Plenty of students who have spent years earning strong marks are caught off guard by the first real hurdle in a graduate application. It is not an interview, and it is not a cover letter. It is a link in an email, a countdown timer, and a screen full of graphs. You have thirty minutes, you did not know it was coming, and your degree suddenly feels very far away.
Psychometric testing is now a standard early step for many banks, accounting and advisory firms, asset managers and insurers, and it filters out a surprising number of capable candidates. The good news is that these tests measure skills that can be practised, and the summer break is the ideal time to do it. Applications for many vacation and graduate programs open early in the new year, so the students who prepare now start with a real advantage.
Why employers use them
When hundreds or even thousands of people apply for a small number of places, employers need a consistent way to compare candidates before investing time in interviews. Marks vary between universities and courses, and a CV only tells part of the story. A standardised test gives every applicant the same questions under the same conditions.
Employers also use the results as a rough signal of how you handle information under time pressure, which is a daily reality in finance. It does not mean the test captures everything about you. Many firms treat it as one piece of the puzzle, alongside your application, interviews and assessment centre performance. But it is often the gate, so passing it matters.
The main types of test
Different employers use different providers, and the format varies, but most tests fall into a handful of categories.
Numerical reasoning. You are shown tables, graphs or short passages containing numbers and asked to answer questions using the data. Typical tasks include calculating percentage change, working out ratios, comparing figures across years, converting currencies, and interpreting charts. The maths itself is usually secondary school level. The challenge is doing it quickly and accurately while reading unfamiliar information.
Verbal reasoning. You read a passage and decide whether a statement is true, false, or whether you cannot tell from the information given. The key rule is to use only what the passage says, not what you know about the world. This catches many people out, particularly those who are well informed about finance and are tempted to bring outside knowledge in.
Logical or abstract reasoning. You are shown sequences of shapes or patterns and asked which comes next. These do not require any finance knowledge at all, and they are designed to measure how well you spot rules in unfamiliar material.
Situational judgement tests. You are given a realistic workplace scenario, such as a disagreement with a colleague or a tight deadline, and asked to rank the possible responses or pick the best and worst. There is rarely a single perfect answer. Employers are looking at whether your judgement lines up with the values and behaviours the firm says it wants.
Personality or work style questionnaires. These ask how strongly you agree with statements about your preferences. There is usually no pass or fail, but the results help the employer judge fit. Answer honestly and consistently, because the questions are often designed to catch contradictions.
Providers you may come across include well-known assessment companies such as SHL, Aon and Revelian, among others. Your invitation email will usually tell you which tests to expect, so read it carefully.
What the numerical test is really measuring
Because numerical reasoning is the one that worries students most, it is worth being specific. Most questions do not need advanced mathematics. They need confident handling of percentages, averages, ratios, fractions, simple conversions and reading data from a table or chart.
For example, you might see a table of a company's revenue by region over three years and be asked what percentage of total revenue came from one region in the latest year, or by how much it grew compared with the year before. The difficulty is not the arithmetic. It is that you have a minute or so per question, the numbers are laid out in a way you have not seen before, and there are small traps such as figures given in thousands versus millions.
If that sounds daunting, remember that most people feel the same way until they have practised. If you are worried about maths more broadly, our piece on how much maths finance really needs is worth a read.
Worked examples so you know what to expect
Seeing a few sample questions takes away a lot of the mystery. These are invented examples in the style of common tests.
A numerical question. A table shows a fictional bank's revenue by division. Last year it was $80 million in total. This year the figures are Retail $45 million, Business $30 million and Wealth $25 million. The question asks: what percentage of this year's total revenue came from Wealth, and by what percentage did total revenue grow?
Working it out: this year's total is $45 million plus $30 million plus $25 million, which is $100 million. Wealth is $25 million out of $100 million, or 25 per cent. Growth is the increase ($20 million) divided by last year's total ($80 million), which is 25 per cent. Both answers happen to be 25 per cent, and that is a deliberate trap. Tests often use figures that look alike to see whether you can keep two different calculations separate. Always check which number the question wants.
A second numerical trap. The same table might show figures "in $ thousands" in one place and "in $ millions" in another. Misreading the unit is one of the most common ways to lose marks. Make it a habit to read the headings and footnotes before touching the numbers.
A verbal question. You read a passage: "The firm opened offices in Perth and Hobart last year. Staff numbers rose in both offices." You are then asked whether the following statement is true, false or cannot say: "The Perth office has more staff than the Hobart office." The correct answer is "cannot say". The passage tells you that numbers rose in both, but it never compares the two offices. If you picked "true" because Perth is a bigger city, you used outside knowledge, which is exactly what the test is designed to catch.
