Finance and Financial Engineering, so similar yet so different. A lot students tend to get confused between the two, as well as MBA in Finance. All three of these degrees are quite different even though they might have the same focus area - FINANCE!!
While an MBA in Finance is a good option, it doesn’t go in depth in Finance. You study a wide variety of subjects but none truly in depth. If you wish to take a managerial position and are learning a team working in finance, then doing an MBA in Finance is a great option! It will teach you about the basics and give you a great overview in Finance along with the necessary management and business focused subjects.
Now, let's discuss the other two degrees: MS in Finance and MS in Financial Engineering.
There are a few points of comparison between the two:
1. Focus Areas
If you are interested in Analysis and Quantitative study and how they could be used in Finance, then MS in Financial Engineering is the course for you. For more details refer to the blog on MS in Financial Engineering courses.
On the other hand, if you like learning about financial concepts and theories and how they can be used in today’s market, then MS in Finance is the course for you!
2. Background
MS in Financial Engineering would require you to have some kind of technical background.
While, MS in Finance would require you to have some kind of finance related background.
MS Financial Engineering, in a lot of cases, is taught by the school of engineering as a joint program with the school of management. MS in Finance is taught by the school of management.
Make sure to check which school is teaching the course as the entry requirements will vary greatly for both.
The School of Engineering would generally require a GRE score, whereas the School of Management would require a GMAT score. In both cases, you will need to give either the TOEFL, IELTS or the PTE exam.
3. Curriculum and Subjects
MS in Financial Engineering includes subjects* like:
- Quantitative Methods in Finance
- Machine Learning in Financial Engineering
- Overview of Derivative Securities
- Economics of Finance
- Managing Financial Risk
- Finance Programming in R, and more.
*Courses sourced from the MS in Financial Engineering program at NYU Tandon School of Engineering.
The MS in Finance program features courses* such as:
- Markets in Finance
- Corporate Financial Management
- Theory of Finance
- Financial Accounting for Corporations
- Regulation and Ethics in Finance
- Financial Analytics, and others.
*Courses sourced from the MS in Finance program at MIT Sloan School of Management.
4. STEM Designation
Both programs are typically classified as STEM fields, making you eligible for the OPT extension.
5. Career paths and employment prospects
Earning a degree in Financial Engineering qualifies you for positions that combine finance with analytical methods and machine learning. Potential job titles include Financial Engineer, Derivatives Analyst, Credit Risk Manager, and others. Your work will involve analyzing data and reports to support definitive financial decision-making.
Earning a degree in Finance qualifies you for positions focused primarily on financial operations. Potential job titles include Financial Advisor, Associate Finance Manager, Financial Admin, Financial Broker, and others. Your primary responsibilities will center on the finance sector.
We trust your questions have been resolved so you can now choose wisely!
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