What can you do with a financial mathematics degree?
Published 16 Dec, 2021 · 3-minute read
Careers in financial mathematics are challenging, fast-paced and dynamic. It’s a multi-faceted profession where your skills can be applied across many different industries around the world.
But what do we mean when we say ‘financial mathematics’? Put simply, it describes the application of mathematics and mathematical modelling to solve financial problems. Financial mathematics is a collection of tools used in statistics, probability and stochastic processes, and it combines these with economic theory.
To be successful in a financial mathematics career, you’ll need:
the intellectual ability to master complex and abstract mathematical domains
the willingness to tackle and juggle multiple challenges as they arise
the endurance to work under the considerable pressure that comes with operating in an ever-changing and adapting sector.
If you’re interested in maths, statistics, financial and risk analysis, economic theories, and developing computational techniques to measure and manage risk in the financial marketplace, this could be the perfect career for you.
To help explain what careers in financial mathematics look like, we’ve collated a few examples of the diverse career paths on offer for people with a qualification in this quickly growing industry.
Market risk analyst
In a volatile and complex financial market, there’s a high demand for experts with the skill and knowledge to manage, monitor, identify, measure, analyse and mitigate market risks. Market risk analysts can be found within the financial services industry – specifically in banks – but also with investment dealers and fund companies as well as insurance companies.
Market risk analysts find employment in:
specialist risk management firms that consult and provide services to other firms
any organisations exposed to market risk through their treasury activities or their investments.
Market risk analysts play an important role within organisations, communicating the importance of risk management and contributing to risk management structures and processes. They use their mathematical and market expertise to develop and test market risk models that measure the potential losses a company could suffer under a variety of normal and abnormal market conditions. With this information, they provide valuable insights and recommendations to help set risk limits and hedging processes to mitigate market risk.
Quantitative analysts play a crucial role within the finance sector, at investment banks, hedge funds and private equity firms. They identify investment opportunities and manage the inherent risk that comes with meeting the increasing needs of a globalised modern economy.
As a quantitative analyst, you’ll apply mathematical and statistical methods and implement complex models used by firms to help solve critical financial and risk management problems.
Quantitative analysts find employment in:
financial software and information providers.
The financial sector continues to go through many changes and innovations, which means demand for specialists who can understand complex mathematical models is very high. With a qualification in financial mathematics, you’ll be well equipped to fill that gap in the job market and make a big difference to the financial marketplace as an expert quantitative analyst.
Data science has played a significant role in tech in modern times and is poised to transform pretty much every sector imaginable. Data scientists play a critical role within organisations, searching for patterns in large amounts of raw data, performing robust analytics, and building machine learning pipelines and personalised data products.
Their work is all about better understanding their business and customers in order to make better decisions. The highly granular and detailed information gathered by data scientists can be used to uncover valuable insights into – and potentially solve – real-world problems.
Data scientists find employment in:
many other industries.
To become a successful data scientist, you’ll need a specific skillset including:
strong interest in data collection and analysis
strong technical skills and confidence with programming in a variety of languages such as R, python, SQL, and SAS
strong mathematical abilities
excellent communication skills.
Study financial mathematics at UQ
UQ’s Master of Financial Mathematics will equip you with sophisticated mathematical and computational techniques to measure and manage risk in the financial marketplace.
You’ll be able to experience financial markets first-hand with an industry placement project at several banking, superannuation, finance, tech solution and electricity companies throughout Brisbane. These placements have been highly beneficial to past students, who have gone on to forge meaningful and impactful careers in the exciting world of financial mathematics.
We can’t wait to see what you’ll do with your financial mathematics degree.