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Digital Banking Jobs Interview Questions You Will Face — And How to Answer Them (Expert Tips)
So, you are looking for a long-term career in digital banking? Well, take it from some leading Fintech recruiters, it tends to be a good idea to understand what makes you as a candidate a good fit, what you may be asked, and how to prepare for the questions.
For instance, as you know, the digital revolution really has completely changed the way we interact with money. Consequently, digital banking is now a really key part of the financial industry, with everything from mobile banking apps to AI-powered tools playing a major role in this industry these days.
Consequently, these industry changes have really created a whole range of job opportunities in the banking sector. Digital banking roles, for instance, are now available in various departments, whether you want to work in cybersecurity, UX design, data analysis, or app development.
However, the key to landing one of these roles is not just about having the technical skills or what you have on your CV. It is also about your interview preparation, understanding the job description, the role, what will be asked from you, and you showing how your own responses in the interview will demonstrate the required skills.
So, let us go through the most common interview questions you will face for digital banking jobs and how you can handle these if they come up, with some common questions and answers to use as a sample use case.
Understanding the Hiring Process
However, first, it is a good idea to understand how the recruitment process in the banking industry differs from other sectors. For example, here this usually starts with an online application. From there, many banks will then use ATS (Applicant Tracking Systems) to filter through the CVs they receive, unless they are using a dedicated banking recruiter, like us.
If yours then makes the cut, you might get a call for an HR phone screening, followed by more in-depth interviews. These could include technical interviews, panel interviews, or even assessment centres.
Consequently, every stage of the interview process has been designed to check the different parts of your skill set.
For instance here, the HR screening might focus more on if you are a good cultural fit and what your salary expectations are, while a panel might ask you more technical questions, or give you brain teasers to see how you can handle more complex problems that may seem unrelated, but go a good way to show them your character in a situation that can make you feel a bit out of your comfort zone.
As a result, understanding each step in the hiring process will help you focus on your preparation and improve your confidence.
So What Do Recruiters Look for in Candidates?
Hiring managers are always searching for someone who ticks all the right boxes.
That usually means a balance between technical know-how and soft skills like teamwork, time management, and effective communication. As a result, in digital banking, this is just the same here, and you may also be asked competency-based interview questions to see how well you handle real-life challenges.
They will also want to know about your past experiences, whether you have been part of a team, and how you made a positive impact in previous roles.
Interview Tip: If you can then show a clear understanding of customer experience, financial stability, and regulatory compliance, this can often help you stand out as the ideal candidate.
What Are The Core Competencies Required in Digital Banking?
For your core competencies in any digital banking role, you will tend to be assessed on two main areas.
For example, these will tend to be based around your:
Technical Skills
Here you will need to show familiarity with platforms used in the finance interview space, such as Temenos or Finastra, if these are appropriate to your role.
Another core technical competency may also be around (depending on the role you are going for) knowing how API integrations work, experience in cloud infrastructure like AWS or Azure, and mobile app development are also commonly mentioned job descriptions these days when the role is more technically focused.
If you have worked on financial transactions, managed a balance sheet, or helped with a savings account or credit card feature, these can also be great examples of your technical experience to show off as well.
Interview Tip: Here, for instance, try to give specific examples to back up your skills. These are all great ways to showcase that you have what it takes for a role in digital banking, over those who have just added the words onto their CV, but they may not have the best competencies in those skillsets as the interview would ideally like to see.
Soft Skills
Beyond the technical side, soft skills are just as important to portray as well. For instance, a lot of employers love candidates who show strong problem-solving abilities, teamwork, and adaptability.
Digital banking, for instance, is a fast-moving environment, and you will often be working with different departments. Being part of a team that works well together can be just as – if not more – important as writing great code or analysing data.
In competency-based interviews, you might be asked to describe a difficult situation or how you managed your time when working on a large project.
Interview Tip: Here you want to think about your previous job or roles and how you approached these scenarios ahead of time, as good interview preparation will help you give confident answers and respond quickly here.
