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ATB Financial Project Manager Interview Question

I interviewed in Calgary, AB (Canada) and was asked:
"Did they have to go till the reference check stage to determine whether the candidate's qualification is apt for the position and the company (which usually is done within 1st or 2nd round)? I can understand when you have more than one applicant whose qualifications is par excellent, the reference checks would further substantiate; however in my case I had other candidates (note the plural) who surpassed my qualification after the reference check stage. So where they doing reference check for all 'possible/potential' applicant(s) ?"
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Part of a Project Manager Interview Review - one of 37 ATB Financial Interview Reviews

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