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Avaloq Software Engineer Interview Questions & Guide 2026

Take-home style practice for Avaloq software engineer candidates: a small service, a fixed budget, a written tradeoff.

The 60-second brief

As a Software Engineer at Avaloq, you are at the core of the financial technology revolution. Avaloq provides mission-critical software for the world’s most prestigious banks and wealth managers. Your work ensures that complex financial transactions, data security, and banking operations run with absolute precision and reliability.

Allocate preparation against your weakest link rather than your favourite topic. A strong algorithm habit usually comes with weak out-loud explanation of tradeoffs, and years of shipping usually come with rusty from-scratch implementation under a clock.

Focus areas

Make every write idempotent under retry
Detect concurrent edits instead of losing writes
Bound every outbound call with a timeout

Overview

This role is not just about writing code; it is about architectural integrity and problem-solving within a high-stakes, regulated environment. Whether you are working on payments infrastructure, IAM (Identity and Access Management), or the core banking suite, you are contributing to a platform that powers global finance. You will collaborate with cross-functional teams to build, maintain, and scale systems that demand both deep technical expertise and a keen understanding of banking logic.

Expect an environment that values rigor, accuracy, and professional maturity. You will be challenged to think about edge cases, system performance, and the long-term maintainability of your code. For those who thrive on complexity and want to see their work impact the global financial ecosystem, this position offers significant strategic influence and technical depth.

The Avaloq interview process

Avaloq candidates report 4 rounds · ≈ 3-5 weeks. The stages below are what candidates describe, not a published process.

Online Assessment

Input bounds are the part of the prompt most often skimmed, and they usually contain the answer. They tell you which complexity class is admissible, which narrows the search before you have thought about the problem itself. As a rough planning figure, a compiled language does on the order of 10^8 simple operations per second and an interpreted one roughly an order of magnitude less. So n up to about twenty admits enumerating subsets, a few thousand admits a quadratic pass, and a million admits neither: you need near-linear, or linear with a log factor. If the bounds are missing, ask for them.

What to demonstrate

Whether the approach is justified by the stated input size rather than by whichever pattern you recognised first
Whether you ask about the properties that change the algorithm: whether the input arrives sorted, whether duplicates occur, whether values are bounded integers, whether it all fits in memory
Whether you can name the bottleneck in your own solution and what would remove it, even when you deliberately leave it in place
Whether a claimed speedup is real, since memoising a recursion only helps when subproblems genuinely overlap and the state can be keyed cheaply

How to prepare

For each algorithm you rely on, write down the largest n it handles in roughly a second, then check two of those figures by timing them in the language you will actually type in
For two weeks, write one line naming your target complexity and the bound that justifies it before you write any code, then compare that line with what you ended up submitting
Practise the conversion backwards: given a required O(n log n), list the mechanisms that get you there (sorting, a heap, an ordered map, divide and conquer) and choose by what the problem needs to query, not by what you used last

Technical Interviews

Most of the time lost in this format is not lost to thinking. It goes to a standard-library call you half-remember, an off-by-one in a loop bound, and a debugging loop that mutates code at random until something passes. When output is wrong, stop re-reading the whole function: take the smallest input that reproduces it and walk the state through by hand, printing intermediates if the environment allows. Guessing at a fix without a failing case you understand is how a five-minute bug becomes twenty, and the clock does not pause while you do it.

What to demonstrate

Whether you reach the right structure without a detour, and can write it from memory rather than only recall that one exists
Whether overflow is considered where the language has fixed-width integers, since a signed 32-bit value stops at 2,147,483,647 and then wraps in Java, is undefined behaviour in C++, and does not arise in Python, whose integers grow instead
Whether recursion depth is treated as a constraint on large inputs, given that CPython's default limit is 1000 frames and a deep recursion can exhaust the stack in any language where an iterative version would not
Whether a failing case is isolated and explained before any edit is made to the code

How to prepare

From an empty file and with no references open, implement the pieces you lean on most: a heap push and pop, an iterative DFS with an explicit stack, and a binary search whose midpoint is written lo + (hi - lo) / 2, which avoids the overflow that (lo + hi) / 2 can hit in a fixed-width integer type
Time yourself on the ten library calls you look up most, such as sorting with a custom comparator, splitting and joining strings, and finding the next key at or above a value in an ordered map, until the lookup is gone
Take a solution you know is broken and, before touching it, write one sentence naming the input, the expected value and the actual value. Repeat until you do it without deciding to.

