40 Financial Analyst Interview Questions & Answers
Below is a list of our Financial Analyst interview questions. Click on any interview question to view our answer advice and answer examples. You may view 5 answer examples before our paywall loads. Afterwards, you'll be asked to upgrade to view the rest of our answers.
Table of Contents
- 1. Accomplishment Questions
- 2. Adaptability Questions
- 3. Behavioral Questions
- 4. Capability Questions
- 5. Career Goals Questions
- 6. Communication Questions
- 7. Compatibility Questions
- 8. Competency Questions
- 9. Diligence Questions
- 10. Discovery Questions
- 11. Education Questions
- 12. EQ Questions
- 13. Experience Questions
- 14. Job Satisfaction Questions
- 15. Leadership Questions
- 16. Operational Questions
- 17. Performance Based Questions
- 18. Salary Questions
- 19. Teamwork Questions
- 20. Technical Questions
One of the most important things a candidate needs to evaluate when competing for any position with any company is determining if their culture and work environment are the right fit for them. For a financial analyst, this is especially relevant. They need to learn why the interviewer is recruiting for this position. Is this a newly created role for this company, and was there resistance? Is this one of those situations where the CEO was unfamiliar with the benefits of hiring a financial analyst, believing they didn’t need one and could do the job themselves? What kind of personality does that executive have, and would they be receptive to you if hired?
If the above doesn’t apply, was this position recently vacated, and, if so, why? Was the person who held the position trained into the role with no prior experience? How much of the company’s time and funds were invested in that candidate’s training, and how effectively did they mitigate risk? Was the person capable and admired, or did they fail to deliver? Either way, they may want to avoid the time and cost of hiring and training someone new, or someone less experienced, for the role. So, more likely than not, their ideal candidates would be accomplished in their industry and field, be familiar with their company, products, and services, and require little time to get up to speed. But that presents another question. If you meet that criteria, can they afford you?
Regardless, your interviewer will need convincing that your expertise will exceed their expectations and that paying you for your professional worth will prove a worthy return on investment. Therefore, the surest method of establishing your professional worth is delivering a memorable interview. As a financial analyst, research and gathering data is the nature of this job, and it will take more than just words to deliver a great interview. Every response to their questions needs to showcase your strong work ethic through your research on this position, this industry, the company, its competitors, and on yourself.
Throughout your interview, you also need to demonstrate your enhanced communication skills through how articulately you answer each question. You’ll need to pay attention to how they phrase each query, as they may occasionally test your attention to detail, a core competency of a financial analyst. You may also need to identify where they are struggling and where they aim to go. This requires tact and nuance because the research, data, and observations you uncover from being on the outside might not reflect the opinions and views of those working within the company, which serves as yet another test of your communication skills and tact.
Not only do they need to believe that you are skilled enough to do the job and that you have excellent problem-solving abilities, but they also possess the integrity they require to be entrusted with the welfare of their company. They need to ensure you can be entrusted with their confidential information, assets, and vision for the future. Most importantly, you need to showcase your professional worth through your leadership skills. You’ll do this by asking specific questions that aim to answer what you were unable to learn on your own. In other words, you need to keep gathering data while defining your needs.
As they say, you are interviewing them as much as they are interviewing you. Therefore, you need to expend every effort to ensure this position and company feel like the right fit for you. Your research and data gathering shouldn’t end until the interview concludes. And, when that last question arrives, and they ask if you have any more questions, this is the time to reverse any preconceived notions they have about you and to address any misinterpreted signals or red flags raised.
All you have to do is ask, ‘Do you have any apprehensions about hiring me or anything I can clarify before we wrap up?’ This gives you the upper hand and exemplifies your leadership skills and enhanced communication skills. Be open and receptive to their feedback and what they have to say. Actively listen and validate while avoiding responding emotionally and objectifying the situation. This will make you a memorable candidate, present you as especially skilled in all the right ways, and frame you as a low-risk investment candidate, which is everything a financial analyst should represent.
Accomplishment
1. Tell me about yourself.
What You Need to Know
This introductory question will help break the ice and enable your interviewer to evaluate your personality. Having a better sense of who you are will help them determine how well you'd fit into their company and how well you may get along with and collaborate with their teams. So when answering this question, relax, showcase your personality, and make your interviewer's job easier. Avoid rambling on as well. One of the most valued skills of financial analysts is being a strong communicator. So formulate a structure for how you want to introduce yourself while giving your elevator speech. Explain who you are as a person and a professional - why you are here, where you come from, and where in your career you aim to go. Bring up anything that might interest your interviewer or align you with their company culture and values.
Written by Kevin Downey on August 1st, 2023
Experienced Example
"A bit about me - I love to travel, read, and conduct research. I am a recent grad from Columbia University and have spent the past 12 months traveling the world. It was the best experience that I could have given myself. I most enjoyed immersing myself in other cultures and experiencing other ways of being. As a result, I feel more culturally competent than ever, as I learned so much from seeing how others live. I returned to the US just last month and have been actively looking for work with a company whose values and culture align with mine. I look forward to collaborating with a company that I could support."
Written by Kevin Downey on August 1st, 2023
Adaptability
2. When planning, how often do you create alternative scenarios to help you adjust to changing situations?
What You Need to Know
Project management requires high-level time-management skills. It goes beyond planning out the moving components of a project and fitting and assigning tasks to allotments of the time given to you. It also requires adding a cushion of time for contingency scenarios and planning for when things don't go according to plan. As Dwight D. Eisenhower once said, "Plans are useless, but planning is indispensable." So, when answering such questions, break down your scope of the big picture and how you aim to go the extra mile with consistency. That way, if everything goes according to plan, you come in ahead of your deadlines and are ready for more. In the worst-case scenario, things don't go according to plan, yet you still successfully meet your deadlines.
