Why UBS Interview Questions
How to answer the question "Why UBS?"
UBS is an international financial services and investment banking organization with a worldwide prestigious reputation. They provide all types of financial services all around the world. UBS has operations in more than 50 countries.
UBS's headquarter is in Zurich, Bahnhofstrasse 45, and also has offices around some of the most renowned countries and cities, such as New York, Hong Kong, London, Tokyo, Singapore, and India.
UBS is well-known for its rigorous interview procedure as one of the world's most prominent financial organizations. To achieve your goal to get your position at UBS, you must be well prepared for any type of questions they might be asking.
They usually try to discover a proficient, committed, and passionate candidate for their organization and might be asking questions primarily based on your expertise, competencies, skills, and experience.
This article will explore why UBS interview questions matter and how you can prepare for them.
Interview Tips and Suggestions
Here are some tips and suggestions to excel in a UBS interview:
- Be confident in your research: You have to be confident about the research you did, such as the company's background, its products and services, and its ethics.
- Do a SWOT analysis before going for the interview: SWOT stands for strengths, Weaknesses, Opportunities, and Threats. You have to be fully prepared with a SWOT analysis of the company or the position you are going for.
- Be mentally prepared to give answers to any type of behavioral or technical questions: UBS likes to ask any type of question and by asking these questions they evaluate candidates if they are getting panicked and if a candidate has enough perception ability.
- Don't repeat your answers: Even if you are fully confident about your skill and experiences, don't repeat your strengths in your answers.
- Speak politely and ask them questions if you don't understand: If the interviewer is describing anything and you are unable to perceive it, do not be concerned and gently inform them that you are unable to comprehend it and would want to know it in a simpler manner.
- Carry several copies of your CV/Resume: We don't know when and what will happen in the future. So for unforeseen circumstances, you must carry several copies of your resume. Being cautious is best for unfortunate events.
- Emphasize your experience: Try to explain your experiences in examples so they will be able to comprehend your experience easily and effectively.
- Don't panic if you can't answer a completely random question; simply state respectfully that you are unaware of the answer: For example, if the interviewer asked you a question regarding a formula or a technical term that you do not know then you have to be just calm and not get panicked. Let them know in a polite way that you don't have any idea about the given question.
- Your attitude should be positive: Even if you are prepared in a full-fledged way and confident enough to pass the interview, you have to be careful and not get blinded by your confidence. Your attitude should be humble and positive, even if your performance is above average.
Why are UBS Interviews Different?
As we now already know, UBS is one of the most popular investment banking and financial services firms. It has a reputation for hiring the best and brightest candidates. To ensure that it recruits only the top talent, UBS conducts a rigorous interview process.
Unlike other firms, UBS interviews are designed to test a candidate's knowledge, skills, and experience in detail. The questions are designed to assess a candidate's suitability for the role and the company culture.
UBS holds its interview process for nearly 3 to 4 rounds, and the procedure may last up to 1-2 months. The process basically holds a phone interview, group discussion, and one or more in-person interviews, and it also includes behavioral and technical skills assessments.
The firm uses various types of interviews, including behavioral, technical, and case studies depending on the role being filled.
To prepare for a UBS interview, candidates should research the company and its culture, review the job description and qualifications, and practice answering common interview questions.
What's unique about UBS?
Why and what makes UBS such a special investment banking company? Why is it top-rated amongst the most renowned financial services companies? And what can a candidate expect from them? Here we will go through some key points to understand all these questions.
1. Global Presence
UBS is a truly global company with a presence in over 50 countries worldwide. This permits them to serve clients throughout the globe and provide a wide variety of services to satisfy their desires.
2. Recognition of Wealth Management
They focus strongly on wealth management and have been ranked as the world's most prominent wealth managers for decades. They offer services to high-net-worth individuals and households, including funding advice, portfolio management, and property-making plans.
3. Investment Banking Expertise
UBS is also known for its expertise in investment banking. They provide a wide range of financial services to their clients, which generally include mergers and acquisitions consultancy, fundraisings, and underwritings.