Regulatory Knowledge
You don’t have to be a legal expert, but knowing about key regulations like KYC (Know Your Customer), AML (Anti-Money Laundering), PSD2, and GDPR really does tend to be essential in this space.
Digital banking plays an important role in keeping financial institutions in line with regulatory compliance standards for example. So if you are applying for roles connected to risk management or customer protection, these rules are even more relevant.
Interview Tip: Here you want to talk about any training you have had, or how you have applied these standards in your past experiences. This, in turn, will help to show your hiring manager that you understand the bigger picture of the banking sector, which can easily set you apart from other candidates.
Before We Start
Please note: The questions and examples below are just examples; you should always come up with your own responses based on your own experiences – if the below didn’t happen for you like that, you should not use these answers directly, nor should you rely on these answers as being the best answer for your interview.
Every company is looking for different things, and your experiences will also differ.
Just remember, you always want to be honest, and you want to pull from your own experience.
These answers are instead meant to be more of a guide, and one way for you on how you could structure your responses based on your own experiences, and they should not be used verbatim – especially if you do not have the corresponding competencies.
What Are Some Of The Most Common Interview Questions for Digital Banking Jobs?
When it comes to common questions, these can tend to be broken down into a few areas.
For example, here you have:
General Background and Experience Questions
These questions often set the tone of the interview.
For example, you might be asked, “Tell me about yourself,” or “What drew you to digital banking?”
These questions may seem basic, but they give you a great way to highlight your greatest strengths, career goals, past experiences, and why you think digital banking is a great career choice straight out of the gate.
However, as these job interview questions go, you should always tailor your answer to reflect why you are interested in digital banking, and the role you are going for, along with how your career path has led you here in a positive way.
For instance, you should consider talking about any Graduate Programmes you joined, roles in commercial banks, central banks, or the exposure to the banking industry you have.
Interview Tip: You also want to ideally use your answer to show that this is not just a job, it is your dream job.
Technical and Role-Specific Questions
Depending on the role you are going for, the most common questions here can range from basic technical knowledge questions to more in-depth scenarios and brainteaser questions.
For example, a hiring manager might ask you, “How does a digital wallet work?” or “Walk me through a digital product lifecycle.”
For these types of questions, it is important to give the correct answer, but also relate it to your own experiences as you do so.
In a finance interview, for instance, depending on the role you are going for a list of questions you may also be asked about can include for example, “How do higher interest rates affect user trends”, “How does regulation in the United Kingdom differ from that in the United States when it comes to App development”, “How does a Hedge Fund differ from Private Equity or Commercial Banking”, “The difference between Cash Flow, and Balance Sheets”, or even the current price trends in the market.
Interview Tip: Questions here may touch on ethical standards and how these play a part, especially if you are interviewing with large firms like Morgan Stanley or the NatWest Group, where professional development and integrity play a crucial role – so be prepared here in case they come up.
Behavioural Questions
These are very common in competency-based interviews. For instance, here you want to prepare for things such as, “Give us an example of a time when you faced a technical challenge,” or “Tell me about a successful project you led.”
Here, you can demonstrate the STAR method (Situation, Task, Action, Result) to structure your responses. This helps the hiring manager see how you think and work through real problems.
For example, you might describe a situation where you worked across different departments to improve a savings account feature or how you and the team’s hard work handled a difficult situation involving a customer complaint.
These kinds of examples show off both your technical skills and your ability to be a strong team member.
How to Answer General Interview Questions?
Regardless of whether you are going for an app developer that will be used by investment bankers or retail bankers, some common questions that remain the same include, for instance:
“Tell Me About Yourself”
Here you want to use the Present-Past-Future format.
For instance, say something like, “I’m currently working in digital transformation for a retail bank, focusing on app development. Before that, I was part of a team handling user experience improvements. I’m now I am looking for a role where I can make a positive impact in a customer-centric environment, and somewhere with a great company culture.”
Interview tip: This approach then shows your journey and links your past experiences with your future goals. Furthermore, it also shows that you understand your own career path and have thought carefully about your next role.