Written by Kevin Downey on August 1st, 2023
Experienced Example
"It is crucial to imagine alternative scenarios in all situations. Pad the job, as my father always used to say. One cannot guess what wrench might end up falling into the works, so be prepared when things don't go your way. Of course, you don't want to push your teams too hard and grind everyone down. You have to delegate and communicate with efficiency and consider every contingency. But above all, attitude is everything. Set the right tone, and you can set the right pace to get the job done and get it done right."
Written by Kevin Downey on August 1st, 2023
Behavioral
3. Who is your hero?
What You Need to Know
This is more than just a fun question. By hearing about your hero, the interviewer will learn about someone you look up to and model yourself after or aspire to be. This will help your interviewer better determine how well you would fit in among the rest of their teams. So, give them what they are after, and make the question easy for them. Have fun with this question and show them who you are and who you admire or look up to. Be yourself.
Written by Kevin Downey on August 3rd, 2023
Answer Example
"I'd say that Tonya Rapley is one of my biggest heroes. I've seen her speak a few times, and as a millennial woman of color who has made it her mission to help others become financially free rather than struggling paycheck to paycheck makes her iconic, not to mention she is doing what she loves and helping others do more of what they love. Have you ever heard of her Banish The Balance challenge? Check it out. She's over four-thousand people pay off more than two-hundred-thousand dollars of debt in sixty days."
Written by Kevin Downey on August 3rd, 2023
Behavioral
4. The financial industry is large; however, it can be close knit. Describe your reputation in our industry.
What You Need to Know
Every employer wants to know that they are hiring someone with a strong reputation in the industry. In finance, reputation means a lot because reputation equals trust. Talk to the interviewer about your reputation in the industry by drawing on compliments you have received from clients, reviews from current or previous employers, or co-workers. Share any financial analyst communities you belong to, such as your CFA Society's local chapter, Financial Analysts Societies, and networking through industry conventions. If you have any written references to bring with you - even better!
Written by Kevin Downey on July 30th, 2023
Answer Example
"For me, reputation is everything. I have two written references for you from previous clients. You can also call my past two employers if you would like a character reference. I can best describe my reputation as honest, thorough, and invested. I want to see my clients succeed."
Written by Rachelle Enns
Behavioral
5. What unique qualities would you bring to our company?
What You Need to Know
Your interviewer asks this question to determine whether your goals align with theirs. A candidate who merely has an alignment of skills and is looking for any job anywhere will probably be viewed as having little to offer. Such an individual would be viewed as simply looking for a regular paycheck, might lack loyalty, and could end up with the highest bidder. Such an individual would likely perform the bare minimum, merely adhering to their job description. However, your interviewer's goals are to find the best person for the job who will collaborate and innovate with their teams, build relationships, and embody and represent their company's culture, values, and brand. So this question is all about what you uniquely have to offer them. As Mahatma Gandhi once said, "The best way to find yourself is to lose yourself in the service of others." So when answering this question, inform them of how their company is a place you would take pride in working with and how you are uniquely positioned to be a stakeholder in your mutually continued success.
Written by Kevin Downey on August 1st, 2023
Answer Example
"I have a unique ability to strike up a conversation and build rapport with nearly anyone. This is a great help when it comes to customer service and sales. My up-selling percentages are always very high."
Written by Kevin Downey on August 1st, 2023
Experienced Example
"My professor at university, who served as my mentor for many years, gave me this advice a while back. She said to find a company to work for that you can stand behind. If you are going to build a career as a professional and be loyal and put your all in, it should be effortless. The motivation has to be automatic, second nature. So look at their values and what they have to offer your career. Look at their culture and if the professionals who work there are your kind of people. Find someplace where you feel you are part of something bigger. You and your company are one and the same. So, here I am, knocking on the door of where I feel I belong. A place I want to call home. I am betting no other candidate has said that in an interview before, which I am guessing makes me unique."
Written by Kevin Downey on August 1st, 2023
Behavioral
6. In your opinion, what profitability models are most accurate for forecasting?
What You Need to Know
Your interviewer is aiming to assess your experience level as a Financial Analyst. How you answer this question could potentially inform them of your communication skills, your confidence level, and whether you are up to date on the more relevant and current forecasting models. As Peter Drucker, one of the most widely-known and influential thinkers on management, once said, "The best way to predict the future is to create it." So study every aspect of the company you are interviewing for. Prepare and anticipate every question they may throw your way. Create your future and be confident in your interview performance. View every question as an opportunity to showcase how well you've prepared for your interview. Doing so will set you up as an ideal candidate and increase your professional worth. Share the factors that you consider, such as operations, financial results, the company's position in the marketplace, and the different characteristics of the current market.
Written by Kevin Downey on August 1st, 2023
1st Answer Example
"I have worked primarily with startups, so I have found using the financial model and looking at trends is most effective. For companies with a more stable financial background, I would use the historical model. It depends on the company; however, I have found the analytical model to be the least accurate. In the end, most models still heavily lean on educated guesswork."
Written by Rachelle Enns
2nd Answer Example
"As research is my passion and pride, I forgo a few methods. I will take the situation, products, and services into account. But I'll examine the historical models, trends, financial models, return on assets, and gross profit margins, and even apply the DuPont analysis before I apply an analytic model. Leave nothing on the table."
Written by Kevin Downey on August 1st, 2023
Capability
7. When reviewing investment programs, how do you interpret data?
What You Need to Know
Interpreting financial data is a core skill of a financial analyst. As Association of National Advertisers vice president Michael Palmer once said, "Data is the new oil. Like oil, data is valuable, but if unrefined, it cannot be used." So share your approach to data interpretation, adding value to your findings while speaking confidently about your skills. Go into as much detail as you need to in you take into account what you feel is necessary to relay.
