Mr. Exclusive1
New member
- Aug
- 53
- 1
Investment Banking
Psychometric tests is the stage where most candidates are filtered out so it's definitely a crucial part of your application. Read this through and you have increased your chances by a mile.
And as always, feel free to add your comments!
SHL: These tests are timed overall with four or five options to choose from. In these tests you can't go back and change your answer.
The banks using them are BarCap/UBS/JPM/RBC and HSBC.
Kenexa: These are tests that are also timed overall with four or five options to choose from. In these tests, you can go back at any time and change your answer.
BofA ML/CS/DB and MS
TalentQ: These are tests which are timed per question with a large list of options and progressively get harder/easier depending on your performance to benchmark you. You can't go back and change your answer. These tests are substantially more stressful than SHL or Kenexa.
RBS/Citi
Canary Wharfian readers qualify for a 15% discount on test prepping packages here, take advantage of it.
Banks such as Goldman Sachs, Rothschild, BNP and Nomura don't test for Spring Weeks but you are likely to be tested at a later date.
The Type of Tests
Numerical (always included): You'll be given numerical data in various formats and expected to draw logical conclusions, make basic calculations and manipulate the data as well as make inferences. You may be given questions whereby there is not enough information to arrive at an answer but there will be an option for this in those cases.
Verbal (less common): You'll be given a paragraph and expected to follow the line of argument, key points and draw key logical conclusions as well as state whether certain statements follow true or false from the statement.
Logical (very few use this, basically RBS and UBS only): You'll be shown a series of complex shapes with various patterns and have to crack the ‘code’ in order to pick from a choice the next object that follows after the last object or within a series. Diagrammatic analysis is a variation of this test where you have to use your logic to decide which input or function is the correct to choose on an input-function-output diagram.
Situational Judgement Test
You may also come across a Situational Judgement Test (RBS and JPM use these): the key here is to answer how you would actually act in the workplace. Or rather, how you'd be expected to act in a given situation. You should check their culture/website to get a feel for their values and therefore, how they would likely expect you to act in the given scenarios.
In all honesty, if you have good industry/bank knowledge, these tests shouldn’t seem overly challenging to you. Sometimes the answers can seem ambiguous or very similar so take a step back to clearly think through the nuances of the answer – little differences matter so pay attention to detail. These tests are never timed but you will be told a recommended time to spend on them.
Gearing up
As far as practice goes, I'd recommend either JobTestPrep (Get a Discount Here), Graduate Monkey or AssessmentDay. While they may cost a considerable amount, you should consider the return on investment by purchasing these products in terms of future earnings which is well in excess of 1,500 times your money back – not exactly a bad deal. Remember, if you don't pass these tests then it is likely no one will even see your application.
With that being said, I wouldn't recommend cheating either: you are likely to be required to sit a re-test at the bank later in the recruitment process or if you are extended an offer to verify your results.
Interviews
Interviews across the firms vary. Some do just a telephone interview; others do face-to-face while others do a combination with assessment centres. In general for interviews you should be prepared for the basic motivational questions such as “Why investment banking” or “Why M&A over S&T” as well as the usual competency questions such as “Describe a time you faced a difficulty in a team, how was this overcome and what was the result”. Basically you should show that you have a general awareness of the industry and the role you are applying for.
You should also be prepared for some elementary technical questions: for IBD spots, questions around valuation techniques, present value, future value and pitching a stock may all come into the picture. You may also be asked more bizarre questions such as “What is 23x47” or “How large is the tie industry in China” or “Describe to me a book you read recently and why it had such an impact on your life”. If you are given a brainteaser (the China question) they are obviously not looking for the exact answer: they want to see your thought process (make sure to think out loud) based on limited information. Practice articulating your thoughts to come to a logical conclusion
Again in interviews, you should use the CAR/STAR approach. For motivational areas it's best if you have a strong “story” personal to you and then can break down your motivation into three or five key points. For assessment centres, these tend to be more drawn out processes of the interview with a group work element, presentation element and potentially a case study or various other tasks thrown in. The key is to be yourself, but be yourself in a way that you’d want to be perceived by an employer. In group work you should not take over: just make sure you contribute and communicate your ideas intelligently and bring other people in. The key here is to do what's right for the team and not just making yourself look good.
