First Round Interviews at Investment Banks

Job interviews can be gruelling at the best of times but investment banking interviews can be terrifying, especially when you don’t know what to expect. Having interviewed for a few banks along the line, here’s a quick roundup of all the things I wish I’d known a few years ago.

Get ready for some tests….

When you first apply you’ll have to sit a numerical or logical reasoning test. Although each company gives links to practice tests, these are usually far easier than the real thing. A much better trick is to apply to more banks than the ones you’re interested in joining. This way, by the time you reach that Goldman test, you’ll have already seen and answered half the questions for other applications. It’s also a good idea to have a copy of Excel standing by. If somebody asks you to calculate the weighted average of, say, pigeons in British cities, it’s a lot easier to use a computer than your old Casio. UBS are also asking people to complete Raven’s Matrices (see here: http://wilderdom.com/intelligence/IQExampleTests.html). These tests, asking you to guess the next pattern in a series, can get very complicated. The best advice is to remember that each problem always develops according to a very limited set of rules. Some questions to consider are usually: what are the colours doing? Are the shapes rotating or inverting? Which shapes appear or disappear, and in which order? With both logical and numerical tests, practice helps. It also helps to know that accuracy’s far more important than quantity – you won’t be the only one to run out of time.

First stage interviews….

The first stage interviews are usually taken by HR staff rather than bankers, and are based on a system of ‘competency based exercises’. These are usually a set of questions testing your skill at buzzword bingo. A good idea would be to think of two or three answers to these following:

Can you think of a time when you worked as part of a team?
Can you think of a time when you showed leadership?
When have you had to solve a difficult problem?
Can you think of a time when you’ve had to convince someone of your opinion when they didn’t originally agree with you?

With each of these, the structure of your answer matters most. Merrills suggest following a STAR approach: situation, task, action, result. For example:

‘When I was a roadie for the Stones, we were running late for a gig in Copenhagen. The crowd were getting restless. We had to set up as quickly as possible. I gathered the stage team, came up with a detailed plan, allocated specific roles, listened to everyone’s individual concerns and proceeded to set detailed and achievable targets. Throughout the night it was necessary to maintain close contact with my team mates, emphasising the importance of communication, support and understanding (add additional virtues as necessary). The concert was a success and everyone lived happily ever after.’

They might also ask you if there was anything you could have done better, at which point you could say something like:

‘The team worked well under the circumstances, but if we’d had more time, we could have implemented a contingency plan: calling additional support acts, rescheduling to allow more transport time etc’

In every case, the competencies you describe and the structure of your answer are more important than the precise context: an organised barman beats a disorganised rock star. You won’t always get these right, but it helps to know the questions before they’re asked. Good luck!