Written by Kevin Downey on August 1st, 2023
Answer Example
"Using my knowledge of business practices, I take a look at the financial data considering trends, price, and economic conditions. I organize my forecasting reports based on the results and the concerns of the investors."
Written by Rachelle Enns
Career Goals
8. Has your career progressed as you would have liked?
What You Need to Know
Your interviewer is curious about how far you've come in your career and whether you have frequently had to revise your five-year career plan. How you answer may reveal whether you struggle with time management or have experienced job dissatisfaction and reassessed your priorities. If you haven't advanced as swiftly as you'd prefer, that's okay, so long as you are learning and determined to rise to the heights you desire. As the philosopher Lao Tzu once said, "The journey of a thousand miles begins with a single step." So, breathe more life into your career progression than what is on your resume, and share the speed bumps you hit along the way and how you adapted. Whether you are an entry-level analyst or director, detail how far you've come, where you hope to go next, and that you are capable of the hard work and dedication to achieve your career goals.
Written by Kevin Downey on August 1st, 2023
Answer Example
"Well, I'm a senior analyst at my current company and have been qualified, according to my supervisors, to be a manager for some time. But, any time there seemed to be a position that would come available, our branch manager has been hiring friends or family from outside. So, I have been in a holding pattern for some time. At this point, I decided it would be better to work for a company that was more of a meritocracy and relied less on nepotism."
Written by Kevin Downey on August 1st, 2023
Career Goals
9. Where do you see your finance career five years from now?
Why the Interviewer Asks This Question
Your interviewer aims to hire a candidate they feel is a good investment, who they can develop and promote, with employee retention and longevity in mind. This question asks whether you have a five-year career plan, have identified opportunities to advance your career with them, and intend to plant your roots and grow further with their company in five years.
Written by Kevin Downey on August 1st, 2023
What You Need to Know
Even though it is impossible to know where you will be in five years, assure the interviewer that, given all possible circumstances, you hope to see yourself in a prosperous career with them. The way to do this is to show them that you have thoroughly thought through your decision to pursue this position, see it as an opportunity, and are emotionally invested. Show them that you see this as an ideal fit and would love to work with them. As Steve Jobs said, "The only way to do great work is to love what you do." So when answering this question, show them you would love to work with them and would do great work with them, given the chance.
Written by Kevin Downey on August 1st, 2023
Answer Example
"Five years from now, I would love to see myself growing into a more prominent leadership role within your organization. My career interests align very nicely with your company's growth plan, which helps me to see a great long-term fit here."
Written by Kevin Downey on August 1st, 2023
Career Goals
10. Tell me one thing about yourself that you would like to improve upon.
What You Need to Know
The interviewer asks this question to determine whether you take charge of your development, set goals for what you would like to work on in your professional growth, and where you hope this company can take you next. So, when answering this question, do just that. Showcase how prepared you are for this interview by detailing the specific growth opportunities you've identified at their company, which you've determined can potentially advance your career. That way, you will demonstrate that you are invested in this specific opportunity by making them a stakeholder in your career advancement.
Written by Kevin Downey on August 1st, 2023
Answer Example
"I would like to improve upon my computer skills. I am currently at an intermediate level with Microsoft Office Suite but would like to advance. I have enrolled in a class this Fall, which should help me to reach that goal."
Written by Rachelle Enns
Career Goals
11. Describe a time you made the wrong career decision. How did you correct your misstep?
What You Need to Know
Careers rarely follow a straight line. Sometimes what may at first seem like an excellent opportunity for career advancement might result in an unintended detour that veers your trajectory off course, such as taking a job with a company that wasn't as reputable as initially believed or taking a role that was 'oversold' to you. Others might have pursued a degree that seemed appealing at the time, but when immersed in it, they realized it wasn't the right fit. Many financial analysts may have pursued a career in banking, only to realize that they found more satisfaction in consulting, for example. But the most important thing is that you realized what went wrong and took measures to learn from your mistakes. As Alice Cooper says, "Mistakes are part of the game. It's how well you recover from them, that's the mark of a great player."
Written by Kevin Downey on August 1st, 2023
Answer Example
"Last year, I was offered a management position that would have offered me the leadership experience I was looking for. Unfortunately, I turned down the offer for fear that I was not yet ready for the responsibility of being a leader to so many people. My lack of confidence in myself got in the way. I recognized that lack of confidence in myself and turned it around by attending three leadership workshops over the next year. Now I am bursting with confidence and ready to take on this leadership role with your company."
Written by Rachelle Enns
Communication
12. Tell me about a time you presented an oral report to a client or employer. How did you ensure the information was absorbed?
What You Need to Know
When financial analysts present their findings to senior management or other decision-makers, they'll need to showcase every aspect of their communication skills - verbal, nonverbal, and written - to present their findings clearly and concisely. A good presentation tells a story. Showcase how you make numbers interesting and relevant. If you are presenting to investment bankers, they may be interested in different information than the CEO of a startup marketing firm. Thus, you must know your audience before presenting. Think of a time when you did just that! Highlight for the interviewer how you presented persuasively while making the data understandable and absorbable.
Written by Kevin Downey on August 1st, 2023
Answer Example
"I worked as an in-house financial analyst at a marketing firm this past year and gave a presentation on their financial forecast. I wanted to tell the story in a relevant way, so I put the information into perspective by showing them how my research would affect their business growth and help them get where they wanted to go. I hired a graphic designer to make the presentation visually engaging and compared their brand story to one of their strongest competitors, using numbers and potential outcomes to capture their attention."
