Online Assessments in Investment Banking

Most of the top investment banking firms, like Morgan Stanley, Barclays, and JPMorgan, use online assessments in their recruitment processes. This is the stage where most applicants, often more than 50%, are rejected based on their test scores.

However, you can increase your odds of making the cut and eventually getting hired by knowing what to expect and preparing thoroughly. Read on to understand what online assessments are, why investment banks use them, what types of questions you might get, and how you can prepare effectively.

What Are Online Assessments in Investment Banking?

Online assessments in investment banking are a series of tests that help banks evaluate if you have the right skills, personality, and mindset for the job. They come in different forms including numerical, verbal, and logical reasoning tests.

The difficulty and format of these online assessments in IB vary by firm and the specific tests they use. For instance, JPMorgan's Pymetrics assessment is gamified and focuses on checking how you think and behave in different scenarios. On the other hand, Barclays uses psychometric tests that measure how good you are at math and reading comprehension, which some candidates find to be more challenging.

For most investment banking firms, you'll do these online tests right after submitting your application, and before any human interviewer sees your resume. Also, the pass mark will vary by firm, even when they use similar tests.
 

Why Do Banks Use Online Assessments and What Do They Test?

Investment banking firms use online assessments to identify candidates who match their requirements and filter out those who don't. This is necessary because the best IB firms receive hundreds of thousands of applications for limited positions. 

For instance, in the 2026 recruitment cycle, Goldman Sachs received over 360,000 applications for roughly 2,600 internship and analyst positions. That puts Goldman’s acceptance rate at about 0.7%. Narrowing down the pool before moving on to the interviews saves time and other resources for both recruiters and candidates.

Besides screening out applicants, the online assessments in investment banking are types of psychometric tests that help to evaluate various skills. These generally fall into three categories based on the skills they assess: 

• Aptitude Tests measure specific skills such as numerical, verbal, and logical reasoning.
• Behavioral Assessments focus on personality traits, behavioral styles, and cognitive abilities.
• Situational Judgement Tests (SJTs) assess practical decision-making in workplace scenarios.

So, these tests give IB firms a more objective view of your abilities compared to just looking at your resume.

Which Are Typical Questions and Exercises in Online Assessments in Investment Banking?

The questions and exercises you'll find in online assessments for most investment banking firms will fall under numerical, logical, and verbal reasoning tests. Many banks will also include Situational Judgment Tests, personality assessments, and video interviews.

With investment banks like Barclays and HSBC, you’ll not have them as separate tests. Instead, they use immersive job simulations where you will take all the assessments within a specified timeframe. 

Below is a detailed explanation of each type of test and sample questions. Keep in mind that our examples are quite simplified, and you might face much more challenging tasks.
 

Numerical Reasoning Tests

Numerical tests are often multiple-choice questions that involve analyzing and interpreting charts, graphs, tables, or basic math. Most investment banks use standardized platforms like SHL Numerical Reasoning, Korn Ferry Assessments, Cut-e (Aon) scales numerical, and Kenexa numerical reasoning.

Regardless of the platform, these tests consistently evaluate your ability to interpret data from complex charts and tables under extreme time pressure. Try to practice IB mental math daily to improve your speed in case the platforms don't allow calculators.

Here's a sample numerical reasoning question:

"If company A's sales were $2000 in 2024, which was a drop of 50% from the previous year, what was the sales for 2023?

• A. $1000
• B. $3000
• C. $4000
• D. $6000

Correct Answer: C. $4000
 

Verbal Reasoning Tests

In the verbal reasoning section, the questions will test how well you understand written information and how you can draw conclusions from it. So, you might have to read short passages then answer questions that require true, false, or cannot say responses.

For instance:

"Company X has recently announced a merger with company Y, which is expected to create significant synergies and enhance market share in the technology sector. Analysts predict that the combined entity will increase its annual revenue by 15% over the next three years due to cost reductions and expanded product offerings. However, some experts warn that integration challenges may arise, potentially impacting initial performance.”

Question:

According to the passage, which of the following statements is true?

• A. The merger between Company X and Company Y is expected to decrease annual revenue.
• B. Analysts believe that the merger will lead to a 15% increase in revenue over three years.
• C. Integration challenges are guaranteed to affect the performance of the merged companies negatively.
• D. Company Y is acquiring Company X.

Correct Answer: B.

The verbal reasoning tests are important in investment banking because strong critical thinking and verbal skills help in preparing reports and interacting with clients.
 

Logical Reasoning Tests

This is where your critical thinking, analytical, and problem solving skills come in handy. You'll get questions that test how well you can spot patterns and make conclusions based on sequences of images, numbers, or diagrams.

These tests include different types of questions, such as:

• Deductive Reasoning: This is when you take known or given facts and use them to reach a specific conclusion. For example, if you know that all birds have wings and a sparrow is a bird, you can conclude that a sparrow has wings.
• Abstract Reasoning: These questions assess your ability to identify the underlying rules of a sequence to figure out what’s next.. You need to use your logic and visual skills to solve them.
• Diagrammatic Reasoning: Such questions require you to look at shapes, patterns, or graphs and figure out what they mean or how they relate to each other. It helps you solve problems by analyzing visual data instead of just using words or numbers.