Behavioral Interviews

What you say here is written down by each interviewer and compared afterwards, so the unit of evaluation is a claim someone else could check, not a well-told narrative. Two things make a story checkable: detail only a participant would hold, and a clean line around which part was yours. Vague ownership is the usual failure and it is usually accidental, because engineers say we about the team's work and we about their own, so the thing they personally built disappears into the plural. Name the part you wrote, and name who did the rest.

What to demonstrate

Whether your details are ones a participant would hold and an observer would not: the constraint that ruled out the obvious approach, the first attempt that failed, the person who objected and on what grounds
Whether ownership survives a direct question, since a follow-up to we decided is routinely who decided, and an answer that stays plural at that point is read as the work belonging to someone else
Whether the numbers you quote are ones you would say identically to a former colleague with the dashboard open

How to prepare

Go through each story replacing every we with either I or a named role (the on-call engineer, the reviewer, the other team) and check the story still holds together. Wherever it stops making sense you have found a part you cannot actually speak to
Open the artefacts for two of your stories, the pull request, the design doc, the incident notes, and read them for dates and figures you have been rounding in the retelling. Correct your version to match
For each story write the single sentence you would least want repeated to a former teammate, then either make it accurate or take it out

Final Offer

Nobody in the room with you decides this. Interviewers typically write their rounds up separately, often before seeing anyone else's, and the outcome is settled later from those write-ups. A split panel gets resolved by whichever note carries specific evidence, so what you want out of each room is one concrete thing that person could write down: a bug you caught yourself, a trade-off you named, a decision you owned. The rest is arithmetic. The project you describe in a behavioural conversation is often the same system you sketched an hour earlier, and the two accounts have to agree.

What to demonstrate

Whether the scale, team size and timeline you attach to a project hold steady when that project resurfaces in a different round
Whether each interviewer leaves with a specific thing to cite rather than a general impression of competence
Whether a trade-off you defended in one round survives a challenge in another, instead of being quietly swapped for the answer the new interviewer seemed to want
Whether a question you have already answered earlier in the day gets the same answer at the same depth, without visible impatience

How to prepare

Write a one-page sheet per project fixing the figures you will quote — request volume, data size, team size, elapsed time, what broke — and say them aloud from the sheet until they come out identical every time
For each round on the schedule, decide in advance the one sentence you want in that person's notes, then check in a mock that you said it outright instead of leaving it to be inferred
Have someone ask you the same project question twice, an hour apart, and diff the two answers for numbers that moved or a trade-off that reversed

Where candidates lose points

Running a schema change as though the lock lasts as long as the statement

In PostgreSQL an ALTER TABLE that needs an ACCESS EXCLUSIVE lock must first wait for every open transaction touching that table, and while it waits, later queries needing a conflicting lock queue behind it rather than overtaking it. A DDL statement that would execute in milliseconds, issued while a thirty-second analytics query is open, therefore stalls all traffic on that table for thirty seconds: the outage length is set by the longest open transaction, not by the change. The defences are specific and worth knowing by name - set lock_timeout low and retry rather than queue, add columns without a volatile default so no table rewrite occurs (from version 11 a non-volatile default is a metadata-only change), build indexes with CREATE INDEX CONCURRENTLY while accepting that it cannot run inside a transaction block and leaves an invalid index behind if it fails, and add constraints as NOT VALID followed by a separate VALIDATE CONSTRAINT, which takes a weaker lock.

Assuming an isolation level prevents the anomaly you actually have

Isolation levels are named by the SQL standard but implemented differently, so any claim about one is only true of a named engine. PostgreSQL defaults to READ COMMITTED, where every statement takes a fresh snapshot, so two statements inside one transaction can legitimately disagree about the same row. Its REPEATABLE READ is snapshot isolation: it removes non-repeatable and phantom reads but permits write skew, where two transactions each read a set, each conclude their own write is safe, both commit, and the combined result violates a constraint that no single row expresses. Only SERIALIZABLE closes that, and it closes it by aborting a transaction with a serialization failure (SQLSTATE 40001), which means the guarantee is theoretical unless the application has a retry loop. InnoDB's REPEATABLE READ is a different mechanism again - plain SELECTs read a consistent snapshot while locking reads and writes see the latest committed row - so a read-modify-write inside one transaction can act on a value that the transaction's own earlier SELECT never returned.

Listing technologies instead of trade-offs

Name the property the design needs first, such as ordered range scans, multi-entity transactions, cheap appends, or a predictable p99, then pick something that provides it and say what it gives up in exchange. Almost any component is defensible once you state the requirement it satisfies and the one it sacrifices.

