The system is broken: Why finance hiring needs a rethink

Early careers hiring in finance is reaching a breaking point.

Application volumes are surging. AI-generated CVs are everywhere. And confidence in traditional hiring methods is falling fast.

Firms are increasingly questioning whether CVs, online tests and standardised interviews are actually predicting on-the-job performance.

In a recent episode of the Market Maker Podcast, Anthony Cheung sat down with Lara Montefiori, VP of Product at AmplifyME, to discuss why the current system is struggling, and what comes next.

The volume problem

The scale of early careers hiring has changed dramatically.

JPMorgan reportedly received more than 630,000 applications for around 4,000 roles, with acceptance rates now sitting below 1%.

At the same time, AI is reshaping candidate behaviour. Research suggests AI-generated CVs may inflate applicant pools by up to 40%, while internal AmplifyME research shows the overwhelming majority of students now use AI tools during the application process.

The challenge for hiring teams is no longer simply attracting candidates. It’s identifying genuine potential in an environment where applications are becoming increasingly standardised and difficult to differentiate.

The discussion reflects broader industry concerns. At AmplifyME’s recent annual event in London, application volume and AI-generated applications ranked as the joint biggest strain on early careers recruitment.

Traditional Assessments aren't keeping up

Most hiring processes still rely heavily on CV screening, aptitude tests, video interviews and assessment centres.

The problem is that many of these methods were designed long before generative AI became mainstream, and they are becoming easier to game.

At the same time, traditional hiring signals often provide weak insight into actual on-the-job performance. Candidates are becoming highly trained in how to optimise applications and rehearse answers, while employers are left trying to identify authentic ability through increasingly polished responses.

Rather than trying to “fight” AI entirely, firms are now starting to ask a more important question:

How do we assess how candidates think, make decisions, use judgement and operate under pressure in a world where AI is part of the workflow?

Why simulation-based assessment matters

This is where simulation-based assessment is gaining traction.

Instead of asking candidates theoretical questions, simulations place them into realistic, role-specific scenarios and observe how they behave in real time.

In finance, that might involve:

• reacting to breaking market news
• making decisions under pressure
• managing risk and volatility
• adapting after mistakes

This creates a far richer picture of potential than a CV or standardised test alone.

Beyond simple outcomes, simulations generate behavioural data around decision-making, adaptability, consistency and performance under pressure, signals that are far harder to fake and often far more predictive of future success.

A more authentic process for candidates too 

The shift toward simulations is not only about helping employers hire better. It also creates a more meaningful, and memorable experience for candidates too. 

Traditional processes can often feel repetitive, impersonal and overly rehearsed. Simulation-based assessment gives candidates the opportunity to demonstrate how they actually think and perform, creating more authentic conversations later in the hiring process.

Rather than simply testing memorisation or preparation, firms can begin exploring how candidates approach problems, respond to setbacks and explain their decisions.

The future of assessment

The broader shift happening across the industry is clear.

Hiring is moving away from static, background-based signals and toward more behavioural, contextual and performance-led assessment.

At AmplifyME’s recent annual event in London, attended by leaders from leading financial institutions and universities, role-specific simulations ranked alongside in-person interviews as the most reliable signal of future performance, while CVs and HireVue interviews received almost no support.

The firms that adapt fastest will likely gain a significant advantage, not only in identifying stronger talent, but also in creating fairer and more engaging hiring processes for the next generation entering finance.