MSc in Banking & Finance HWZ

Basics: financial analysis and valuations

The Foundations of Banking & Finance module is of key importance, as it provides students with a solid understanding of the fundamental mechanisms and instruments of the financial market. It covers topics such as quantitative analysis and the concept of the time value of money, both of which are essential for making informed decisions. Students learn how to make capital allocation decisions, enabling them to distribute resources efficiently and maximise company value. In addition, they acquire knowledge about calculating the cost of capital, which is crucial for business valuation.

Example topics in this module:

• Risk/return of financial markets

• Time value of money

• Quantitative analysis

Corporate finance and valuations

In financial planning and cash flow analysis, precise forecasting skills, a thorough understanding of liquidity flows, and the correct application of financial ratios are essential. For investment calculations, sound knowledge of valuation methods and the ability to account for uncertainties through scenario analysis are required. In the field of corporate finance, the focus is on strategic decision-making, managing capital structure, and analysing company value.

Example topics in this module:

• Methods of business valuation

• Financial forecasting

• Corporate finance

Practical transfer tasks

Financial modelling skills are essential for a career in finance. For example, students develop a dashboard and valuation tool for a listed company in order to make informed investment decisions. The course strengthens Excel skills and imparts practical modelling expertise, which is demonstrated in a final presentation.

Post modern portfolio theory

The first part of the semester provides a comprehensive introduction to the world of wealth and portfolio management, equipping students with the skills necessary to develop and implement individual investment strategies. Building on Markowitz’s theories, modern portfolio management has evolved further. For example, ESG integration now plays an important role in portfolio construction. Another focus is on international wealth management, where global investment opportunities and legal frameworks are taken into account. Finally, students develop skills in simulating wealth forecasts, enabling them to make informed decisions about future asset performance and to minimise risks.

Example topics in this module:

• Modern portfolio theory

• International wealth management

• ESG integration

The new alternatives & risk management

In the second part of the semester, we broaden our understanding of portfolio management by examining new investment instruments such as private equity, venture capital, and cryptocurrencies, which are increasingly being incorporated into client portfolios. Using our own backtests, we analyse how these alternatives affect the risk-return profile of traditional portfolios. We also consider the role of financial derivatives in risk diversification: how can derivatives and structured products be used strategically? Engaging with derivatives, regarded as a premier discipline in financial instruments, constitutes an intellectual challenge and deepens students’ knowledge in this complex area.

Sample topics in this module:

• The new alternatives

• Financial risk management

• Certificates and structured products

Practical transfer tasks

Over the course of the semester, students create a hypothetical investment portfolio tailored to the individual needs of a client. Assessment is based on their ability to meet client requirements and make well-founded decisions, as well as on the regular monitoring and analysis of portfolio performance using appropriate key figures. In their final task, students present an analysis reflecting on the portfolio’s performance, the extent to which client needs have been met, and the quality of their decisions.

New frontiers of finance

In the third semester, we push the boundaries of modern banking, focusing on open banking, robo-advisory and digital wealth management, as well as digital assets and blockchain. Open banking enables customers to manage their finances more transparently and efficiently. Robo-advisory and digital wealth management provide personalised and cost-effective investment solutions through automation. These developments are creating new business models and ecosystems for financial institutions. Students with expertise in these areas secure a competitive advantage and open up a wide range of career opportunities.

Example topics in this module:

• Open banking

• Robo-advisory

• Digital wealth management

Immersion in technology and AI in finance

As the semester progresses, we will delve deeper into the world of technology and artificial intelligence within the financial sector. Few other service industries have experienced such significant technological advancement in recent years as the financial industry. Today, technology is an indispensable part of business models and is increasingly permeating all areas of banking processes. Artificial intelligence holds the potential to fundamentally change the way financial institutions operate in the long term – from investment strategies to fraud prevention. In a three-day practical bootcamp, we will implement real-world use cases and develop our own programmes.

Sample topics in this module:

• Basics machine learning & AI in Finance

• Use cases of AI in finance

• Bootcamp: Python programming

Practical transfer tasks

As part of their practical work, students apply big data, Python, and artificial intelligence in the field of finance. They develop practical skills in financial analysis, modelling, and algorithmic trading. Through practice-oriented tasks, they learn how to construct financial models and solve market problems efficiently.

In the final semester, we analyse how banks can strengthen their market position and build closer relationships with their customers. We examine new business models and strategies that banks require for successful positioning. Given the growing significance of fintechs, the capacity for innovation within banks is becoming increasingly decisive. Traditional banks often find it challenging to integrate new technologies rapidly, which has led to increased cooperation with fintechs. We will explore why banks have difficulties with innovation, what obstacles exist, and how fintechs can be integrated into traditional business models.

Example topics in this module:

• Innovation & trends in finance

• Embedded finance & fintech

• Study tour