Designing for a scale nobody asked for

Ask for request rate, data size, read-to-write ratio and expected growth, then size the simplest option first; one relational instance on current hardware covers a large share of real workloads. Reaching for shards, queues and a cache tier before any number has been quoted reads as pattern-matching rather than judgement.

Questions & practice

Merge partitioned event streams into one ordered feed with bounded lateness

Hard · k-way merge · watermarks · out-of-order streams

The read-model service consumes 64 log partitions carrying about 4,000 events per second in total. Each partition is ordered within itself, but partitions drift by up to 30 seconds, and the activity feed must present a tenant's events in occurred_at order. Produce the merge. State its complexity, the buffer it requires in events and in bytes, what happens when one partition is idle, and what you do with an event that arrives after you have already emitted its position. Payloads average 1 KB.

Approach

Merge with a min-heap over the 64 partition heads keyed on (occurred_at, event_id): O(log P) per event and O(n log P) overall. The tie-break on event_id is what makes the output deterministic when two partitions carry the same millisecond, which matters because the feed is paginated and a non-deterministic order reorders pages under the reader.
Emitting the heap head is only correct once every partition has produced everything up to that timestamp, so the emit condition is a watermark: the minimum across partitions of the highest occurred_at seen, less the allowed lateness. Events are held until the watermark passes them, which is what turns individually ordered streams into a jointly ordered one.
Size the buffer from the lateness rather than guessing: 4,000 events per second times 30 seconds is 120,000 buffered events, and at 1 KB each about 120 MB of heap. That number is the real price of the ordering guarantee and belongs in front of whoever asked for it.
Handle the idle partition explicitly, because it fails the feed rather than corrupting it: a partition with no traffic never advances its own maximum, so the watermark freezes and output stops entirely. Either every partition emits a periodic idle marker carrying the broker's current time, or the watermark falls back to wall clock for a partition silent beyond a threshold.
Choose the late-event policy from what the projection is keyed on. The projection upserts on (aggregate_id, aggregate_version) and discards a version it has already applied, so a late event is safe to apply out of order and correctness never depended on the merge at all. Apply it, recompute the affected feed page, and count lateness so the 30-second budget can be re-derived from data rather than folklore.
Say what the merge does not buy: ordering is guaranteed within one aggregate by the log's partitioning, and no watermark makes the cross-aggregate order authoritative. Two events from different aggregates in the same millisecond have no true order, so the feed's order is a presentation choice that must be stable rather than correct.

Worked solution (35 min)

Write the heap comparator on (occurred_at, event_id) and the per-partition head refill.
Write the watermark computation and the emit-loop condition, then list which buffered events are held at a chosen instant.
Compute the buffer at 4,000 events per second, 30 seconds and 1 KB per event, and state what fraction of a worker's heap that represents.
Add the idle-partition marker and trace the watermark with one silent partition, both with and without the marker.
Write the late-event path and name the key that makes applying it safe.

Expected result: A 64-way min-heap merge at O(n log P) with a deterministic (occurred_at, event_id) comparator, a watermark of the per-partition minimum less 30 seconds gating emission, a stated buffer of 120,000 events and roughly 120 MB, idle markers so a silent partition cannot freeze the watermark, and a late-event policy justified by the projection's idempotency on (aggregate_id, aggregate_version).

Verify it yourself

Feeding the partitions in an adversarial interleaving produces the same output sequence as feeding them in timestamp order.
Silencing one partition stalls output without the idle marker and does not stall it with the marker.
Applying a late event twice leaves the projection byte-identical, which is what permits the out-of-order path to exist.

Follow-up

The lateness budget is raised to five minutes. What is the new buffer, and what besides memory changes?
The consumer restarts. Where does it resume from, and what does the feed look like for the first 30 seconds?
One partition is ten minutes behind because its producer is slow. Do you stall the feed or emit without it?

Track a rolling failure rate per destination for circuit decisions

Easy · sliding window · ring buffer · circuit breaker

The egress service delivers about 1,500 webhooks per second across roughly 40,000 destinations, each call bounded by a 10 second timeout. Maintain, per destination, the failure rate over the trailing 60 seconds so a caller can ask before dispatch whether the circuit should open. Attempts arrive as (destination_id, finished_at_ms, outcome). Requirement: amortised O(1) per attempt, with total memory bounded by the destination count rather than by traffic. Give the structure, its exact memory, and the rule that stops a destination with three attempts from opening a circuit.