“Why Do You Want to Work in Digital Banking?”
For this type of question, you might say something like, “We all know that digital banking is reshaping the way we interact with money. As a result, I am really excited about being part of a team that uses technology to improve customer experience and to make banking more accessible. It feels like a great way to contribute to the future of the retail banking industry to me.”
Interview Advice Tip: This kind of answer shows you are enthusiastic, informed, and ready to take on the challenges of a digital role.
How to Tackle Technical Interview Questions
When it comes to technical questions, here you will face different types of questions, including, for instance:
“Explain the Functionality of a Digital Wallet”
For this, here is a sample answer that you can use to answer this type of question well: “A digital wallet stores your card and banking information securely so you can make payments through your phone or computer. It often links with a bank account or credit card and uses encryption and tokenisation to keep your details safe, making it a great way to simplify a customers financial transactions and improve our users convenience.”
As this not only shows you understand what a digital wallet is from a basic level, but also the point of them, and how they are used by the end consumer, all in one answer.
“How Do You Ensure Data Security in Mobile Banking?”
For this type of question, you could say, for instance, “I make sure security starts with strong authentication, like biometrics or two-factor verification. I will also ensure that all data is encrypted and that we conduct regular penetration tests to look for weaknesses, following standards like ISO/IEC 27001 – as this is key. Furthermore, we also want to try to educate our customers about scams and phishing attempts to help to indirectly improve our customers safety as well though indirect user training.”
As this again not only shows you understand data security at a good level, but also the regulation, and how they are scammers and attackers attack the end consumer, all in one answer.
Behavioural Questions and the STAR Method
For behavioural type questions, here are some common questions and answers that can come up in digital banking roles.
“Describe a Time You Handled a Difficult Client”
A good answer here could be: “At my previous job, a customer kept getting locked out of their mobile banking app. I took the time to listen, coordinated with our tech team, and discovered it was due to a bug. We then fixed it quickly, and the client appreciated the care. We also added a new alert system to catch similar issues early, and we noticed that complaints declined by 2% due to this improved customer-focused approach.”
“Tell Me About a Time You Changed a Process”
For this, you might say: “While working in the lending team, I noticed our approval process was very manual. I suggested an AI-based pre-screening tool that we developed and rolled out within two months. We found that this cut approval times by 40% and freed up staff to focus on more complex cases as a direct result.”
Both of these responses show that you understood the issue that the business was focusing on, and came up with a good solution.
Role-Specific Questions for Popular Digital Banking Positions
For instance, for a Digital Product Manager, here you should prepare for questions such as:
“How do you define KPIs for a banking product?”
For a UX / UI Designer, “What principles tend to guide your mobile banking designs?”
For a Data Analyst, for instance, you should consider questions around “How do you use data to improve customer retention?”, and for a Cybersecurity Specialist “How do you respond to a data breach in a banking system?”
These questions will vary, but your goal should be to match your own responses with what’s in the job description and show your competency in those specific areas to help to set you apart.
What Are Some Top Tips for Acing Your Digital Banking Interview?
Here, you want to make sure you tailor your CV with keywords that are in the job description. For instance, if they include things such as regulatory compliance, teamwork, and digital transformation, and you have the competency for these, it makes sense to make sure they are well represented in your CV.
In your free time prior to the interview, you also want to practise going over sample answers like the ones above and others to help you feel more confident about ways you can answer questions that come up.
Another good area that can go down well with the interviewer is if you can, and it is truthful to do so, you also want to highlight any success stories that you have, and include actual numbers, like improved customer retention or faster loan processing times, or what is applicable to your individual experience.
You also want to stay updated on trends in the financial industry, especially emerging technologies, and where possible, you want to talk about them in the interview to show that you are always learning and serious about your own professional development.
We tend to find that that is a good way to stand out from other Fintech job seekers, you are up against by showcasing your successes at the right points.
Common Mistakes to Avoid in Digital Banking Interviews
When it comes to digital bank interview questions, you want to make sure that you do not give vague answers — instead, be sure to back up your points with specific examples that you have experience with.
