Masters in Financial Engineering

What is Financial Engineering

Financial engineering is a multidisciplinary field involving financial theory, methods of engineering, tools of mathematics and the practice of programming. It is the use of mathematical techniques to solve financial problems. It is sometimes referred to as quantitative analysis. It is also known as financial mathematics, mathematical finance, and computational finance. Financial Engineering, unlike its name, does not belong to any of the traditional fields of professional engineering.

It draws tools from applied mathematics, computer science, statistics and economic theory. Financial engineering plays a key role in the customer-driven derivatives business which encompasses quantitative modelling and programming, trading and risk managing derivative products in compliance with the regulations and Basel capital/liquidity requirements.

Requirements to Study Financial Engineering

Most of the universities in the USA, Canada require you to give the GRE. Few universities from Germany require GRE scores. However, GRE is not required for admission to Australian universities. IELTS or TOEFL is compulsory for acquiring student visa and as a proof of English proficiency.

Core Subjects in Financial Engineering

Financial engineering studies apply the principles of mathematics to tackle financial issues. Various subjects include:

  • Stochastic Models for Financial Engineering
  • Statistical Tools for Financial Engineering
  • Foundations of Financial Engineering
  • Financial Markets, Institutions and Risk
  • Optimization Models and Methods for Financial Engineering
  • Financial Engineering: Continuous Time Models
  • Data Analysis for Financial Engineering

Specialisations in Financial Engineering

Specialization topics include:

  • Business and Financial Modeling
  • Big Data for Data Engineers
  • Investment and Portfolio Management
  • Financial Markets and Investment Strategy
  • Managing Major Engineering Projects

Cost of Studying Financial Engineering

Although the fees vary from university to university, the average tuition cost for master’s studies in Financial Engineering in the US are $23,000/year. Average living costs vary upto $8900/year. Tuition fees are around C$20000 in Canada. In Australia, average tuition costs are A$35000 / year and the average living costs are A$8,500/year.

Job Prospects after Masters in Financial Engineering

United States$51,416 - $126,968$80,000
United Kingdom£28,773 - £74,650£46,709
SwitzerlandCHF 71,580 - CHF 167,928CHF 107,494
Sweden$26,379 - $105,738$58,808
SingaporeS$63,349 - S$211,134S$123,028
New ZealandNZ$59,694 - NZ$143,530NZ$95,205
Netherland€36,043 - €88,442€57,498
Japan¥2,985,078 - ¥15,050,529¥8,000,000
Ireland€34,821 - €87,319€57,342
Germany€36,257 - €84,256€54,499
France€31,441 - €93,417€49,256
CanadaC$52,774 - C$115,779C$77,517
AustraliaAU$63,776 - AU$165,583AU$105,476

2019 Top Universities for Masters in Financial Engineering

Stevens Institute of Technology
Baruch College - The City University of New York
London School of Economics
Lancaster University
HEC Paris
University of Pennsylvania
University College Dublin
ESCP Europe Business School
The University of Chicago

More Universities to target for Financial Engineering in 2019