Financial Engineering (MSc, Executive) at HECTOR School Karlsruhe Institute of Technology

We see modern Financial Engineering as the science of data-driven decision-making in business environments. Building more accurate models reduces uncertainty around future events and paves the way to better decision-making. Learning from data and using classical statistical concepts and novel concepts from machine learning help businesses across industries and geography solve predictive data analytics and valuation problems. Today’s predictive learning schemes perform tasks that were previously only solvable by a limited group of experts. Advances in predictive analytics and learning will affect all business models and industries. Financial tasks in particular will be transformed at an astonishingly fast pace. Vast amounts of data, paired with the individual's and institution's desire to plan ahead to meet future obligations and investments, make financial decision-making in its broadest sense an especially appealing application of predictive analytics and learning schemes.

Our Master’s programme in Financial Engineering with a special focus on Data Science, Artificial Intelligence (Machine Learning) and Predictive Analytics prepares decision-makers to model and understand data across a variety of business fields and problems.

The first two engineering modules teach fundamentals of finance, financial economics, data science and Python and pair these with novel developments in the field of digital business models, allowing our students to grasp the status quo and business opportunities that arise in this lucrative business field. The third and fourth engineering modules introduce business decision-makers to machine learning and engineering aspects to ground data-driven decision-making in hard science. The last engineering module is devoted to teach how alternative data, for example, in the form of text data, and advances in machine learning can be used to innovate in tomorrow’s business world.

Most of these engineering modules are divided into a conceptual and a hands-on computational part to allow our Master's students to understand and work with predictive analytics and learning schemes in a variety of decision-making contexts.

For the Master's thesis, we encourage our students to aim high and to solve a data problem for individuals, institutions or society at large. We believe there is no better time to start your own data-driven technology adventure than during your Master's thesis. The vibrant technology environment of the KIT, together with the numerous businesses in the area of Karlsruhe, offers a rich pool of problems that wait to be solved.

Each module has a duration of 10 days.

Preparatory Courses:

For applicants who hold an academic degree outside of the required fields but have several years of relevant professional experience, we offer preparatory modules in "Probability and Statistics". The exact dates are available upon request.

Engineering Modules (EM)*:

EM 1 Digital Financial Markets:

• Global Financial Markets
• Block Chain Technology
• Digital Currencies and Business Models
• Introduction to Python

EM 2 Financial Economics for Data Scientists:

• Financial Economics
• Fundamentals of Financial Data Science

EM 3 Machine Learning for Data-Driven Decision-Making:

• Machine Learning for Decision-Makers
• Fundamentals of Financial Machine Learning
• Kernel and Bayesian Methods in Machine Learning

EM 4 Engineering Aspects of Financial Markets:

• Fundamentals of Financial Engineering
• Derivatives and Value of Optionality

EM 5 Alternative Data and Machine Learning for Business Applications:

• Text Mining and Natural Language Processing
• Advances in Machine Learning and Pattern Recognition

Management Modules (MM)*:

MM 1: Marketing & Information:

• Data-Driven Marketing
• Information Systems Management
• Data Analytics
• Legal Aspects of Information

MM 2: Finance & Value:

• Management Accounting
• Sustainability
• Strategic Financial Management
• Case Studies

MM 3: Decisions & Risk:

• Decision Modelling (+ Computer Tutorials)
• Risk-Aware Decisions (+ Case Studies + Finance)
• Interactive Decisions
• Robust and Stochastic Optimisation

MM 4: Innovation & Projects:

• Technology-Driven Innovation
• International Intellectual Property Law
• Project Management
• Multi-Project Management in an International Setting

MM 5: Strategy & People:

• Strategic Management
• Managerial Economics
• Business Organisation & Corporate Law
• Strategic Human Resource Management
• Leadership and Conflict Management

*may be subject to change

University qualification:
Applicants must submit proof of one of the following first academic degrees: Bachelor's, Master's, Diploma (German "Diplom"), etc. (university, university of applied sciences, cooperative state university), in a relevant subject such as engineering, natural sciences, information science, or economics. Other degrees may be accepted in exceptional cases.

Professional experience:
Depending on the level of the first degree (210 or 180 ECTS points)

• A minimum of one or two years of practical experience in the specific field of the course is required.
• Three years of work experience are recommended.
• References are required as evidence.

For further details, please see:
HECTOR School – Admission Requirements

Approx. 150 EUR per semester

Approx. 1,000 EUR per month

Tips on finding a job and how to apply in Germany are available. Find more information on the services webpage: HECTOR School – Services.

The HECTOR School is integrated in the campus of the International Department of the KIT with its own campus accommodation, which is available to all students of the International Department upon request.

For further information, see the website: HECTOR School – Accommodation.

Being “The Research University in the Helmholtz Association”, KIT creates and imparts knowledge for society and the environment. Its objective is to make significant contributions to the global challenges in the fields of energy, mobility, and information. To this end, KIT employees cooperate across a broad range of disciplines in natural sciences, engineering sciences, economics, and the humanities and social sciences. KIT prepares its students for responsible roles in society, industry, and science by offering research-based study programmes. Innovation efforts at KIT build a bridge between important scientific findings and their application for the benefit of society, economic prosperity, and the preservation of our natural basis of life. KIT is one of the eleven German universities of excellence.

As the only German university of excellence with a national large-scale research sector, KIT offers excellent study conditions. Nowhere else are the opportunities to become directly involved in research better. The spirit of KIT, one of the biggest scientific institutions in Europe, where long university tradition is combined with programme-oriented cutting-edge research, is that all researchers get involved in teaching and that all students participate in thrilling research projects at an early stage of their studies. Graduates of KIT are among the most sought-after young talents. KIT understands the application of scientific findings as a basic principle. According to the QS Graduate Employability Ranking 2022, KIT is the best university in Germany, the tenth-best in Europe, and in the top 46 worldwide. The ranking focuses on the preparation of university graduates for the labour market.

The large KIT campus is located in the city centre of Karlsruhe, and it borders the Hardtwald Forest, a perfect place to take a leisurely stroll. The proximity to Alsace and the mild climate of the Rhine River give the Baden metropolis an almost Mediterranean flair in the summer.

Founded in 1715, Karlsruhe is the second-largest city in the federal state of Baden-Württemberg. It is also known as the "Residence of Justice", being the seat of Germany's two supreme courts (the Federal Constitutional Court and the Federal Supreme Court).

Karlsruhe is located in south-western Germany, and it has about 300,000 residents. Its central location within Europe offers unparalleled opportunities for exploration and connectivity. Situated at the crossroads of major transportation networks, students have easy access to neighbouring cities like Stuttgart, Frankfurt, and Strasbourg as well as popular European destinations such as Paris and Zurich. This accessibility opens doors to potential career opportunities and internships within multinational companies and research institutions.

Moreover, Karlsruhe's cultural scene is as diverse as it is enriching. Home to world-class museums, theatres, and galleries, the city offers a plethora of cultural experiences to suit every taste. From the iconic Karlsruhe Palace and the State Art Gallery to the avant-garde ZKM Center for Art and Media, students can immerse themselves in history, art, and innovation. The city's vibrant music and theatre scene ensures a wealth of performances and events to enjoy.

The local economy is based on a well-developed structure of medium-sized businesses, particularly in forward-reaching technologies such as computer science, multimedia, control systems, energy technology, and environmental science as well as nanotechnology. Several major companies, among them Bosch, Siemens, Daimler AG, and Michelin, have production facilities in the region. Major research and development institutions (e.g. Fraunhofer Institute, Intel research campus) are part of the reason why the innovative potential of this city and region is well known worldwide.