You also do not want to ignore rules and regulations; even if you are not in compliance directly, you still need to show that you understand their importance.
Another thing you want to never say is that you are not comfortable with tech — digital banking is, after all, digital. If you feel this is a weakness of yours, maybe either this is not the career path for you at the current time, or you may want to look to take on some short term courses in areas you feel you are not as competent on, or comfort in, to help to build up your confidence in this area more than you have currently.
Also, never overlook the importance of UX. Whether you are on the technical side or not, understanding how users interact with digital banking platforms really is a must.
How to Ask the Interviewer Insightful Questions
Asking questions shows interest and engagement in the role, but you want to keep them highly relevant to the role, rather than how it will benefit you. For instance, for questions you can ask, you may want to try these if they are of interest to you:
“What KPIs do you use to measure product success?”
“How do you stay ahead of FinTech trends?”
“What are the team’s current goals and challenges?”
These kinds of questions can, in turn, help you leave a strong first impression and show that you are thinking like a team member – rather than showing the interviewer that you are instead thinking more about what is in it for me.
Dress Code and Virtual Interview Etiquette
For in-person interviews, you want to go with business formal or smart casual, depending on the company’s culture.
For online and video interviews, you still want to dress professionally, find a quiet spot with good lighting, and make sure your internet connection is reliable.
Always remember to look at the camera to maintain eye contact and smile when appropriate. Good body language still matters, even on video, and this is something that can often go overlooked.
Post-Interview Follow-Up Tips
After the interview, you want to, or your recruiter will tend to, send a polite thank-you email within 24 hours.
Here, if you do, you should mention something specific you discussed in the interview, as this tends to be a good idea to show a genuine interest. If you use a Fintech recruiter like ours, we will know how to handle the post-interview process the best for you.
How technical are digital banking interviews?
They can be quite technical, especially for roles in software development or data analysis.
Can I get a digital banking job without a finance degree?
Roles in design, tech, and data can often value experience and problem-solving over degrees.
What’s the best way to prepare for digital banking interviews?
Here you want to make sure you practise with competency questions, study banking industry trends, and understand financial regulations.
Do I need to know coding for digital banking jobs?
Only if the role requires it, but having basic digital literacy is always a plus.
Are behavioural questions common?
Yes, very, as they are a great way for employers to assess how you’d behave in real-life scenarios.
Interview Questions You Will Face for Digital Banking Jobs Overall
Getting a role in digital banking might feel like a big challenge, but it is completely doable with the right preparation.
Just remember that the tips in this guide should not be deemed as career advice or the best way to answer interview questions by directly copying these.
Instead, you should use the format of these as a guide and focus on the interview questions you will face for digital banking jobs, while you work on giving clear, confident answers.
Just remember to show off your individual strengths, talk about your career goals, and use real examples from your previous job or roles to complement your answers.
With some interview training and the right mindset, your next interview could lead you to your dream job in the digital banking team, and we wish you all the best.
Are You Looking for a Fintech Role?
If you are serious about landing a digital banking role, then you should consider partnering with Mark Loucas, as we are dedicated Fintech Recruiters and have many direct connections to key stakeholders, to help give you a great way to improve your chances.
For instance, we specialise in the financial industry and understand exactly what hiring managers are looking for, and help them align with the best candidate going. So, whether you are aiming for Commercial Banking, a Project Management Role, or a role in a Digital Banking Team, our guidance can really support your long-term career goals.
So give our team a call today, to help you fulfil your next digital banking role – we are here to help you.
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Our recruitment agency also understands industry regulations and compliance checks that are needed, to ensure that our candidates meet both technical and compliance needs, which really is key as you know, for the financial services sector.
Who Is Mark Loucas
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As a result, our experienced fintech recruitment team has a proven track record of successfully placing candidates in leading companies who can bring in the best practices for your team and project goals, and we have a dynamic team dedicated to helping you find exciting opportunities in the financial services industry.
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