Masters in Behavioural Finance
This Masters programme has a particular focus on Behavioural Finance, an interdisciplinary field which integrates psychology and financial economics.
At a glance
- Specialise in one of the most exciting areas combining cognitive and behavioural psychology with finance
- Benefit from the expertise of two leading schools in Finance and Psychology
- Broaden your vocational knowledge and build a mixture of marketable quantitative expertise and soft skills
- Experience a practice-centred delivery approach including hands-on sessions, case based learning and trading simulations
- Study in the only UK Behavioural Finance postgraduate degree with a balanced curriculum in both disciplines
- Level
- Masters
- Subject area(s)
- Finance (ICMA Centre)
- Award
- MSc
- Duration
- 9 months / 12 months
- Attendance
- Full-time
- Locations
- Whiteknights campus (Reading)
- Programme Director
-
Dr Lisa Schopohl
Overview
The purpose of behavioural finance is to identify and understand why people and investors make certain financial choices in a way that systematically affects market outcomes. Financial institutions are increasingly utilising behavioural finance in an attempt to understand investment patterns and customer behaviours, hence behavioural finance graduates are in demand.
This is the first postgraduate degree in the UK with a thorough and balanced curriculum combining both disciplines. The study of finance and psychology progresses through the course so that you obtain a critical grasp of core theory along with thorough knowledge, skills of application and analysis.
Part 1
| Compulsory modules | Credits |
|---|---|
Financial Markets (ICM106)The module provides the economic framework for understanding the global financial system and financial markets, financial institutions, market players and the importance of liquidity and price efficiency. Participants will gain an understanding of the international stock and bond markets, ‘repo’ markets (for borrowing/ lending on a secured basis). The module also introduces foreign exchange, money markets and futures markets (which are developed in more detail in optional Part 2 modules) and also focuses on specific markets for commodity and energy. Academic authors
Emeritus Professor Brian Scott-Quinn
Dr Alfonso Dufour
|
20 |
Securities, Futures and Options (ICM107)This module provides an overview of the key building blocks in modern finance theory and introduces techniques for analysing and valuing different classes of risky assets such as equities and derivatives contracts. It also develops ways of optimally selecting portfolios of such assets and develops models of how these portfolios can be priced in financial markets. The techniques introduced in this module are widely applied in other elements of the programme. The module includes simulated trading sessions in our state of the art dealing rooms, where participants are introduced to real world pricing and trading strategies (INVEST sessions). Academic authors
Dr Konstantina Kappou
|
20 |
Fixed Income and Equity Investments (ICM108)Fixed Income and Equity Investments deals with the valuation of fixed income and equity securities. The module focuses on the basic characteristics of these securities and the strategies used for estimating their fundamental value and assessing their risk. Its primary aim is to discuss how certain characteristics and relationships can affect the value of fixed income and equity securities and how can they be exploited to form optimal investment strategies or for the purpose of conducting financial analysis. The analytical techniques introduced in this module are widely applied in other elements of the programme. Academic authors
Dr Miriam Marra
Christos Mavis
|
20 |
Introductory Quantitative Methods for Finance (ICM124)The objective of the module is to provide an overview of econometrics and in particular the analytical techniques used in finance. Via case studies and computer modelling exercises, students then learn how to apply these techniques to real data. Emphasis is placed on practical applications of the techniques in the global financial markets. |
10 |
Introduction to Psychology for Finance (ICM, PYMIP)
The aim of the module is to introduce students to the scope and nature of psychology as a science relevant to the understanding of financial markets. The emphasis will be on acquiring knowledge and understanding thereby developing students’ transferable skills of analysis, evaluation and critical thinking. The content of the module offers a range of core topics with a strong focus on the scientific method and research practice. Students will be introduced to a number of core areas within psychology relevant to the study of human behaviour within finance, such as cognitive, social and biological psychology. Students will study some of the classical studies within psychology, as well as being introduced to newer topics.
