Jen David 
Smash your next banking interview by practicing these questions!
Are you interested in pursuing a career in banking? It's a diverse sector, with many avenues to explore and different areas of specialization. Whatever your career objectives, you're bound to find something in this sector that's right for you.
In this article, we'll share some of the most common banking interview questions and give you some model answers, so that you can build your own responses around them. Let's dive in!
General banking interview questions
1. Why does a role in banking appeal to you?
“I've been fascinated by banking ever since I was young and my cousin, who I adored, told me about her work in a bank. She made it sound really exciting, so as I got older I found myself naturally gravitating towards banking myself. She'd already given me lots of insight and I realized that it was a career where I could be successful. I love taking on new challenges and consider myself to be a natural problem solver, both of which are vital qualities in any banking role. I can't wait to progress my career in this sector.”
2. Why are you interested in this particular role?
“When I read the job posting, I was immediately attracted to the professional development opportunities on offer. I'm still at an early stage in my career, but I'm keen to progress further and I hope to take advantage of the training and leadership programs you offer. I also believe that I have the right skills to succeed in this role – I'm customer focused and have an analytical mindset.”
3. Why does this particular bank appeal to you?
“There are so many banks out there, but I've personally banked with XYZ Corp for many years and have been delighted with the personal service I receive and the products you offer. As well as being a loyal customer, I also think that this bank offers the best career opportunities for me – I'm looking for a role where I can grow, and with the global nature of XYZ Corp I'm excited about the potential for working internationally alongside industry-leading professionals.”
4. What skills do you have that make you an ideal candidate for this position?
“I learned about great customer service in a part-time role I had while I was studying, which will be key when I'm interacting with your customers. I'm focused on making sure that every customer has a positive experience, because they become ambassadors for your brand. I'm also highly numerate and pride myself on working accurately – something I'd certainly expect from someone I was trusting with my money!”
5. Tell me about your previous banking experience
“I completed an internship at ABC Inc while I was at university and was invited to return to the same team on completion of my degree. I grabbed the opportunity and learned so much in the two years I spent in their credit risk team. I was promoted to a Team Leader position and now I'm ready to spread my wings further. I'm looking for a role which will lean on the skills I've acquired at ABC Inc, while providing the opportunity to learn about other aspects of banking.”
Investment banking interview questions
6. Tell me about a previous deal you've worked on
“At Acme Bank, I worked on a takeover of XYZ Plc. My personal contribution was to carry out debt capacity analysis and communicate the business and financial rationale to the credit team and deal committee. The loan for the takeover was approved and the takeover went ahead.”
7. How would you value a company?
“There are two valuation methodologies I could use – comparable company analysis or EBITDA. The first method compares the company with other similar companies and takes an average. The EBITDA method can be adjusted to take account of non-recurring revenues and expenses.”
8. How do you build long-term relationships with clients?
“I aim to fully understand their needs, goals, concerns and risk tolerance. That way, I can provide information tailored to their specific situation. I also maintain open communication and keep them informed on market developments, trends, and opportunities, so that they know I'm focused on their financial health and objectives. I'm known for quickly striking up a rapport, so my clients tend to trust me from the get-go.”
9. What qualities do you think are most important for a career in investment banking?
“I've always stayed abreast of financial market news and trends, as it's a personal interest of mine. I think being well informed is a key quality for this industry and one which I can display in buckets. Financial literacy is also important; during my internship I was lucky enough to work with some very knowledgeable people who gave me the opportunity to understand and analyze balance sheets and statements. And finally, analytical skills are crucial. I developed my analytical skills at university, and always achieved strong marks in those exams.”
Personal banking interview questions
10. How do you handle aggressive customers?
“I've developed some techniques that help me to deal with these situations positively. I try not to take it personally. I know the customer is usually annoyed with the process or the situation, rather than me. That helps me to take a step back and deal with the situation without getting riled up myself. I listen actively to their complaint and then try to explain to the customer exactly what has happened and why. I then outline the steps we can take to resolve the matter and prevent it from happening again.”