Written by Rachelle Enns
Communication
13. Explain one financial concept to me.
What You Need to Know
Financial analysts often work with other professionals, such as accountants, lawyers, and business managers. They need to be able to communicate effectively with them and learn from them. As you work with your colleagues and clients, you'll need to be able to share knowledge and conduct enhanced communication. This includes active listening, mirroring, breaking down complicated financial concepts in terms that are easily understood, and adapting your communication style to others. You need to constantly improve your skills in innovative ways. As Warren Buffet says, "The more you learn, the more you earn." So review industry concepts you may not use or apply every day, and discuss any topic the interviewer throws your way.
Written by Kevin Downey on August 1st, 2023
Answer Example
"The most common financial concept I find myself explaining to my clients is the Random Walk Theory. Many new investors believe that the Stock Market is somehow rigged, so I like to teach them that stock prices are random and unpredictable. The Random Walk Theory is also called the Random Walk Hypothesis."
Written by Rachelle Enns
Communication
14. How would you explain your job as a financial analyst to someone with no financial background?
What You Need to Know
Financial analysts often need to communicate complex financial concepts in a manner that is easy to understand for their clients and other stakeholders. Showcase that you are patient and actively listen to those you are communicating with while accurately assessing their level of comprehension. Offer how you close the distance of any communication gaps and readily meet them over halfway whenever necessary. This requires more than breaking down complex information into simple terms. It requires empathy, active listening, mirroring, and ensuring the message you intend to send is the message that is received.
Written by Kevin Downey on August 1st, 2023
Answer Example
"When I need to explain my role as a Financial Analyst to anyone without a financial background, I break it down into simple terms. I say that I provide financial guidance to individuals and businesses based on a set of financial based data and criteria."
Written by Rachelle Enns
Compatibility
15. What are your thoughts about our company culture?
What You Need to Know
This question aims to determine what aspects of their recruiting efforts appealed to you, helping them better understand which investments are yielding the greatest results. So this question falls into the realm of a financial analyst as much as any other. As Richard Branson suggests, "Create the kind of workplace and company culture that will attract great talent. If you hire brilliant people, they will make work feel more like play." Creating an environment such as this requires a budget, and is a worthy investment if done right. So share with them your knowledge of their company culture, what appeals to you most, and why you feel this culture and environment are a good fit for you and your talent.
Written by Kevin Downey on August 3rd, 2023
Answer Example
"I learned a lot about your company culture and values online. The fact that this company has done such a great job of attracting talent truly appealed to me. Truth is, as a financial analyst, I wanted to work for a company where I could focus more on helping a company with a strong foundation, great teams, and a great culture. Your flexible work environment, inclusion, equality and diversity efforts, ESG goals, and life and work balance seem to truly foster that innovative spirit to attract great talent."
Written by Kevin Downey on August 3rd, 2023
Compatibility
16. Which is more beneficial - to increase price by one percent OR to increase customer base by one percent?
What You Need to Know
This question concerns the cost of retaining customers versus acquiring new customers. It sounds more like a problem-solving math question, but it's pretty straightforward. To answer this question, explain your knowledge of customer retention and acquisition. You can share what you have learned from your clients and how you prioritize them to maintain relationships and give them the results they need.
Written by Rachelle Enns
Answer Example
"I believe that customer retention and investing more in your customers should take precedence over increasing prices. You could lose your customers in the meantime, which will end up costing the company more in the long run. I believe it is more beneficial to increase your customer base every time."
Written by Rachelle Enns
Compatibility
17. When looking at the profitability of an investment, what other factors do you consider besides Net Present Value (NPV)?
What You Need to Know
As you may have figured out by now, you will want to know the terminology and formulas for your finance interview. The interviewer needs to ask these types of questions to make sure you know your stuff. NPV stands for Net Present Value, a factor used in assessing investments.
Written by Rachelle Enns
Answer Example
"When looking at the profitability of an investment project, I consider future value calculations, compounding interest, and of course, net present value."
Written by Kevin Downey on August 1st, 2023
Compatibility
18. If you could analyze only one type of financial statement for your clients, which financial statement would you choose?
What You Need to Know
The interviewer is looking for your personal preference. Technically, is no right or wrong answer; however, you should consider the job description. You should recall if there was an expressed preference for the type(s) of financial statements they want you to be well versed in. Once you state your preference, explain why you chose that particular statement over the others.
Choose from the four main types of financial statements:
- Balance Sheets
- Income Statements
- Statement of Cash Flows
- Statement of Changes in Equity
Written by Kevin Downey on August 1st, 2023
Answer Example
"From a logical standpoint, the Statement of Cash Flows makes the most sense if you had to choose just one financial statement type to analyze. The cash flow statement would tell me the ins and outs of cash movement, current liabilities, investments, and operating needs."
Written by Rachelle Enns
Competency
19. What do you know about our products and services?
What You Need to Know
To understand the company's financial performance, you'll need to not only be fully versed in the company's products and services to make better investment decisions. You'll need to focus on their marketing materials, the company's sales team, and what their competitors are offering to offer better financial advice. So don't just memorize their products and services, but also read the company's marketing materials, talk to the company's sales reps, see how effective they are in selling you on their products, and do the same with their competitors. Get first-hand experience of the products and services and how they work.
Written by Kevin Downey on August 3rd, 2023
Answer Example
"Well, I know that X, Y, and Z are top performers in your market. I reached out to Competitor A's sales team, and they seem like they are learning from your successes. I am curious to learn more about how the company plans to move forward to maintain its competing edge. The risk of being a trend-setting, right?"
