Beyond the Algorithm: Soft Skills Rise in Demand for Quantitative Finance Roles

The image of the quantitative analyst – or “quant” – as a solitary coding genius, lost in a sea of complex equations, is fading. While technical prowess remains crucial, a new emphasis on distinctly human skills – communication, collaboration, and even humility – is reshaping the hiring landscape in the competitive world of quantitative finance. A recent study by Risk.net, part of its “Tomorrow’s Quants” series, reveals that firms are increasingly prioritizing character and personality alongside technical qualifications when recruiting junior quants.

The Curiosity Quotient: More Than Just Knowing the Formula

The shift reflects a growing recognition that successful quants must not only build sophisticated models but also explain them effectively to colleagues, regulators, and clients. Simply reciting the Black-Scholes formula, a cornerstone of options pricing, is no longer enough. Employers are seeking candidates who demonstrate a deep understanding of the underlying principles and the limitations of such models.

“Candidates that recite the Black-Scholes formula gain few points,” explains a senior quant at a European bank, speaking on condition of anonymity. “Those who can explain where the formula comes from, or the flaws in its underlying assumptions, score highly. That takes curiosity.” This emphasis on intellectual curiosity extends beyond theoretical knowledge. Abdelaziz Lamaaizi, head of quant structuring at Amundi, a leading European asset manager, prioritizes assessing a candidate’s problem-solving approach. “I want to find out how they think and respond when things are going badly – when they start with the wrong idea and are given a hint – their ability to change their point of view and try to explore another way to solve the problem,” Lamaaizi says.

The Team Player: Collaboration in a High-Stakes Environment

The stereotype of the fiercely independent, competitive financial professional is also being challenged. The survey of 39 senior quants and six master’s program directors found that teamwork and collaboration are now considered “equally important” as technical ability. This isn’t merely about personality fit; it’s a practical necessity.

“You’re going to end up spending more time with your colleagues than with your partner and your family,” notes Jack Jacquier, director of the MSc in mathematics and finance at Imperial College London. The complex nature of modern financial modeling demands diverse perspectives and a willingness to share knowledge.

This collaborative spirit is particularly important given the increasing regulatory scrutiny of financial models. According to the Basel Committee on Banking Supervision, robust model risk management is essential for financial stability. Clear documentation and effective communication are vital for ensuring that models are understood and validated by both internal and external stakeholders.

Red Flags and Ideal Traits: Avoiding Arrogance, Embracing Resilience

While curiosity and collaboration top the list of desired traits, arrogance consistently emerges as the biggest red flag. More than one-third of respondents identified arrogance – described as “pompousness,” “lack of humility,” and “overconfidence” – as a deterrent. Other disliked qualities include a tendency towards vague thinking, sloppiness, and a lack of dedication to problem-solving.

Conversely, firms are actively seeking candidates who demonstrate resilience, a “can-do” attitude, and a willingness to work hard. Vladimir Lucic, head quant at Marex Solutions, emphasizes the importance of bouncing back from setbacks. “People who are perfectionists and cannot accept that some things don’t go well, they cannot bounce back.”

The demand for these “soft skills” is occurring against a backdrop of evolving economic conditions. The International Monetary Fund projects global growth at 3.2% in 2024 and 3.1% in 2025, a slight downward revision from its previous forecast. This environment of moderate growth and continued uncertainty underscores the need for adaptable and collaborative quants who can navigate complex challenges.

University Partnerships and Future Hiring Trends

Universities are responding to the industry’s evolving needs by incorporating more practical training and emphasizing communication skills in their curricula. Programs like the MSc in quantitative finance at ETH Zurich now require students to present their findings to both academic and industry audiences, simulating real-world scenarios.

Firms are also strengthening ties with universities, with over half reporting formal relationships with academic institutions. Nearly one-third of respondents indicated that all their graduate or junior quants have prior internship experience, highlighting the value of practical exposure. Looking ahead, hiring is expected to be strongest in quant investing teams, with 87% of quants predicting growth in this area over the next three years. Model validation, however, appears to be a slower-growing field, with only two-fifths anticipating an increase in junior appointments.

The message is clear: the future of quantitative finance belongs to those who can not only master the algorithms but also communicate, collaborate, and adapt in a rapidly changing world.