With the increase in job opportunities in the financial sector, there is a significant increase in the competitiveness for jobs in the financial sector. Often, we have seen that even individuals with great academic achievements fail to secure a place in the financial sector, whereas individuals who were not that good at academics crack the corporate finance interview and get selected. Well, this is all because of one thing and that is how well one prepares for the interview and believes in himself. It doesn’t matter if you are a rookie looking for a fresh start in the financial sector or an already working professional individual looking for an even greater position in the sector, impressing the interviewers with your knowledge and skills is the most vital step to get selected for the job.
In this article, we have covered the most important finance interview questions that one should prepare for that will help him to impress the interviewer and crack the finance job interview. These finance interview questions will surely help you to perform better in your corporate finance interview.
Finance Interview Questions and Answers
Q1. Tell me a little about yourself?
Most of the finance interview questions start with this question. The main purpose of the interviewer for asking this question is to know how well you can explain yourself and your life. One should never try to exaggerate his past job experience and background. Instead, always try to discuss things that are truly related to the finance job. As it is the kick start question, a good start is important for leading your corporate finance interview to success.
I have about five years of experience working in the finance sector. In these past five years, I worked at small firms as well as some large financial firms. Due to this experience in the finance field, I have now become proficient in my work and will surely add to your finance firm.
As of now, I am also pursuing my MBA, which will surely bring out a lot from me.
Q2. What is that one accomplishment in your working/professional career that you consider a major achievement?
With such finance interview questions, the interviewers try to get some knowledge about your past work and performance.
Always prefer to share a relevant accomplishment; it can be anything from finalizing an important deal to overcoming daily work challenges. Moreover, talk about how that accomplishment was significant for you and your financial career. Ending your answer, ascertain the interviewers that how that accomplishment will also be an advantage to this job or company.
As a fresher in the financial service sector, a major achievement in my starting career was to secure the internship position. I consider it a big fleet because out of all the applicants for the internship, I was the youngest and least experienced. So, still managing to crack the internship among all the seniors is a major achievement for me. However, now I have set my achievement bars higher as now I am more experienced, more skilled and more knowledgeable in the finance sector.
Q3. Are you a team player? If yes, what is your attitude towards teamwork?
It is one of the most often asked finance interview questions. Interviewers always try to find out how much of a team player you are and your approach towards working as a team. Tell them about your proficiency in building healthy relationships and genuinely caring for others, eventually leading to success as a team. Show them how you can adapt to the team atmosphere as interviewers always seek an individual who can adapt and work successfully with others.
Yes, I am a team player and always have been. From my academic years to my previous jobs, I have always tried to connect with the team and bring more to the company. For me, it is more important to work as a team and achieve success than working individually and achieving something.
Q4. Tell me about the difficulty you have faced in the past while dealing with any financial analysis situation.
At times, the financial interview becomes more of a financial analysis interview. The interviewers try to find out about your overall analysis ability. In answer to such questions, one must tell about his proficiency in observing and pointing out the main issues causing the relevant problem. Discussing your skill to analyse the whole situation/information and then coming out with an extraordinary solution is the key to impress the interviewers.
Q5. If given a chance to choose any one of the stocks, which one are you choosing and specify the reason for it?
This is also another type of finance interview question where the interviewer wants to learn about your finance market analysis skills and your financial style. Answers to such questions tell a lot about your personality in the finance sector. Honest answers are more preferred than just any made-up answer with which you want to impress the interviewers. Whether you are a safe and stable player or a risk-taker, try to convince the interviewers with an ethical justification. It shows how well you know about the finance market.
Q6. What qualities do you think you possess that makes you different from others and will bring growth to the company?
A corporate finance interview is always accompanied by a question like this. The interviewers want to know what special role you bring that makes them hire you from all the other candidates. One can turn the table to his side and impress the interviewers by showing his finance experience, achievements, or even some other special quality that he possesses. However, always make sure that you really have great knowledge of the achievements and quality you are mentioning as the interviewers always come up with a follow-up question.
The very first thing that I think stands me apart from my fellow applicants for this job position is my experience of about 5 years in this financial field. And within these five years, I have worked at varied positions that have helped me a lot in increasing my work versatility. Moreover, my academic achievements are also considerable. And the most important thing that I think I possess to stand out from others is my analytical skill. I always make sure to thoroughly understand the financial situation that arises and then come up with a solution.