Written by Kevin Downey on August 3rd, 2023
Diligence
20. Why should we hire you over another candidate?
What You Need to Know
This question is less about the other candidate, about whom you know nothing. Instead, this question concerns what makes you uniquely qualified for them. Every other candidate has put their best resume together and has likely put time into researching the company and their culture. But not all candidates have put equal time into doing their homework on themselves, identifying how they are a unique match for the ideal candidate they are on the hunt for. And none of them are better qualified to speak about you as a topic of interest. So now is the time to showcase with confidence why they should specifically hire you.
Written by Kevin Downey on August 1st, 2023
Answer Example
"Well, on your career page, you detail that you are looking for winners with strong analytical skills, performers, and even jugglers. That popped out at me right away because my coworkers often referred to our office as the circus, and they called me the juggler. I am always the one who has so many projects going on, always trying to overachieve, that they all said any of them would have lost count of the balls and dropped some of them. Yet I can always keep them all n the air, prioritize effectively, and come in way ahead of every deadline."
Written by Kevin Downey on August 1st, 2023
Diligence
21. Accuracy is very important when making projections based on financial data. How do you ensure accuracy?
What You Need to Know
Talk to the interviewer about your level of attentiveness regarding details on the job. There are many factors and changing conditions that affect financial business decisions. When you talk about your process for accuracy, show how you are consistent and precise. Attention to detail, the ability to see the big picture, and the willingness to reassess, are key skills that will aid in accuracy. It is always best to support your reply with a real-life example. Showcase that you stay current in the changing economic environment, account for potential losses and unexpected expenses, ensure your costs and expenses are accurate, examine all scenarios and potential outcomes, compare data, and consistently perform research with a willingness to reassess regularly.
Written by Kevin Downey on August 1st, 2023
Answer Example
"My co-workers would describe my attention to detail as very strong. I can very easily point out discrepancies in reports and will notice the small things. I also think big-picture, but I have always had a knack for the finer details. Accuracy is crucial when I am making projections. I ensure accuracy by triple-checking that my numbers are correct, looking at multiple potential outcomes, and comparing the financial data with that of a similar project. This helps me ensure that I am not leaving out any important factors."
Written by Kevin Downey on August 1st, 2023
Diligence
22. What finance-related magazines, newspapers, or journals do you read?
What You Need to Know
Part of your job as a financial analyst is staying up to date on the latest trends and growing in your overall knowledge. In addition to any of the major and most relevant publications, such as the Wall Street Journal magazine, Financial Times magazine, Bloomberg Businessweek magazine, Barron's magazine, Forbes magazine, Economist magazine, Institutional Investor magazine, and Morningstar magazine, familiarize yourself with the news and media offerings of the company you are interviewing for. Spend ample time reading as much as they offer on their website, and they will expect you to be the voice of their company and be fully versed in the knowledge they have to offer their clients, stakeholders, and their teams. Show that you are knowledgeable and interested in your field. Come across as a reliable and trusted resource.
Written by Kevin Downey on August 1st, 2023
Answer Example
"I subscribe to the Wall Street Journal, Financial Times, and the Economist. I make a concerted effort to take time out of my day and read about the latest economic shifts that will affect my job and clients."
Written by Rachelle Enns
Discovery
23. Share with me your thoughts on the 2008 mortgage crisis.
What You Need to Know
Your interviewer is curious about how you analyze and view major economic events and the factors that directly impact the world of finance. Do you react emotionally or based on the data, trends, among other factors? Take time to showcase your thoughts and that you have your finger on the pulse of major financial topics.
Written by Kevin Downey on August 1st, 2023
Answer Example
"I think it was such an anomaly - the conditions just created a perfect storm. Yet every time some new financial scare comes along, all these economist alarmists start predicting the next crisis, comparing it to the great recession. The subprime mortgage crisis occurred because of a flawed financial model, far too much borrowing, and many people believing home prices would soon soar. None of these recent trends are remotely comparable. The tension between Nato allies and Russia, the war in Ukraine, Covid-19, and inflation are such historic events that will have a recoverable impact, but they cannot be compared to something that happened all that time ago."
Written by Kevin Downey on August 1st, 2023
Education
24. Walk me through your finance-related education. Which courses were your favorite? Where did you struggle?
What You Need to Know
Your interviewer wants you to breathe life into your education, going deeper than the bare facts on your resume. Discuss more than the degree you earned or your coursework, and showcase the life lessons you learned and your on-the-job experience. As Benjamin Franklin once said, "An investment in knowledge pays the best interest." Discuss the challenges you faced, the obstacle you overcame, and the experiences and life lessons that increased your emotional intelligence.
Written by Kevin Downey on August 1st, 2023
Answer Example
"I have a Masters degree in Finance. I am also a Chartered Financial Analyst (CFA). I completed my Masters degree from Stanford University in 2006. My CFA designation was awarded to me in 2010. During my studies, my favorite course was International Business. I found it incredibly eye-opening to learn about financial matters in other regions. Statistics is the area that I struggled with the most. I hired a tutor for that course and completed it with strong grades."
Written by Rachelle Enns
Experienced Example
"I earned my Master of Business Administration degree at the Robert H. Smith School of Business at the University of Maryland. I gained favor with my professor, who actively mentored me during the last year of my studies before I earned my bachelor's degree. Thanks to Professor Johnson's encouragement, I returned to pursue my Master's degree and earned several scholarships, which helped carry me to the finish line. But what I learned most was how my professor coached me when I stumbled and helped me pick myself back up. Thanks to that encouragement and those words of wisdom, I have increasingly taken every setback in stride and have the fastest situational reaction times and emotional maturity of anyone I know. Now I take pride in mentoring others as Professor Johnson mentored me."