*We reserve the right to change this list should staffing or other changes in circumstance make it necessary.
Academic authors
Dr Philip Beaman
|
10 |
Part 2
| Compulsory modules | Credits |
|---|---|
Behavioural Finance (ICM302)Financial theories have traditionally assumed that rational, risk-averse investors trade in efficient and free-flowing asset markets. Academic research and practitioner experience have cast doubt on this paradigm, instead proposing that investors may not be utility maximisers, and that there may be impediments to the functioning of markets. This module will describe recent developments in the application of principles drawn from psychology to financial issues. Read moreThis course is positioned in the cross-section of Finance and Psychology. It provides an alternative framework to that of traditional neo-classical finance principles in explaining market behaviour and interpreting stylised characteristics. A variety of psychological principles and well-established cognitive biases are examined and connections are made with the influence they have on the investment (and corporate) decision making process. Market anomalies and puzzles are interpreted based on these connections. Academic authors
Dr Yueting Cui
|
20 |
Behavioural Economics (ICM, PYMBE)
To give students a broad overview of research in behavioural economics and an understanding of how this research has been applied in real-life settings (e.g., public policy; marketing).
Academic authors
Rachel McCloy
|
10 |
Human Motivation (ICM, PYMHM)
This course will examine the nature of human motivation by comparing different theoretical perspectives on motivation proposed in the literature. We will also briefly touch on the neural basis of motivation and possible applications to education to further expand our understanding of motivation.
Academic authors
Dr Ko
|
10 |
Psychology of Individual and Team Development in Organisations (ICM, PYMITD)
The aims of this module are:
- To enable students to explore in depth and critically evaluate the evidence relating to the application of psychology in organisations to enhance well-being and performance;
- To give students an awareness of current approaches to working with individuals and teams in ways that are integrated, based on research and aimed at delivering individual as well as organisational objectives;
Academic authors
Professor Patricia Riddell
|
10 |
Students on the 9-month (12-month) programme can select 50 (30) credits from the following modules:
| Optional modules | Credits |
|---|---|
Programming for Finance (ICM142)The objective is to introduce the students to programming and its usage for data processing and finance. It deals with how to write programming code, process files, receive input and provide output. Students who complete this course will be able to write programming code in Python, process files, input, output and manage data. Furthermore, students will be able to read and write to Excel and CSV files, connect to databases, obtain and process data from the Web, as well as use Python for Finance and Econometrics applications. Academic authors
Dr Vu Tran
|
10 |
Research Project (ICM218)The aim of the research project is to allow students to define and execute a piece of research in finance on a topic of their choice, with direction from an academic supervisor and with assistance from a doctoral student support supervisor. Read moreThe self-directed nature of study for this model should encourage students to be resourceful in their search for relevant literature and data, and to manage the various stages involved effectively, leading to timely submission of the finished piece. Academic authors
Professor Charles Sutcliffe
|
20 |
Topics in Financial Regulation (ICM295)This module provides an overview of the purpose and operation of financial regulation, and the consequences of financial sector reform for different markets, including those of the students’ home country. The module aims to deliver a broad insight into the key challenges for financial regulation particularly in the light of changes to the financial architecture in the aftermath of the global financial crisis of 2007. Academic authors
Dr. Deepa Govindarajan Driver
|
20 |
Fixed Income Cash and Derivative Markets (ICM306)Fixed Income Cash and Derivative Markets applies more advanced valuation and risk assessment methods that build on the knowledge introduced in the fixed income component of the first term Fixed Income and Equity Investments module: It describes the basic characteristics of fixed income derivatives, structured products and credit sensitive securities and develops practical strategies for valuation and risk assessment. It also considers how the markets for these securities are related and begins the task of showing how these relationships can be exploited for trading or investment. The module is designed not only for students wanting a more advanced knowledge of the fixed income markets, but also for students wishing to take the exam for the ICMA Fixed Income Certificate (ICMA FIC) Academic authors
Gail Rolland
|
20 |
