Tomorrow’s Quants: Next-Gen Modelling Skills
- NEW YORK - November 16, 2023 - The skillset required for quantitative ("quant") roles in finance is undergoing a significant shift.
- What: A Risk.net survey reveals a shift in desired skills for quant roles in finance.
- The survey included 19 head quants from large banks (including 10 globally systemically vital banks), 14 asset managers, hedge funds, and market-makers, and six data/financial software vendors.The results...
The Evolving Quant: Coding, Communication & Curiosity Now Key to Finance Roles
NEW YORK – November 16, 2023 - The skillset required for quantitative (“quant”) roles in finance is undergoing a significant shift. While strong mathematical foundations remain crucial, employers are increasingly prioritizing candidates with well-rounded abilities - including coding proficiency, strong communication skills, and key personality traits like curiosity and collaboration. This is according to a new survey by Risk.net, which polled 39 leading financial institutions, asset managers, and software vendors. The findings signal a move away from solely seeking technical brilliance towards valuing individuals who can effectively apply their skills and integrate within teams.
The survey included 19 head quants from large banks (including 10 globally systemically vital banks), 14 asset managers, hedge funds, and market-makers, and six data/financial software vendors.The results highlight a growing demand for quants who can bridge the gap between complex modeling and practical request.
Key Findings:
* Coding is Core: Proficiency in at least one programming language is a basic requirement for most quant positions.
* People Skills Paramount: 98% of respondents view people skills as important across all quant roles.
* Soft Skills Surge: Collaboration, curiosity, and creativity are highly desired traits.
* Charisma – Not a Priority: Surprisingly, charisma was consistently ranked as the least important attribute.
* Communication is Critical: The ability to present research (written or oral) is considered “vrey important” by 74% of firms.
* Red Flags: Overconfidence,arrogance,and intellectual gaps are the most commonly cited negative traits.
* AI Focus Limited: Only three firms (those heavily invested in AI) anticipate graduates spending over 50% of their time on AI-related projects.
| Skill Category | Importance Level (Based on Survey Responses) |
|---|---|
| coding Proficiency | Core Requirement |
| People Skills | 98% View as Important |
| Collaboration | Highly Desired |
| Curiosity | Highly Desired |
| Creativity | Highly Desired |
| Charisma | Lowest Ranked |
| Communication (Written & Oral) | Very Important (74%) |
The emphasis on communication reflects a need for quants to effectively convey complex data to both technical and non-technical audiences – including senior management and clients. the ability to transfer knowledge and ensure model transparency is also highly valued.
– victoriasterling
This survey confirms a trend I’ve observed for some time: the “lone genius” quant is becoming a relic of the past. Financial institutions are realizing that sophisticated models are only valuable if they can be understood, implemented, and maintained effectively. This requires individuals who can not only build the models but also explain them, collaborate with others, and adapt to changing business needs. The de-emphasis on charisma is notably interesting; it suggests firms are prioritizing substance over style, seeking individuals who are confident in their abilities without being overly assertive or self-promoting.The limited focus on AI, despite its hype, also provides a reality check - while important, it’s not yet dominating the quant landscape for most firms.
The Tomorrow’s Quants report will continue to explore the evolving educational paths and specific skills employers seek in aspiring quantitative professionals.