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Affirm·Software Engineer·Technical Phone Screen·Intermediate

IntermediatePrefer not to say
Apr 2026

Summary

Coding round at Affirm for a software engineer role, two-part problem centered on loan and transaction data processing. The emphasis was on reading the spec carefully and implementing exactly what was given rather than building something clever and general.

Questions Asked (2)

Q1

Given a list of loan records with fields like loan ID, borrower, principal, rate, and term, aggregate them by a specified key and produce summary fields including totals, counts, and weighted averages.

Algorithms & Data StructuresData ModelingTechnical Trade-offs
Author's notes

My first instinct was to write something flexible that could handle any grouping key, which was the wrong move.

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AI HintsAI Generated

Suggested Approach

Start by clarifying the requirements: what key to aggregate by, which summary fields are needed, and how to handle edge cases like missing data. Then outline a solution using a hash map to group records by the key, iterating through the list once to accumulate totals, counts, and weighted sums. Finally, compute derived metrics like weighted averages and discuss trade-offs such as time/space complexity and potential optimizations.

Pro tip: Demonstrate awareness of data quality issues: mention how you'd handle nulls, zero principal, or invalid rates, and propose validation or default values. Also, discuss scalability: for large datasets, consider streaming aggregation or parallel processing.

1. Clarify Requirements

Ask questions to confirm the aggregation key, required summary fields (e.g., total principal, count, weighted average rate), and any constraints like memory limits or data cleanliness.

2. Design Data Structures

Choose a hash map (dictionary) to group records by the key, with each value being an accumulator object or struct that holds running totals, counts, and weighted sums.

3. Single-Pass Aggregation

Iterate through the loan records once, updating the accumulator for each record's key: add to totals, increment counts, and accumulate weighted sums (e.g., principal * rate for weighted average).

4. Compute Derived Metrics

After the pass, compute final summary fields like weighted average rate by dividing the weighted sum by the total weight (e.g., total principal), handling division by zero.

5. Discuss Trade-offs and Edge Cases

Analyze time and space complexity (O(n) time, O(k) space where k is number of groups), and address edge cases such as empty input, null values, and numerical precision.

Key Points to Mention

  • Time and space complexity: O(n) time for single pass, O(k) space for k unique keys.
  • Weighted average calculation: sum(principal * rate) / sum(principal) for each group.
  • Handling missing or invalid data: skip, default, or flag records with null/negative values.
  • Scalability considerations: streaming aggregation for large datasets, parallel processing if order doesn't matter.
  • Choice of data structures: hash map for O(1) average key lookup, accumulator object to minimize memory overhead.
  • Testing strategy: unit tests for edge cases like empty list, single record, multiple groups, and zero principal.

AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.

Q2

Given a list of transactions and the aggregated loan data from the previous part, match each transaction to the correct loan using rules based on borrower ID, a date window, and amount. Produce per-loan transaction history and flag unmatched records.

Algorithms & Data StructuresData ModelingSystem Design
Author's notes

This part was trickier than it looked.

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AI HintsAI Generated

Suggested Approach

Start by clarifying the matching rules and data schemas, then design an efficient algorithm that indexes loans by borrower ID and uses a sliding window or interval tree for date ranges. Process transactions in order, match to the best loan based on amount and date proximity, and maintain per-loan histories while collecting unmatched transactions for review.

Pro tip: Mention that in real-world financial systems, exact matches are rare due to timing and amount discrepancies, so you'd implement a scoring system with tolerance thresholds and log unmatched records for manual reconciliation.

1. Clarify Requirements and Data

Ask about the exact matching criteria: borrower ID exact match, date window definition (e.g., ±N days), and amount tolerance (exact or range). Confirm output format for per-loan history and unmatched records.

2. Design Data Structures

Index loans by borrower ID, and for each borrower, store loans in a structure that allows efficient date range queries (e.g., sorted list or interval tree). Also, prepare a map from loan ID to a list of transactions for history.

3. Process Transactions

For each transaction, retrieve candidate loans for the borrower, filter by date window and amount criteria, and select the best match (e.g., closest date or exact amount). If no match, add to unmatched list.

4. Handle Edge Cases and Ambiguity

Define tie-breaking rules (e.g., earliest loan, smallest amount difference) and consider multiple transactions matching the same loan. Ensure unmatched records are clearly flagged with reasons.

5. Output and Validate

Produce per-loan transaction histories and a list of unmatched transactions. Validate by checking counts, sums, and spot-checking matches to ensure correctness.

Key Points to Mention

  • Time and space complexity: aim for O(T log L) or O(T + L) with appropriate indexing, where T is transactions and L is loans.
  • Use of interval trees or sorted arrays for efficient date range queries.
  • Handling multiple matches: scoring function based on date proximity and amount difference.
  • Data validation: ensure borrower IDs exist, dates are within valid ranges, and amounts are positive.
  • Scalability: consider streaming or batch processing for large datasets.
  • Error handling: log unmatched transactions with reasons for audit and manual review.

AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.