responsible for putting reports together and understanding the numbers, which is why having that accounting background is so helpful for finance people because you need to have a balance sheet to conduct your decisions.
Did you always know that you wanted to be a professor one day, and if not, how did the decision come about?
I considered going straight into studying for my PhD right after undergrad because, with finance, you can do that. However, I wasn’t one hundred percent sure that I wanted to do finance research, but I’ve always liked to teach. I tutored throughout my undergrad where I worked in the math department and the finance department tutoring students who came in seeking help, so I’ve always enjoyed making things click for people. At this point, I just didn’t know if I wanted to commit to it, but it was always in the back of my mind. I enjoy it so much now, as the work-life balance is awesome with summers and winters off from teaching where I can also just be flexible in my research and research topics. I like the challenge of that, as well as the opportunity to teach, all while investigating the things that I enjoy.
Is there a reason why you started to focus more on finance later in your career search rather than accounting?
In internal auditing, which is something that I did for a while, there is a mixture of accounting and finance. Of course, you have accounting-specific tasks like transactions; however, there is a lot of grey area that requires both. I took a research accounting class as an undergrad and did not find it very engaging, and I had thought that that would be the basis for a PhD in accounting research. However, after learning more about it and the overlap between accounting and finance, I honestly would have considered accounting programs as well as finance when searching for PhD programs, but my master’s is in finance, and before completing that, I was considering going back into the industry in investment banking so that’s what steered me towards finance, which I am more than happy with.
What are you most proud of in terms of from the start of your career, until now?
I’m proud of the fact that I took so many risks, such as quitting a stable job to pursue a master’s, which led to no income for a year, and pursuing a PhD during COVID. I am also very proud of my CPA because it is very hard to complete. I think the willingness to ask to see what’s out there is something that pushed me out of my comfort zone, and putting myself in positions that I didn’t think I would succeed in definitely helped me pursue so much.
What is something that you wish someone had told you during your time as a student, whether that be as an undergraduate or a postgraduate?
I actually learned this during my PhD, but standing up for what you’re interested in. Banking, especially community banking, is not always considered a mainstream finance research topic and for the longest time, it’s been something that I wanted to do. I didn’t do it for three years during my PhD, and I instead focused more on the “bigger” areas in finance. I wish that I had taken the risk to focus on what I was passionate about, and asked for the support in doing so and having that voice. Though it was no fault of the faculty at my university, some of the hesitation came from past experiences as a female, which sometimes makes it hard to have that voice and stand up for yourself. Once I spoke up, I did receive the support needed in a way to push forward. I think that finding that voice and doing so in a tactical way is something that I wish I learned earlier in life.
What are ways that you have navigated the complexities of being a part of a male-dominated industry in academia and the corporate world?
This is tough because it all depends on where you are. Bentley has been very intentional in having female representation in the faculty, which is one thing that drew me here. It’s mostly about just finding balance and support, and I’m not always good at it. I can remember this one time working in audit, and the president of the bank was not happy with our findings. He looked at me and my boss, who was about ten years older than me, somewhere in her 30s, also female, and said, “Now girls…” in an attempt to get us to change our minds, and it caught me off guard. In those situations, it comes down to not letting yourself get pushed around. Unfortunately, those in the minority are going to endure situations like these, and you’ll have to deal with it, but being intentional about where you look and finding those networks of successful females are ways of changing the industry and having that support system inside and outside of your industry. At the same time, you don’t want to exclude male workers in favor of female workers, but it’s more about the idea of how to include everyone.
What is some advice that you would give to students who want to pursue a PhD in Finance?
Definitely learn to code; that’s the biggest one, but also be okay with not being the best. At Bentley, you are set up to be challenged and master a wide range of topics in finance, but pursuing a PhD teaches you how much there is to know and often how little you know starting out. This is totally okay! That is something that I struggled with during my time. For example, I am a terrible theorist, but that doesn’t detract from the things that I’m good at. I love to do data analytics, and I can still successfully work with others and instead coauthor with a theorist as people who pursue higher education are those who enjoy academics, but that does not mean that it is easy. In my first year as a PhD, I received a 30%. It is okay to fail because you are learning in a way that you have not been previously exposed to and learning how to persevere. The key is to keep moving forward. Although it is hard, it is something that I enjoyed experiencing, and it is beneficial to you and your career. I had many tear-filled days during my PhD as it is not like your undergraduate years, but I am thankful that I did it. It is very beneficial to have the work-life experience before enduring a PhD but don’t feel like you need to do so.
Given that you have a diversified experience in teaching, what is your favorite class to teach and why?
I like teaching in general, and at Bentley, I have only taught the Advanced Managerial Finance class. I also like teaching derivatives because I like the mathematical part of it. Those classes often allow for more of a discussion, and the students tend to be further along in their classes about finance, so we can go into greater depth. However, I do love teaching the introductory class because it is fun to introduce the first bit of the Time Value of Money and why banks pay interest. These classes tend to be more lecture-based, but it’s interesting and exciting to see the concepts click for people just learning about finance and encouraging the pursuance of finance itself.
How do you think your experience has made you a better student when pursuing your PhD?
In a couple of different ways, it taught me to stand up for myself more. I would say be sure to do research on programs, as some places treat their PhD students like they are two inches tall, and I did not want that for myself when going into it. I was lucky to find a program where this wasn’t the case. Therefore, learning and identifying situations where professors may be taking advantage of you helps. Being involved in the finance industry prior helped me being able to support my decisions. It is very different than being an undergraduate student. You are still a student but also have more “adult” responsibilities at that point, which introduces a different power dynamic. Additionally, having that industry experience helped during my PhD because I knew how banks work, and being able to explain and understand how a bank works firsthand compared to what you learn in a classroom is beneficial in grasping different ideas as well as applying them.
Do you have a piece of advice for a student coming into Bentley or even a senior graduating from Bentley and entering the corporate world?
Always keep asking questions and try to digest the concepts on a deeper level. You get more out of your classes when you think about why things happen, which isn’t always immediately evident in assignments and exams, but you will understand concepts on a deeper level. Going into the corporate world, your boss will more likely appreciate when you go to them, explaining that you’re stuck and explaining the different methods and ideas that you used in order to get beneficial results rather than just trying to seek the answer. As a boss at one point myself, it is so much more helpful for someone to come to you and explain their process rather than just coming to seek guidance with no trial and error. Critical thinking is so important which isn’t emphasized much in high school but is expected of you in college, which will help students succeed in concepts with homework or projects, and that’s what you can carry on in your future career.
What advice would you give students interested in fields such as quantitative finance and higher-level, complex fields that can be intimidating?
Firstly, just go for it! The worst that can happen is you don’t get the job the first time around. Striving toward what you are passionate about makes your career so much more fulfilling. Learning to code
would be my biggest advice again. A job as a Pure Quant as a strict finance major can be difficult because you likely won’t have the necessary math exposure. Instead, you may have to work in related roles to gain the necessary experience. The worst that can happen is they say no, but you can also take that in order to inspire you to get certifications and learn different models/techniques. Keep trying; it is intimidating because it is such a rigorous field to get into, but once you try, you will benefit so much from it.