Dresdner Kleinwort asks: Describe a situation when you have demonstrated initiative. Jennifer Brimley, Associate Director of Origin HR advises:

 Investment banking employers ask this question because, in a highly competitive marketplace, being entrepreneurial is a key attribute to helping them win new business and maintain their market positioning with existing clients.

What are they looking for in your answer? Indicators of your ability to think on your feet and be reactive yet measured. The bank wants candidates to show they can spot opportunities, take them and be able constantly to challenge themselves and their own abilities. Key sentences and words to include in a typical answer may include “assessed or analysed the situation”, “made a quick, but informed, decision”,“took control” or “saw an opportunity”.

In answering this question, you should also try to highlight your ability to manage any risk associated in taking opportunities. One way of doing this could be to point to a time when you have taken an initiative to avoid a difficult situation. For example, an applicant might say during an OTC (Officer Training Corps) exercise they chose to take a slightly longer route that didn’t involve crossing marshland because they were the only person to check the weather forecast that morning and knew it would rain – as a result their team came first.

And what’s the biggest mistake you can make in answering this question? Wasting far too much of the small word limit allowed setting the scene. Employers want to know what you did, why you did it, and whether this had the desired effect – not the preamble to what you did.

Bank of America asks: Why do you want to work in the financial services industry?

David Schwartz, former Head of Graduate recruitment for Europe at Goldman Sachs and founder of D N Schwartz & Co in New York advises:

With this type of question a bank will be looking for some intrinsic interest in the financial services industry – perhaps you enjoy understanding how companies are valued, perhaps you have always been interested in the stock market, maybe you like the math involved in the derivatives market – all of these would be reasonable answers (and all of these you’d have to demonstrate).

You might also point out that financial services is one of the best industries in terms of giving young people responsibility fast. Finally, don’t be shy about admitting that you want to have a lucrative career – they want to know that you have financial motivations. Potential pitfalls in answering this question? I would shy away from stressing the “intellectual challenge”, because there are many careers that are more challenging intellectually; and I would avoid trying to put an altruistic face on it, because no one will believe you! 

Deutsche Bank asks: Given current market conditions, what do you think Deutsche Bank should do to remain competitive?

Sarah Chesser, Graduate Recruitment Consultant of Graduate Solutions advises:

With this question, the bank is trying to find out whether you have done any research into the Investment Banking (IB) sector and current economic climate as a whole, and how you relate it to Deutsche Bank’s (DB) business itself. Why?

The bank is looking for some understanding of macro economics and an accurate summary of the current market conditions, an understanding of what is meant by “market conditions”, and how these may affect investment banks and their financial products. It is then looking for: 1) signs that you have researched the firm as well as the sector, and can relate these market conditions to the firm; 2) whether your understanding of how DB can remain competitive is accurate and well explained.

How should you respond? You need to research all recent press about DB, and try to link the information you find out to the question eg which businesses are currently profitable and which regions are they in, which business areas within the bank are challenged by the “current market conditions,” what plans they have in place to remain competitive within these areas, what the Management Board’s strategy is with respect to remaining competitive etc. Use of quotes from DB management board members could be helpful to illustrate your answer.

And what is the worst mistake you could make in answering this question? Not answering the question comprehensively, for example, talking about market conditions and investment banking but not relating the answer specifically to DB, ie not having done enough research into the firm itself.

HSBC asks: Please tell us about a time when you have led or been part of a successful team. What problems did you face? How did you overcome these problems and what was the final result?

Jennifer Brimley, Associate Director of Origin HR advises:

By asking this question the employer can ascertain your ability to work with others and manage both the team and their own objectives. This can encompass how they build relationships within the team, how they manage their time, how they cope with difficult situations or conflict within the team, and also what role the candidate is assuming in each "team" situation.

A good response would demonstrate that you can assume different roles depending upon the situation and task to be completed. The more flexible the candidate, the greater the ability to flex to the business's needs. An example would be talking about a time when you worked on a project, demonstrating how you took on some of the workload of the group. Another example would be how you’ve worked as part of a team in your extra curricular activities - this could be by being the captain of the football or rugby team on the one hand and playing as part of an orchestra on the other.

What’s the biggest mistake you could make in answering this question? Focusing more on you as a team leader rather than team player – eg you as vice-captain of cricket, treasurer of Investment Banking Society etc, as this may indicate success and ambition but may also leave questions around ability to "roll up your sleeves."

