Skills you'll gain: Finance, Probability & Statistics, Risk Management, Mathematics, General Statistics, Probability Distribution, Investment Management, Mathematical Theory & Analysis, Securities Sales, Securities Trading, Accounting, Audit, Algebra, Calculus, Correlation And Dependence, Linear Algebra, Applied Mathematics, BlockChain, Communication, Computer Programming, Entrepreneurship, FinTech, Leadership and Management, Machine Learning, Markov Model, Product Marketing, Sales, Strategy
Intermediate · Specialization · 3-6 Months
Skills you'll gain: Finance, General Statistics, Probability & Statistics, Mathematics, Probability Distribution, Risk Management, Securities Sales, Securities Trading, Algebra, Calculus, Correlation And Dependence, Investment Management, Linear Algebra, Mathematical Theory & Analysis, Applied Mathematics, BlockChain, FinTech, Machine Learning, Markov Model
Intermediate · Course · 1-3 Months
Skills you'll gain: Cloud Computing, Microsoft Azure, Data Management, Big Data, Extract, Transform, Load, Data Warehousing, Cloud Storage, Databases, Data Analysis, Computer Networking, Statistical Programming, Apache, Accounting, Business Analysis, Cloud Infrastructure, Computer Architecture, Financial Analysis, Network Architecture, SQL, Computer Programming, Continuous Delivery, Continuous Integration, DevOps, NoSQL, Business Psychology, Entrepreneurship, Leadership and Management, Organizational Development, Application Development, Data Architecture, Network Security, Security Engineering, Security Strategy, Software Engineering, Software Engineering Tools
Intermediate · Professional Certificate · 3-6 Months
Skills you'll gain: Machine Learning, Finance, Algorithms, Mathematics, Theoretical Computer Science, Machine Learning Algorithms, Applied Mathematics, Calculus, General Statistics, Investment Management, Probability & Statistics, Applied Machine Learning, Artificial Neural Networks, Business Analysis, Data Analysis, Deep Learning, Financial Analysis, Machine Learning Software, Tensorflow, Advertising, Communication, Computer Programming, Entrepreneurship, Marketing, Markov Model, Operations Research, Python Programming, Research and Design, Statistical Machine Learning, Strategy and Operations
Intermediate · Specialization · 3-6 Months
Skills you'll gain: Business Analysis, Data Analysis, Data Model, Probability & Statistics, Data Management, Estimation, Statistical Analysis, Finance, Financial Analysis, General Statistics, Regression, Design and Product, Entrepreneurship, Leadership and Management, Market Research, Marketing, Mathematics, Probability Distribution, Product Management, Product Marketing, Research and Design, Sales, Strategy, Strategy and Operations
Mixed · Course · 1-4 Weeks
Skills you'll gain: Probability & Statistics, Finance, Mathematics, Mathematical Theory & Analysis, Probability Distribution, Communication, Entrepreneurship, Leadership and Management, Product Marketing, Sales, Strategy
Intermediate · Course · 1-3 Months
Skills you'll gain: Finance, Risk Management, Leadership and Management, Probability & Statistics, Strategy and Operations, General Statistics, Software Engineering, Software Testing, Accounting, Audit, Business Analysis, Correlation And Dependence, Data Analysis, Investment Management, Probability Distribution, Regression, Regulations and Compliance, Statistical Analysis, Budget Management, Entrepreneurship, Human Resources, Leadership Development, Operational Analysis, Problem Solving, Research and Design, Supply Chain and Logistics, Financial Analysis, Sales
Beginner · Specialization · 3-6 Months
Skills you'll gain: Finance, Accounting, Strategy and Operations, Cost Accounting, Project Management, Investment Management, Business Analysis, Data Analysis, Entrepreneurship, FinTech, Financial Analysis, Leadership and Management, Banking, Budget Management, Business Process Management, Business Psychology, Financial Accounting, Financial Management, Inventory Management, Management Accounting, Organizational Development, Supply Chain and Logistics, Probability & Statistics
Beginner · Course · 1-3 Months
Skills you'll gain: Leadership and Management, Strategy and Operations, Finance, Project Management, Accounting, Business Analysis, Data Analysis, Entrepreneurship, Financial Analysis, Budget Management, Communication, Cost Accounting, Scrum (Software Development), Software Engineering, Emotional Intelligence, Investment Management, Marketing, Supply Chain and Logistics, Sales, Strategy, Risk Management, Business Psychology, FinTech, Organizational Development, Human Resources, Leadership Development, Generally Accepted Accounting Principles (GAAP), Computer Graphic Techniques, Computer Graphics, Computer Vision, Contract Management, Data Visualization, Geovisualization, Machine Learning, Operations Management, Planning, Supplier Relationship Management, Banking, Business Process Management, Financial Accounting, Financial Management, Inventory Management, Management Accounting, Business Communication, Forecasting, Journalism, Probability & Statistics
Graduate Certificate · 6-12 Months
Financial engineering is an interdisciplinary field that combines applied mathematics, statistics, and computer science to guide investment decisions. While finance has always emphasized quantitative analysis, today’s technology has made it possible to apply these approaches at an unprecedented scale and speed. Massive datasets are now delivered via hardwired internet connections into financial modeling programs built in software like Solver in Microsoft Excel, or even machine learning tools created through Python programming or other techniques.