Approach

Name the exact-deque version and then reject it as the default. Holding timestamps and advancing a tail pointer past anything older than now minus 60 seconds is a correct two-pointer window at amortised O(1) per attempt, but its memory tracks in-window traffic, so one destination in a retry storm holds hundreds of thousands of entries while thousands of quiet destinations hold none.
Use a ring of 60 one-second buckets per destination, each bucket a pair of counters for attempts and failures. On an attempt, advance the ring by the elapsed whole seconds, zeroing at most min(elapsed, 60) buckets, then increment the head. That is amortised O(1) with a fixed footprint per destination.
State the footprint: 60 buckets times two 4-byte counters is 480 bytes of payload per destination, so 40,000 destinations is roughly 20 to 25 MB with per-entry overhead, bounded by the catalogue rather than by the rate. The cost is granularity, since the oldest bucket ages out in whole seconds, which is far tighter than the decision needs.
Require a minimum sample before the circuit may open. A destination with three attempts and three failures reads as 100 percent and is not evidence; a floor of roughly 20 attempts in the window makes the ratio meaningful, and below that floor use a run of consecutive failures as the trigger instead.
Expire idle destinations, or memory grows with every destination ever seen rather than with the live set. Hold the rings in a bounded LRU keyed on destination_id and treat a miss as no history, which is the correct default for an endpoint that has been silent for a minute.
Keep the half-open probe out of the window arithmetic. After the circuit opens, one probe per interval decides whether to close it, and folding that single success into a window that still holds a 100 percent failure history would reopen the destination on one data point.

Follow-up

The fleet is 30 instances and each sees roughly a thirtieth of a destination's traffic. Where does the rate actually live, and what does a per-instance answer get wrong?
A destination answers in 9.5 seconds and succeeds. It is not failing but it is consuming your per-destination concurrency. What signal should open the circuit here?
How would you make the window survive a process restart, and is it worth the cost?

Archive a resource graph without breaking live references or recursing

Medium · graph traversal · topological order · tenant isolation

Resources reference other resources within a tenant; for the largest tenant the reference table holds up to 2,000,000 nodes and 8,000,000 edges. Archiving a resource must archive everything reachable from it that nothing outside the set still references, refuse when a live external referrer exists, and terminate when references form cycles, which they legitimately do. Produce the archive order and the refusal list, targeting O(V+E). Say what stops the traversal crossing a tenant boundary, and why recursion is the wrong control structure at this size.

Approach

Load the subgraph with the tenant predicate on both endpoints of the edge, not only on the side you started from. Scoping the left table alone is the classic cross-tenant leak: one mis-entered edge then pulls another tenant's resources into the traversal and, worse, into the archive.
Traverse iteratively with an explicit stack. A 2,000,000-node graph can hold a chain deep enough to exhaust a native stack in the low tens of thousands of frames, and that failure is a process crash rather than an error you can return.
Treat cycles as data rather than corruption: compute strongly connected components with Tarjan in O(V+E) using its own explicit stack, then condense. The condensation is a DAG, so a topological order over it gives the archive order, and every member of a component archives in one transaction because no order within a cycle is valid.
Decide refusals with reverse edges. A candidate is archivable only if every in-edge originates inside the candidate set, so build the transpose or count in-degrees restricted to the visited set, and emit each blocked resource with the id of the external referrer, which is the only part of the answer an operator can act on.
Store the graph as CSR rather than a map of lists: an offsets array of V+1 8-byte entries plus E 8-byte targets is about 80 MB at this size, where boxed adjacency lists cost several times that and lose cache locality on every hop.
Run Kahn over the condensation for the order in O(V+E). If the emitted count is short of the component count the condensation step itself is wrong, since a condensation cannot contain a cycle, which makes the check free.

Follow-up

The graph is read in one query and the archive writes a minute later. What can change in between, and how do you make the write safe?
The candidate set is 400,000 resources. Is that one transaction, and if not, what does a half-finished archive look like to a reader?
An edge points at a resource in another tenant. Is that a refusal, an error, or an alert?

Write the update path that detects a concurrent edit

Medium · optimistic concurrency · transactional outbox · audit history

resource carries version INT NOT NULL DEFAULT 1. resource_revision holds revision_id, resource_id, version, actor_user_id, change_kind, patch JSONB, request_id, created_at with UNIQUE (resource_id, version). outbox_event holds aggregate_type, aggregate_id, aggregate_version, event_type, payload, status. A PUT carries the version the client read. Write the exact statements for the single transaction that applies the edit, records the revision and enqueues 'resource.updated', and give the handler's branch on zero affected rows. Then say what PostgreSQL 16 does under READ COMMITTED when two of these updates hit one row at once.

