How to Get Into Finance After Engineering

Why Move to Finance After Engineering?

Before jumping into the steps, let’s briefly discuss why you might want to make the switch.

Engineers are great problem-solvers and critical thinkers, two skills that are highly valued in finance. With an engineering background, you may already have an analytical mindset, an ability to work with numbers, and familiarity with technology. All these qualities are essential in finance roles, such as investment banking, financial analysis, risk management, and fintech.

The finance industry also offers attractive salary packages, career growth opportunities, and global exposure. So, if that’s what you’re looking for, you’re on the right track!

Step-by-Step Guide: How to Transition into Finance

Step 1: Understand the Finance Landscape

The first thing you should do is gain an understanding of the finance world. Finance is a broad field with many specializations, including:

• Investment Banking

• Corporate Finance

• Financial Analysis

• Risk Management

• Fintech

• Trading

Each of these roles requires a unique skill set. Understanding what excites you the most will help narrow down the right path for you. Do some research on job descriptions, attend finance-related webinars, or connect with finance professionals to get a clearer picture.

Step 2: Develop the Required Skills

You already have strong technical skills from your engineering background. Now, it’s time to build finance-specific skills. Here’s a list of skills that are essential in finance:

• Financial Analysis: Learn how to interpret financial statements, balance sheets, and income statements.

• Valuation Techniques: Get familiar with different valuation methods like DCF (Discounted Cash Flow) and comparable company analysis.

• Excel and Financial Modeling: Learn how to build financial models using Excel.

• Knowledge of Markets: Stay updated with current financial markets, trends, and news.

• Communication Skills: Since finance often involves working in teams or dealing with clients, strong communication skills are crucial.

Example:

Let’s say you’re interested in investment banking. You’ll need to be good at financial modeling, valuation techniques, and mergers & acquisitions (M&A). You can start learning these topics through online courses or financial certifications.

Step 3: Pursue Relevant Certifications

Certifications can make your transition smoother by providing you with a structured learning path and credibility in the finance world. Some of the most popular certifications in finance include:

• CFA (Chartered Financial Analyst): Great for roles in investment banking, asset management, and financial analysis.

• FRM (Financial Risk Manager): Ideal for those interested in risk management.

• CPA (Certified Public Accountant): Useful for accounting and finance roles.

• CFP (Certified Financial Planner): Focuses on personal financial planning.

Example:

If you’re aiming for a career in financial analysis, pursuing the CFA certification would give you in-depth knowledge of investment tools, portfolio management, and financial reporting.

Step 4: Gain Practical Experience

You don’t need to wait until you land a finance job to gain experience. There are several ways to get practical exposure while you’re still learning:

• Internships: Look for finance internships. Many firms hire interns from non-finance backgrounds, especially if you can show your enthusiasm and willingness to learn.

• Freelance Projects: You can offer freelance financial modeling or valuation services online.

• Competitions: Participate in finance case competitions or stock market simulations to test your skills in a real-world setting.

Example:

If you’re interested in corporate finance, find internships or entry-level roles that allow you to analyze financial data, assist with budgeting, or work on financial planning for companies.

Step 5: Leverage Your Engineering Background

One of the key advantages you have is your engineering background. Finance is increasingly becoming tech-driven, and your understanding of technology can set you apart. Quantitative roles in finance, such as algorithmic trading, financial engineering, or working with fintech companies, require technical skills like programming, data analysis, and automation—things you’ve likely already encountered as an engineer.

Example:

If you’re interested in fintech, roles in blockchain technology, robo-advisors, or data-driven financial analysis might be a great fit, blending your engineering expertise with finance.

Step 6: Network, Network, Network!

The finance industry places a high value on relationships. Networking can help you land interviews, internships, or even a job. Reach out to finance professionals through LinkedIn, attend finance-related events, or join finance clubs.

• Join finance groups on LinkedIn.

• Attend virtual seminars and workshops related to finance.

• Connect with finance professionals and ask for informational interviews.

Example:

You’re aiming for an investment banking job. By connecting with current investment bankers and attending finance seminars, you can better understand the role, learn what recruiters look for, and potentially get referred for interviews.

Step 7: Tailor Your Resume

Now that you have some finance knowledge, certifications, and maybe even practical experience, it’s time to update your resume. Highlight any finance-related coursework, certifications, and experience. Emphasize how your engineering skills transfer to finance roles—such as your analytical mindset, technical proficiency, or problem-solving skills.