A STUDY OF INNOVATIVE FINANCIAL ENGINEERING IN FINANCIAL SERVICE SECTOR

Abstract

Financial engineering is the use of mathematical techniques to solve financial problems. Financial engineering uses tools and knowledge from the fields of computer science, statistics, economics, and applied mathematics to address current financial issues as well as to devise new and innovative financial products. Financial engineering is sometimes referred to as quantitative analysis and is used by regular commercial banks, investment banks, insurance agencies, and hedge funds. It has also aided to the innovation of processes and distribution in the financial services industry. Technology has been both source and enabler in this innovation journey. The information technology companies have a major role to play in the sustainable growth of the financial services industry.