Kissht Underwriting Analyst Interview: Rounds, Questions and Preparation

What the job involves

As an Underwriting Analyst at a neobanking or lending fintech like Kissht, you will assess loan applications from customers, using data and risk models to decide whether to approve, reject, or modify terms. You will work closely with product, data, and collections teams to balance growth with credit quality, often in a fast-paced digital environment.

Role and Technical Knowledge

1. 1

   What are the key factors you would consider when underwriting a personal loan application?

   A strong answer covers credit score, income stability, debt-to-income ratio, employment history, and repayment capacity. Mention how digital lenders use alternative data like transaction history.

2. 2

   How do you assess the creditworthiness of a customer with no credit history (thin file)?

   Discuss using alternative data such as bank statements, mobile usage, and utility payments. Highlight the role of machine learning models in neobanking to predict risk.

3. 3

   What is the difference between underwriting and credit scoring?

   Explain that credit scoring is a statistical method to rank applicants, while underwriting is the overall process of evaluating and deciding on a loan, including manual review and policy application.

4. 4

   What are some RBI guidelines that impact digital lending in India?

   Mention key points like the requirement for transparent disclosure of all-inclusive costs, data privacy norms, and the mandate that all loan disbursals and repayments flow directly between borrower and lender.

Practical Scenarios and Problem Solving

1. 5

   You have a loan application from a customer with a high credit score but a very high debt-to-income ratio. How would you proceed?

   A strong answer suggests digging deeper into the customer's income sources and existing obligations, possibly requesting additional documents, and considering a lower loan amount or higher interest rate.

2. 6

   If a customer's application is rejected by the automated system but you see potential, what steps would you take?

   Discuss the importance of following policy, but also the possibility of manual review, gathering more data, and escalating to a senior if warranted. Emphasize consistency and fairness.

3. 7

   How would you handle a situation where you suspect fraud in an application?

   Outline steps like verifying documents, checking for inconsistencies, using fraud detection tools, and escalating to the fraud team. Stress the need to document findings and follow protocols.

4. 8

   Imagine you need to improve the approval rate without increasing default risk. What data or strategies would you explore?

   Suggest analyzing historical data to refine risk models, segmenting customers, using alternative data sources, and implementing risk-based pricing. Mention A/B testing and monitoring performance.

Behavioral and Situational

1. 9

   Tell me about a time when you had to make a decision with incomplete information.

   Use the STAR method to describe a situation, the data you had, how you assessed risks, and the outcome. Highlight your analytical and judgment skills.

2. 10

   Describe a situation where you had to explain a complex financial concept to someone without a finance background.

   Show your ability to simplify and communicate clearly. Emphasize patience and checking for understanding, which is crucial when dealing with customers or cross-functional teams.

3. 11

   How do you prioritize your work when dealing with multiple loan applications and tight deadlines?

   Discuss prioritizing based on urgency, loan size, and risk. Mention using tools like to-do lists or software to track progress and ensuring accuracy under pressure.

4. 12

   Give an example of a time you received feedback on a mistake you made. How did you handle it?

   Demonstrate accountability, willingness to learn, and improvement. Underwriters must be detail-oriented, so showing you can correct errors and prevent recurrence is key.

HR and Company Fit

1. 13

   Why do you want to work in underwriting at a neobanking or lending fintech like Kissht?

   Show passion for fintech and risk management. Mention the dynamic environment, use of technology, and opportunity to impact financial inclusion. Research the company's products and values.

2. 14

   Where do you see yourself in five years in the underwriting domain?

   Express a desire to grow into a senior underwriting or risk management role, possibly specializing in areas like data analytics or policy. Show commitment to continuous learning.

3. 15

   How do you handle working in a fast-paced environment with changing priorities?

   Highlight adaptability, time management, and communication skills. Give an example from college or internships where you successfully managed shifting demands.

4. 16

   What do you know about our company's products and how underwriting supports them?

   Research the company's loan offerings and target customers. Explain how underwriting ensures profitability and manages risk while enabling growth. Mention any recent news or innovations.