Finance sector interview types
The finance sector spans investment banking, asset management, commercial banking, financial planning, insurance, fintech, and corporate finance. Interview formats and required knowledge vary significantly by sub-sector. Investment banking interviews are among the most rigorous in any industry: they include technical financial modelling, accounting knowledge, markets questions, and behavioral rounds. Asset management interviews test investment philosophy and financial markets knowledge. Financial planning (IFA) interviews focus on regulatory knowledge, client communication, and product knowledge. Know which sub-sector you are interviewing for and calibrate your preparation accordingly.
Technical finance questions
"Walk me through a DCF valuation." Standard investment banking technical question. Structure: project free cash flows for five to ten years, calculate the terminal value (Gordon Growth Model or EV/EBITDA exit multiple), discount all cash flows including terminal value back to present using WACC, sum to get enterprise value, adjust for net debt to get equity value, divide by shares outstanding to get implied share price. Know the inputs (WACC components, appropriate discount rate for different risk profiles) and the limitations (terminal value dominates, highly sensitive to discount rate and growth assumptions).
"What happens to a company's financial statements if you depreciate an asset by £100?" Income statement: depreciation expense increases by £100, EBIT falls by £100, tax falls by £30 (assuming 30% tax), net income falls by £70. Cash flow statement: net income down £70 but depreciation added back (non-cash), so operating cash flow is unchanged (if no other changes). Balance sheet: PP&E falls by £100, retained earnings fall by £70, deferred tax liability falls by £30.
Markets knowledge questions
Markets-facing roles (trading, sales, research, portfolio management) require current markets awareness. In 2026, relevant topics: central bank rate policy trajectory in the US and UK, the impact of AI on financial services business models, geopolitical risk premia in equity valuations, credit spreads in investment grade and high yield, and the regulatory landscape (Basel III finalisation, Consumer Duty implementation in the UK). You will be asked "what markets are you following?" or "what is your view on X?" — have specific, reasoned views ready, not just descriptions of what has happened.
Regulatory awareness questions
All finance sector roles in the UK operate under FCA regulation. For client-facing roles, Consumer Duty (2023) is the most significant recent regulatory change: it requires firms to deliver good outcomes for retail customers at every stage of the product lifecycle, not just at point of sale. Know what Consumer Duty means for the specific firm and role you are applying to. For banking roles, understand Basel III capital requirements and how they affect the business. For investment management, understand MiFID II disclosure requirements. Regulatory awareness is expected, not optional, at any level above entry.
Behavioral questions for finance roles
"Tell me about a time you had to analyse a complex data set and present your findings to a non-technical audience." Finance roles regularly require translating quantitative analysis into business decisions. Strong answer: show you identified the key insight rather than presenting all the data, structured your explanation around the business decision being made, used visual tools to aid understanding, and tailored the level of technical detail to the audience. "Describe a time you identified a risk that others had not seen." Strong in finance: shows analytical depth, independence of thinking, and professional courage to raise a concern.