For instance:

Look at the following sequence of shapes:

🔺 🔵 🔺 🔵 🔺 ?

What shape should come next in the sequence?

A. 🔺
B. 🔵
C. 🔶
D. 🔺🔵

Correct Answer: B. 🔵 The sequence alternates between a triangle (🔺) and a circle (🔵). Therefore, the next shape in the sequence should be a circle (🔵).
 

Situational Judgment Tests (SJTs)

In the SJTs assessments, your judgment and decision-making skills will be put to the test using hypothetical real-life situations in the workplace.

Here's a sample Situational Judgment Test question in investment banking:

"You notice a team member is not contributing to a project. What do you do?”

• A. Speak to the team member privately to understand if they are facing any issues.
• B. Inform your manager about the team member's lack of contribution.
• C. Ignore the situation and focus on your own tasks.
• D. Confront the team member in front of the whole team to address the issue.

Best Answer: A. This response shows leadership, emotional intelligence, and a willingness to communicate, which is often valued in team environments.
 

Personality Assessments

Beyond the SJTs that assess how you would act in specific job-related situations, many investment banking firms also use personality assessments to look at who you are. They zoom into your personality traits to see if you align with their values, culture, and work style.

Some firms still use "forced-choice" questionnaires to vet for core traits. However, gamified behavioral assessments are now the industry standard for banks like J.P. Morgan, Morgan Stanley, and HSBC. 

Instead of answering "I work well in teams," you will play neuroscience-based games that capture information on your risk tolerance, cognitive flexibility, attention to detail, and more traits. Then your behavioral results are compared against a benchmark profile of the firm’s top-performing analysts.

So, if you want a successful Pymetrics games strategy, don’t just focus on winning the game, but also on trait matching. For example, in the Balloon Game, the bank is checking if your risk profile matches the specific requirements of an analyst role.
 

HireVue Video Interviews

Investment banks like Goldman Sachs and JPMorgan use platforms such as HireVue to conduct their pre-recorded online assessments. You will answer questions via video, using a computer or smartphone camera. There won't be an interviewer, so you'll do this alone.

Usually, there are about 3 to 8 questions, and you'll get around 30 seconds to prepare for each question and up to 3 minutes to record your response. You can expect a mix of technical, behavioral, and situational questions.

Also, these video interviews in IB may use AI algorithms to transcribe your responses and scan for specific keywords related to the firm’s core values. So, use the STAR method when answering questions to ensure you hit these benchmarks clearly.

👉 Check out our article and find out more about the HireVue interview.

How to Prepare and Pass Investment Banking Online Assessments 

Practicing more and ahead is the sure way to pass the online assessments in the investment banking recruitment process. You can prepare for the online tests by researching the types of assessments the bank uses, practicing for recorded video interviews, and understanding the bank’s culture.

Let’s take a look at some tips on how to prepare for online tests in IB:

Research the Bank's Online Test Types

Find out the specific types of assessments the investment banking firm you're applying for uses. For example, Deutsche Bank in most regions includes a Situational Judgment Test (SJT), a behavioral and ability assessment, and a pre-recorded video interview in their recruitment process. Instead of spending time on generic practice tests, you can concentrate your preparation efforts on the exact types of online tests the bank uses. This will help you get familiar with the formats and question types for the specific bank. In turn, it can boost your confidence and reduce anxiety, leading to better performance on test day.

Practice with Online Sample Assessments

You can be certain that you won't find the specific questions used in actual bank assessments as they are not publicly disclosed. But there are many resources available that provide sample questions and practice assessments in different areas including numerical and logical reasoning tests. Spend as much time as you can practicing with various sample questions for each category. It can really boost your chances of passing this stage.

👉 Practice your numerical and logical reasoning with our drills.

Do Mock Video Interviews

Record yourself answering common interview questions to improve your confidence and communication skills. Get the sample questions used in such assessments, record yourself, and review how you're presenting yourself. You can use tools like Google Meet or specialized platforms for practice.

Review the Company Values

Research the specific values and competencies that the bank you're applying to emphasizes. This will help you tailor your responses in SJTs and personality assessments to present yourself as a right fit for the company. After all, banks use online assessments to find candidates whose traits match those of the top performers at their firms.

Conclusion

Top-tier investment banks receive hundreds of thousands of applications for a limited number of jobs, summer internships, and graduate program positions. They use online assessments to reduce the pool of applicants and assess if the candidates have what it takes to be top performers at their firms.

So, you must achieve the cut-off scores for investment banking tests to proceed to the next round. Most firms look for candidates in the top 20% of their peer group, meaning an estimated pass mark of 80th percentile for numerical and logical sections.

The online assessments in investment banking include Situational Judgment Tests (SJTs) for decision making evaluation and aptitude tests that measure numerical, verbal, and logical reasoning. Another popular category of online tests in IB is behavioral and personality assessments that can come in various forms like gamified assessments and forced choice questionnaires.

If you want to improve your chances of moving past the HireVue video interview or assessment stage in IB, research the specific tests your target firm uses, like J.P. Morgan Pymetrics balloon game, and practice with similar samples.

FAQs on Online Assessments in Investment Banking