Bond and Money Markets (ICM310)Bond and Money Markets explores the economic drivers and relationships between bond, money markets and central bank monetary policies. The module offers students the opportunity to gain an understanding of how these connections affect funding liquidity management, trading strategies and the challenges faced by practitioners as well as regulators/policy makers. The course also covers the overall functions, structure and operation of the money market. The main aims of the module are to provide the tools for understanding the functioning of money markets, their connection with bond markets and central bank interventions, the fundamental determinants of interest rate markets and the commonly used trading strategies. Academic authors
Dr Ivan Sangiorgi
|
20 |
Corporate Finance and Investment Banking (ICM311)The main aim of the course is to provide a rigorous grounding of the theory and practice of corporate finance and more specifically the long-term financial management decisions of the firm pertaining to investments, financing and payout and how they affect its value. It deals with how corporations are governed, their financing structures, payout policies, the processes involved in the issuance of public and private equity, as well growing through inorganic investment (mergers and acquisitions). Read moreThis course also deals with advanced financial analysis and enterprise valuation methods employed by financial advisors/investment banks as part of providing advice to corporations. Students on this course take part in a bespoke investment banking pitch-book simulation challenge whereby they work with their team to produce a real life pitch-book including financial analysis on a real transaction as part of assessing the company’s strategic alternatives. In addition to lectures and case study based seminars the module also includes a 2-day financial modelling and valuation training by Financial Edge, the company responsible for training the analysts of the top-3 investment banks. Academic authors
Professor George Alexandridis
|
20 |
Big Data in Finance (ICM323)In this course you will learn how big data techniques can be used to solve problems in finance. We will first explore issues related to the collection, organisation and visualisation of large sets of structured and unstructured data. We will then look at methods for storage and computation of big data sets by distributed computing (Hadoop). The module will also explore the use of cloud computing platforms with a focus on the Google Cloud Platform (GCP). Read moreThe course focuses on (1) issues facing big data handling (2) retrieval, organisation and cleaning of structured and unstructured data (3) a high level description of a system for the distributed storage and processing of big data (Hadoop) (4) cloud computing with a focus on the Google Cloud Platform (5) finance applications. Academic authors
Mr Mininder Sethi
|
10 |
Nudge and Behaviour Change (APME79)Over the past decade, the need to apply strategies to change behaviour for the benefit of society and future generations has become apparent, through numerous initiatives such as public health and sustainability campaigns. Integrating key perspectives in behavioural economics and psychology through lectures, case studies, group discussions and presentations, identify the major challenges and opportunities in behaviour change theory today and gain the knowledge and skills to become a leader in developing and utilising nudge and behaviour change strategies in practice. |
10 |
Consumer Behaviour (MMM092)Understanding customers, whether in consumer or business-to-business is at the heart of the marketing discipline. This module uses contributing social sciences such as psychology, sociology and economics to understand the drivers to consumer behaviour. |
20 |
Derivatives Securities: Pricing, Hedging and Trading (ICM211)The module objective is to give students a practical working knowledge of the pricing, hedging and trading of derivative securities, in particular options, via the use of trading simulations and pricing case studies/software. The emphasis of the module is on practical application and it is expected that by the end of the module students will understand and be able to analyse the time/risk dynamics of derivatives in a trading environment. Trading sessions are delivered in our state-of-the-art dealing rooms and utilising our bespoke trading simulation software ICTrader, offering exposure into real trading environment and the price formation process. Students will learn how to “think on their feet”, an essential skill in the investment banking industry. Academic authors
Dr Michael Smith
|
20 |
Private Equity and Venture Capital (ICM312)The objective of the module is to develop students’ appreciation of the practical aspects of raising venture capital finance for a private company, working with the venture capital investor in growing the business and achieving a successful exit. The focus of the module is on venture capital and high-growth ventures from the viewpoints of both the entrepreneur or management team and of the investing institution (general partner), although private equity as a whole is covered as well as the relationship between the private equity or venture capital firm and its own investors (limited partner institutions). Extensive use will be made of case studies and a business plan project in addition to guest lectures from invited experienced practitioners. Academic authors
