Data Science Interview Questions for Fintech Companies
40 questions weighted to the interview style of fintech companies — 9 easy, 26 medium, 5 hard.
How fintech companies interview for Data Science
Fintech companies care about correctness, security and scale because they move money. Interviews add domain questions on payments, risk, reconciliation and compliance to the usual technical rounds, and often include practical tasks.
This set focuses on Statistics and Probability (7), Deep Learning and NLP (6), Feature Engineering (5), Machine Learning (4).
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01
Your LLM assistant confidently quotes a policy clause that does not exist. Why does this happen and how do you reduce it?
Hallucination is when a model produces confident text that is false or not supported by any source. It happens because the model generates plausible tokens rather than checking facts. Reduce it by grounding answers in retrieved documents, asking the model to cite sources and say I do not know when context is missing, using low temperature, and validating outputs with rules or a second checking step. Measure it with a labelled evaluation set.
02
A query using NOT IN returns zero rows even though matches should exist. What is the likely cause, and how do NULLs behave in SQL?
NULL means unknown, so any comparison with NULL, even NULL = NULL, gives unknown and the row is filtered out. Use IS NULL or IS NOT NULL instead. Aggregates like SUM, AVG and COUNT(column) skip NULLs, so AVG may be computed over fewer rows than you expect. NOT IN with a subquery that contains a NULL returns no rows. COALESCE replaces NULLs with a default value.
03
You target-encoded a city column and validation AUC jumped from 0.72 to 0.95. What do you suspect?
Target encoding replaces each category with the average target value for that category, for example the churn rate per city. It handles high-cardinality columns compactly. The main risk is leakage: if a row's own target is included in its encoding, the model sees the answer and overfits. Prevent it with out-of-fold encoding, smoothing toward the global mean for rare categories, and fitting only on training data.
04
Write SQL to find duplicate emails in a users table.
from transformers import pipeline
clf = pipeline(
'sentiment-analysis',
model='distilbert-base-uncased-finetuned-sst-2-english'
)
reviews = ['Delivery was fast and the product is great',
'Packaging was damaged and support did not reply']
for text, out in zip(reviews, clf(reviews, batch_size=16)):
print(out['label'], round(out['score'], 3), '-', text)
ANOVA, analysis of variance, tests whether three or more group means are equal. It compares variation between groups to variation within groups using an F statistic. For example, comparing average order value across four city tiers. A significant result says at least one mean differs but not which one, so you follow up with post-hoc tests like Tukey's HSD. It assumes independent samples, roughly normal residuals and similar variances.
07
Write Python code for a two-proportion z-test comparing conversion between control and treatment.
Break down where the time goes: retrieval, model time to first token and generation length. Stream tokens so users see output immediately. Cut prompt and output length, run retrieval and other calls in parallel, and cache frequent answers. Use a smaller or faster model for simple requests, and avoid chains of several LLM calls where one would do. Set a latency budget per step and monitor p95, not just averages.
09
How do you mentor junior data scientists on your team?
Situation: two freshers joined my team and struggled with messy real data. Task: help them deliver independently. Action: I paired with them on the first project, set up weekly code reviews, shared a checklist for validation and leakage, and gave them small end-to-end tasks with clear success metrics. Result: within three months both owned models in production. I focus on teaching how to debug and ask questions, not just giving answers.
10
What is correlation and why does it not imply causation?
Correlation measures linear association between variables (-1 to 1). A third factor, reverse causality or chance can create it, so causation needs controlled experiments.
11
Write Pandas code to cap outliers at the 1st and 99th percentile.
# fit limits on training data only, then apply to test
low, high = train['income'].quantile([0.01, 0.99])
train['income_capped'] = train['income'].clip(low, high)
test['income_capped'] = test['income'].clip(low, high)
12
Your power analysis says you need 200,000 users per group, but the page gets only 5,000 users a week. What are your options?
Waiting 80 weeks is unrealistic. Options: test a bolder change so the expected effect is larger; use a more sensitive metric closer to the change, like add-to-cart instead of purchase; apply CUPED to reduce variance; or move the test to a higher-traffic page. If none work, accept a larger MDE explicitly, or decide using qualitative research and a staged rollout with monitoring instead of a formal test.
13
What should you log for a production prediction service?
For each request, log a request ID, timestamp, model version, input features or a hash of them, the prediction and score, and latency. Log errors and fallback use separately. Do not log raw personal data unless needed and allowed; mask it. Aggregate these logs into dashboards for traffic, latency percentiles, error rate and score distribution. Joining logged predictions with later outcomes gives the data for monitoring and retraining.
14
Write NumPy code for non-maximum suppression on a set of boxes and scores.
It computes the gradient of the loss with respect to every weight by applying the chain rule backwards through the network, so gradient descent can update them.
16
Your manager asks whether collecting more training data will improve the model. How do you answer using a learning curve?
A learning curve plots training and validation scores against the size of the training set. If both scores are low and close, the model has high bias and needs more features or a more flexible model. If training is high but validation is much lower and the gap narrows as data grows, the model has high variance and more data will help. It tells you whether collecting more data is worth the cost.
ARIMA models a time series using three parts. AR, autoregressive, uses past values of the series. I, integrated, differences the series d times to remove trend and make it stationary. MA, moving average, uses past forecast errors. You choose p, d and q using ACF and PACF plots or information criteria like AIC. SARIMA adds seasonal terms. ARIMA works well for single, fairly stable series but struggles with many external drivers.
18
What do temperature and top-p control in LLM generation?
