Question 1

What is financial engineering, and why is it important to learn about?

Accepted Answer

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.

Question 2

What kinds of careers can I pursue with financial engineering expertise?

Accepted Answer

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.

Question 3

Can I learn about financial engineering through online courses on Coursera?

Accepted Answer

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.

Question 4

What skills or experience do I need to already have, before starting to learn financial engineering?

Accepted Answer

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.

Question 5

What kind of people are best suited for work that involves financial engineering?

Accepted Answer

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.

Question 6

How do I know if learning financial engineering is right for me?

Accepted Answer

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.

Question 7

What are the benefits of taking an online Financial Engineering course?

Accepted Answer

Online Financial Engineering courses offer a convenient and flexible way to enhance your knowledge or learn new Financial Engineering skills. Choose from a wide range of Financial Engineering courses offered by top universities and industry leaders tailored to various skill levels.

Question 8

What Financial Engineering courses are best for training and upskilling employees or the workforce?

Accepted Answer

When looking to enhance your workforce's skills in Financial Engineering, it's crucial to select a course that aligns with their current abilities and learning objectives. Our Skills Dashboard is an invaluable tool for identifying skill gaps and choosing the most appropriate course for effective upskilling. For a comprehensive understanding of how our courses can benefit your employees, explore the enterprise solutions we offer. Discover more about our tailored programs at Coursera for Business here.

Financial Engineering Courses Online

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Explore the Financial Engineering Course Catalog

Foundations: Data, Data, Everywhere

IBM Data Warehouse Engineer

Site Reliability Engineering: Measuring and Managing Reliability

Digital Transformation in Financial Services

IBM Relational Database Administrator

Protecting the World: Introducing Corrosion Science and Engineering

Introduction to Data Engineering

Materials Science: 10 Things Every Engineer Should Know

Mechanics of Materials I: Fundamentals of Stress & Strain and Axial Loading

IBM & Darden Digital Strategy

Introduction to Financial Analysis - The "Why?"

Financial Analysis of Organizations

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Frequently Asked Questions about Financial Engineering

What is financial engineering, and why is it important to learn about?‎

What kinds of careers can I pursue with financial engineering expertise?‎

Can I learn about financial engineering through online courses on Coursera?‎

What skills or experience do I need to already have, before starting to learn financial engineering?‎

What kind of people are best suited for work that involves financial engineering?‎

How do I know if learning financial engineering is right for me?‎

What are the benefits of taking an online Financial Engineering course?‎

What Financial Engineering courses are best for training and upskilling employees or the workforce?‎

Other topics to explore