Financial engineering encompasses a broad, multidisciplinary field of study and practice that,

essentially, applies an engineering approach and methodology to the world of finance. It integrates
and utilizes information obtained from different fields, such as economics, mathematics, computer
science, and financial theory. Much of financial engineering consists of converting financial theories
into practical applications in the financial world.

What Is Financial Engineering?

Financial engineering is the application of mathematical methods to the solution of problems in

finance.

It is also known as financial mathematics, mathematical finance, and computational finance.

Financial engineering draws on tools from applied mathematics, computer science, statistics, and
economic theory.

Investment banks, commercial banks, hedge funds, Fintech companies, insurance companies,
corporate treasuries, and regulatory agencies employ financial engineers.

These businesses apply the methods of financial engineering to such problems as new product
development, derivative securities valuation, portfolio structuring, risk management, and scenario
simulation.
 Financial Engineers, having built a very strong foundation of skills, are also able to succeed in Data
Science, ML/AI and Developer roles.

Quantitative analysis has brought innovation, efficiency and rigor to financial markets and to the
investment process.

As the pace of financial innovation accelerates, the need for highly qualified people with specific
training in financial engineering continues to grow in all market environments.