Written by Kevin Downey on August 1st, 2023
EQ
25. Tell me about a setback you faced on the job.
What You Need to Know
This is another question aimed at determining your level of emotional intelligence and whether you take ownership of your mistakes or fear them being discovered. Someone who is embarrassed by or ashamed of their mistakes is more likely to repeat them, whereas someone who takes ownership of their mistakes or failures takes every opportunity to learn and grow from them and finds that admitting to their mistakes is a show of strength. No one can hold over you what you already own. As Howard Marks once put it, "Experience is what you got when you didn't get what you wanted."
Written by Kevin Downey on August 1st, 2023
Answer Example
Early in my internship, I was set loose to work with a client. Now, my mentor was constantly in my periphery but stepped away to guide another intern when I was collecting initial data from my client. I did a play-by-play when I asked questions, but I didn't ask enough questions, and the answers they provided me contained all sorts of red flags that should have generated more questions, but I failed to listen. As a result, when I started the project, I had trouble understanding the data I was working on. When I recruited the help and advice of my mentor, they asked me to go over the conversation I had with the client. They then suggested the questions I should have asked and the cues I missed. I didn't ask enough questions, and I missed important information and made mistakes. But those were mistakes I never made again.
Written by Kevin Downey on August 1st, 2023
EQ
26. What are your strengths and weaknesses?
What You Need to Know
Discussing your strengths and weaknesses with confidence while taking ownership of those areas you'd like to improve upon suggests emotional intelligence, determination, and taking ownership of your own development. As financial influencer, Tonya Rapley says, "Focus on your most immediate goal and what you need to accomplish that. Start with that one thing you feel is preventing you from going to your next level." By detailing where you are struggling, and the goals you set for yourself to achieve next, you'll help them determine where they can help you grow and improve upon your skills. By detailing your strengths, you can help them evaluate where you could be of most within their organization, and how they can mentor you to capitalize on your strengths to drive your success forward.
Written by Kevin Downey on August 3rd, 2023
Answer Example
"I would say that my strength comes with how persuasive I can be. A great deal of why I am so successfully persuasive is my sincerity and intentions. But at the same time, when I feel a client lacks the confidence to move forward, that's where my weakness of coming across as too pushy comes into play. It's my intention, wanting to do good by my clients, where I have failed in the past to be more nurturing and empathetic instead of pushy and overly confident. But, I am aware of this tendency. I have become very practiced in being more nurturing and patient, but I still feel the urge to regress, so it hasn't become second nature yet, but I am working on that."
Written by Kevin Downey on August 3rd, 2023
EQ
27. Do you think honesty is always the best policy?
What You Need to Know
As a Financial Analyst, they need to ensure they can trust you before even considering hiring you. As Mark Twain humorously said, "Honesty is the best policy - when there is money in it." When answering such questions, examine the situational context of honesty. When an interviewer asks such a question, contextualize this question within their code of ethics and conduct and core values. Your interviewer is looking for a candidate who has a strong sense of integrity and needs assurances that the person they hire won't prove a liability. Their company has invested quite a lot of money and time in building the reputation they are proud of, and they need to ensure the person they hire is capable of protecting their reputation. So, do your research, and answer according to how your principles and integrity align with their values, code of conduct, and culture.
Written by Kevin Downey on August 1st, 2023
Answer Example
"Sometimes full disclosure can damage someone's self-esteem, and reality isn't always best expressed in full and can be self-indulgent based on the person's intention. In those instances, honesty isn't always the best policy. However, when it comes to financial matters, I believe that full disclosure, transparency, and honesty are a must at all times. Additionally, I would always adhere to the company's code of conduct and act in full accordance with the law."
Written by Kevin Downey on August 1st, 2023
Experience
28. When did you start following the stock market? Have you had success?
What You Need to Know
The interviewer wants to understand how deep your interest in finance and investments goes and how skilled you are regarding the stock market. How you answer could inform them of your approach to taking risks. Are you a compulsive risk taker or gambler, or do you take calculated and informed risks? As thought leader and billionaire influencer Warren Buffett once said, "If you aren't thinking about owning a stock for ten years, don't even think about owning it for ten minutes." Share what initially sparked your interest in the stock market and how actively you trade. Share your philosophy, approach, and track record for success. Also, spend time familiarizing yourself with the company's approach to risk.
Written by Kevin Downey on August 2nd, 2023
Answer Example
"I have always been interested in the calculated risk and required patience that comes with the stock market. Many years ago, before I started a career in finance, one of my friends walked me through the stock market, taught me a bit about how it works, and he told me about a company I might want to invest in. I started following their stock prices and reading articles to understand the market better. I have made great investments over the years, including some very profitable ones with Edwards Lifesciences Corp. and Under Armour. Although I wouldn't necessarily say I play it safe, I would say that I pay attention, keep my finger on the pulse to stay ahead of the game, and always play the long game."
Written by Kevin Downey on August 2nd, 2023
Experience
29. How do you evaluate the financial health of a company?
What You Need to Know
The interviewer is interested in knowing what factors you consider when determining a company's financial health. Pay attention to any clues from the job description or website where they expect their candidate's priorities to lie. Be direct in your answer while showcasing your knowledge and experience of the company's industry, economic climate, and competition. Also, consider their prospects for the future.
Written by Kevin Downey on August 3rd, 2023
Answer Example
"I believe that the best way to evaluate the financial health of a company is to dissect their bottom line profit margin, liquidity, solvency, profitability, growth, risk, financial statements, ratio analysis, cash flow analysis, and risk assessment. This will always show me the long-term viability of a company. With that said, it is important to look at many factors before a final analysis is made."
Written by Kevin Downey on August 3rd, 2023
Experience
30. What are the most important factors to consider when processing a loan application?
What You Need to Know
Your interviewer wants to see whether you can comfortably and confidently break down, in a clear communicative fashion, the factors you'd consider when deciding whether to approve a loan application. Such as the current economic climate, the applicant's credit score, income, debt-to-income ratio, employment history, education, and experience. The purpose of the loan and the applicant's collateral, personal financial statements, tax returns, and other financial information. Spend time preparing for this question and others like it, and recall any factors you would consider making an informed decision about whether to approve a loan application. Preparing for each question in this manner will help you come across as confident and well-versed in every aspect of your field.
