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.
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.
Financial engineering studies apply the principles of mathematics to tackle financial issues. Various subjects include:
Specialization topics include:
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.
|COUNTRY||AVERAGE SALARY||MEDIAN SALARY|
|United States||$51,416 - $126,968||$80,000|
|United Kingdom||£28,773 - £74,650||£46,709|
|Switzerland||CHF 71,580 - CHF 167,928||CHF 107,494|
|Sweden||$26,379 - $105,738||$58,808|
|Singapore||S$63,349 - S$211,134||S$123,028|
|New Zealand||NZ$59,694 - NZ$143,530||NZ$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|
|Canada||C$52,774 - C$115,779||C$77,517|
|Australia||AU$63,776 - AU$165,583||AU$105,476|