LPL Financial Data Analyst Interview Questions + Guide in 2024

Are you data-driven, curious to learn, and eager to work on meaningful projects with cutting-edge technology? If so, LPL Financial might be the ideal place for you. As a Fortune 500 company, LPL Financial is a leading independent broker-dealer, supporting over 18,000 financial advisors, 800 institution-based investment programs, and 450 independent RIA firms nationwide.

In this guide, we will walk you through the interview process, provide commonly asked LPL Financial data analyst interview questions, and share valuable tips to help you succeed. Let’s get started!

The interview process usually depends on the role and seniority. However, you can expect the following on an LPL Financial data analyst interview:

Recruiter/Hiring Manager Call Screening

If your CV happens to be among the shortlisted few, a recruiter from the LPL Talent Acquisition Team will make contact and verify key details like your experiences and skill level. Behavioral questions may also be a part of the screening process. Typical questions may include inquiries about your strengths and weaknesses, how you heard about LPL Financial and details about your previous projects.

Sometimes, the LPL hiring manager stays present during the screening round to answer your queries about the role and the company itself. They may also discuss the logistics of working within the team and indulge in surface-level technical and behavioral discussions.

This screening call usually takes about 10 to 15 minutes.

Remote Self-Recorded Interview

Following the recruiter screening, you may be invited to participate in a remote self-recorded interview. Based on your video responses to standard questions, this step will gauge your interest and fit for the role.

Technical Virtual Interview with Engineers

If you pass the preceding rounds, you will progress to the technical virtual interview stage. This is generally conducted through video conference and may involve one or two engineers from the team. Questions in this interview may revolve around data systems, analytics, SQL queries, and your ability to manage product backlogs and requirement documentation.

Expect questions assessing your aptitude for roles and responsibilities like gathering requirements, working with project management tools (JIRA, Aha!), and maintaining SDLC documentation. Additional technical aptitude exercises or problem-solving questions may be included for more senior roles or specialized positions.

Onsite Interview Rounds

Successfully navigating the technical virtual interview will lead to an invitation for onsite interviews. You will likely encounter several interview rounds varying by role, where your technical skills and behavioral fit will be meticulously evaluated.

Expect in-depth discussions about your past projects, your problem-solving and requirements management approach, and your ability to lead and collaborate within cross-functional teams. If you were assigned take-home exercises, a presentation round may also await you during the onsite interview for senior positions at LPL.

Typically, interviews at LPL Financial vary by role and team, but commonly Data Analyst interviews follow a fairly standardized process across these question topics.

1. What are the Z and t-tests, and when should you use each?

Explain the purpose and differences between Z and t-tests. Describe scenarios where one test is preferred over the other.

2. How would you reformat student test score data for better analysis?

Given two datasets of student test scores, identify drawbacks in their current format. Suggest formatting changes and discuss common issues in “messy” datasets.

3. What metrics would you use to evaluate the value of marketing channels?

Given data on marketing channels and costs for a B2B analytics company, identify key metrics to determine the value of each channel.

4. How would you determine the next partner card for a company?

Using customer spending data, outline a method to identify the best partner for a new credit card offering.

5. How would you verify if a redesigned email campaign increased conversion rates?

Investigate whether a new email journey led to an increase in conversion rates or if other factors were responsible. Describe your approach to this analysis.

6. How would you design a function to detect anomalies in univariate and bivariate datasets?

If given a univariate dataset, how would you design a function to detect anomalies? What if the data is bivariate?

7. What is the expected churn rate in March for customers who bought a subscription since January 1st?

You noticed that 10% of customers who bought subscriptions in January 2020 canceled before February 1st. Assuming uniform new customer acquisition and a 20% month-over-month decrease in churn, calculate the expected churn rate in March for all customers who bought the product since January 1st.

8. How would you explain a p-value to a non-technical person?

Describe what a p-value is in simple terms for someone who is not technical.

9. How does random forest generate the forest and why use it over logistic regression?

Explain how random forest generates multiple decision trees and why it might be preferred over logistic regression in certain scenarios.