4. Dedication to Sustainability
They have a sturdy dedication to sustainability and have been recognized for their efforts in this area.
5. Innovation
UBS has a strong consciousness of innovation and is continuously exploring new technology and operating approaches to improve its services and stay ahead of the competition.
Note
UBS has established innovation labs and partnerships with startups to drive innovation across the organization.
6. Sturdy reputation
They have built a strong reputation inside the financial services enterprise for their knowledge, reliability, and client-focused approach. This has helped them entice and preserve top talent and establish long-term relationships with customers.
7. Diversified Business Model
They have a diversified business model, focusing on wealth management and investment banking. This allows them to weather changes in the market and adapt to shifting client needs.
8. Digital Transformation
They have invested heavily in digital transformation, with a focus on improving the client experience and driving efficiency.
9. Strong Corporate Culture
UBS's strong corporate culture emphasizes collaboration, integrity, and accountability. With strong corporate culture, they have built strong and rigid connections with high-net-worth individuals and organizations.
10. Dedication to training
They have a robust dedication to education and have established partnerships with universities and academic institutions around the world.
They offer several instructional programs and sources to help clients and employees stay knowledgeable and make informed financial choices.
Different Ways of “Why UBS?” Interview Questions
Now we will be moving forward to our main topic, "Why UBS?” or they can also ask, “Why UBS but not another company?”Interview question.
The interviewer might ask this question in various ways, but the point of those questions is the same. We will go through similar questions such as “Why UBS?”, “Why are you interested in UBS?” and “Why UBS but not another company?”
It is one of the most common questions asked by investment banking firms. This question generally evaluates a candidate's performance and communication ability.
When this question is asked, they are simply trying to find candidates who have passion and dedication for the company. The interviewer wants to know from the candidates why they want to join UBS and not other companies.
They are trying to find out what's unique in a candidate that makes them special amongst other candidates and if they have proper knowledge of UBS’s products and services.
Here are some tips that you can refer to give a full-fledged answer to questions like these:
1. Research the company
Go through the UBS products and services, history, work culture, and current COO, CFO, and CEO. It will give you a basic idea of what exactly UBS does. And you will be better prepared for questions like this.
You can find all this information on their website: UBS
2. Comprehend the job description
Go through the job description and understand its specifics and responsibilities. You can make your answer align with the job description to create a good impression on them.
3. Connect your skills and experiences
Identify how your skills and experiences align with the job requirements and UBS's mission and values. Use some specific examples to align your answer with the job requirement and show them what you can contribute to the company.
4. Highlight your passion for the industry
Show your interviewer that you are genuinely interested in the financial industry and have a deep understanding of UBS's role within it.
5. Be authentic
Your answer should reflect your true motivations and values, so be honest and genuine in your response.
6. Practice
Practice your pitch and skills like technical and behavioral, so it will make you more confident while giving answers. Remember to stay calm and focused, and to answer the question concisely and clearly.
Sample answer for “Why UBS?”
“I always had a keen interest in investment banking and the most prestigious financial industry around the globe. Upon researching UBS, I was greatly impressed by its standing for eminence in managing wealth and its staunch devotion to sustainability and social accountability.
The company's mission to assist clients in navigating intricate financial markets and making prudent investment choices was particularly appealing to me.
Being a person who places an excessive value on honesty and openness, I find it commendable that UBS places its consciousness on developing lengthy-time period relationships with clients and prioritizing their desires above all else.
With my skills and experiences, I am very much confident that I can make valuable contributions to the company. I have a solid background in finance and accounting, in addition to having gained experience working in a dynamic, customer-centric environment.
Overall, I am certain that UBS is a great fit for me because it shares my values and professional goals.
Working for an organization that promotes innovation, cooperation, and social responsibility is undeniably exciting, and I am convinced that I can make a difference as a part of the distinguished team.”
The question can be asked in multiple other ways; below are some sample answers for other formats of this question.
Sample answer for “Why are you interested in UBS?”