Approach

One transaction, three writes, no network call inside it: UPDATE resource SET title = $3, version = version + 1, updated_at = now() WHERE resource_id = $1 AND tenant_id = $4 AND version = $2; then INSERT the resource_revision row at version $2 + 1; then INSERT the outbox_event row at the same aggregate_version. The event goes to a table rather than a broker because no transaction spans both.
Branch on the affected-row count before doing anything else. Zero has three causes — stale version, wrong tenant, row gone — so re-read once and map to 409 carrying the current version, or 404 for an id outside the caller's tenant, which also stops the endpoint confirming that another tenant's id exists.
State the engine behaviour instead of assuming it. Under READ COMMITTED the second UPDATE blocks on the row lock, and when the first commits PostgreSQL re-evaluates the WHERE clause against the newly committed row, so the version predicate now fails and the statement reports zero rows. Under REPEATABLE READ the identical collision raises SQLSTATE 40001 instead, so the handler must fold both shapes into one conflict response.
Keep UNIQUE (resource_id, version) even though the predicate already serialises writers. It is what makes a lost update unwritable if any other path ever reaches the revision table, and it converts a logic bug into 23505 rather than into a silently missing history row.
Refuse to auto-retry the whole PUT. A retry re-reads the winner's state and reapplies an intent formed against data that no longer exists — the silent overwrite the version token was added to detect. Return the conflict; merge field-wise only if the patches are provably disjoint.
Note that now() is the transaction timestamp in PostgreSQL, so resource.updated_at, the revision's created_at and the outbox row share one instant, which is what later makes reconciliation between the three tables unambiguous.

Worked solution (25 min)

Write the three statements plus the rowcount branch and confirm they sit in one BEGIN/COMMIT with no outbound call between them.
Run two clients that both read version 7 and apply their updates 5 ms apart; assert one 200 and one 409.
Assert resource.version = 8, exactly one resource_revision row at version 8, and one outbox_event row at aggregate_version 8.
Repeat at REPEATABLE READ and record the different failure shape (SQLSTATE 40001) the handler must also map to 409.
Delete the version predicate and re-run: both writes commit and the first edit disappears with no error raised anywhere.

Expected result: Exactly one of the two commits. version = 8 with one revision row and one outbox row at version 8, the loser gets 409 carrying version 8, and no state exists in which the resource moved but the revision or the outbox row is missing.

Verify it yourself

COUNT(*) of resource_revision for that resource equals resource.version, with no gap in the version sequence.
Kill the process between the UPDATE and the outbox INSERT — the transaction rolls back and no event describes a change that never happened.
Under a 50-way race, resource.version equals the number of 2xx responses rather than the number of requests.

Follow-up

A client sends the version it read ten minutes ago and the resource has moved three versions. What is in your 409 so it can resolve the conflict without a full re-fetch?
Two editors, two disjoint fields, no overlap. Does your answer still refuse the second write, and should it?
Every write now touches a second hot table. How do you keep the outbox insert and its partial index from becoming the write bottleneck at 1.2k writes/second?

Explain why the owner filter ignores the listing index

Medium · composite index · query plans · sort elimination

The only index on resource is (tenant_id, status, updated_at DESC, resource_id DESC). A new endpoint returns one user's resources across all statuses, newest created first: WHERE tenant_id = $1 AND owner_user_id = $2 ORDER BY created_at DESC LIMIT 20. On a tenant with 2M rows it takes 900 ms and EXPLAIN shows a sort above a large scan. Explain precisely why the existing index cannot serve it, give the index that can, and state which of these the new index still will not help: owner_user_id alone across tenants; the same query ordered by updated_at. PostgreSQL 16.

Approach

Separate the two jobs an index does. For filtering, a composite btree is seekable only on a left prefix, so with no predicate on status the scan can at best range over tenant_id and test owner_user_id per row; PostgreSQL 16 has no btree skip scan to jump the unconstrained column.
For ordering, the index is sorted by (status, updated_at) within a tenant and not by created_at, so the LIMIT cannot stop early: every matching row is read and then sorted. That is the 'Sort Method: top-N heapsort' line, and it is why the plan reads 2M rows to answer with 20.
Derive the replacement from the access path — equality, equality, then the ordering column: CREATE INDEX CONCURRENTLY ON resource (tenant_id, owner_user_id, created_at DESC). The scan seeks to the (tenant, owner) range and walks 20 entries in order, so the Sort node disappears along with the row-read.
Treat INCLUDE (title, status) as conditional, not free. An index-only scan still visits the heap for any row whose page is not marked all-visible, so on a table taking 1.2k writes/second the win depends on autovacuum keeping the visibility map current, and the wider index costs more on every insert.
Answer the two negatives explicitly. owner_user_id alone is not a left prefix of the new index, so it degrades to a full scan of the index at best. Ordered by updated_at, the query still seeks on the (tenant, owner) pair but must sort, because only created_at is ordered within that pair.
Measure both sides with EXPLAIN (ANALYZE, BUFFERS) and compare estimated against actual rows at the lowest node — a 2M-versus-200 misestimate there is usually what chose the plan, and adding an index will not fix a statistics problem.

