If you're applying for a job in finance, you'll quickly notice that the interviews are tough. They are often challenging, highly technical, and very different from standard job interviews. Especially in the beginning, this can feel quite intimidating.
So why is that? Why do investment banks and other financial firms rely on this specific type of interview? And what can you take away from it as a candidate?
That’s exactly what we’re going to look at today. We will explain step by step what finance interviews are all about, why they are structured in such a unique way, and what valuable lessons you can take from the whole process.
Finance interviews are a key part of the hiring process at banks, investment firms, private equity companies, and consulting firms with a focus on finance. These interviews are specifically designed to assess skills that are essential for the job.
Typically, finance interviews test the following areas:
Even though they can be intense and stressful, finance interviews are not just a hurdle you need to overcome to get the job. In fact, they offer a range of valuable benefits that go far beyond the application process and can support your personal and professional development.
First, preparing for finance interviews teaches you a lot about the fundamentals of the industry. You’ll learn about topics like balance sheets, income statements, and company valuation. This helps you understand how businesses are structured and operate. This kind of knowledge is useful not only in your future job but also in everyday life, for example, when you start investing in stocks or ETFs.
Second, you learn how to stay calm under pressure. Many finance interviews are designed to test how quickly and clearly you can think, calculate, or respond in challenging situations. After going through this a few times, you’ll notice that you become more confident and less easily thrown off balance. That calm mindset can be incredibly helpful in all kinds of professional settings.
Third, you improve your problem-solving skills. In many interviews, it’s not just about the final answer but about how you approach the problem. You learn to think logically, structure your thoughts step by step, and explain your reasoning clearly. This is a skill that will benefit you in many areas, whether it’s at work, during presentations, or in group projects at university.
Finance interviews are not only useful for you as an applicant but also for the companies where you apply. They help employers find out who is the best fit for the job, both in terms of skills and personality.
One big advantage for companies is that they can better assess what candidates are actually capable of. Cover letters, transcripts, or resumes often do not reveal whether someone truly understands the subject. That’s why interviewers ask questions about how you work with numbers or how you value a company. This way, they get a clear idea of how you think and how confident you are with certain topics.
Companies also want to see how candidates approach tasks. It is not just about giving the right answer but about how you work through a problem step by step. This way of thinking is very important in everyday work, since many situations require quick but thoughtful decisions.
Another important point is that companies want to find out if someone will fit well into the team. Interviews reveal how you communicate, how you handle follow-up questions, and whether you stay calm even under pressure. This helps interviewers get a good sense of whether you would feel comfortable in the work environment and work well with others.
Now you have a first impression of why finance interviews are so important in the industry and what skills they expect from you. At first, they might seem really tough and challenging, but there are good reasons behind them that can help you grow personally as well.
We promise that with every round of preparation, you will become more confident and learn how to handle challenging situations like these with greater ease. Keep going, trust yourself, and feel free to use our resources for practice. Then, little can go wrong!