A situational judgement question. You are told that a colleague has asked you to review their work, but you are close to a deadline on your own task. You are asked to rate four responses from most to least effective. Options might include agreeing to the review immediately, explaining your deadline and offering a later time, ignoring the request, or asking your manager to decide. Most employers value responses that show you are collaborative, honest about your capacity, and proactive about finding a solution. Read the firm's stated values before the test, because the scoring often reflects them.
Common mistakes to avoid
Rushing the first few questions and making careless errors, then running out of focus.
Spending too long on a single difficult question, which drains time from easier ones.
Using outside knowledge in verbal reasoning, rather than sticking strictly to the passage.
Ignoring units and scales in numerical questions.
Overthinking personality questionnaires and trying to guess the "right" answer instead of answering honestly and consistently.
Leaving everything to the last minute, so you meet the format for the first time on test day.
Practising in a noisy or distracting space and then sitting the real test somewhere completely different.
A four-week practice plan for the summer break
You do not need to study for hours every day. A steady rhythm works better than cramming.
Week one: find your baseline. Take one full practice test for each major type, such as numerical, verbal and logical reasoning, without worrying about the score. Note which ones feel hardest and which types of question slow you down.
Week two: rebuild the basics. Revise percentages, percentage change, ratios, averages and fractions. Work through short untimed drills until the methods feel automatic. For verbal reasoning, practise identifying exactly what a passage does and does not say.
Week three: add the clock. Switch to timed sets. Aim for accuracy first, then speed. Review every mistake and write down why it happened, whether it was a misreading, a calculation slip or a time problem.
Week four: simulate the real thing. Sit full-length tests in test-like conditions, with a quiet room, the same device you will use, a calculator and rough paper. Keep a note of your scores so you can see your progress, and finish by rehearsing your routine for the day itself.
If you have plenty of time before applications open, you can spread the same plan over eight weeks at a gentler pace.
Looking after your mindset
It is normal to feel anxious about a test that decides whether you reach an interview. A few habits help. Treat practice results as information, not as a verdict. Sleep properly the night before, because tired brains misread questions. Eat something and drink water beforehand. If you freeze on a question, flag it, move on and come back. And remind yourself that employers are trying to find people who can think clearly under pressure, not people who never feel it.
It also helps to remember that you can improve. Practice generally helps, particularly in the early hours of familiarisation, because you learn the format and the common tricks. That is encouraging news if you have ever felt that tests simply are not your thing.
How to prepare, starting this summer
Find out what you will face. Look at the program page of the employers you are interested in, and search forums and university careers pages for what past applicants experienced. Your careers service may also have free practice resources.
Practise with timed questions. Untimed practice builds understanding, but the real tests are timed, so you need to train under the same pressure. Start slowly to build accuracy, then tighten the timing as you improve. A few short sessions each week for a month is far more effective than one marathon the night before.
Revise the basics. Percentage change, percentage of a total, ratios, averages, and unit conversions come up constantly. Brush up on these until they are automatic.
Learn to read the question twice. Many errors come from misreading what is being asked, such as answering for the wrong year or the wrong unit. Slow down for the first few seconds of each question and speed up the calculation.
Know when to move on. If a question is taking too long, make your best guess and keep going. Spending three minutes on one question can cost you several easier ones later. Check whether the test penalises wrong answers before you decide how freely to guess.
Use a calculator if it is allowed, and practise with it. Many tests permit one. Being fluent with your own calculator saves valuable seconds.
Set up your space. Do the real test somewhere quiet, with a reliable internet connection, a charged device, and a pen and paper for working. Treat it like an exam, because it is one.
What to do on the day
Read the instructions carefully, including how many questions there are and how long you have. Keep an eye on the clock without letting it rattle you. If you are nervous, a slow breath before you begin genuinely helps. And if something goes wrong, such as a technical fault, contact the employer immediately and explain. Most graduate teams are understanding about genuine issues.
If you have a learning difference, a disability or a health condition that could affect how you complete a timed test, ask the employer about reasonable adjustments before you start. Many firms offer extra time or alternative formats, and asking is a normal part of the process.
After the test
Some employers share feedback, though many do not. If you do not progress, it is not a verdict on your intelligence or your potential. These tests are one narrow measure, and you can retake the process in a later recruitment round and bring everything you learned with you. If you do progress, your next stages may include a video interview or a case study interview, and our guide to finance interview questions can help you get ready.
The bigger picture
An online test can feel like a faceless obstacle, but it is really a skill you can build, and it rewards the same habits that serve you throughout a finance career: staying calm with numbers under time pressure, reading carefully, and checking your work. Every bit of practice you do over the summer is an investment in your confidence.
You do not need to be a maths prodigy to pass these tests. You need to know what is coming, practise deliberately, and trust that you are more capable than a countdown timer makes you feel. Start small this week, keep going through the break, and you will walk into application season ready.