Follow-up

90% of rows are status='active'. Would a partial index WHERE status = 'active' change your answer, and for which of the three queries?
A dashboard runs this for 40 owners in one page load. What changes about the design?
How do you roll this index out on a table taking 1.2k writes/second, and what does it cost on every insert from then on?

Explain Java concepts: OOP, multithreading, interfaces, overloading, and overriding.

Medium

Approach

Say what you would check first and why it is the highest-information step.
Work from the requirement backwards to the design.
State your assumptions explicitly before working the problem.

Follow-up

What assumption would you test first?
How would you know your answer was wrong?

Explain the Software Development Life Cycle (SDLC).

Medium

Approach

Clarify what is being asked and what a complete answer contains.
Say what you would check first and why it is the highest-information step.
State your assumptions explicitly before working the problem.

Follow-up

What assumption would you test first?
How would you know your answer was wrong?

Design the bulk write endpoint a migration script retries blindly

Medium · batch api · partial failure · idempotency

A customer's migration script pushes 2 million resources through POST /v1/resources:batch, up to 500 items per call, and retries any call that errors or times out. Within a call some items fail validation, some collide with rows that already exist, and some succeed. Specify the request and response shape, whether a batch is atomic or per-item, how idempotency works for the call and for each item, the status code for a mixed outcome, the size and item-count limits with their error codes, and exactly what the script does after a timeout mid-batch.

Approach

Choose atomicity deliberately and price it. All-or-nothing means one transaction holding locks for the whole batch on a primary already absorbing about 1.2k writes/second, which bounds batch size by lock duration, and it turns one bad row into 499 rejections the script must resend. Per-item partial success is the right default for a migration, and the contract's job is then to make a partial outcome impossible to miss.
Require a client-supplied id on every item and echo it in every result. Deriving a per-item key from the array index breaks the first time the script resends a batch with the failures removed: the indices shift, previously-succeeded items acquire new keys, and they are created a second time.
Key the effects at two levels. The call's Idempotency-Key covers an exact resend of the same bytes; per-item keys of (tenant_id, client_item_id) make a partially-applied batch safe to resend whole. Resending an identical batch must reproduce the same per-item results, not 500 conflicts the script has to interpret.
Answer a mixed outcome with one status plus per-item detail: 200, or 207 borrowed from WebDAV if you prefer it - document whichever you pick - carrying an array of client_item_id, per-item status, and either resource_id or an error code from the same taxonomy the single-item endpoint uses. Reserve 4xx for the request as a whole: unparseable body, too many items, payload over the limit (413). Put a failed count at the top level so that even a script checking only the cheapest thing cannot conclude success while rows were dropped.
Cap the request before doing any of it: item count, total bytes, and concurrent batches per tenant, since one tenant's migration otherwise consumes write capacity everyone shares. Anything that cannot finish inside the request deadline belongs on job_run behind a 202, not in a synchronous call that will time out halfway.
Script behaviour after a timeout: the outcome is unknown and no results were received, so resend the identical batch with the same keys and read the results. Never resend 'only the items I have no result for' - a timeout yields no results at all, and that rule silently means resend everything anyway.

Worked solution (30 min)

Write the request schema with the per-item client id, and the response schema with per-item status and a top-level failed count.
Write the atomicity decision and the sentence of justification that names the lock cost or the resend cost.
Define both key levels and trace a resend of a half-applied batch through them, item by item.
List the whole-request rejections with their status codes and limits.
Write the script's timeout rule and the pacing it should apply between calls.

Expected result: A per-item batch with client-supplied item ids, per-item idempotency plus a call-level key, a mixed-outcome response that a status-only check cannot misread, explicit request caps, and a resend rule that is correct when no results were received.

Verify it yourself

Resending an identical batch twice leaves exactly the same set of resource rows as sending it once.
Resending a batch with the successful items removed does not create duplicates of anything.
A caller that reads only the top-level fields can still tell that some items failed.

Follow-up

At 500 items per call, what is the wall-clock time for 2 million rows, and what pacing do you publish so the migration does not become an incident?
One item in every batch fails with the same code. How does the script discover that without a human reading logs?