Dr Keith Arundale
|
10 |
FinTech Regulation and Data Protection (ICM320)Regulation is often seen as an obstacle to innovation, or innovation as a way of avoiding regulations. However, successful Fintech products and services must comply with the letter and spirit of financial regulations, and effective regulation of Fintech is essential to protect wider public interests. This module will place the relationship between financial innovation and regulation at the centre of students' understanding of Fintech. Read moreThis course starts by introducing how financial regulation seeks to protect consumers and markets, looking at the rationales for regulation, national and international organisational structures, and approaches to regulation. Each of these will be linked to the impact that it may have on new financial technologies, recognising that Fintech is a broad term that covers a wide variety of products and services, each of which may be subject to regulation by different regulators and in different ways. Fintech innovations are often seen as a form of regulatory arbitrage. But the relationship between regulators and innovators need not be adversarial, and this module will also explore how regulators are engaging pro-actively with Fintech developers to encourage innovation and provide advice on compliance with regulation. It will also investigate the emerging potential of 'RegTech', namely the use of new technologies to facilitate the delivery of regulatory requirements. The module will then consider how financial and Fintech firms collect and manage data, the role of data monetisation in Fintech business models, and the challenges presented by the General Data Protection Regulation and by cyber-crime. Cyber-security is a key concern today and the module will examine the sources of cyber-vulnerability and the importance of instilling a strong cyber-security culture within an organisation. Academic authors
Dr Tony Moore
|
10 |
Part 3 (12-month only)
Students on the 12-month programme should take 20 credits from the following:
| Optional modules | Credits |
|---|---|
Advanced Finance Theory with Empirical Applications (ICM289)This module is designed for advanced Master’s students and doctoral students. It has a very high technical content. It aims to equip the students with the foundations of theoretical asset pricing and with the relevant skills for performing empirical tests. Additionally, a few important corporate finance topics will be covered in the format of student presentations. The objective of the module is to prepare students to become independent and quality researchers. Academic authors
Professor Marcel Prokopczuk
|
20 |
Stock Index Futures (ICM308)The module is less quantitative option open to all MSc students that builds on the coverage of futures contracts from term 1. By the end of the module it is expected that students will be aware of the different ways of constructing stock market indices and the implications of these differences, how futures contracts are traded and the identity of some of the close substitutes for trading index futures, how futures can be priced using an arbitrage relationship, how futures can be used for hedging the price risk of the underlying, and the various uses that fund managers make of these instruments. Academic authors
Professor Charles Sutcliffe
|
20 |
Work Placement and Project (ICM309)This module gives students the opportunity to pursue a work placement with an external organisation broadly related to the general sphere of their degree studies. The aim of the module is to allow participants to gain work experience in a career path of interest, develop a wide range of employability skills, build their network and enhance market awareness. The maximum duration of the placement is 3 months and it takes place during the summer vacation period (June-August). Placements should be secured by students independently. The Centre’s career development office can support students in their search and application process. Placements secured by students are subject to the approval of the module convenor. The module is assessed by a 3,000-word project based on the work experience gained. Academic authors
Dr Michael Smith
|
20 |
Algorithmic and High Frequency Trading (ICM325)This module aims to provide students with an understanding of financial decision making in the context of alternative investments. Academic authors
Dr Alfonso Dufour
|
10 |
Structured Products (ICM326)An applied, innovative approach to the structured product market from a practical point of view. Topical issues are addressed in a systematic way to discuss the principles of financial engineering and application to structured products. Academic authors
Professor Marcel Prokopczuk
|
10 |
Alternative Investments (ICM327)This module aims to provide students with an understanding of financial decision making in the context of alternative investments. Academic authors
Professor Marcel Prokopczuk
|
10 |
The module or course content descriptions set out on this page are correct for those being taught in the current academic year. Modules or course content marked as optional are indicative and may be subject to change.
