Financial engineering is gaining notability in the world of investment and stock exchange. So what makes this field of study so appealing nowadays? 3 ESiLV alumni weigh in and give their best advice.
People who work in financial engineering are responsible for combining, designing, researching, developing and implementing a range of innovative financial instruments, but how does it exactly work?
What do they do?
Financial Engineers use their skills to predict how stocks and financial tools will perform, and they gain experience in managing portfolios and assessing the risk of investments. They equally have a knowledge of the theory of finance and the historical behaviors of specific markets. Using this knowledge and their computer skills they create simulations so that clients can see how certain investments are likely to perform and assess their risks to know whether the clients are willing to take the risk or not.
Employers hire people with advanced degree in Financial Engineering, and these specialists would mostly occupy job positions such as investment managers, bankers or traders, and portfolio managers or analysts.
How to become a financial engineer?
Pursuing this advanced degree, particularly the master’s degree is the first step to guarantee being hired and successfully kick starting a career in financial engineering. The major trains engineers with strong skills in market modelling and financial instruments while managing related IT and statistical tools. The training also raises awareness among students about the limits of these tools in front of many dimensions of financial risks and concerns of a better regulation of financial institutions. So for anyone considering pursuing this degree, here’s a couple of advice from ESiLV’s alumni:
“Think of where you see yourself in 5, 10, 20 years; never neglect IT; and of course, do what you love!” – Martin Ley, Promo 2016 – Bank of France Management
And even financial engineers take into account the impact their work has on the environment:
“Be environmentally conscious, have the will to change things, and always remain curious!” – Etienne Pouteau, Promo 2018 – Energy and Environment engineer
Financial engineering and the benefits of working in the sector
Finance careers are diverse and offer a spectrum of different specialisations. The finance industry is broad, spanning sectors as diverse as actuarial, insurance, regulation and banking, and the jobs pay well, even at a graduate level: the average salary for a financial analyst is a minimum of €45000 for students who have graduated into financial investment and commercial banking with a big chance of climbing the career ladder and being promoted early on in the job.
“For me, one of the many benefits of the field is applying maths to reality, the quantitative approach of analysis, and the international perspective. Also, it pays very well! – Nicholas Coquelet, Promo 2016 – Natixis Investment Banking
There’s no doubt that the demand for financial consultants is steady and even increasing. As a highly competitive profession, it is recommended to pursue a master’s degree early on to build the foundation for a growing career.
Interested in financial engineering? Learn more about the Master’s Programme at ESILV, engineering school in Paris.