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Guide10 min read

The Investment Banking Assessment Path: Tests, Video, Assessment Centre

Banks sift twice before a human reads anything. The four stages, how to identify the vendor, why negative marking bites hardest here, and the numerical bar.

Banking and finance run more selection stages than almost any other graduate sector, and the first two are decided without a person reading anything you wrote. That is the structural fact worth building your preparation around. A retail employer might sift on one test and interview everyone who passes. A bank will sift on a test, sift again on a recorded interview, and only then spend a day of several employees' time on you.

The sequence you should expect

The names vary by country and the order occasionally shuffles, but the shape is consistent across investment banks, asset managers, trading firms, retail banks and insurers.

1
Application and eligibility screen
CV, cover questions, sometimes a short motivation video. Much of it is filtered on hard criteria before anything is read. In the US, summer analyst deadlines sit far earlier in the academic year than in other sectors, so calendar awareness is itself part of the selection.
2
Online assessments
Usually numerical and logical reasoning, often a situational judgement test, frequently a personality questionnaire, sometimes game-based tasks. Typically 20 to 60 minutes, sat at home, with a deadline of a few days.
3
Recorded video interview
Asynchronous. Three to six questions, a short preparation window and a capped answer length, with no interviewer present. Competency and motivation questions, plus a mental arithmetic element in some trading and markets roles.
4
Assessment centre or superday
Half a day to a full day. Some combination of a group exercise, a case or in-tray exercise, a presentation, and two to five interviews. This decides the outcome, and it is the only stage marked by people who will work with you.

Two regional notes, because this sector hires across borders more than most. In the US the final stage is a superday dominated by back-to-back interviews, with group exercises rare. In the UK, the Netherlands and Australia it is more likely to be a genuine assessment centre with exercises too, and in the Netherlands you are more likely to meet a capaciteitentest reported in stens than in percentiles. The preparation is the same. The vocabulary is not.

Who actually builds the tests

Banks almost never name their assessment vendor in the invitation, and the ones that do bury it in a support link. This matters more than it sounds, because the tests differ on the one thing that changes your tactics: whether a wrong answer costs you something.

The vendors you are most likely to meet here are the large reasoning-test publishers, the asynchronous video platforms, and the blended platforms that stitch several stages into one link. Named examples we can evidence from the vendors' own sites: Sova lists Nationwide among its customer stories, and HireVue names Mitsubishi UFJ Trust and Banking Corporation in its case studies and Emirates NBD on its customers page. Most banks publish nothing at all.

The ten second check that beats an hour of searching
Look at the sender address and the URL. A link on sovaonline.com is Sova, a link on hirevue.com is HireVue, and the reasoning-test publishers each have their own candidate domains. For the full decision tree, our guide to identifying the provider from the invitation covers the tells format by format.

We keep per-employer pages for the banks and insurers we can evidence something about, including Barclays, HSBC, Lloyds Banking Group, Santander, Nationwide, Monzo and Maven Securities. Each states how strong the evidence behind it is, because in this sector the confident claim and the sourced claim are usually different claims.

Why negative marking matters more here than anywhere else

Most providers score correct answers only, which makes a guess free. One major provider deducts a mark for a wrong answer and nothing for a blank, which makes a guess expensive. We have worked the arithmetic through in the guide to sitting a negatively marked test, and the rule it produces is to answer only when you are more likely to be right than wrong. Finance makes that rule bite harder for three reasons.

You are sifted near the top, not near the middle
Banking schemes attract enormous application volumes for small intakes, so the threshold sits high in the distribution. Near the top, candidates are bunched tightly together, so a handful of marks handed back through optimistic guessing moves you past more people than the same handful would in a thinly populated middle.
You will sit several scoring rules in one fortnight
Nobody applies to one bank. Six applications means meeting penalised and non-penalised tests in the same week, and the habit you built on Monday is the one you execute on Thursday. Label the tactic by employer before you start, not during.
The temptation peaks where the penalty bites
Guessing is most tempting on dense numerical items where you have already spent ninety seconds locating a figure. Those are also the items least likely to fall to elimination, because the distractors on a well-built numerical item are the answers produced by the common arithmetic errors.
Ninety seconds already spent on a question is not a reason to answer it. Under a penalty it is a reason to leave it: the time is gone either way, and only the mark is still at stake.

