Financial Engineering, in simple terms, is a field that integrates mathematics, statistics, and computer programming to solve financial problems.
It's worth noting that at different schools, the specific program names may vary, such as Financial Mathematics, Mathematical Finance, Quantitative Finance, or Computational Finance. These programs are generally referred to as Master's in Financial Engineering (MFE).
The curriculum is also similar, mainly covering statistics, stochastic processes, computer programming, securities derivatives pricing, risk analysis, financial models, financial information analysis, and some advanced financial theories.
Application Requirements
The competition for MFE applications has become increasingly intense in recent years, with acceptance rates at top-ranked schools generally below 8%. For Financial Engineering in the U.S., there are around 20 or more schools ranked within the top 100. Applicants are advised to apply to as many schools as possible, unless you are a highly exceptional candidate with superb credentials.
Test Scores
Generally, TOEFL 100+ and GRE 320+.
GPA
Financial Engineering places great importance on applicants' GPA (especially the GPA in major courses), particularly for those without full-time work experience. On a 4.0 scale, a GPA of 3.7 or higher allows you to target highly competitive, top-ranked schools. Students preparing to apply for Financial Engineering should strive to improve their GPA during school, ensuring particularly high grades in mathematics, programming, investments, and finance-related courses.
Mathematical Requirements
Financial Engineering places a strong emphasis on applicants' mathematical foundations. The foundational required math courses include calculus, linear algebra, ordinary and partial differential equations, probability theory, and statistics. In addition to these, most Financial Engineering programs require prerequisite courses in stochastic processes, multivariate data analysis, and numerical methods.
Programming Skills
A certain level of programming ability is an important requirement for admission to most Financial Engineering programs. Applicants with proficiency in languages such as C++, Java, Python, or mathematical/statistical software like MATLAB and R have a significant advantage.
Financial Knowledge
Applying for an MFE requires a fundamental understanding of financial products, especially derivatives pricing
(understanding the definition, risks, and how to hedge them). Additionally, a certain understanding of interest rate models is needed, and it's also beneficial to take a risk management course in advance.
Work Experience
As a career-oriented master's degree, Financial Engineering favors applicants with extensive relevant internship experience (such as at investment banks or securities firms) during their undergraduate studies. Applicants can pursue internships in quantitative research, investment, research, or risk management departments at banks, fund companies, securities firms, or financial institutions—roles in trading are also suitable.
Essay Writing
As we all know, as a crucial part of the application process, a well-written, distinctive essay (especially the personal statement) can greatly increase your chances of receiving a dream offer.
However, crafting a good essay is no easy feat. Diagnosis and positioning → material mining → framework outline → first draft → revision and refinement → final version—each step requires meticulous effort and thorough preparation.
Therefore, we have invited a business tutor from CheersYou（清柚教育） to give a special lecture on Financial Engineering essay writing~
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Graduated from NYU's Financial Engineering program
1. How to Write an Engaging Opening
A good essay opening should be engaging and reflect the applicant's unique qualities. Applicants come from diverse backgrounds and experiences, so naturally, a good MFE essay opening will also vary. Fortunately, most MFE applicants share similar backgrounds—for example, they often come from STEM majors, and their internships or work experience tend to focus on quantitative roles in investment banks or funds. By leveraging these commonalities, we can find patterns for essay openings. Now, let's extract some examples from past essays and add analysis to help you understand opening techniques for finance essays.
2. How to Write a Substantive Project Description:
First, we need to understand what the MFE essay looks for.
From the projects described in a student's essay, the admissions officers simply want to see what the applicant has learned and applied in the relevant field. The three foundational disciplines of Financial Engineering are mathematics, computer science, and finance/economics. Therefore, any projects related to these three areas during undergraduate studies can be used in the essay. Even if the student's experiences are limited or not directly relevant, we know we should tailor them in this direction.
However, listing these projects isn't enough; we still need to choose a focus for our writing. Naturally, the key points should be related to Financial Engineering. So what are the common Financial Engineering-related aspects in these projects?
In general, it's anything related to "quantitative finance." In mathematics, this often involves data processing, such as regression analysis and various models; in computer science, it typically involves finance-oriented projects like Monte Carlo simulations, stock analysis programs, etc.; in finance, it includes trading and algorithm-related projects. If your own projects lack a strong quantitative background, try to align them with these three disciplines when writing.
3. How to Write a Convincing Internship Experience?
The vast majority of Financial Engineering applicants have some financial background during undergraduate studies, one manifestation being participation in finance-related internships. Therefore, writing about internship experiences well and making them stand out is a major focus in MFE essay writing.
How exactly can you write an impressive internship experience? With so many applicants from similar companies and positions, how can you differentiate yourself?
Below we provide some examples.
4. How to Write the "Why School"?
No essay can skip the part where you explain why you choose that particular school and program; this is commonly referred to as "Why School."
A standard Financial Engineering essay, after writing the middle paragraphs properly, essentially answers "Why Financial Engineering?": the student’s accumulated knowledge in the field and their fit with the MFE program already explain the connection. Thus, the main goal of this section is to explain why this particular school, and to outline post-graduation plans.
If you have a personal connection to the school, definitely write about it; if not, you can draw from the program's official website and include descriptions of technically rigorous courses, such as stochastic calculus, various option pricing models, quantitative portfolio management, etc. For short-term goals, it's practical to mention joining a major financial institution, possibly adding the pursuit of CFA or FRM certifications. For long-term aspirations, you can write about transforming China's financial environment. This section is less critical than previous parts, and if a particular part becomes too long, it can be split into two paragraphs.
That concludes today's explanation of Financial Engineering essays. If you have any further questions about study abroad applications or essay writing, feel free to add "CheersYou（清柚教育） Bro" (WeChat ID: qingyouge23) to consult~