“I'm fascinated about the financial sector, therefore I've been keeping track of UBS's development for a while. The company's dedication to innovation and emphasis on creating distinctive solutions to satisfy its clients' changing demands impresses me.
In addition, I like UBS's reputation as a socially conscious business. I think it's crucial to give back to the community and have a good influence on society, therefore I'm drawn to the chances UBS gives me to become engaged in these causes.
Furthermore, I identify with UBS's emphasis on diversity and inclusion. I am very much excited to work here because of its ethics and work culture.
And that's why I feel very much attracted to UBS and its environment.”
Sample answer for “Why UBS but not another company?”
“I am particularly drawn to UBS because of the company's global reach and reputation for excellence in the financial industry.
I have seen UBS's dedication to innovation and client satisfaction services past year, and that is what makes it much more outstanding than other companies.
Additionally, UBS's strong focus on developing its employees through ongoing learning and development opportunities is something that is very important to me.
UBS's business culture, however, truly sets it apart. The manner in which UBS handles its workers and clients demonstrates how much the corporation supports diversity and inclusion.
Basically, I am a positive work-life balance believer and also just want to give my 100% with peace of mind.
In the end, I decided on UBS because I think the culture and ideals of the organization are compatible with my own personal beliefs and professional aspirations. I will be thrilled if I get a chance to work here and also help my teammates to achieve numerous things together.”
Other UBS Interview Questions
Having covered that question, now it is time to get accustomed to some of the most common and frequently asked interview questions by UBS.
UBS is a worldwide financial services company that gives quite several products and services to its clients.
Here's a detailed overview of what UBS offers:
A. Wealth management
They offer a complete variety of wealth control services, consisting of investment advice, portfolio management, financial planning, and estate planning.
Additionally, they provide access to an in-depth range of funding products, which incorporates equities, fixed profits, and alternative investments.
B. Investment banking
The company is the most renowned investment banking company around the world. They provide services like mergers and acquisitions, portfolio management, fundraising, and consultancy services.
They have a strong presence in the global capital markets, serving clients across industries and geographies.
The company generally expands investment merchandise and techniques via its asset management department, along with mutual funds, exchange-traded funds (ETFs), hedge funds, and private equity. They also offer customized investment solutions for institutional clients.
D. Retail banking and commercial banking
They offer retail banking services, together with savings and checking accounts, credit cards, and mortgages, in selected nations. They also offer commercial banking services, such as lending, cash management, and trade finance, to corporate clients.
E. Corporate Center
The company's corporate center provides more than a few support offerings, consisting of risk control, compliance, human resources, and technology. They also oversee the company's overall strategy and governance.
When preparing for a question about UBS's products and services, it's important to research the company thoroughly and understand its offerings in detail. By going through the company's website, you will get a basic idea of their conduct and give their services to their clients.
Additionally, consider the specific role you are applying for and how your skills and experiences align with the company's offerings. This can help you tailor your answer to demonstrate your qualifications and fit for the job.
If you are interested in management and valuation, go through our Valuation Modeling Course
The "strengths and weaknesses" question is a common one during job interviews, including at UBS.
We will dive into the detailed overview of the question and how we can answer this type of question.
A. Strengths
Here when discussing strengths, you have to be straightforward about your skills and abilities. Show them that your strengths are in alignment with the job role you are applying for.
Some examples of strengths that might be relevant for a job at UBS could include:
- Strong analytical skills
- Effective communication abilities
- Proven leadership abilities
- Ability to work well under pressure
- Excellent problem-solving skills
- Attention to detail
- Adaptability and flexibility
- Positive attitude and team player mentality
When answering this question, be sure to provide specific examples or stories that demonstrate your strengths in action.
For example, you might discuss a time when you successfully led a team through a challenging project or when you demonstrated strong analytical skills to solve a complex problem.
B. Weaknesses
When discussing weaknesses, it's important to be honest and self-aware, but also show how you are working to improve. Here are some tips on how to approach discussing weaknesses:
- Choose a weakness that is not a core requirement for the job. For example, if the job requires strong attention to detail, don't choose that as your weakness.