Written by Kevin Downey on August 3rd, 2023
Experienced Example
"I leave no stone unturned. Of course, the current economic climate will help determine how we're lending and how we decide whether the applicant's credit score is above or below our margin. I'd also look at the purpose of the loan and the potential collateral. From there, I'd evaluate their income and debt-to-income ratio, employment history, experience, education, personal financial statements, tax returns, and anything else worth considering, depending on how everything else looked."
Written by Kevin Downey on August 3rd, 2023
Experience
31. Tell me about your experience with annual planning processes.
What You Need to Know
As the saying goes, annual planning is a process, not an event. So your interviewer wants to know how proactive you are in reviewing the data, fine-tuning your research, and adapting your plan as you move through the year. This is especially important as the business's goals and objectives change. Develop a concise and detailed breakdown of your approach. You want to look skilled, confident, and knowledgeable like a professional talking shop.
Written by Kevin Downey on August 2nd, 2023
Experienced Example
"I was hired last year by a local software startup to create an annual corporate plan. The plan helped them define their scope, which in turn, gave them a better perspective on what customers they should be targeting. My goal was to help them increase their profitability. The only way to do this is to have strong attention to detail and keep the plan flexible. Don't just make the plan and forget about it. Do that, and you set yourself up for failure, right? Over the next year, their sales increased by 120%. I consider the past 12 months of market changes, use market predictors, examine what business characteristics gave them an edge over competitors, any potential threats to the business, the strengths/weaknesses of the business, as well as a SMART (specific, measurable, attainable, realistic, time-driven) objective. I also pay attention to where competitors are innovating and successful and watch and learn and improve. Leave nothing on the table."
Written by Kevin Downey on August 2nd, 2023
Experience
32. How does the current monetary policy affect your decision-making?
What You Need to Know
The interviewer is interested in your knowledge of our current monetary policy; however, they also want to see how your knowledge of factors such as inflation will affect how you invest money. Assure the interviewer that you have sound decision-making skills. Show that you trust your judgment and that your decisions are always research-based.
Written by Kevin Downey on August 1st, 2023
Answer Example
"I am always careful to research and assess economic factors that could affect any of my big investments, always taking into consideration the amount of risk reflected in the trends."
Written by Rachelle Enns
Job Satisfaction
33. How do you like to be recognized for your accomplishments?
What You Need to Know
This question aims to determine whether you find your career rewarding and enjoy your work or if you are good at what you do and want to build a reputation for it, or if you landed in this career and simply do it for the money. When answering this question, consider what the interviewer is looking for in their ideal candidate.
They are looking for someone with a desire to learn and grow, who finds their work challenging. They want someone who finds making a difference for their company to be a rewarding experience, are loyal, have a sense of duty. They want someone who strives towards further opportunities for advancing their career with them. Such a long-term candidate provides them with a clear roadmap for keeping them satisfied in their career. Then some are simply good at what they do, like to be recognized for it, desire to make a name for themselves, and are competitive towards that aim. Such candidates might be worth hiring, yet could pose red flags, such as not being a team player and being more focused on their own goals over the teams. Lastly, those looking to be rewarded through compensation will likely be passed over since they are up for the highest bidder and potentially would be a short-term hire, launching them back into the lengthy and expensive recruitment process.
Written by Kevin Downey on August 3rd, 2023
Experienced Example
"I am very much an over-achiever and find that the best way for me to be recognized for a job well done is to be given words of kindness, recognition, and opportunities to grow. The more I can help on a bigger picture scale, the more of a stakeholder I feel. I thrive on increased responsibility and trust. I am easily encouraged, and the best reward is to know that my hard work is being noticed."
Written by Kevin Downey on August 3rd, 2023
Job Satisfaction
34. If you could move into any other industry, which would you like to explore?
What You Need to Know
Be careful while walking tight-rope questions such as these. Suggesting you might be happier in another industry could raise concerns that you might burn out on the job more quickly in their industry. For a financial analyst, it's no secret the industry you work in has a big impact on the salary you receive and your opportunities for advancement. Investment banking, consulting, and asset management are more likely to be top earners, and government, non-profit, and education are more likely to be the lowest earners. So showcase your communication skills while answering this question and suggest that this opportunity you are interviewing for is the right fit for you.
Written by Kevin Downey on August 3rd, 2023
Experienced Example
"You know, I love what I do. I love this industry too. I am good at it and know it backward and forwards. Being good at what you do is a reward in itself. Yet, if I won the lottery, I might take it easy and volunteer for some non-profits that matter to me. That would be rewarding too. But I am a believer in not spreading myself too thin. I want to make sure I am giving my all to those I have committed to as a matter of pride and integrity. So, doing charitable work is not in the cards right now. And that's fine."
Written by Kevin Downey on August 3rd, 2023
Leadership
35. What type of manager brings out the best in you?
What You Need to Know
By determining which leadership style you are motivated by and work best with, your interviewer should gain some insights into how to motivate you, what type of leadership style you would most likely model yourself after, and how you answer could inform them if you are self-managed in your work or need a close working relationship with a lot of accountability. If after doing your homework, you are still unsure of the management style of the interviewing company, try to leave your answer as open as possible. Ultimately, they want to ensure they, as a potential employer, will be able to bring out the best in you.