That would be it for Part 2. In the next one I'll elaborate on how to pick offers (if you are lucky enough to do so) and will go into more details on SW recruitment.
Part 3 is here.
And as always, feel free to add your comments!
SHL: These tests are timed overall with four or five options to choose from. In these tests you can't go back and change your answer.
The banks using them are BarCap/UBS/JPM/RBC and HSBC.
Kenexa: These are tests that are also timed overall with four or five options to choose from. In these tests, you can go back at any time and change your answer.
BofA ML/CS/DB and MS
TalentQ: These are tests which are timed per question with a large list of options and progressively get harder/easier depending on your performance to benchmark you. You can't go back and change your answer. These tests are substantially more stressful than SHL or Kenexa.
RBS/Citi
Canary Wharfian readers qualify for a 15% discount on test prepping packages here, take advantage of it.
Banks such as Goldman Sachs, Rothschild, BNP and Nomura don't test for Spring Weeks but you are likely to be tested at a later date.
The Type of Tests
Numerical (always included): You'll be given numerical data in various formats and expected to draw logical conclusions, make basic calculations and manipulate the data as well as make inferences. You may be given questions whereby there is not enough information to arrive at an answer but there will be an option for this in those cases.
Verbal (less common): You'll be given a paragraph and expected to follow the line of argument, key points and draw key logical conclusions as well as state whether certain statements follow true or false from the statement.
Logical (very few use this, basically RBS and UBS only): You'll be shown a series of complex shapes with various patterns and have to crack the ‘code’ in order to pick from a choice the next object that follows after the last object or within a series. Diagrammatic analysis is a variation of this test where you have to use your logic to decide which input or function is the correct to choose on an input-function-output diagram.
Situational Judgement Test
You may also come across a Situational Judgement Test (RBS and JPM use these): the key here is to answer how you would actually act in the workplace. Or rather, how you'd be expected to act in a given situation. You should check their culture/website to get a feel for their values and therefore, how they would likely expect you to act in the given scenarios.
In all honesty, if you have good industry/bank knowledge, these tests shouldn’t seem overly challenging to you. Sometimes the answers can seem ambiguous or very similar so take a step back to clearly think through the nuances of the answer – little differences matter so pay attention to detail. These tests are never timed but you will be told a recommended time to spend on them.
Gearing up
As far as practice goes, I'd recommend either JobTestPrep (Get a Discount Here), Graduate Monkey or AssessmentDay. While they may cost a considerable amount, you should consider the return on investment by purchasing these products in terms of future earnings which is well in excess of 1,500 times your money back – not exactly a bad deal. Remember, if you don't pass these tests then it is likely no one will even see your application.
With that being said, I wouldn't recommend cheating either: you are likely to be required to sit a re-test at the bank later in the recruitment process or if you are extended an offer to verify your results.
Interviews
Interviews across the firms vary. Some do just a telephone interview; others do face-to-face while others do a combination with assessment centres. In general for interviews you should be prepared for the basic motivational questions such as “Why investment banking” or “Why M&A over S&T” as well as the usual competency questions such as “Describe a time you faced a difficulty in a team, how was this overcome and what was the result”. Basically you should show that you have a general awareness of the industry and the role you are applying for.
You should also be prepared for some elementary technical questions: for IBD spots, questions around valuation techniques, present value, future value and pitching a stock may all come into the picture. You may also be asked more bizarre questions such as “What is 23x47” or “How large is the tie industry in China” or “Describe to me a book you read recently and why it had such an impact on your life”. If you are given a brainteaser (the China question) they are obviously not looking for the exact answer: they want to see your thought process (make sure to think out loud) based on limited information. Practice articulating your thoughts to come to a logical conclusion
Again in interviews, you should use the CAR/STAR approach. For motivational areas it's best if you have a strong “story” personal to you and then can break down your motivation into three or five key points. For assessment centres, these tend to be more drawn out processes of the interview with a group work element, presentation element and potentially a case study or various other tasks thrown in. The key is to be yourself, but be yourself in a way that you’d want to be perceived by an employer. In group work you should not take over: just make sure you contribute and communicate your ideas intelligently and bring other people in. The key here is to do what's right for the team and not just making yourself look good.
That would be it for Part 2. In the next one I'll elaborate on how to pick offers (if you are lucky enough to do so) and will go into more details on SW recruitment.
Part 3 is here.