- Frame your weakness in a way that shows how you are actively working to improve. For example, "My weakness is public speaking, but I have been taking classes to improve my skills and have volunteered for opportunities to speak in front of groups to practice."
Sample answer:
“One of my strengths is my ability to effectively communicate with others. I have strong interpersonal skills and can clearly articulate my ideas and collaborate with others to achieve shared goals.
In my previous job, I used to be responsible for leading a team on a complicated task, and I found that my conversation skills had been critical in keeping each person aligned and moving on the right path.
One area that I'm currently working to enhance is my capability to delegate responsibilities to others. In the past, I have tended to take on an excessive amount of responsibility myself instead of delegating duties to different team members.
But, I've been actively working on this by setting clear expectations for group members, providing guidance and support when wanted, and trusting in their skills to get the task done.
I believe that by continuing to practice delegation and building stronger relationships with my team, I can become a more effective leader.”
Staying current with industry trends and advancements is critical for finance professionals, and this is a topic that is frequently asked during UBS interviews. In this question, the interviewer wants to know how you evaluate and stay up to date with current market trends.
Staying up to date on current market trends and affairs gives you a boost of information regarding investment banking and the financial industry’s core affairs.
Here are some tips that you can use as a reference.
A. Follow industry publications
Subscribe to industry publications and read articles about current events and trends. It will keep you ahead of the average candidate.
B. Attend conferences and events
Attend conferences and events that are relevant to your field to network and learn from other professionals.
C. Take courses and certifications
Consider taking courses or certifications to deepen your knowledge and stay current with industry best practices.
D. Join professional associations
Join professional associations in your field to access resources, attend events, and network with other professionals.
E. Network with colleagues
Network with colleagues within and outside of your organization to exchange ideas and stay informed about new developments.
Sample answer:
“Staying current with industry trends and developments is essential in the financial industry, and I make a concerted effort to do so by regularly engaging in professional development activities.
For example, I frequently read industry publications and attend relevant conferences and events to stay informed about the latest trends and best practices.
In some recent days, I attended a conference on sustainable investing, wherein I found out about new techniques for integrating environmental, social, and governance (ESG) elements into investment decisions.
This information has helped me better advise clients on socially responsible investment options and position our organization as a leader in the sustainable investing space.
I also did a financial risk management course, which helped me keep updated on the newest approaches and tools for influencing financial risk.
This expertise has been beneficial in my work with customers, allowing me to better detect and minimize possible risks in their financial portfolios.
In addition, I am an active member of numerous professional organizations, including the CFA Institute, through which I have access to resources, attend events, and network with other professionals in the area.
Through these organizations, I can remain up to date on the newest financial sector trends and share my knowledge with other experts.
Just like that, staying up to date with current market trends gives me an overall picture of the financial industry. And with it, I am able to deliver the most effective advice and ideas to my clients while also contributing to the organization's success.”
The question "What is your experience with financial analysis and modeling?" is a common question asked during UBS interviews. This question is based on your experiences with financial analysis and modeling.
They evaluate a candidate by their past experience in the finance industry.
Here are some tips for your reference:
A. Highlight relevant experience
Emphasize any relevant experience you have in financial analysis and modeling, such as coursework or previous work experience.
B. Provide examples
Give specific examples of projects or tasks you have completed that involved financial analysis and modeling.
C. Explain your approach
Explain your approach to financial analysis and modeling, including any tools or software you use.
D. Discuss results
Discuss the results of your financial analysis and modeling work, including any insights you gained and actions taken as a result.
E. Highlight soft skills
Highlight any soft skills, such as attention to detail and problem-solving, that are important for success in financial analysis and modeling.
Sample answer:
“In the past, as a financial analyst, I was in charge of analyzing financial records and constructing financial models to find traits and forecast future performance. For example, I developed a financial model to anticipate a new company's income for the following three years.