10. When would you use a bagging algorithm versus a boosting algorithm?

Compare two machine learning algorithms and provide examples of tradeoffs between using bagging and boosting algorithms.

11. How would you evaluate and compare two credit risk models for personal loans?

1. Identify the type of model developed by your co-worker for loan approval.
2. Explain how to measure the difference between two credit risk models over time.
3. List metrics to track the success of the new model.

12. What’s the difference between Lasso and Ridge Regression?

Describe the key differences between Lasso and Ridge Regression techniques.

13. What are the key differences between classification models and regression models?

Explain the main differences between classification models and regression models.

14. Write a function search_list to check if a target value is in a linked list.

Write a function, search_list, that returns a boolean indicating if the target value is in the linked_list or not. You receive the head of the linked list, which is a dictionary with keys value and next. If the linked list is empty, you’ll receive None.

15. Write a query to find users who placed less than 3 orders or ordered less than $500 worth of product.

Write a query to identify the names of users who placed less than 3 orders or ordered less than $500 worth of product. Use the transactions, users, and products tables.

16. Create a function digit_accumulator to sum every digit in a string representing a floating-point number.

You are given a string that represents some floating-point number. Write a function, digit_accumulator, that returns the sum of every digit in the string.

17. Develop a function to parse the most frequent words used in poems.

You’re hired by a literary newspaper to parse the most frequent words used in poems. Poems are given as a list of strings called sentences. Return a dictionary of the frequency that words are used in the poem, processed as lowercase.

18. Write a function rectangle_overlap to determine if two rectangles overlap.

You are given two rectangles a and b each defined by four ordered pairs denoting their corners on the x, y plane. Write a function rectangle_overlap to determine whether or not they overlap. Return True if so, and False otherwise.

You should plan to brush up on any technical skills and try as many practice interview questions and mock interviews as possible. A few tips for acing your LPL Financial data analyst interview include:

• Emphasize Collaboration and Teamwork: LPL Financial places high importance on individuals who thrive in a team-oriented, client-focused environment. Be ready to provide examples of past collaborative projects and your role in them.
• Expect Technical and Behavioral Questions: Brush up on your technical skills, especially your proficiency with JIRA, SQL, and Agile methodologies. At the same time, prepare for behavioral questions like your strengths and weaknesses, as well as situational questions.
• Highlight Financial Services Experience: If you have experience in the financial services industry, make sure to highlight it. Familiarity with financial products, market trends, and financial data analytics will be a significant advantage.

What is the average salary for a Data Analyst at Lpl Financial?

According to Glassdoor, Data Analyst at LPL Financial earn between $89K to $126K per year, with an average of $105K per year.

What qualities are LPL Financial looking for in a Data Analyst?

LPL Financial seeks candidates who are strong collaborators, can thrive in a fast-paced environment, and are keen on continuous improvement. Key qualities include being detail-oriented, a critical thinker, and possessing excellent communication skills.

What are the main responsibilities of a Data Analyst at LPL Financial?

As a Data Analyst at LPL Financial, you will lead scrum teams in story refinement, translate business requirements into technical solutions, prepare and present status reports, and coordinate efforts logged in project management tools like Jira and Aha!.

What is the company culture like at LPL Financial?

LPL Financial fosters a supportive and responsive environment that encourages creativity and growth. They are committed to workplace equality, embracing diverse perspectives, and caring for their communities, which creates an inclusive atmosphere where you can do your best work.

As you embark on your journey toward a career in data analysis, LPL Financial offers a unique and dynamic environment that blends cutting-edge technology with meaningful projects. The interview process at LPL is designed to be thorough and insightful, assuring that you understand your role and the team dynamics.

If you want more insights about the company, check out our main LPL Financial Interview Guide, where we have covered many interview questions that could be asked. Additionally, explore our interview guides for other roles, such as business analyst, to learn more about LPL Financial’s interview process for different positions.

Good luck with your interview!