11. How comfortable are you selling products?
“I understand that sales is a key part of the role. I aim to familiarize myself with the product offering and keep myself up-to-date with new products and services, because that gives me the confidence to talk with customers about them and provide them with all the information they need. It doesn't even feel like sales if I know I'm promoting something that I know is right for the customer. In my current role, I've consistently achieved my sales targets and have been asked to train new staff on how to sell certain products, as my manager recognized my skill in this area.”
12. How do you ensure that you offer the most suitable product to each customer?
“I like to find out as much as I can about my customers and build long-term relationships with them. I ask open ended questions and try to present a range of products, discuss the benefits of each, and listen to their opinions and feedback, so that I can understand their priorities and needs before making any recommendations. I explain products in an easily understandable manner to ensure the customer has all the information they need to make an informed decision.”
13. Describe a time when you have worked well as part of a team
“I have been part of the Teller team for three years. I get on really well with my colleagues and we always step in to help each other out, particularly if one of us is dealing with a difficult customer. I've also built great relationships with other teams across the bank, including the mortgage and credit card teams. It benefits customers - they aren't being passed around as I can signpost them to the right person straight away – and it benefits the bank as we work more productively when communication is strong across teams.”
14. Tell me about a time when you've helped a customer to use a digital channel for their banking needs
“I understand that digital platforms are a key part of the future of banking, but I find that some customers still come into a branch because they're not confident using new technology or they're worried about fraud. Recently I supported a gentleman who wanted to transfer some money into his daughter's account. I explained to him that he could do the transaction himself online and that the customer portal is very secure.
He was unsure, so I provided him with some information to take away. He came in again the next week, having set up his online banking, but wanted me to talk him through some steps, as he was worried about making a mistake. Next time he came into the branch, he told me he had managed to carry out several transactions online and that his daughter was very impressed with him for using new technology!”
15. How do you make sure you meet your targets?
“I try to build strong customer relationships, so that I can identify when customer needs change. That way, I can promote products that fill that gap. I monitor my figures throughout the month, so if I notice that there's a particular area where I might not meet my target, I have a couple of days where I focus on that area. I also ask my colleagues for tips if there's a product I'm struggling to sell, and ensure I keep myself updated with information about new products.”
Corporate banking interview questions
16. Give me an example of a time when you had to handle a complex transaction for a client
“I found a recent transaction quite challenging, but luckily I have a great mentor and go out of my way to stay up to date with industry news and regulatory changes. I also ensure I follow company processes and procedures. With this background knowledge and support, I was able to guide my clients through the transaction and respond to their questions, while ensuring complete regulatory compliance.”
17. How do you assess the creditworthiness of clients?
“I do this by taking input from various places, including financial statements, debt levels and credit history. I also take cash flow, market conditions, and general industry health into account and analyze liquidity and profitability. With enough information, I can make a sound judgment on their risk level.”
18. How do you ensure compliance with anti-money-laundering regulations?
“I read industry publications and follow key accounts on social media to ensure I'm always up-to-date with the latest changes and regulations. We review transactions for potential money laundering activity and escalate potential issues. I refer to my manager and regulatory bodies if I need further input.”
19. Why have you chosen corporate banking over investment banking?
“What really appeals to me is the potential to build long-term relationships with corporate clients and support them in achieving their objectives. From what I understand, investment banking is focused more on one-off deals, where there would be less opportunity to work with customers long term.”
20. Tell me about a time when you've had to explain a complex financial concept to someone with no financial background
“One of my clients was the Director of an agency who, although they were running a successful business, had minimal financial acumen. I supported them by providing both verbal explanations and printed information on the various options they had available. I also tried to relate the financial concepts directly to their business, with real-world examples, to help them make their decision. I believe that in the end they chose the best option for their business.”
