Financial technologies and globalisation trends have effectively revolutionised the way we set up and operate our financial markets today. From accounting for decentralised financial markets like cryptocurrencies to adopting new technologies and financial technological services like BNPL (buy now, pay later), and finding new solutions to inflation resulting from geopolitical disturbances, the tens of thousands of Australians working within the financial sector have never had more opportunities to chart out a career trajectory that’s tailored to their professional goals.
The key in knowing what opportunities you’d like to pursue is knowing exactly what there is to be learned across every potential role. And that starts with equipping yourself with a stronger, whole systems understanding of the global financial sector today. That’s precisely what you can do with an applied finance master’s degree.
What is applied finance?
In simplest terms, applied finance is the practical use or application of financial theories to solve real-world commercial and economic problems.
Unlike general finance, which focuses heavily on abstract financial theories and academic research, applied finance instead directly ‘applies’ or tests financial theories within real-world contexts and circumstances. The use of hands-on case studies in applied finance courses makes graduates highly equipped for problem-solving projects across both the public and private sectors.
Key subjects, disciplines, and learning outcomes
Much like a general finance degree, an applied finance course delivers core theory-based subjects, like international finance, financial ethics, derivatives, portfolio management, and financial modelling/data analysis, etc. Alongside these core subjects, an applied finance degree might widen the scope even further, including niche areas of study like:
- fintech,
- financial lawmaking and market regulation,
- financial programming,
- cryptocurrencies and blockchain technologies,
- FinTech (Financial Technology),
- Micro- and macroeconomics, and
- AI and robotics in the finance sector.
Understanding what elective subjects to take alongside completing core course components starts with determining what disciplines you’d like to focus your applied finance qualification in. And like all tertiary study strategies, the best way to pick your ideal discipline is to look at learning outcomes and how they may translate into career pathways and job opportunities post-graduation.
Applied finance courses typically encourage students to focus on any of the following core focus areas or disciplines:
Corporate finance
Exploring basic business economics and financial management, a focus on corporate finance will prepare applied finance graduates for senior-level positions across the private sector, including business or branch manager positions as well as corporate finance manager, analyst, and even CFO positions.
Corporate financial strategising, implementation, and monitoring are also key learning outcomes for students in corporate finance streams. During your applied finance course, you can expect to develop business budgets for teams of varying sizes, as well as analyse capital structures, and even conduct corporate valuations.
Financial modelling
Financial modelling is a vital function in public policy, allowing policymakers a widened information scope to better determine the economic impacts of any new bills or government-funded initiatives.
Outside of the public sector, financial modelling using industry-grade modelling software and real-world data, can be used to simulate market scenarios and play out business strategies. For example, if an Australian company wanted to expand their operations to the wider Asia-Pacific, a finance analyst could conduct a modelling experiment to determine within a margin of error the estimated profitability/ROI of that expansion during any given period of time (based on forecasted market trends or when compared to historical data YoY).
Investment management
Managing a robust investment portfolio is a full-time job that demands high-level financial industry knowledge and market acumen. From building portfolios and managing returns to evaluating asset classes and performance over time, the key to investment management is a keen understanding of what constitutes a healthy portfolio across a variety of market conditions – not just when things are looking good.
For applied finance students with a keen interest in portfolio management or even business growth strategising, a focus in investment management can ensure a strong academic foundation upon which you can build an illustrious career.
Risk management
Risk assessment is a vital component of any healthy financial strategy, be it across the public or private sector. As financial markets are evolving rapidly in the face of AI, fintech products and services, and decentralised finance (and the digital security risks that come with it), assessing and mitigating dynamic financial, operational, and economic risks has never been more important.
Risk management skills within the context of applied finance are highly in-demand, providing a wide variety of career pathways for graduates within this discipline, ranging from working in cryptocurrencies and blockchain technologies, to portfolio risk analyst roles, and even financial and economic policymaking.
Top career pathways for applied finance graduates
Applied finance degrees are available at undergraduate and postgraduate levels, with career opportunities varying based on academic and industry experience. For students with advanced qualifications like a Master’s in Applied Finance, they can anticipate eligibility for senior-level positions, including financial manager roles, and managing director positions at banks or other financial institutions (lenders, etc.).
Applied finance graduates can also enjoy career progression opportunities across the wider private sector, with SMEs recognising financial qualifications as high-value for business leaders (i.e. senior managers, branch managers, CEOs, CFOs, and COOs).
For those looking for high-profile roles in the financial services sector, there are also lucrative opportunities to work in investment banking, portfolio management, and emerging markets like fintech and cryptocurrencies.
To summarise, here’s just a quick list of some of the most in-demand roles available to applied finance graduates:
- Finance Manager
- Managing Director (i.e. for banks, financial institutions, etc.)
- Financial Analyst
- Chief Financial Officer (CFO)
- Portfolio Manager
- Portfolio Risk Analyst
- Investment Analyst
- Hedge Fund Manager
- Private Banker
- Broker/Lender/Consultant
Is applied finance the right career pathway for you?
With virtually all national economies swimming in debt, financial literacy is a commodity that’s only growing in value – especially as the global economic landscape grows increasingly convoluted, comprising a hodgepodge of national economies, multinational corporations, and different crypto ecosystems. This is precisely why applied finance foundations are so valuable across both the public and private sector: to ensure Australia’s economy operates with the best foot forward at any given turn, whether that be through parliamentary proceedings or in the boardrooms across our biggest export industries and national corporations.
And thanks to the field’s whole systems scope, a strong academic background in applied finance may also make you eligible for roles based internationally, with foreign government offices or even the United Nations, working across dynamic problem-solving cases that explore economic intricacies resulting from geopolitical circumstances. Simply put, if you have a keen interest in global financial markets and macroeconomics, a degree in applied finance may see you playing out market scenarios across different currencies.
With so many pathways available, a qualification in applied finance is undoubtedly a transformed finance career investment that’s more reflective of and rooted in the world we live in today.