Banking is a very lucrative field to make career in. Thousands of fresh graduates as well as experienced professional all over the world prefer to become Banker. Banking career has its own charm and style just like any other equally important career line such as Medicine, Marketing and Law etc. Of course, your selection in a Bank is not so easy and it requires right academic qualifications, aptitude, sincerity, dedication and experience (if applying for other than entry level position). In case you are looking forward to make a career in Banking Industry then you will benefit immensely from the following Common Bank Interview Questions with Answers.
Each country has banks which may be regional, national or international level players. For example, some of the well known and large international banks are Crédit Agricole Group, BNP Paribas, Royal Bank of Scotland, Citigroup, HSBC Holdings, Bank of America, Deutsche Bank, Bank of China, Barclays PLC etc. These top banks have their asset value in billions of dollars.
A job in banking services demands the very best of you. The job profile in banking sector is not only dynamic and challenging but it also puts you at the very heart of money management.
The finance and banking industry offers a variety of avenues for graduates from various academic disciplines, such as Analyst, Customer Relationship Management, Corporate Banking, Investment Banking Consultant, Researchers Or Tax Analysts, Equity Or Fixed Income Analysts, Financial Planner, Risk Assessment, Credit Department, Loan manager or Project Managers
Experience Related Questions –
1.Please discuss your views about the changes in Banking Scenario?
Suggestions for Answer:
To answer this question, the candidate should have done some serious study about the scenario of banking at Regional, National and International Level. In fact this is not a simple question and it has many hidden questions which want to check the knowledge and level of understanding of the candidate along with his awareness.
Sample Answer: Banking sector has successfully been adding new products and innovative services to its basket of products being offered to retail customer and institutional customers. I think the banking sector will keep its goal to accelerate the growth. Secondly each bank would like to optimize its costs of marketing and distribution so as to keep its overheads low without effecting its reach or quality of services.
With regards to changes, I feel that there would be marketing strategy which would be “socially engaging”. The leading banks would adopt “Intelligent Multichannel” approach over their brick and mortar branch banking.
2.In the changing Banking Scenario, what are the most important needs of the Banking Industry?
Suggestions for Answer:
This question is a natural extension of the previous question. If the candidate has given a good answer then there is all likelihood of the interviewer asking this question. To answer this question, the candidate should have done some deep thinking beforehand about the Banking scenario, its business practices and the marketing strategies.
Sample Answer: We are living in a digital age, where everyday technological innovations our style of living, doing the business and even the way we do a commercial transaction. The banks will have to catch up and offer (a) Multi Channel Optimization (b) Digital Distribution and most importantly (c) Effective Sales Efforts.
3.To implement these changes by the Banks, what are your recommendations?
Suggestions for Answer:
To be specific, the interview board wants to understand the future vision of the candidate.
Sample Answer: Banking sector has to achieve competitive differentiation; banks must define a clear strategy and customer proposition, and then develop the capabilities to reach these goals. Accenture recommends that banks should:
- Establish an overall strategy that includes the appropriate capability mix and investment choices.
- Develop an appropriate sourcing strategy to enable scale and deliver required capabilities at higher speed.
By following this next-generation approach, banks can position for growth, improve performance and achieve a competitive advantage—in the near- and long-term.
4.What is the changing role of banking sector?
Tips
This is a very commonly asked question and you must be prepared to answer it. The interviewer want to know about your approach and thought process. Your answer should show that you have been regularly following the developments in the banking industry and you are really keen to make a career in this industry.
Sample Answer
In the developing and developed economic system, banks play a very important role in economic development. Commercial banks are an important part of the financial system of the country.
Banks perform a number of important functions. For example, commercial banks encouraging people to save.
Secondly, the banks mobilize the savings of the individuals and organisations for the purpose of investments in various sectors of the economy. Thirdly, commercial banks help the process of capital formation. Fourthly, banks facilitate monetary transactions in foreign trade. Fifthly, banks provide instruments for the money to exchange hands without actually having physical money such as online transfer, Letter of Credit, ATM, Debit card, Credit Card etc.
5.What is KYC? Why it is important?
Tips
This is a question asked to check about your general knowledge and general awareness, specifically related to the banking industry. Therefore, please provide a crisp and short answer.
Sample Answer
K Y C means “Know Your Customer”. It is a process prescribed by Reserve Bank of India. Banks are required to obtain information about the identity and address of the customers.
The K Y C procedure is to be completed by the banks while opening accounts. It is also applicable to old account opened with K Y C. Banks are also required to periodically update their customers’ K Y C details.
The objective is to enable positive identification of customers by their respective Banks; and to prevent money laundering. This process helps to ensure that banks’ services are not misused.
- What are the documents required by banks for KYC compliance?
Tips
This is a question in continuation to the question “What is KYC” and is specifically related to the banking industry. Therefore, please provide a correct and precise answer.
Sample Answer
The documents as mandated under KYC guidelines are:
- Photograph
- Proof of identity
The Government of India has notified six documents as ‘Officially Valid Documents’ for the purpose of producing proof of identity. These six documents are Passport, Driving Licence, Voters’ Identity Card, PAN Card, Aadhaar Card issued by UIDAI and NREGA Job Card.
- Proof of address
This includes Ration Card, Electricity Bill, or any other document acceptable to Branch Manager
- What are the functions of RBI?
Tips
This is a question asked to check about your specific knowledge on the subject and general awareness, relating to the banking industry. Therefore, please provide a crisp and correct answer.
Sample Answer
The Reserve Bank of India was established in 1935 and it was nationalized in 1949. As the Central bank of a country execute multiple functions such as:
- Regulate the issuance and circulation of Bank Notes
- Banker to the Government
- Custodian of Cash Reserves of Commercial Banks
- Custodian to Foreign Reserve of the country
- Lender of last resort
- Central Clearance and Accounts Settlement
- Controller of Credit