Morgan Stanley asks: Describe a situation where you achieved a challenging goal. How did you achieve this? What have you learnt from this?

David Schwartz, former Head of Graduate recruitment for Europe at Goldman Sachs, and founder of D N Schwartz & Co in New York advises:

Here the bank wants to know something about how achievement-oriented you are. They will want to know how difficult the task was; why you felt it was important to achieve it; what you did in order to get there; did you do it by yourself, or with the help of other (working with other people is always a plus); did it require persistence, analytical skill, physical strength, courage, etc etc. Why? The theory is that a record of significant achievement in the years leading up to your application for a job at an investment bank is a good predictor of the ability to achieve in this career.

And what’s the biggest mistake you could make in your answer? It is best to avoid sounding like an ego-maniac! Be proud of what you have done, but humble enough to stress that you needed the help of others. 

Deutsche Bank asks: What extra curricular activities have you been involved in that you think we would be interested in hearing about?

Jennifer Brimley, Associate Director of Origin HR advises:

Here, the bank wants you to demonstrate any personality traits that could indicate how you would behave in the role you are applying for. How best to respond? By including buzzwords to link the characteristics you describe to a specific role or the culture of the organisation. For example, an applicant focusing on sports interests is ultimately demonstrating a ‘team player’ attitude through their ‘commitment’, their ‘ability to prioritise’ their time (in attending training sessions), and ‘desire to be the best’ (by being in the 1st XV Hockey rather than the 2nd XV).

Alternatively, the applicant who has completed a gap year should show they have developed ‘an ability to think on their feet’, and to ‘engage with people’ of all backgrounds and ethnicities. This could be a leading indicator of someone who would be possibly suited to a co-ordination role, maybe markets focused eg sales/trading, where lead times are often short and candidates need to be quick learners.

What’s the worst mistake you could make when answering this question? Not to take a step back and realise what your interests and traits say about you. For example, a candidate who writes that they like to spend time marathon running could be viewed either positively or negatively by the bank, depending on the role. On the one hand, it could demonstrate a trait of "going solo" , which could suggest you’re not suited to a busy equities trading floor role. But it could also show your grit and determination to succeed at a goal unattainable to most of us. The most important thing is to match your skills to the role or section you’re aiming for. 

Dresdner Kleinwort asks: Describe a situation when you've had to motivate yourself to complete a difficult project or a demanding task.

David Schwartz, former Head of Graduate recruitment for Europe at Goldman Sachs, and founder of D N Schwartz & Co in New York advises:

Here, the bank is typically looking for several things. First, and perhaps most important, they are looking to see how you get yourself going in a situation where you don’t like what you’re doing – but you have to do it anyway. No one likes to do difficult or boring tasks, but the initial career track in any investment banking role is difficult, tedious, and requires getting up energy to complete projects that you may not have the slightest motivation to do. They are looking for a desire to learn; a satisfaction in a job well done; a sense that you are building a career on a sound foundation; and a sense that you like working with people regardless of the difficulty or unpleasantness of the task.

How best to respond? Pick a situation you have been in, in which you can demonstrate some or all of these key elements, and you’ll be set. And the worst thing you could do when responding to this question? Fail to show any sign of motivation or enthusiasm or ability to grit your teeth and drive yourself on.

Barclays Capital asks: What steps did you take in determining which investment banking firms you applied to?

Sarah Chesser, Graduate Recruitment Consultant of Graduate Solutions advises:

Here, the bank wants to find out the extent of your research skills, especially how thorough your research is, and how logical your approach is. The bank is looking for thorough, accurate and logical research, organisational skills, ability to write concisely etc. It then wants you to express what is important to you in the bank you join – and relate that back to the firms you are applying for.

What are they looking for in an answer? They will want to see a clear strategy of how you, as a candidate, went about gathering information about the different investment banks, how you disseminated that information, and how you then went about making your choice of which firms to apply to.

How should you respond? You should cover what research you did, why and what conclusions you came to. You should source your info from, for example: a) the individual bank’s careers website; b) financial websites & press; c) Finance Careers Fairs; d) workshops related to the sector; e) speaking to peers, alumni of where you are studying, friends, relations in the business

What are the worst mistakes you could make when answering this question? 1) Responding in generic terms that cannot be quantified – eg. saying ‘I wanted to apply only to the top Investment Banks’. 2) Getting facts wrong eg saying you wanted to apply to those banks with global graduate programmes when they only offer regional options.