Advancing the Field of Quantitative Finance
formerly the IAFE

Student Resources / 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, 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.

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.

How to Use this Site?

The IAQF has prepared several types of resources to help students who are thinking about going into this field. On this page you will find links to more detailed descriptions of financial engineering as a profession and as an academic discipline. On other pages within Student Resources you will find:

IAQF’s How I Became A Quant Series
An excellent way for students to learn more about the opportunities in this field are through the "How I Became a Quant" panels that the IAQF conducts. If you are a member of the IAQF, you may also want to look at a recording of a previous panel by clicking here. If you are not a member of the IAQF, click here to see a free preview of these recordings and then consider joining the IAQF (student membership is only $25 a year – click here)

The series also launched the recent publication of the book entitled “How I Became A Quant