Listing latency scales with page size, not with filters

Easy · n+1 · latency · query batching

The tenant listing endpoint reads resource filtered by tenant_id and status, ordered by updated_at DESC, and returns each row plus the owner's display name from app_user and the actor of that resource's latest resource_revision. p99 is 55 ms at 10 rows per page and 1.4 s at 200. Database telemetry shows 401 statements per request, each under 1 ms, and nothing in the slow-query log. Diagnose the cause and give the fix, stating the statement count per request and the p99 you expect afterwards.

Approach

Read the counters before forming a theory. 401 statements for 200 rows is one driver query plus two per row, and sub-millisecond execution with an empty slow-query log rules out a bad plan. The time is round trips, which is why it is invisible in every per-query metric and scales with rows returned rather than with filter selectivity.
Name the two per-row statements from their normalised text: a single-row app_user lookup by user_id, and a resource_revision lookup by resource_id ordered by version DESC LIMIT 1. Confirm by dropping those two response fields and watching the statement count fall to one. That locates the calls in the serialisation layer, not the repository.
Check that the arithmetic accounts for the whole gap. Measure one round trip to the replica in isolation; 400 trips at roughly 3 ms of network plus 0.2 ms of execution is about 1.3 s on top of a 55 ms baseline, which matches. If the multiplication had fallen short, the N+1 would only be part of the story and you would keep looking.
Batch both lookups. Collect owner_user_ids and resource_ids from the driver query, then issue WHERE tenant_id = $1 AND user_id = ANY($2) for the users, and PostgreSQL's SELECT DISTINCT ON (resource_id) ... WHERE resource_id = ANY($2) ORDER BY resource_id, version DESC for the latest revision, which the UNIQUE (resource_id, version) index serves directly. On an engine without DISTINCT ON, use a lateral join or a row_number window. Three statements per request at any page size.
Keep the tenant predicate in the batched query. The per-row version was implicitly scoped because its ids came from tenant-scoped rows; a batched user_id = ANY(...) with no tenant_id is an unscoped read that behaves correctly only as long as the id list is trustworthy.
Re-measure at 10, 50 and 200 rows and confirm the statement count is constant. Latency should now track bytes returned.

Follow-up

The page size is capped at 200 today. What breaks first if it is raised to 2,000, and is it still this bug?
How do you stop the next N+1 from reaching production, given that no individual query is slow and the endpoint's tests pass?
The latest-revision actor is only used to render an avatar. Make the case for denormalising it onto resource, and name the write anomaly that introduces.

Suggested practice checklist

For a candidate senior enough that the loop turns on design and judgement rather than on whether the coding round gets finished. Five days build one system properly and then stress it; coding gets a single maintenance day, on the assumption that the risk at this level is an unexamined tradeoff rather than a missed algorithm.

Day 1 — Numbers before diagrams

Build your own reference card of the figures you will re-derive all week: bytes for a realistic record, requests per second implied by a given daily active count, and the storage that a year at a given write rate produces. Derive each one rather than copying it, because the derivation is what survives a follow-up.
Turn one product statement into capacity requirements. From ten million daily users at four writes and forty reads each, state the peak-to-average factor you are assuming and why, then produce peak write QPS, peak read QPS and a year of storage.
Write the two numbers whose order of magnitude changes the design, the read-to-write ratio and the working-set size against memory per node, and state the threshold at which each one flips your answer.

Deliverable: A one-page numbers card and one worked capacity estimate with every assumption written down.

Day 2 — One system, from requirements to schema

Spend the first ten minutes producing only functional requirements, non-functional targets with numbers attached, a p99 latency, a durability expectation, a consistency requirement, and an explicit out-of-scope list.
Define the interface before the boxes: the three or four endpoints, their parameters, what each returns, and which of them are idempotent.
Write the data model, then write the single access pattern that justifies it, and state what the schema would have to become if the dominant access pattern were the other one.

Deliverable: One design carried to endpoint-and-schema depth, with non-functional targets expressed as numbers and a written out-of-scope list.

Day 3 — The consistency you are actually buying

Write out what a client sees under asynchronous replication when its write commits on the leader and its next read is served by a lagging follower, then write the two fixes, pinning that session's reads to the leader for a bounded window or carrying a version token the replica must reach, and the cost of each.
Work the quorum arithmetic on paper for N of three with W and R of two, and separate what R + W > N does guarantee, that any read set intersects any write set, from what it does not: on its own it is not linearizability, and a sloppy quorum that accepts writes on nodes outside the preference list breaks even the intersection.
Take two storage choices with different defaults, a single-leader relational store committing synchronously and a quorum-replicated store that converges eventually, and write the specific product behaviour that would be wrong under each, rather than a general statement about which is stronger.