Written by Kevin Downey on August 3rd, 2023
Experienced Example
"I have worked with a wide range of personalities and management styles with great success. If I could express a preference, I work best with a manager who allows me autonomy while still investing time in me through mentorship and training. I appreciate being trusted and increasingly relied upon. You know, despite my best efforts and the research I put in, I could find any information about the types of leaders you try to recruit. Can you describe the management style here?"
Written by Kevin Downey on August 3rd, 2023
Operational
36. Tell me about the process you follow to create reports.
What You Need to Know
This question can be nuanced and difficult to navigate, depending on the specific report, the company, and the industry, which would influence the general steps one might typically follow. So use this question to showcase that you are organized and methodical when sharing your work style and ethic with them. Define the general process you use in your reporting to ensure efficiency and consistency. Consider your audience, in this case, the hiring authority and the company you are interviewing with. What do they need to know, and how would you define the purpose of the report while customizing that information to communicate best with them? Share how you would approach gathering and analyzing the data. Keep your language professional while describing your approach and the types of visuals you'd use to illustrate your points. Assure them of your attention to detail and how you would ensure it was professional and ready for submission before passing it on.
Written by Kevin Downey on August 3rd, 2023
Experienced Example
"I start with a company overview, investigating all the deciding factors an investor will need. I often include this information in my investment thesis. Next, I will include the key risks and valuation. I am thorough and make sure I have reviewed every aspect of the business to help investors make an informed decision."
Written by Kevin Downey on August 3rd, 2023
Performance Based
37. How long will it take you to make a meaningful contribution to our team?
What You Need to Know
As Eleanor Roosevelt once said, "Success must include two things: the development of an individual to his utmost potentiality and a contribution of some kind to one's world." Your world is the professional environment you'll be introduced to, and the development of your potentiality is being brought up to speed and learning the rules before even considering breaking them. So this question has much to do with what and how you would contribute.
Written by Kevin Downey on August 3rd, 2023
Why the Interviewer Asks This Question
Most interviewers are taking the needs of the company, the department, and the teams you would be working with in equal consideration to protecting their reputation as a good judge of character and finding that top performer. So, they need to be sure that you will learn the systems they've put into place, what they do, and how and why they do them. This holds equal importance as building relationships and earning the trust of those you'll collaborate with. Only after you have accomplished this are you ready to accomplish more.
Written by Kevin Downey on August 3rd, 2023
Experienced Example
"Considering that I couldn't effectively collaborate with the team without first earning their trust and showing them who I am and what I have to offer, I would spend the time necessary to build relationships, learn the systems in place, and effectively onboard. But I would start taking notes on what I observed while onboarding and keep asking questions. I know myself well enough to know I the gears would start turning from day one, and I would start innovating and fine-tuning suggestions every step of the way. But I would answer my questions first and take all measures to ensure what I contribute would be worthy of the opportunity. In addition to my skills, I am a strong relationship builder. Not to mention, I plan to bring my existing portfolio and expand it by 15% this year. This should amount to a strong increase in clients for your firm within the first nine months of my onboarding."
Written by Kevin Downey on August 3rd, 2023
Salary
38. What are your salary expectations?
What You Need to Know
The best way to discuss your salary expectations is to evaluate your interview performance, your track record for success, what headhunters have suggested you are worth, and what your current employer has offered to keep you on. Also, consider what your projected earnings are for the coming year. Be open and honest, and feel free to compare where any of their benefits, perks, or cost-of-living offerings fall short of what you currently receive. Transparency is the best choice when salary-based questions arise. But don't offer a firm number of what you are aiming for. Just present the facts, and see if they will make an offer you can counter as you see fit. As Howard Baker said, "The most difficult thing in any negotiation, almost, is making sure that you strip it of the emotion and deal with the facts."
Written by Kevin Downey on August 3rd, 2023
Experienced Example
"Currently, I earn a base salary of $163,000 per year plus a potential 10% annual performance-based bonus. Last year my earnings were $168,000, and I receive two performance reviews a year, where I see on average a 5-7% increase bi-annually."
Written by Kevin Downey on August 3rd, 2023
Anonymous Interview Answers with Professional Feedback
Anonymous Answer
Amanda's Feedback
Teamwork
39. Describe how you build relationships with your coworkers and supervisors when entering a new job.
What You Need to Know
Due to a wide variety of personalities, relationships must be nurtured and grown. How you answer this question will offer your interviewer insights into your emotional intelligence, how team-oriented you are, and whether you see your teammates as standing in your way or as helping you along your way and you, theirs. Consider the company's culture, values, and goals before answering this question. So describe how you ensure you have a strong line of communication with your co-workers and supervisors right from the start.
Written by Kevin Downey on August 3rd, 2023
Experienced Example
"Well, my strongest trait is my attitude. I keep everything in perspective, focus on the positives, and consider myself a friend to all. I am emotionally mature, have strong communication skills, and ask a lot of questions. I also see the merit in transparency, so I build relationships by showing people who I am, and I try to get to know them. I will step up and help wherever I can, respect and lean upon their expertise through humility, and collaborate where I can. I give credit where credit is due and make being a member of the team actionable whenever I can."
Written by Kevin Downey on August 3rd, 2023
Technical
40. In your opinion, what are the most important metrics when dealing with investors?
What You Need to Know
The interviewer is interested in what you feel to be the most important metrics when working alongside, or communicating with, investors. There may not be a wrong answer; however, you want to ensure that your focus is on the areas that the hiring company also puts their focus on. You may be able to find clues in the company job description or the values / about us section on their website.
Written by Rachelle Enns
Answer Example
"For myself, revenue growth is one of the most important metrics when dealing with investors. You must know your numbers clearly when it comes to revenue! For me, I look at month over month revenue, revenue quarter over quarter, and of course the bigger picture... year over year."
Written by Kevin Downey on August 3rd, 2023