Our master's in finance courses are available only on a full-time basis with the option of studying for 9 or 12 months.
Learning options
Full-time: 9 months
Full-time: 12 months
Students will be resident and undertake full-time study in the UK. Under both, the 9 and 12-month programmes students take compulsory and/or elective modules in Part 2.
The 12 month option involves taking an elective 20 credit module between July and August, which would also mean a 20 credit reduction in the number of taught modules taken in the spring term.
Course structure
October – December:Part 1 Autumn Term
January:Part 1 Exams. Please note that the January Exams will start 1 week before the official start of the Spring Term.
January-April:Part 2 Spring Term
May – June:Part 2 Exams
June – August (12 month programme only):Part 3
August/Sep (12 month programme only):Part 3 Coursework deadlines
| Fees | |
|---|---|
| 2022 entry | £17,600 |
Living expenses are in addition to the above fees. Overseas full-time participants can expect to spend approximately £9,400 on additional living expenses during the course of their studies. UK/Home full-time participants can expect to spend approximately £8,000 on additional living expenses during the course of their studies.
Scholarships
We offer a number of scholarships for UK/Home and International applicants.
For a full list of scholarships, visit our scholarships webpage.
Current scholarships
- Undergraduate Degree – Minimum 2:1 or the equivalent from an overseas institution*
- Degree Discipline – Any degree discipline, but must have a satisfactory existing level of numeracy
- GMAT – We may ask you to submit a GMAT score if we think it appropriate in your individual case. For example, if you have been out of education for more than a few years or have little evidence of any numerical ability. For information on the GMAT and the location of test centres worldwide, please visit www.mba.com
* Please note that due to increasing competition for places on our Masters programmes our entry requirements may change.
We operate a rolling admissions system and you are therefore advised to apply early in order to be sure of your place on our programmes. We experience high levels of demand, and it is possible we might have to close applications to some programmes once places are filled.
English requirements
Studying in a second language can be challenging. If your English language ability is below the minimum requirement, we may ask for evidence of proficiency. Alternatively, we may ask you to attend an English language course before you begin your studies with us.
| Requirement | Criteria |
|---|---|
| IELTS | 6.5 with no component below 6.0 in any sub-skills |
| IELTS with pre-sessional English | 6.5 with no component below 5.5 in each of the four sub-skills |
For information on other English language qualifications, please visit our English requirement equivalent page.
If you require specific advice on your qualification please contact admissions directly by e-mail or telephone on +44 118-378-5289.
UK visa requirements
If you are not a national of the European Union (EU), you may need to obtain a UK visa. This visa will allow to live and study in the UK. See the UK Border Agency website. Contact the University's International Office with any questions: intoff@reading.ac.uk.
Graduate Route
The UK's Graduate Route post-study work visa allows you to apply to stay in the UK for up to two years after you graduate, with the opportunity to undertake skilled work. Visit the University website for the latest information.
How can Henley Careers work with you?
We have an award-winning careers team that will support you through your postgraduate studies and four years after graduation.
Here is how Henley Careers can help you:
- Careers Consultant appointments: Our Careers Consultant are here to help and support you with any careers related concern that you might have. Whether it’s CV advice, practicing for an interview, providing feedback if applications aren't successful or support planning your career goals. We are here to help empower you to progress in your career.
- Events: Henley Careers organise numerous events aimed to help you build your confidence, develop the skills employers are looking for. Additionally, network with employers and expand your industry knowledge.
- Alumni support: You can continue to book one-to-one appointments with your Careers Consultant and use our online resources. For up to four years after graduating we’re here to help and support in your career.
- Career Smart: Get a head start in securing a graduate job by taking part in our online course, Career Smart. You can expect to learn about the graduate recruitment cycle in the UK. As well as where to look and how to start applying to jobs, and the different roles available to you.
For more information please see our Careers page.