I used Excel to create a model that incorporated historical data, industry trends, and sales projections to forecast revenue growth.
Based on this model, I recommended strategies to increase revenue, such as expanding the company's product line and increasing marketing efforts.
I feel soft qualities such as attention to detail and problem-solving, in addition to technical abilities, are necessary for success in financial analysis and modeling.
I take pride in my ability to identify potential financial data errors and think creatively to solve problems.
I am confident in my skills and my experiences with financial analysis and modeling. I believe I can outperform and be a valuable member of the UBS team.”
Want to excel in financial statement analysis and modeling? You might like our Financial Statement Modeling Course.
This question is primarily based on your past experience in gathering the company's data and how you would analyze the financial data of the company.
Valuing a company is a difficult process. It is a very complicated task because here we have to collect the company's financial data and its current market trends.
Also, advanced knowledge of financial statements and accounting is a must. To approach this task, a financial analyst should consider various methods such as discounted cash flow analysis, multiples-based valuation, and an asset-based valuation.
As well as, here, we have to gather the most relevant data regarding financial statements such as data related to the balance sheet, income statements, and cash flow statements.
Following that, we must do a full complete financial analysis of the company's financial health, market trends, and prospects for development.
Some basic tips:
- Familiarize yourself with different valuation methods and understand when to use each one.
- Collect as much relevant financial data as possible of the company. And you must note that the data should be up to date.
- Look up external matters such as the company's market trends, financial health, and consumer satisfaction that may affect the company's value.
- Be prepared to explain your approach and defend your valuation based on sound financial analysis.
Sample answer:
“When approaching the task of valuing a company, I would first gather all relevant financial data including income statements, balance sheets, and cash flow statements. And as an interviewer, you must know that collecting relevant information on the company's financial data is no joke.
As well as the collection of financial statements data such as balance sheets, income statements, and cash flow statements should be accurate.
Following that, I would study the enterprise's monetary performance by calculating essential financial ratios like earnings per share, return on equity, and debt-to-equity ratio.
I would then use several valuation methodologies to establish the company's worth, such as discounted cash flow analysis, multiples-based valuation, and an asset-based valuation.
In addition, I would consider external factors such as market trends, industry analysis, and economic conditions to further refine my valuation.
Finally, I would present my findings and defend my approach based on sound financial analysis and market research. This is the basics of what I do when I have a task related to this. But doing thorough research and analysis takes much time.”
Risk management is a very essential and critical factor in every organization. By asking this type of question, the interviewer wants to find out how you calculate risk and after calculating or finding risk, how you would overcome it.
As a financial professional, you must understand that risk management is a critical function in every organization. The financial industry is inherently risky, and effective risk management strategies can help to minimize potential losses and protect the organization's reputation.
Understanding the different types of risks that are important to the financial business is the first step in successful risk management.
A. Credit Risk
Credit risk is the risk of loss resulting from a borrower's failure to repay a loan or satisfy financial commitments.
B. Market Risk
The risk of financial instrument value losses owing to swings in market circumstances such as interest rates, currency rates, and stock prices.
C. Operational Risk
The risk of losses is due to inadequate or failed internal processes, people, systems, or external events.
D. Reputational risk
The threat of harm to an enterprise's reputation which can rise from negative exposure, poor customer support, or unethical conduct.
Once you've identified the different types of risks that apply to a given company, the next step is to create robust risk management policies and processes suited to your unique risks and needs.
Following are the most critical problems:
A. Risk Appetite
Establish risk tolerance thresholds for each risk category and determine the degree of risk your organization is willing to take.
B. Risk Assessment
Regularly assess the likelihood and potential impact of each type of risk, and prioritize them based on their severity.
C. Risk Mitigation
Develop strategies to reduce or mitigate the risks identified in your risk evaluation, which include diversifying your investment portfolio, imposing more potent internal controls, or making an investment in risk management technology.
D. Risk Monitoring and Reporting
Establish processes for monitoring and reporting on risks, including regular reporting to senior management and the board of directors.
