Online Masters Degree & Certificate Programs In Financial Engineering
As the name suggests, financial engineering makes use of mathematical techniques and principles to solve problems in the world of finance. It combines principles from different fields such as computer science, economics, statistics, and applied math to develop financial products and also analyze financial problems. Investment banks, insurance agencies, commercial banks, and hedge funds are common employers of financial engineers.
The demand for financial engineers increases as new investment products are developed, and financial institutions need to test new investment methods, economic models, debt offerings, and strategies. The average salary for a financial engineer is $78,424, according to PayScale.com (June 2021), while in May 2020, the U.S. Bureau of Labor Statistics (BLS) lists the average median salary of a financial analyst as $83,660 per year.
Depending on where they work, financial engineers may perform the following activities:
- Design contracts and securities for clients
- Use statistics and machine learning to predict defaulters and determine credit policies
- Analyze interest rates, equity valuations, and commodity prices to help clients make strategic decisions
- Help clients select portfolios based on hedge fund designs
With technological advances in finance, financial engineers will be expected to pace with new tools and methodologies to perform their jobs. Getting a master’s or a graduate certificate in financial engineering can boost career prospects for professionals in the field. It can help them take up managerial positions in financial institutions and governmental organizations as well. Several prestigious universities also offer these programs online, allowing professionals to advance their skills while working.
The following guide provides an in-depth look at financial engineering as a career path, the best online programs in financial engineering, and notable faculty members. It also sheds light on general syllabi and admission requirements.
Fast Facts: Why Are Financial Engineering Skills Important?
- A Booming Field – The U.S. Bureau of Labor Statistics (2021) predicts financial analyst jobs will grow at a rate of 5 percent between 2019 and 2029, faster than the average growth rate for all professions nationally in the same decade. An estimated 26,800 financial analyst jobs will be added during this period.
- An Influential Career in Finance – Students with an analytical bent of mind and inclination towards finance will get an opportunity to use these skills in creating complex models and instruments. Their work will guide essential decisions such as investments, product value, and credit and debt allocation.
- A Data-Driven Field – Financial engineers are expected to extract business intelligence from large datasets. As our reliance on technology grows and more data is produced than ever, the ability to use predictive analytics, organize data, and use statistics will be invaluable for every field.
Mentors: Three Financial Engineering Gurus to Know
Cesar Acosta, PhD
University of Southern California
University of Southern California
Dr. Cesar Acosta is an associate professor of industrial and systems engineering at the University of Southern California. He teaches within the master’s programs in financial engineering and data analytics. His research efforts are focused on machine learning methods to solve real-world problems using statistical analysis.
Notably, he has been the recipient of the 2018-19 Outstanding Teacher of the Year Award from the Daniel J. Epstein Department of Industrial and Systems Engineering. In addition, prominent journals such as Quality Engineering and Computers and Industrial Engineering have published his findings.
He holds two PhD degrees: one in industrial engineering from Texas A&M University and the other in statistics from The University of Texas at Dallas. He also has a BS from the Catholic University of Peru.
Dragos Bozdog, PhD
Stevens Institute of Technology
Stevens Institute of Technology
Dr. Dragos Bozdog is the deputy director of the Hanlon Financial System Lab and an associate professor in the financial engineering division at the Stevens Institute of Technology. Some of the classes he teaches include an introduction to financial engineering, portfolio theory and applications, probability theory for FE, an introduction to Bloomberg and Thomson Reuters, and SAS for finance.
Dr. Bozdog’s research focuses on emerging markets, numerical methods for PDEs, tire mechanics, threat assessment, and analysis of high-frequency financial data. He is a part of numerous professional organizations, including the Scientific Research Society, the National Society of Professional Engineers, and the Society for Industrial and Applied Mathematics. His research has been published in respected journals such as Tire Science and Technology, the Wilmott Journal, and the Journal of the Applied Vision Association.
Tim Leung, PhD
University of Washington
University of Washington
Dr. Tim Leung is the CFRM (computational finance and risk management) program director and a tenured professor of applied mathematics at the University of Washington in Seattle. He teaches courses such as investment science, Monte Carlo methods in finance, data analysis for financial engineers, term structure models, and the foundations of financial engineering, among others.
Presently, Dr. Leung’s research areas include optimal stochastic control and financial mathematics. He has dozens of published articles to his name. In addition, he serves on the editorial board various journals, such as SIAM Journal on Financial Math, the International Journal of Financial Engineering, Stochastic Models, and High Frequency. He completed his PhD in operations research and financial engineering at Princeton University and a BS at Cornell University.
