The financial engineer is a designer of mathematical and computer models designed to optimize financial investments in a stock exchange company or a company. He works to create measurement and investment tools to support the work of traders and investors. How to become a Financial Engineer? Find here the missions, necessary training, remuneration of this profession.
Mission of the profession: Financial engineer
The financial engineer can work in a stock exchange company, a bank, in investment funds or internally in traditional companies. Its missions, depending on the context, revolve around the following functions:
– In standby in a specific market, it identifies and analyses the evolution criteria in order to build mathematical instruments for measuring risks.
– He works on computers to build work systems to automatically analyze the losses and gains of stock market investments. He sometimes works in conjunction with traders. They, who invest directly in the trading room, are provided with valuation models for the various securities and investments.
– He creates financial products or standard solutions designed to maximize the profits of an investor or company.
– When working internally in a traditional company, he may be responsible for setting up complex financing files. He ensures the valuation of the company’s cash flow in original models and ensures the optimization of financial investments.
Becoming a Financial Engineer: Qualifications
The financial engineer must have a solid knowledge of applied mathematics. He is a scientist capable of producing complex reflection models adapted to the needs of his internal and external clients. He is also a professional in digital tool design. He is computer literate to be able to create extremely complex software and systems. The financial engineer is not only a mathematician or a computer scientist. He is also, according to his specialty, an expert in macro- and micro-economics. He must be able to discern and analyze the social, economic, stock market and political information that will influence investments. To build effective and coherent models, it must be able to know what will and will not have an impact on investments.
With a great work force and concentration, he is someone who knows how to resist pressure, work quickly and submit to the demands of an extremely demanding professional environment. Fluency in English is necessary in the international financial world.
Financial engineer: career / possibility of evolution:
The profession is accessible to juniors, often after a successful long-term internship in the profession or sector concerned, and the financial engineer can evolve towards various positions in finance and banking. He can work as a department manager in trading companies, or evolve into more traditional corporate roles as a financial manager.
Gross monthly salary of a beginner:
Becoming a Financial Engineer: training required
To become a financial engineer, a minimum of 5 years of higher education is required in mathematics or IT with a specialization in finance. Specialized masters are offered in engineering, business or economics schools (Paris Dauphine for example).
Situation of the profession / context to become a Financial Engineer
Since the 2008 financial crisis, jobs have become scarcer and are open to very high levels of qualification. Competition is fierce in this elite sector that attracts candidates from the best universities in the world. There may be more international opportunities than in Belgium.