E. Staying Up-to-Date on Emerging Risks and Trends
Staying abreast with emerging potential risks and trends in the sector is essential for effective risk management. This includes tracking legislative adjustments, being updated on new technology that can influence the corporation, and staying up to date on industry trends and best practices.
F. Working Collaboratively with Cross-Functional Teams
Eventually, successful risk management depends on a collaborative strategy that includes working with cross-functional teams to incorporate risk management into all elements of the organization's activities.
Sample answer:
“I understand how significant and critical risk management is to the company. In my previous position, I was responsible for establishing and executing solid risk management policies and processes that were suited to the organization's particular risks and demands.
Understanding the many forms of risks related to the financial business, such as credit risk, market risk, operational risk, and reputational risk, was required.
To stay up-to-date on emerging risks and trends in the industry, I regularly attended industry conferences and events, and read relevant publications. This helped me develop proactive strategies to address new risks as they emerged.
In addition, I collaborated extensively with cross-functional teams to ensure that risk management was included in all elements of the organization's operations.
One of my most significant accomplishments was developing a disaster recovery plan and business continuity strategy that ensured the organization was prepared for unexpected events.
This included identifying possible hazards and establishing ways to mitigate their effects, as well as evaluating the strategy regularly to ensure its effectiveness.
Overall, my risk management experience has taught me the necessity of being current on best practices and new trends, as well as the value of cooperation and integration across all organizational areas.”
This is one of the most common and frequently asked questions by the interviewer to evaluate the candidate's understanding and knowledge of financial terms and their way of calculating them.
WACC stands for Weighted Average Cost of Capital and EBITDA stands for Earnings Before Interest, Tax, Depreciation, and Amortization. We can basically say that these terms are made to measure a company's financial health, performance as well as other prospects.
WACC is the average cost of capital that a company must pay to its investors for the use of its funds. It is computed by multiplying the cost of each form of capital (debt and equity) by its proportionate weight in the capital structure of the firm and then summing these products.
WACC is calculated as follows:
WACC = (E/V x Re) + (D/V x Rd x (1 - Tc))
Where:
E = market value of the company's equity
D = market value of the company's debt
V = E + D, the total market value of the company
Re = cost of equity
Rd = cost of debt
Tc = corporate tax rate
On the other hand, EBITDA helps us to measure a company's operating profitability before non-operating expenditures are considered. Simply non-operating expenditures are interest, tax, depreciation, and amortization.
It is computed by deducting the company's revenue from its cost of goods sold and operational expenditures. And here we have to exclude things such as interest, tax depreciation, and amortization.
Following is the formula of EBITDA:
EBITDA = Revenue - Cost of goods sold - Operating expenses (Except for depreciation and amortization)
EBITDA is typically utilized by investors and analysts to research a company's capability to generate cash flow from operations and to compare the performance of different corporations in the identical industry.
But, it is crucial to highlight that EBITDA excludes all non-operating costs, which may have a substantial effect on the organization's net earnings and financial fitness.
Sample answer:
“To calculate WACC, I start by calculating the cost of equity and the cost of debt. We know that the cost of equity is the rate of returns that is expected by investors on their investment in a specific company.
To calculate the cost of equity I use CAPM(Capital Asset Pricing Model). The cost of debt is the interest rate that the business pays on its debt.
The weighted average cost of debt is then computed by multiplying each form of debt's interest rate by its percentage of overall debt. Finally, I combine the cost of equity and the weighted average cost of debt to calculate the WACC.
Regarding EBITDA, I begin by analyzing a company's net earnings and then I have to subtract the interest, tax, depreciation, and amortization because it helps to grasp the basic earnings of the company.
This gives me a demonstration of the organization's operating overall performance before accounting for financing, taxes, and non-cash factors consisting of depreciation and amortization.
Overall, understanding WACC and EBITDA is important for evaluating a company's financial performance and making informed business decisions.
By calculating these metrics, I can assess the company's cost of capital and operating performance, and make recommendations for improving profitability and overall financial health.”
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