The last 2 decades witnessed the arrival of the first generation of Financial Quants (Quantitative Analysts) on Wall Street. These ‘Financial Rocket Scientists’ who defied traditional thinking and preferred disruptive innovation are believed to be the first generation of Financial Engineers. Since then, the field has skyrocketed giving rise to Masters in Financial Engineering Programs that ensure a lucrative career trajectory and high-paying jobs.
Financial Engineering is a rewarding career option for all those ambitious individuals who aim to become versatile professionals, take up challenging opportunities and be at the helm of the financial sector.
Defining Financial Engineering Program
Financial Engineering is a vast multidisciplinary field involving engineering techniques, financial theory, mathematical applications, and software training. In other words, this ingenious degree focuses on applying practical engineering techniques and approaches to the realm of finance.
By opting for a reputable Financial Engineering Program, you will be able to master the profession’s core competencies including economics, applied mathematics, statistics, and computer programming.
Why Should You Opt for Financial Engineering?
By pursuing a Master’s degree in Financial Engineering, you will develop a strong foundation in financial science and would deftly be able to apply practical engineering knowledge in the financial world. The data analysis, programming, and modeling skills developed while pursuing this degree can be applied in a wide range of sectors including technology, education, government, climate and life sciences, etc.
As an aspiring candidate, here are listed some plausible career options:
- Market Analyst
- Financial Analyst
- Investment Banker
- Risk Analyst
- Derivative Trader
- Portfolio Manager
- Risk Manager
- Financial Regulator
- Hedge Fund Manager
- And many more!
Financial Engineers can be hired in top-notch financial companies like Morgan Stanley, Goldman Sachs, etc. as well as leading companies like Google, IBM, Microsoft, etc.
Also, Financial Engineers possess a unique skill set that is highly sought after in various financial organizations, earning them lucrative salaries in the industry. As per the 2023 QuantNet Ranking of Best Financial Engineering Programs, the average starting base salary plus sign-on bonus for Princeton University was $199,000, for the University of California, it was $169,634, and the lowest as per the list was $91,945 for the University of Washington.
In essence, talking about career possibilities, opportunities, and remuneration, the sky’s the limit for Financial Engineers!
Although the exact course structure and course duration will vary for the different universities, the following subjects are likely to be a part of the coursework for most financial engineering programs:
- Finance and Economics
- Operations Analysis
- Financial Risk Management
- Computation and Programming
- Machine Learning
- Asset Management
The Financial Engineering courses, their content, and their corresponding credits are likely to differ for the different universities. Also, elective options in the Financial Engineering Program would be different in different colleges. Thereby, it is crucial to assess the course structure and electives in detail for the different universities and opt for a Financial Engineering Program that best matches your interests and preferences.
Masters in Financial Engineering Courses
If you are firm on pursuing a postgraduate course in Financial Engineering, here are a couple of options for you to consider.
- MS in Financial Engineering
- MTech Financial Engineering
- MS in Computational Finance
- MS in Mathematical Finance
- MS in Financial Mathematics & Quantitative Finance
- MSc in Financial Engineering
- MSc in Financial Engineering and Risk Management
- MBA in Financial Engineering
- MF in Financial Engineering
- MEng in Financial Engineering
All these courses differ in terms of course structure and are focused on developing unique skill sets applicable to different finance-related domains. Therefore, you must choose a course that conforms to your proclivities and will help you pursue a career of your choice.
While the exact eligibility criteria might differ from university to university, here’s a rundown on some of the commonly observed eligibility criteria for pursuing a Financial Engineering Post-graduate Program.
- The applicant must have completed:
- 10+2 or equivalent
- an undergraduate degree in business administration or a related field of a recognized university as approved by the program administration
- Some universities might solicit a minimum work experience of a year or two years
- IELTS or TOEFL score to demonstrate English proficiency
- GMAT or GRE score will also be required for most top programs
- Some universities might also ask for Cambridge CPE, PTE, or CPA score
- Official copies or transcripts for all degrees might also be required
Top Universities Offering the Program
If you are aiming for a flourishing career in this domain, it is essential to pursue your Master’s in Financial Engineering from a reputable institute. So, here’s a concise table entailing the top six universities offering this program with many other key details including duration, course fee, applicant score range, etc.
|University Name||Columbia University||New York University||University of Southern California||University of Illinois at Urbana-Champaign||University of Birmingham||University of York|
|Tuition Fee ($)||54500||37000||48300||47100||23100||26900|
|Approximate cost of living ($)||41600||26000||25000||23500||23500||12000|
|Test Scores||GRE (Avg/Min) – 329||GRE (Avg/Min) – 329||GRE (Avg/Min) – 320||GMAT (Avg/Min) – 710||TOEFL (Avg/Min) – 80||TOEFL (Avg/Min) – 80|
|TOEFL (Avg/Min) – 110||TOEFL (Avg/Min) – 110||TOEFL (Avg/Min) – 100||TOEFL (Avg/Min) – 104||IELTS (Avg/Min) – 6||IELTS (Avg/Min) – 6|
|IELTS (Avg/Min) – 7||IELTS (Avg/Min) – 7||IELTS (Avg/Min) – 7||IELTS (Avg/Min) – 7|
|Acceptance Rate||12%||16%||10-15 %||27.20%||68%|
How to Prepare for the Financial Engineering Program
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