Q7. Tell me about your biggest strengths and weaknesses in the finance sector?
It is one of the most asked finance interview questions. With answers to such questions, the hiring manager gets a thorough knowledge of your working way and finance skills. Being honest with your answer should be your priority. Do not brag while telling them your strengths. Keep your answer simple and subtle while telling your strengths to the point. Furthermore, in telling your weaknesses, make sure to inform the hiring manager that you are currently working on your weaknesses and getting better day by day.
The qualities in me that I consider my biggest strengths are my creative nature, my versatility towards the work as I perform great at any role given to me, I am also very focused on my work, and that is undoubtedly one of my biggest strengths. Apart from this, I am also a quick learner with the will to learn from anywhere.
Now, talking about my weaknesses, I think I am a bit too self-critical. Every time after completing a project or deal, I think that I could have done better, even though I received quite positive reviews on those projects. Another weakness of mine is my presentation skill. In my past job experiences, I have not been that good with presentations. However, I have been working on these weaknesses for a long time now and even showed some positive changes.
Knowledge-Based Finance Interview Questions
Interviewers try to find out about your finance sector knowledge with such questions. So, it is always important to study a little bit beforehand.
Q8. What do you understand about the term “Hedging”?
To equalize the losses that occurred in investments, Hedging is a risk managing technique or strategy used by finance professionals. Generally, in this method, a contrary position in a relevant asset is taken as a risk invader. Still, hedging is not at all profitable as the reduction in hedging risk correspondingly affects the conceivable profit.
In simple terms, if one faces loss in some asset investment, he can make up for that loss by investing in the opposite position assets in hedging.
We can say the hedging is synonymous with keeping insurance by paying a particular premium.
Q9. Differentiate between Costing and Cost Accounting.
The procedure of asserting price and cost to a product is termed as Costing. It consists of identifying the most reasonable price of a product or service.
On the other hand, cost accounting is explained as the engine or mechanism for evaluating the expenses and provisions of a business. Through a deep examination, analysis, and projection of expense data, the judgment of the business’s expenditure are concluded.
In simple terms, we can classify costing as a technique or method, whereas cost accounting is a parcel of accountancy.
Q10. Imagine that you were given the chance of being in a chief post or a manager of a Fortune 500 company; what will be your long-term goals or concerns regarding the growth of the company?
This is the most often asked finance manager interview question. The answer to this question shows your future vision and long-term perspective of the company and its future goals. Moreover, it signifies the finances and growth of the company under your supervision. As a result, the hiring team members get a clear view of your strategic thinking. Hence, it is very important to prepare well for such questions.
Some other tips for nailing the Finance Interview
- Do proper research before your Interview.
It is always essential to do proper research ahead of an interview, be it a finance manager interview or a corporate finance interview. Before the interview, try to get as much information about the company or finance firm you are going for the interview. Even if you can manage it for only 30 minutes, try to learn all you can about the firm. One must know about the interviewing company’s financial enactment, targets, values, competitors, clients, etc.
- Communication Skill is the Key
Always work on your communication skills. Not just good communication helps you to describe yourself better towards the interviewers, but it also helps you in the finance sector.
Also, do not ever try to exaggerate your terminology and literature while talking with the hiring managers.
- Have a thorough industrial knowledge and show it in your answers
Always be updated to the new techniques and technologies introduced in the finance sector. Generally, hiring managers tend to ask questions about the latest changes and developments to test your awareness. Also, it is always better to revise your professional knowledge before an interview. Having the correct knowledge and showing it in your answers exemplifies that you are a skilled professional and impresses the interviewers.
- Properly Examine your Resume.
A silly typo or any mistake in your resume can turn down your image in front of the hiring manager. So, it is always important to properly check your resume and to be double sure, let it be reviewed by someone else too. In addition, it is always beneficial to proofread your resume as one’s resume details are his first impression on the interviewers.
Even for a man with exceptional skills in the financial profession, it is important to get properly ready and prepared for a corporate finance interview. As you are reading this far, you must have gained knowledge about some of the most important finance interview questions. This knowledge is very beneficial for sure. However, you should also try to gather as much as possible other interview nailing tips and tricks. To crack a finance interview, it is essential to be skillful and knowledgeable in every aspect of finance as a single mistake of yours can turn down your image in front of the interviewer. At last, the most important piece of advice for an interview, BE YOURSELF.