21. How do you build trust with potential clients?
“Great communication is at the heart of building trust. I listen carefully to ensure I fully understand their needs and concerns and take the time to explain anything the client is unsure about. I try to allay any concerns they might have, answer questions fully, and build long-term relationships. This includes keeping detailed notes of interactions, so that I can pick up where we left off every time.”
Bank Manager interview questions
22. Have you ever had to resolve conflicts between colleagues?
“I previously worked with two colleagues who had very different personalities and didn't get on together. When this conflict started to threaten the success of a project, because they had different approaches, I knew I had to step in.
I actively listened to each person to understand their concerns, then brought them together to try to find a middle ground. I encouraged them both to listen to the other person to understand their perspective. Throughout the discussion, I remained calm and neutral.
By the end of the meeting, although they agreed to disagree on some points, we had negotiated a way forward. I was satisfied that the project would be able to progress with the solution we had discussed, and it was eventually delivered on time. I reiterated the importance of staying professional and discussing future concerns at an early stage before they escalated.”
23. Tell me how you would manage an underperforming employee
“If I identified someone in the team who was consistently underperforming, I'd need to implement the company's disciplinary process. In my current role, I had to start the process with a colleague that I actually liked on a personal level, so it wasn't an easy task. The first step was an informal conversation about her performance, where I provided specific examples. Unfortunately, the issues persisted so we had to progress to a written warning.
She took that very seriously as she understood that the next step was dismissal. Her performance improved rapidly and she also took me up on the offer of additional training. She is doing well in the role today.”
24. How would your current team describe you as a manager?
“I'd like to think they'd say I am a supportive manager. I have an open-door policy and will accommodate their needs as much as I reasonably can. They'd also say that I'm their biggest champion - the offer of further training and development opportunities is always there for staff that want to progress their career. That said, I do expect high standards in return and they know I'm not a pushover if they're falling short.”
25. Have you ever handled a situation where an account has been compromised due to fraud?
“Yes, a lady came into the branch to report three transactions on her account that she didn't recognize. I immediately put a freeze on her account and started the fraud procedure. This involved flagging the transactions to our fraud team for further investigation. I also provided the customer with information about fraud and the steps she could take to protect herself in future. Eventually the three transactions were refunded to the account, as they were indeed found to be fraudulent.”
26. Tell me about a time when you made a change within your branch and how you handled it
“One change that we implemented recently was a change to our queue management system. As well as navigating new technology, I also had to handle resistance from a couple of the Tellers. I spent time with them explaining why we needed to make the change and the impact it would have on customer satisfaction and staff productivity.
I was also transparent about the technical problems we were having and the steps that we were taking to resolve them. I arranged to meet with them for a review two weeks later, when the new system had had time to bed in. By that time, most of the teething difficulties were resolved and everyone was committed to making a success of the new system.”
27. Tell me about a time when you needed to show discretion regarding a customer's sensitive financial situation
“I always treat customers with empathy, remembering that there's a person behind every transaction. A few months ago, I met a client who was unable to make his mortgage repayments as he'd lost his job. I summarized the problem so that we were both approaching it with the same understanding. I explained that we would need to recover the money, but that there were various options to achieve this.
I talked him through several options and remained supportive and understanding throughout the conversation. He decided on the best option for his personal situation and luckily secured a new job quickly. The choices I presented made the situation manageable for him and my approach ensured that we retained him as a customer.”
If you're prepared, you'll impress during the interview!
Succeeding in any job interview takes more than just showing up in the right outfit and presenting a professional appearance. To stand out from a crowded field of competitors, you'll need to be prepared to answer even the toughest questions. By studying these common banking interview questions, you should be more than ready to make the type of impression that can help you to land that critical job offer!
We've covered the main areas of banking here, but if you still need some more support to go into your bank interview brimming with confidence, check out TopInterview's interview coaching service.