Both control randomness when the model picks the next token. Temperature scales the probabilities: low values like 0 to 0.3 make output focused and repeatable, high values make it more varied and creative. Top-p, nucleus sampling, keeps only the smallest set of tokens whose probabilities add up to p, such as 0.9, and samples from them. For extraction and classification use low temperature; for brainstorming use higher values.
19
What is the difference between an epoch, a batch and an iteration?
Bias occurs when the sample does not represent the population. Reduce it with random or stratified sampling, higher response rates and by checking sample demographics against the population.
Covariance shows the direction of a relationship but depends on units. Correlation is covariance scaled to −1…+1, so it shows direction and strength and is unit-free.
Modelling the count of events in a fixed interval when events occur independently at a constant average rate, such as calls per hour or defects per batch.
24
Your A/B test shows a significant lift after 2 days. The product team wants to ship now. What do you say?
I would ask them to wait for the planned duration. Checking early and stopping on the first significant result, called peeking, inflates false positives. Two days also misses weekly patterns and novelty effects, where users click a new feature just because it is new. If speed matters, we can use a sequential testing method designed for early stopping. Otherwise we run the full sample size calculated before launch.
25
For a warehouse, a stockout costs five times more than holding extra stock. How should the forecast change?
A forecast of the mean is the wrong target when costs are asymmetric. Forecast a quantile instead. The optimal quantile here is about 5 divided by 5 plus 1, roughly the 83rd percentile, which is the newsvendor critical ratio. Train with quantile or pinball loss, or use prediction intervals from a probabilistic model. Evaluate with pinball loss and the actual stockout and holding cost, not just MAE.
26
Write Pandas code to create lag and rolling features for each customer.
df = df.sort_values(['customer_id', 'month'])
g = df.groupby('customer_id')['spend']
df['spend_lag1'] = g.shift(1)
df['spend_lag3'] = g.shift(3)
# shift first so the current month is not included
df['spend_roll3_mean'] = g.transform(lambda s: s.shift(1).rolling(3).mean())
Bootstrapping estimates the uncertainty of a statistic by resampling your data with replacement many times, computing the statistic on each resample, and looking at the spread of results. It gives confidence intervals for things with no simple formula, like the median, a ratio or a model metric such as AUC. It needs no normality assumption, but it relies on the sample being representative and can be slow on very large data.
The primary metric is the one the change is meant to improve and that decides success, such as checkout conversion. Guardrail metrics are ones that must not get worse, such as page load time, refund rate, unsubscribes or revenue per user. Defining both before the test prevents cherry-picking afterwards. A change that lifts the primary metric but breaks a guardrail is usually not shipped without further discussion.
Use stratified splits, class weights, resampling such as SMOTE, threshold tuning and judge models with precision, recall, F1 or PR-AUC instead of accuracy.
32
Your model's most important feature is customer_id. What is wrong?
An ID has no real meaning, so high importance means the model is memorising individual customers. It often happens when the same customers appear in both train and test, or when IDs were assigned in time order and act as a proxy for date or signup cohort. I would drop the ID, use a group-based split by customer, and if timing matters, add an explicit feature like account age instead.
33
Tell me about a time you automated a manual step in a machine learning workflow.
Situation: each monthly retrain needed a day of manual data pulls, notebook runs and copying files to servers. Task: make it reliable and hands-off. Action: I wrapped the steps into a scheduled pipeline with data validation checks, logged runs in MLflow and added an approval step before promotion. Result: retraining time dropped from a day to under an hour of review, and there were no more failed deployments from missed steps.
34
How does linear regression work and what are its assumptions?
It fits a line minimising squared error. Assumes linearity, independent errors, constant variance (homoscedasticity), normally distributed residuals and no strong multicollinearity.
35
Why do we use activation functions? Why is ReLU popular?
import numpy as np
# hour 23 and hour 0 should be close, so use sin and cos
df['hour_sin'] = np.sin(2 * np.pi * df['hour'] / 24)
df['hour_cos'] = np.cos(2 * np.pi * df['hour'] / 24)
37
You have 50,000 unlabelled images and budget to label only 3,000. How do you use the budget well?
Do not pick 3,000 at random. Label a small diverse seed set, using embedding clustering to cover variety, and train a first model. Then use active learning: label the images the model is least confident about or that disagree across models. Use semi-supervised methods like pseudo-labelling high-confidence images, or self-supervised pretraining on all 50,000. Keep a randomly sampled test set so evaluation stays unbiased.
Situation: planners relied on a 4-week moving average and distrusted models. Task: move them to a better forecast without forcing it. Action: I ran both methods side by side for eight weeks, showed error and stockout cost in rupees, kept their override option and explained forecasts with simple drivers like holidays and price. Result: the model cut error by about 20 percent, planners adopted it category by category, and overrides fell steadily.
40
After joining orders with a promotions table, total revenue doubled. What went wrong?
The join created duplicate order rows, because some orders match more than one promotion row, so each amount is counted several times. Check by comparing COUNT(*) with COUNT(DISTINCT order_id) after the join. Fix it by aggregating the promotions table to one row per order first, picking one promotion with ROW_NUMBER, or summing revenue before the join. Always check row counts after every join.
How are Data Science interviews at fintech companies different?
Fintech companies care about correctness, security and scale because they move money. Interviews add domain questions on payments, risk, reconciliation and compliance to the usual technical rounds, and often include practical tasks.
Which fintech companies are covered?
This page links to 19 fintech companies, including Intuit, CRED, Paytm, PhonePe, Razorpay, PayPal, Stripe, Visa. Each has its own page with rounds and a separate practice set.
What rounds should I expect?
Common rounds at these companies include: HR round; Hiring manager round; Online coding assessment; Technical round 1 (DSA); Online assessment or assignment. The exact process varies by company and role.