Deliverable: A page separating what quorum overlap guarantees from what it does not, with one concrete product misbehaviour attached to each gap.

Day 4 — Failure is the design

For one write path, work through the case where the client times out after the server has already committed, then design the idempotency key: who generates it, how long it is retained, and what the duplicate request returns.
Express the retry policy as parameters rather than as a word: maximum attempts, base delay, backoff factor, jitter, and which error classes are retried at all. Then state why retrying a non-idempotent write without a key is a correctness bug and not merely waste.
Compute the fan-out effect on tail latency. If a request waits on ten backends and each independently exceeds its p99 one percent of the time, the chance at least one is slow is 1 - 0.99^10, about ten percent. Then write why independence is the optimistic assumption and what correlates them in practice.
Name the backpressure mechanism for one queue or one dependency in the design, a bounded queue with shedding or a concurrency limit, and write what the caller is told when it engages.

Deliverable: One write path with an idempotency design, a parameterised retry policy, and a written tail-latency calculation with its assumption named.

Day 5 — Scaling the hot path

Choose cache-aside or write-through for one read path and write the staleness window each produces, then name the invalidation event and what the system does when that event is lost.
Design against the stampede: either coalesce requests so only one recomputes a missing key, or refresh early with jittered expiry, and write why identical TTLs on keys populated in the same moment produce a synchronised expiry and a thundering herd.
Shard one table by a key you choose, then answer the two questions that break the choice: which queries now require a scatter-gather, and what happens to the distribution when one tenant is a hundred times larger than the median.
Write the cost of adding a node under plain modulo placement, where nearly every key moves, against consistent hashing, where roughly one key in n+1 moves, and state what virtual nodes are for.

Deliverable: A caching and sharding decision for one path, each with its failure mode and its rebalancing cost written beside it.

Day 6 — Keep the coding hand in, at the bar that applies to you

Solve one medium problem in thirty minutes, then spend twenty more making it production-shaped: named invariants, validation at the boundary, and errors that distinguish a caller mistake from an internal fault.
Write the tests you would require of a colleague's version of that function: one for empty input, one for the boundary, and one for the case the implementation is most likely to get wrong.
Read a piece of your own code from six months ago and write the change you would ask for, phrased as you would actually phrase it in review.

Deliverable: One problem hardened to review standard, with its test list and one written review comment.

Day 7 — Defend it while being interrupted

Run a forty-five-minute design mock with an interviewer briefed to change a requirement halfway, a tenfold traffic increase or a new strict consistency requirement, and to push on one number you estimated.
Rehearse the two sentences a senior loop is listening for: naming the tradeoff you are choosing against and why, and saying what you would measure to learn that the choice was wrong.
Prepare the design you regret: a real decision, the constraint that produced it, what it cost, and what you changed afterwards.

Deliverable: Mock notes recording how the design changed under the new requirement, plus a written account of one regretted decision.

Disagreement needs an outcome you did not choose

Conflict answers where you were right and everyone came round are the weakest ones. Stronger: the evidence you went and collected, what would have changed your mind, and what you did in the weeks after the call went against you. Implementing a design you argued against, properly, is a specific and checkable behaviour.

Why do you want to work for Avaloq?

Medium · behavioural and engineering judgement

Approach

Name the disagreement and how you resolved it with evidence.
Give the blast radius: what could have broken, and what you measured.
Pick a story where you made the decision, not one where you watched it.

Follow-up

What did you decide not to do, and why?
How did you know your change caused the improvement?

Tell me about your project: architecture, technologies used, and challenges faced.

Medium · behavioural and engineering judgement

Approach

Close with what you would do differently, concretely.
State the situation in two sentences and spend the rest on the reasoning.
Pick a story where you made the decision, not one where you watched it.

Follow-up

How did you know your change caused the improvement?
What did you decide not to do, and why?

How do you handle stressful situations or difficult feedback?

Medium · behavioural and engineering judgement

Approach

Give the blast radius: what could have broken, and what you measured.
Pick a story where you made the decision, not one where you watched it.
State the situation in two sentences and spend the rest on the reasoning.

Follow-up

What did you decide not to do, and why?
What would you do differently if you ran that again?

How do you ensure your work aligns with the needs of the business?

Medium · behavioural and engineering judgement

Approach

Name the disagreement and how you resolved it with evidence.
Close with what you would do differently, concretely.
Give the blast radius: what could have broken, and what you measured.

Follow-up

What would you do differently if you ran that again?
What did you decide not to do, and why?