Difference Between Masters in Financial Engineering & Masters in Finance

The terms finance and financial engineering may appear similar but are different in their respective fields. You may confuse them for being the same but there is a distinction between the two as well as the courses designed to achieve success in respective areas. Finance may act as a common thread between the two but the type of knowledge given in both the fields exhibits a huge gap between them. 

Some other programs related to finance include an MBA in Finance. This course offers you a wide variety of subjects to study from but does not go too much in-depth in finance. It gives you an overview of finance and helps in knowing about the basics of this field.

The major differences between masters in financial engineering and masters in finance are listed below.

• The Background Factor 

To pursue MS in finance requires a finance background and for a master’s in financial engineering, you require a technical background. Financial engineering is headed by the school of engineering and is taught as a joint program in collaboration with the school of management. On the other hand, MS in Finance is taught and headed by the department or school of management. 

To be sure about the schools, it is always better to research it properly so that you know which courses are headed by which department. This is necessary from the entrance point of view. 

The school of engineering teaching MS in financial engineering admits students based on the GRE score while the school of management looks for your GMAT score. To qualify and get admission in either of the courses, you will be required to give exams like IELTS, PTE, or TOEFL.

• Focus Areas

The main areas that are focused upon in financial engineering are analytical and quantitative studies. It aims to make you learn how these concepts can be applied in finance and help you achieve your dream projects.

On the contrary, MS in Finance deals in-depth with financial concepts and theories. It prepares you for dealing with the market and understanding the trends of the economy. 

When looking for MS in financial engineering or finance in Singapore, you must look for the opportunities that you will have ahead of you after completing the course. It is always good to get in touch with the respective schools and have an idea about the scopes available in this field.

• Subjects Included

The curriculum of both the courses is different and is taught by keeping in mind the technicalities of each field. 

The subjects that are taught most commonly during MS in Financial Engineering are Introduction to Derivative Securities, Financial Economics, Financial Risk Management, Quantitative Methods of Finance, and much more.

MS in Finance includes subjects like Corporate Finance, Finance Theory, Financial Markets, Finance Ethics, and Regulation, etc. The subjects are designed in a way that they provide maximum understanding to the students about the concepts.

Both courses are well designed and offer great jobs in their fields. If you have an interest and confidence in going ahead with these courses, start preparing for the entrance exams now and get admission to the top-rated college or university.