There is an inverse trap worth naming. Blended platforms increasingly run ability sections with no countdown while recording how long you take and folding that into the score. There is no penalty for a wrong answer but there is an effective penalty for deliberating, which flips the advice: commit and move rather than skip and return. Knowing which of the two regimes you are in before you click start is the most valuable thing you can establish about a finance online test.

The numerical bar really is higher

Candidates say this constantly and it is true, but usually for the wrong stated reason. The questions are not drawn from harder mathematics. Almost everything on a finance numerical test is percentages, ratios, growth rates, currency conversion and reading a figure out of a table. The difficulty comes from three other places.

The norm group is stronger

Your score comes back as a percentile, and a percentile is a comparison, not an absolute. Whether the comparison is against a general working population or a graduate finance applicant pool turns the same raw score into two very different results. Finance norm groups self-select for numerical confidence, so a performance that looks strong elsewhere lands mid-table here. Our explainer on what a good psychometric score actually is covers how percentiles, stens and cut scores relate.

The items chain

A retail or public-sector item tends to ask one question of one table. A finance item is more likely to need a figure from one exhibit, a rate from another, a conversion, then a comparison. Each step is trivial and the chain is not, because one slip produces a plausible wrong answer rather than an obviously wrong one.

The units move

Thousands against millions, percentages against percentage points, a monthly rate beside an annual figure, a currency column that changes halfway across the table. The most common wasted mark in finance is arithmetic performed perfectly on two figures that were never in the same units. Reading the column headers before the question costs five seconds and repays constantly.

Do
Write the two figures down before touching the calculator, so a mis-keyed digit is visible.
Check the unit line under every table and chart axis before you start.
Learn percentage change, reverse percentage and ratio shortcuts cold.
Practise against a clock that matches the real one. Pace is the whole difficulty.
Do not
Do not assume a calculator is allowed until the invitation says so. Policy varies by vendor.
Do not treat a plausible-looking option as confirmation. Distractors are built from common errors.
Do not round intermediate results. Round once, at the end.
Do not revise advanced maths. The bar is speed and accuracy on ordinary arithmetic.

If your mental arithmetic has rusted behind a spreadsheet habit, the fastest repair is the shortcut set and then timed practice, until the shortcuts are automatic rather than recalled.

The recorded interview

This is the stage with the largest gap between how much it decides and how much candidates prepare for it. You get a question on screen, a short preparation window, one or two takes, and a hard cap on answer length. There is no interviewer to read, no follow-up to rescue a rambling answer, and no way to tell whether what you said landed.

The consequences are mechanical rather than mysterious. Answers have to be structured from the first sentence, because nobody will steer you back. They have to fit inside the cap, so a rehearsed two minute answer delivered at nervous speed overruns and is cut mid-sentence. And the technical setup is part of the result, because a badly lit, echoing recording is what a human eventually watches. Our guide to what recorded video interviews actually score separates what is genuinely assessed from the folklore about eye contact and keyword stuffing.

For competency questions, the structure that survives is the one that front-loads the situation in a sentence and spends the rest of the time on what you did: the STAR method, applied properly.

The assessment centre, exercise by exercise

The final stage is scored by different people against different marksheets, which is why being brilliant in one exercise does not compensate for being invisible in another.

Group exercise or case discussion
Assessors record behaviours against named competencies rather than counting how much you spoke. Contributions that move the group forward score; restating what has been said does not.
In-tray or e-tray exercise
An inbox of competing items under time pressure. The marking is mostly prioritisation, and what you chose not to do is the part candidates leave blank.
Presentation
Usually prepared on the day from a short brief. Scored on structure, evidence and handling questions rather than polish, and overrunning is a scored failure rather than a stylistic one.
Interviews
Competency, motivation and, in front-office roles, technical. The technical bar is specific to the desk, and it is the one part of the day you cannot reason through unprepared.

Three of those four have their own guides here: group exercises, e-tray and in-tray exercises and presentations. Reading the marking logic for each is a better use of an evening than rehearsing one answer, because the exercises reward different things and the day does not average them.

The week before
Finance processes compress. Clearing an online test on a Monday and sitting an assessment centre eleven days later is normal, and that is not enough time to start from nothing. If your date is set, our day-by-day plan for the final week is built for that window.

What to do first

Spend your first hour on timed numerical practice rather than on researching vendors, because numerical fluency is the only thing that transfers across every stage and every employer here. When the invitation arrives, check the domain, establish whether wrong answers are penalised, and adjust the tactic before you sit down rather than while the clock runs. And prepare the recorded interview before you pass the test, because the gap between stages in banking is measured in days.

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