It is the dream of a finance student to acquire an MBA degree from a reputable institution. But, given the limited seats and cut-throat competition, it has become a challenging goal to attain. The first step towards landing a suitable placement is to tackle the digital finance interview questions with immense precision. It is the landing stone to a great career, and you must be well-acquainted with the subject before you face the panel.
Gone are the days when people would choose merely the merit-based toppers. The employers today are far more dynamic and are looking for people who offer value addition. So, it goes without saying that the interviewers are no longer taking the stale route, and they expect the same from you too.
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Top MBA in Digital Finance & Banking questions and answers
Question 1 – Tell us something about yourself and describe your qualities.
The first amongst many digital finance interview questions, it is inadvertent that one of the panelists will bring it up to see how well you know yourself. It also tests your ability to convey them something that makes you different without verbally expressing it. The best way to tackle it is to maintain your composure and to be positive.
Start by discussing your educational background. Long stories are a strict no-no, and sticking to the basics is your best bet. You can tell them about your passion and the things that drive you to perform better. You can also talk about the co-curricular activities you excel in and your family background, predominantly where you are from, don’t talk in detail. Close your answer by telling them what finance means to you and what you want to gain from the degree.
Question 2 – Give us a sneak peek into your hometown
The answer to it can be very long, but you must remember that it is not your interview’s main topic and not to be swayed by your emotions. You can discuss the culinary specialties and what makes your hometown different from the rest.
For example, you have grown up in Kolkata. Say something like, “we are not the most sincere when it comes to time constraints but respect emotions and love our addas with jhal muri and rosogollas alongside.” You can harp on the most exciting parts, and how you reflect on them.
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Question 3 – Where do you see yourself after a decade?
Anyone who lacks vision moving forward will find it challenging to find a sure footing. Interviewers put forward this seeming easy-to-handle question to get an insight into your personality.
Many people get swayed by the emotional connection of the question and give vague replies, such as “I want to be the CEO of XYZ Co.” The interviewer isn’t looking for something like that. He/she wants to understand if you have the zeal to take small leaps every year and continuously improve by acquiring new skills and making reliable connections.
You can talk about your aspirations and how you would love to take one target at a time, either adding a skill to your kitty or eliminating a weakness. You can also discuss growing as you move forward with your hard work and determination.
Question 4 – Can you walk us through a cash flow statement?
Another common digital finance interview question and is also the favorite of most panelists. The cash flow statement is one of the easiest, yet the most complex in its unique way. Start by explaining what comprises a cash flow statement and why organizations prepare it.
Then, move on to discuss the heads, i.e., cash flow from operations, investments, and financing. Give examples for each of these and inform them that the sum of these is known as the Net Increase/Decrease in cash and cash equivalent for the period in contention. The accountants then add the opening balance of cash and cash equivalent to reaching the amount at the end of the period.
Question 5 – Explain the concept of deferred expenditure and their treatment in the books of accounts.
This one can be pretty tricky if your accounting base is not very strong. It is one of the staple digital finance interview questions, and it throws light on your grasp on the subject. Deferred revenue expenditure refers to those whose benefits will incur to the organization for the next 3-5 years. Such outflows are different from capital expenses and are charged to the Profit & Loss account proportionately over the number of years the organization expects to reap its benefits.
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Question 6 – Is it possible for a dying company to have positive cash flow?
Positive cash flow is not an indicator of a company’s real-world performance. There can be circumstances where an organization displays an assertive cash flow, but its balance sheet shows an entirely different picture. It can be due to delaying payment to creditors, disposal of inventory, and many such reasons.
Question 7 – Do you understand the term hedging in financial terms?
Hedging in real life means to protect yourself from any possible risks in the future. In the finance world, it refers to investing in instruments that can help you alleviate risks. While investing in these, the investor is not thinking of profits, but is bearish about the market and is looking for a shelter to mitigate the losses due to a downslide.
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Question 8 – Is there any difference between real money and nominal money? If I ask you to choose one which one will you pick?
A digital finance interview question that you are very likely to come across. The interviewer is trying to understand how strong your basics are and if you have understood anything and not merely mugged it all. Unlike most people who will go on defining the terms, you can pick up a simple real-life example and explain it.
Real money refers to the purchasing power of money, whereas the nominal cash refers to the aggregate of it in hand. The latter may stay constant, but the former is a steadily falling curve, i.e., the ₹ 10,000 in your hand today will have a lower buying power after a decade. So, if given an option, you are better off choosing real money over nominal money.
Question 9 – What fascinates you the most about the Finance sector?
If the panel or any panelists are not in the best of their mood, this can be one of the digital finance interview questions you might have to face. As soon as you come across it, take some time to gather yourself and be honest in your answer.
For many people, it is the number of games that they find interesting. Some people love the way it is connected to everything else that is around. You may have your reasons, but make sure that those don’t appear puerile. The panelists are looking for sincerity, and the answer to this question is the perfect way to showcase the same.
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We hope the above-mentioned digital finance interview questions helped you calm down and be prepared. MBA interviews can be a tight affair if you still have butterflies in you or aren’t prepared for what the panel throws on you. The primary aspect of handling it is to maintain your calm composure and be positive at all times.
The panelists will not judge you if you make a mistake, but they seek people with the right attitude. The last few years have seen a massive overhaul of the BFSI industry, and it directly forces you to put your impetus in the right place.
Learning is like a perennial source, where not even the biggest roadblocks can halt its flow. At upGrad, we were the first to offer an online MBA degree in DFB in India and strive to create more such fantastic opportunities for people looking for opportunities to showcase their skills.
How to prepare for banking job interviews?
Apart from brushing up on your concepts, it is also advisable to go through the bank’s website and understand their business. Go through their financials as well as their leadership pages. Read their latest mentions in the news. Go through your resume in detail, and make sure that every bit of information on it is accurate and up-to-date. Be prepared for tough questions such as “Why do you want to work in a bank?”. Be confident, relaxed and polite. It would also be a good idea to brush up on current affairs, especially in the banking and policy space.
What is expected from freshers in a job interview?
The most important thing that is expected from a fresher is without a doubt – your academic scores. Thus, if there is any break in your academic record, or if your scores are uneven, it would be a good idea to undergo some mock interviews so that you are prepared to explain these deficits in your resume. Freshers are also gauged on their level of interest and clarity of thought process. Thus, interviewers may often ask difficult questions which would involve a good amount of introspection or a situation-based question to understand your approach to problem solving.
How to answer ‘why did you choose banking’ in a job interview?
Recruiters often ask this question at banking job interviews, because banking is one of the most competitive and high-paced industries. Surviving a career in banking would require one to have a large degree of ambitiousness and skill. Thus, one should answer this question carefully. If you chose to work at a bank because numbers, analytics and money excite you, it is a good enough answer. Linking your answer to your domain expertise would be an excellent approach. For instance, if you are an IT/CS engineer, you could talk about the current efforts of digitizing banking, and how you think you could add value in this environment.