Accredited Online Masters in Financial Engineering Degree Programs
University of Southern California
The Viterbi School of Engineering at the University of Southern California offers a fully online masters in financial engineering program. Offering courses through DEN@Viterbi (USC Viterbi’s Online Delivery Method), this program is designed for students with a background in applied mathematics, physics, or engineering who want to apply their knowledge and skills to finance.
The program consists of 30 credits, including instruction in financial engineering, corporate finance, electrical and computer engineers, mathematics and tools for financial engineering, stochastic processes, investment analysis, portfolio management, an introduction to programming systems design, and linear programming and extensions.
Admission requirements include a bachelor’s degree in engineering or mathematics from an accredited institution, GRE scores, a current resume, letters of recommendation, personal statement, and TOEFL or IELTS scores for international students whose first language is not English.
Graduates of the program can take up opportunities in programming, finance, information technology, banking, insurance and trading, risk management, and regulation.
- Location: Los Angeles, California
- Accreditation: Western Association of Schools and Colleges (WASC)
- Expected Time to Completion: Full-time enrollment (1.5 to two years); part-time enrollment (2.5 to 3.5 years)
- Estimated Tuition: $3,990 per credit
The CFRM (computational finance and risk management) master’s program offered by the University of Washington is delivered 100 percent online. This program can also be completed on-campus. Ideal for working professionals, this CFRM degree program is taught by the same experienced faculty members that teach on campus. The program offers rigorous and relevant instruction in both theory and practice of financial engineering.
The program comprises 26 credits of mandatory courses and 16 credits of electives. Some of the courses in the curriculum include investment science, options and derivatives, financial data modeling and analysis, Monte Carlo simulation methods in finance, portfolio optimization, asset management, optimization methods in finance, and ethics in the finance profession.
CFRM students must demonstrate exceptional command of calculus, a programming language, and probability and statistics for admission to the program. Application requirements include a statement of purpose, academic transcripts from previous education, a current resume, recommendation letters, and English language proficiency for students whose native language is not English. Applicants with little or no professional experience are required to take the GRE exam.
- Location: Seattle, Washington
- Accreditation: Northwest Commission on Colleges and Universities (NWCCU)
- Expected Time to Completion: Three years
- Estimated Tuition: Contact UW for a customized assessment
Stevens Institute Of Technology
The online masters in financial engineering program offered by the Stevens Institute of Technology combines statistical analysis, mathematical modeling, finance, computer programming skills, systems thinking, and economics to solve financial problems at the enterprise level. In addition, this FE program emphasizes the latest techniques in algorithmic trading, risk management, and financial analytics.
Made up of 30 credits, the curriculum consists of a block of foundational courses: pricing and hedging, stochastic calculus for financial engineers, computational methods in finance, advanced derivatives, portfolio theory and applications, and a thesis in financial engineering. After these core courses, students can either select four electives of their own or select one of the following five concentrations: algorithmic trading strategies, financial services analytics, financial risk engineering, financial statistics, and financial computing.
To be considered for this program, applications must include the following: proof of a bachelor’s degree, official transcripts from all colleges or universities attended, a current resume, completed prerequisite courses (calculus and differential equations, probability and statistics, linear algebra, and programming), GMAT or GRE scores, two letters of recommendation, and TOEFL or IELTS scores for international students.
Students in the program learn to apply computational techniques, statistical analyses, and mathematics in solving real business problems. The systems-intensive and quantitative perspective of this program prepares graduates to solve problems in risk management, securities valuation, portfolio structuring, regulatory concerns, and optimization and simulation techniques.
- Location: Hoboken, New Jersey
- Accreditation: Middle States Commission on Higher Education
- Expected Time to Completion: 12 months
- Estimated Tuition: $1,716 per credit
An online graduate certificate in financial mathematics can be completed without ever setting foot on campus at the University of Central Florida. In addition, students in the online program have complete autonomy over their study schedules. This makes it an ideal choice for working professionals who wish to learn financial mathematics and pursue careers in the financial services industry and regulatory agencies.
In addition to the general UCF graduate admission requirements, applicants to the program must hold a bachelor’s degree from a regionally accredited institution and one official transcript (in a sealed envelope) from each college or university attended. No GRE is required for admission.
The program consists of nine credits of required courses and three credits of electives. Courses include financial mathematics I, differential equations for financial mathematics, risk management for financial mathematics, and computational methods for financial mathematics I and II.
At the end of the program, graduates can pursue opportunities as commercial analysts, portfolio managers, investment specialists or managers, senior financial data analysts, financial advisors, and regulatory scientists.
- Location: Orlando, Florida
- Accreditation: Southern Association of Colleges and Schools Commission on Colleges (SACSCOC)
- Expected Time to Completion: 12 months
- Estimated Tuition: In-state ($327.32 per credit); out-of-state ($1,151.72 per credit)
Columbia University’s certificate program in financial engineering is delivered 100 percent online through the Columbia Video Network (CVN). The program provides training in applying engineering and quantitative methods to finance.