Continuing your career
Despite the volatile nature of the financial markets, demand for well‐qualified recruits remains high. Schooled in the field of behavioural finance, you will be in demand as investment banks, asset managers and associated industries attempt to understand investment patterns and pricing bubbles that cannot be explained by conventional finance theories. Thus, they have been showing increasing attention to behaviourally driven investment philosophies over the last few years. We expect many of our graduates to enter the industry at either the ‘Analyst’ level or as ‘Associates’, who tend to have several years of relevant professional experience.
You'll leave us equipped with knowledge and transferable skills that are also prized by employers outside of the traditional banking and finance sectors. Many of our Alumni are currently enjoying successful careers with multinational companies, consulting firms, government agencies and regulatory organisations throughout the world. You will also gain the knowledge and skills required to continue your studies at the doctoral level.
Apply for 2022 entry now
Apply online now through the University of Reading’s online application service.
The online application service allows you to complete your application information, attach electronic copies of your academic transcripts, certificates and other supporting information. It also provides a facility for an email request to be sent to your referees. This enables the referees to send your supporting references directly to us.
When to apply
We operate a rolling admissions system and it is recommended that you apply early to secure your place. There is no specific deadline and applications will be considered until the programme is full. However, to allow us time to process your application we recommend that you apply by the following dates:
| UK/Home applicants | International applicants |
|---|---|
| 1 August | 1 June |
After you apply
You will receive a confirmation email when we receive your application form. Your application is then reviewed by a member of staff. If successful, you will receive a formal offer letter outlining any necessary entry criteria you will need to meet. You'll then be asked to confirm your acceptance of this offer.
If you require a Certificate of Acceptance for Studies (CAS) for your visa, details will be sent by email once all conditions of the offer have been met.
Throughout the admissions process we will keep you updated with key information via email. We also provide opportunities to interact with faculty and staff online.
Find us on Facebook and keep up-to-date with news and events at Henley or ask us a question. In addition, you can speak to a current student, our students are always happy to share their Henley experience.
The ICMA Centre is among the pioneers in finance education and renowned for its strong links with the financial services industry. The Centre was ranked number 7 in the UK for its Masters programmes in 2021 (Financial Times Masters in Finance Ranking). It is also part of Henley Business School – among an elite group of 75 business schools in the world to hold triple-accredited status from the leading UK, European and US accrediting bodies: AMBA, EQUIS and AACSB.
The Centre’s unique practice centred approach includes a number of finance education innovations. These will provide you with a solid grounding for a career in the industry. The approach aims to equip you with a skill set that sets you apart from graduates of other finance programmes. Your employability track record is also bolstered by an in-house comprehensive career development programme.
Reading has proximity to the world’s top financial centre (25 mins from London Paddington). Several leading professional bodies including the CFA, CISI, GARP and ICS validate our programmes and offer exam exemptions to our students.
Joining one of the top schools of finance in Europe, you will benefit from state-of-the-art facilities. You will have access to the latest technology and will be taught by world-renowned faculty and industry experts. Our innovative teaching and learning environment includes trading and financial analysis simulations. We also have the latest financial data and programming software. Our three dealing rooms are one of the largest facilities of its kind in the world. They provide an ideal setting for understanding how businesses and markets function in practice.
Our students’ learning experience is a top priority for academic faculty and administrative staff at the ICMA Centre. This is reflected in the latest student satisfaction rates in the PTES and NSS student surveys.
“When I joined I was immediately impressed by the high-end facilities and the fact that that renowned practitioners and academics in the sector are involved from day one in the teaching as well as our career development.”Elena-Anna Gkermpesioti, MSc International Shipping & Finance
Speak to a current student
Contact us
For any questions of academic nature about this programme you are welcome to contact directly the Programme Director, Lisa Schopohl, l.schopohl@icmacentre@ac.uk.
Admissions
If you have any questions about admissions, please don't hesitate to contact us.
Email: admissions@icmacentre.ac.ukTelephone: +44 (0)118 378 6497