The power of financial engineering has made it incredibly important for trading, portfolio optimization and risk management, valuation of derivatives and real options, and a host of other purposes at virtually all of today’s largest financial institutions. Indeed, it has been estimated that as much as 80% of the activity on the U.S. stock market today is computer-led algorithmic trading, making the use of financial engineering absolutely essential to competitiveness in the market.
By automating financial decision-making, these approaches have unquestionably created enormous value for the firms deploying them. However, the prominence of financial engineering has caused some economists to question whether it is contributing to market volatility during financial turbulence, including the COVID-19 crisis, even if many others claim that it has a positive effect on market liquidity. Regardless, financial engineering is here to stay, making it a critical topic to understand for any finance professional.
Today, any career in finance requires at least a familiarity with financial engineering. Whether you go to work at an investment bank, a hedge fund, an insurance company, or in government treasuries or regulatory agencies, these techniques will continue to shape the landscape of your job. Thus, understanding how to use financial engineering approaches and how they impact financial problems is a valuable asset regardless of your role in this industry.
If you have a particular talent for applied mathematics and computer science, you can pursue a lucrative career in financial engineering yourself, as quantitative analysts or “quants” are some of the most highly sought after professionals in the industry. “Back office” quants generally build and validate complex financial engineering tools, while “front office” quants work directly with traders to help them deploy the pricing and trading tools they need.
Absolutely. Coursera offers a wide range of courses in financial engineering as well as related areas of this interdisciplinary field, including business, computer science, and mathematics and statistics. These courses as well as multi-course Specializations are offered by some of the top undergraduate and business schools in the country, including Columbia University, Yale University, and the University of Pennsylvania.
In addition to being able to learn remotely on your own schedule, these courses are also available at a significantly lower tuition than their on-campus counterparts. Thus, you won’t need a spreadsheet to determine that learning about financial engineering online is a smart investment in your future, whether you’re just starting your career or are an experienced finance professional looking to update your understanding of this vital topic.
The skills and experience that you might need to already have before starting to learn financial engineering include a healthy knowledge of mathematics, statistics, economics, and computer science. These aspects come together in financial engineering, which uses financial theory to solve financial problems and to create new financial products. As you begin to learn about financial engineering, you’ll see that a background or knowledge in data science and data management is also very important for the work involved in areas like statistics, indices, quadratic equations, functions, and graphs. Knowing how to use your mathematics and statistics knowledge in building financial models could also be a benefit to learning financial engineering.
The kind of people that are best suited for work that involves financial engineering are those who are data geeks, quantitative analysts, and other numbers-focused practitioners. These people may have already gained experience and skills from working in corporate finance, risk management, stock trading, and financial regulation. Being comfortable with spreadsheets, financial theories, computer programming, and financial models is likely a key requisite for work that involves financial engineering. Aside from these hard skills that are required, the kind of persons best suited for financial engineering work might also be analytically-minded, with a keen attention to details, and the ability to extract and communicate complex statistical information into common-sense problem solving.
You might know if learning financial engineering is right for you if you have interest and knowledge of financial theories and financial methods. Having a quantitative analysis background and numbers-focused skills may help you find a career in financial engineering. If you’re the person who reads financial statements and digs into computer-based financial models to figure out financial strategies, then becoming involved with work in financial engineering may be a great fit for you. Combining all your knowledge of data and statistics in this area may help you to achieve future success in financial engineering jobs.