Applicants must submit official transcripts from an undergraduate degree in mathematics, science, computer science, engineering, or a related field from an accredited institution; proof of a mathematical background; three letters of recommendation; a current resume; a personal-professional statement; and a $150 application fee.
Comprising four graduate-level classes (12 credits), the program includes instruction in stochastic models, optimization models and methods, the foundations of financial engineering, and quantitative risk management.
Upon successful completion of the program, graduates are well-equipped to enter financial management, banking, securities, consulting, and general manufacturing, among other industries.
- Location: New York, New York State
- Accreditation: Middle States Commission on Higher Education
- Expected Time to Completion: Two years
- Estimated Tuition: $2,196 per credit
The financial mathematics program offered by the Johns Hopkins Whiting School of Engineering helps students sharpen their managerial and quantitative skills so that they can advance their careers in the global financial industry. The following programs are offered:
- MS in financial mathematics
- Financial risk management graduate certificate
- Quantitative portfolio management graduate certificate
- Securitization graduate certificate
These online programs allow students to balance their life, family, and work while advancing their careers to the next level. Students analyze case studies on various topics such as risk management, financial derivatives, data analysis, quantitative portfolio theory, and Monte Carlo methods. Graduates of the program are eligible to take up senior management positions at top financial firms.
To apply for admission, students need an undergraduate or graduate degree in a quantitative discipline from a regionally accredited college or university, a minimum of two years of relevant full-time work experience in finance or a related field, transcripts, and proof of proficiency in English via TOEFL or IELTS scores for international students.
A total of ten courses must be completed in the master’s degree, while the certificates require the completion of four courses. Courses include an introduction to financial derivatives, financial risk management and measurement, financial engineering and structured products, interest rate and credit derivatives, statistical methods and data analysis, optimization in finance, Monte Carlo methods, and time series analysis.
Upon completion, students have access to a wealth of opportunities in management. They can take up leadership positions in financial and governmental organizations. In addition, they are equipped to apply engineering-driven approaches to construct and deploy financial transactions and processes.
- Location: Baltimore, Maryland
- Accreditation: Middle States Commission on Higher Education
- Expected Time to Completion: MS (five years); certificates (three years each)
- Estimated Tuition: $4,755 per course
Finally, here are some additional on-campus programs in financial engineering:
- New York University – MS in Financial Engineering
- Columbia University – Master’s in Financial Engineering
- Lehigh University – MS in Financial Engineering
- University of Illinois at Urbana-Champaign – Master of Science in Financial Engineering
- University of California-Los Angeles – Master of Financial Engineering
- Baruch College – Master of Financial Engineering
- University of California-Berkeley – Master of Financial Engineering Program
DIY Skill-Building in Financial Engineering
To grow as a financial engineer, students must be motivated to continue their education beyond the realm of formal degrees. This means taking up short-term courses and constantly upgrading their skills.
Various massive open online course platforms such as the ones listed below offer short-term courses in financial engineering. Top universities such as the Massachusetts Institute of Technology and New York University are administered a number of these courses. While most of the courses are free, students can add a certificate for a nominal fee.
Coursera is a worldwide online learning platform offering MOOC (massive open online courses), degrees, specializations, and master track courses. In addition, the platform works with colleges, universities, and other independent educational organizations to offer certifications, online courses, and degrees in several subjects, such as data science, engineering, machine learning, business, mathematics, computer science, and others.
Renowned faculty members from world-class universities teach the courses. Each course can be thought of as an interactive textbook, complete with videos, quizzes, and projects. As of June 2021, there are 512 courses offered in financial engineering (and related subjects) on the platform. Some of these courses include financial engineering and risk management courses from Columbia University, a financial markets course from Yale University, and the fundamentals of quantitative modeling offered by the University of Pennsylvania.
EdX—a trusted platform for learning and education, is a massive open online course (MOOC) provider founded by MIT and Harvard. Along with university-level online classes in various disciplines, edX also includes some free courses in its ever-expanding catalog.
The platform is home to over 20 million students, top universities globally, and industry leaders that converge on the platform to push the frontiers of traditional education. The platform is open to learners all over the world, irrespective of age and career stage. The self-paced, online format makes it a preferred choice among working professionals looking to advance their knowledge. It has over 20 courses in financial engineering to choose from. Some of these include:
- Deep Learning and Neural Networks for Financial Engineering – New York University
- Classical Machine Learning for Financial Engineering – New York University
- Mathematical Methods for Quantitative Finance – Massachusetts Institute of Technology
As a final note, other reputable providers of free or low-cost financial engineering education include Udemy, the Saylor Academy, and Harvard Open Courses.
