HOW HARD IS QUANTITATIVE FINANCE/FINANCIAL ENGINEERING? #Finance

hello Hi how are you guys uh today I’m going to talk about the difficulty level of quantity Finance somebody asked me this question how difficult is quantity

href="https://cashnews.co/finance" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance and how competitive it is well the field is very competitive because any career in banking and text-decoration: none;">Finance is quite competitive not just quantitative Finance but quantity text-decoration: none;">Finance is very academic in nature so it’s academically quite difficult it’s a technical area and I think all the technical areas whether it is uh software development or any other engineering field scientific research or quantity

href="https://cashnews.co/finance" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance all of all the technical areas are quite difficult but um compared to say software engineering quantitative #1a73e8; text-decoration: none;">Finance is more difficult in my opinion there are exceptions but an average Quant job is more difficult compared to an average software engineering job I’ll tell you why the reason is okay um quantity

style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance is very multi-disciplinary like in software engineering where you just learn a programming language quite well and you you can get started with the you know writing softwares that’s not the case in quantity

href="https://cashnews.co/finance" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance uh in in Quant Finance you will need to study a lot of things it’s very

multi-disciplinary the many areas which are you know directly or indirectly related to quantity Finance whether it’s mathematics statistics econometrics programming algorithms uh

href="https://cashnews.co/finance" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance Accounting economics so you really need to master a lot of lot of things you have to cover a lot of things in order to even be able to clear the interval right to get

the first job that itself is quite difficult if you are someone from Accounting or economics background you have to study computer science coding and some parts of mathematics and if you are someone from mathematics or engineering background you’ll have to study economics

href="https://cashnews.co/finance" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance Accounting and when coding as well if you’re not from non-cs background so because it covers a vast area it’s therefore bit difficult right you really need

to know a lot of things but it’s not just of the academic areas uh because of which it is difficult there are other things also for example you need to understand uh quite a number of things about banking right banking itself is very exhaustive is is very detailed it’s it’s it

covers a lot of things but if you really want to be a good Quant you need to understand many areas of banking if you’re a software developer you really need do not need to understand the business actually the product manager will tell you what to build although it’s good to know the

business as a software developer but it is not required ah but as a Quant you really need to understand the business very well and because banking is so vast and because there are many areas of banking right you could be working in Credit risk Within Credit risk

you could be working in retail Credit Risk Management uh or you could be working in Credit assessment of commercial clients within commercial clients there are various types of you know asset classes so you might have to understand all of them

sometimes right and then if you work in something else like in Market risk again your market assessment the modeling techniques uh regulatory guidelines might vary with respect to the asset classes if you go to pricing and you know derivative pricing into those areas again things might differ

because based on the product the financial product you are working on so understanding these things is very difficult and you won’t find much about these things on the public domain you might read some books but those books would be very theoretical you can only learn about these um only

after working actually because lot of things are secret and you do not have to I mean you cannot find details about banking products and uh you know how they are actually used in Real World um on public domain that not much is known uh there are some good books to get started but um you really need

to work hard in order to be able to understand those things actually and for many points the big the biggest challenge is to understand the business because as as a quand you do not walk close very closely with the business but you really need to have good understanding of the business so

that’s definitely a challenge and there is no intermediate sort of a business analyst who will explain things to you uh you really have to do that yourself unlike in software development where you have product managers business analysts will talk to the business and they will talk to you as a

software developer the requirement that’s not the case in Quant Finance okay um it’s a very Dynamic field also right because uh Banks and Insurance companies or

the financial wall Assets is very regulated and regulation keeps on changing so every time there is something new uh a lot of changes will happen and you need to then adapt to those changes so that could be a challenge okay but it goes without saying that any job Within Banks uh uh

is is a very challenging one actually banking itself is very uh challenging business so it’s not different okay it’s very competitive for a variety of reasons first thing uh any job in in a bank is very competitive because the pays are quite good in Banks and jobs are also relatively

more secure compared to let’s say uh working in Tech firms hence it’s more competitive but quantitative jobs are also way more competitive than other banking jobs the many reasons we ended but I’ll tell you the main reason because a lot of people from Academia those who are PhD in

physics maths chemistry biology engineering computer science you know many of them do not find jobs in Academia or they find Jaws but the pays are very very bad there so they want to uh you know make a career in in quantity #1a73e8; text-decoration: none;">Finance and you will find that in most banks uh uh there are like many many uh colleagues you will have many many colleagues who are highly qualified uh with the double masters with PhD postdocs right so you will be working with a lot of qualified people highly

qualified people and it could therefore be very competitive sometimes um right that’s been my experience by the way you could have a very different experience though and in non-regulatory space right in in private funds uh you will have even more competitive atmosphere simply because first of

all the money is great the second thing is that these companies do not hire a lot of quants they hire only a few a handful of them and if you make there I think it will be very competitive to survive also because if you don’t make money then they will let you go okay um the job as such is

also very demanding because as a Quant you need to be skilled in many areas right you need to be able to understand mathematical every quantitative research papers you need to be able to understand business and text-decoration: none;">Finance you need to be able to write code um and you need to be able to write to well also because uh when you build a model you will have you also have to write the documentation of that and the quality of documentation in uh quantitative

href="https://cashnews.co/finance" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance is much much much better compared to that in software engineering let me tell you um so you also need to have good writing skills in uh if you work in Risk Management or

in quantitative Finance so someone having skills in these many areas right someone who can write code who can understand mathematics can write a well can talk to people from business manage

stakeholders you know someone who has that many skills uh will of course be very well paid which is the case but that area itself is quite demanding because you will be expected to know a lot of things right and it’s very difficult to be good in so many areas right I haven’t seen people

actually who are good in all areas like the many highly technical people sometimes they may not be really good at stakeholder management or uh uh you know there may be some issues with regards to soft skills and on the other hand you will find many people who are really good at stakeholder

management they can deliver projects they can do good work when it comes to you know talking to Regulators or or people from front office but they may not really understand the details about models algorithms right sometimes you will have a mix of both sort of people in in teams but in many uh

especially in small Banks or private funds that you don’t you will not have the luxury of having a team with people from different skill sets you know you really need to know everything so that could sometimes be very demanding and uh could be very difficult okay having said that let me also

tell you that if you are really interested and if you have under a good understanding of mathematics and you you love Finance and banking I think it should not be a challenge

right another thing is that uh if you are working in a very difficult area right and you have that Niche skill your demanding the job market will also be very high it’s not very easy to uh fill up a vacancy in in quantitative color: #1a73e8; text-decoration: none;">Finance I mean managers will not hire data scientists from other businesses other domains other Industries to fill in you know Quant positions

they will not do that hence uh you will always be in demand in the job market and that’s what I have seen also in return recent times that although many people are losing jobs in many other fields especially in the tech sector but banks are still hiring uh and the hiring quants a lot of

points so the demand for Quant is still still quite quite quite good actually thanks to Regulators they’re putting a lot of pressure on banks to hire uh quantity people all right if other questions don’t hesitate to ask me um you may want to subscribe and please let me know uh what

questions you have please ask me in the comment section or you can also write me thank you guys