The “Why Investment Banking?” Interview question: how to give a 10/10 answer

In a sea of ​​achievers who are equally talented, personable, and prepared, the “Why Investment Banking?” the interview question may be the only differentiating question left to ask bankers; asking it a popular and decisive question.

While for college students who don’t look like aspiring bankers on paper (i.e. no end / acc degree, business degree, or relevant work experience) it is of epic significance. After all, you should be able to explain why you want to do investment banking when your past decisions suggest nothing of the kind.

How do you give a 10/10 answer to the question “Why investment banking?” interview question?

There is a great selection of points you could make, but keep it short and sharp. Generally, a good answer will contain 3-5 strong reasons why you are interested in IB.

Typical examples like world-class education, skill development, job type, challenge, actual liability in multi-billion dollar transactions, etc. they are all acceptable.

But try not to bring up the same nonsense as everyone else.

It is important to avoid reasons that are self-centered in a ‘bad’ way

Let me explain. As an interviewing banker, it would be nice if you mentioned that investment banking attracts you because of the learning opportunities, as this is a selfish reason that also, and ironically, benefits the bank: Passionate 24-year-olds spend 100 hours on the workweek with ease after all.

But if I knew you want to do IB simply to ‘build your resume’ and / or secure an exit opportunity, I would, in my mind at least, throw you out the damn door and then proceed to take down a BlackBerry. ! Being made to feel like a transitional home for financial bums, a mere stepping stone, is not my idea of ​​good times. So while everyone knows that investment banking is attractive for the resume and exit, don’t say it!

What can help you avoid a BlackBerry Beat Down? Well, I would be very interested if you answered the question “Why investment banking?” interview question talking about how you have older friends in the bank who over the years have shared with you what it is really to be a banker, both the good and the bad.

And then how that made you realize 3 specific things about banking that make it stand out above any other graduate job.

Not only will I believe that you still love banking despite the war stories, but you’ve actually thought about it beyond “I need a salary of Blankfein proportions if I’m ever going to pay off these student debts.”

What I’m trying to say is that a great answer will list unique and specific ‘why investment banking’ reasons and connect them to the sources you learned them from, be it friends, teachers, books, etc.

Want 6 Specific ‘Why Investment Banking’ Reasons That Will Surely Work? Try talking about how you love the …

1. The critical role of investment banks in deals and / or the role they play more broadly in the business world: IBs are to business what the White House is to the world … Central HQ! And that is why bankers are called masters of the universe. So I made this point, albeit in more formal language and never mentioning the ‘masters of the universe’ !!
2. Exposure of the face of coal to industry and financial markets, which is exclusive to IB: there is no graduate job on the planet that brings you closer to action than banking.
3. Results-Driven Agreement-Oriented Approach – this point distinguishes banking from many other professions such as law, consulting, etc., where players are often paid simply for “doing”, rather than “achieving”. And by specifically mentioning this point, you will show bankers that you have the right mindset and that you are not a fan of increments like lawyers are. PS Once again, make sure you express this in a more professional way.
4. Type of people who work in banking – talk about this from the point of view of learning and enjoyment, and most importantly, make reference to the people you know in banking (especially in what bench) to avoid looking like you’re just shining shoes and kissing butt.
5. Nature of work – analysis, problem solving, focus on the real world. If you are going to talk about this, be sure to bring some examples in passing; for example, 10k analysis, composition diffusion, deal structuring, etc.
6. The specific industry / product group with whom you are interviewing, this is a must! By talking about why IB through the lens of that specific group, you are really narrowing down the reasons to specific, tangible, and relatable reasons, and that means that bankers are more likely to believe and like you. For example, if you tell Goldman Sachs TMT that you want to pursue investment banking because you find the business / investor side of the tech industry fascinating after working as an unpaid intern at a social media startup over the summer, then will press the button “Why investment banking?” asks out of the park!

Whatever you choose, make sure you can speak intelligently about it if the bankers look into it.

Special note for those of you with non-banking experience

If you have work experience in accounting, consulting, etc. then tell the bankers that while your time at KPMG or BCG or wherever you worked was an excellent experience, you didn’t deliver …[reasons why you love IB].

This is a hidden opportunity to promote explain your story, explain why you want to switch to banking now and reassure them again that IB is what you really want above all else.

However, any comparison you make must be subtly delivered. Not because your interviewer has worked at KPMG or BCG, but simply because it seems unprofessional to blatantly talk about others. Negativity in any form does not look good.

Special note for aspiring investment banking analysts

PS: For those of you who get this question in an interview with an investment banking analyst (i.e. not a summer internship interview), you will need to push your story as to why IB would convince bankers to hire you make it even more difficult. This is because bankers hate offering permanent positions to candidates who might resign when the going gets tough.

Passion is a banker’s best insurance policy against this, so be sure to show it, guys!

If you want to go a step further and really impress the bankers with your answer, then tell them how you became interested in IB years ago and point out the real life things you have done since then that have confirmed your passion; They chose studies, joined college clubs, met people, talked with friends, read books, took jobs.

Showing a long and thoughtful journey into investment banking is the idea here.

What is the final secret of a magic answer here?

Recognize the negative factors of banking, not just the higher ones. Bankers, you see, want to hire students who aren’t drawn to banking simply based on Hollywood hype or CNBC glamor. They want to know that you are realistic about work, that you are prepared to do hard work, and yet you are super passionate.

After all, the Jimmy Cramer fan club and Gekko Wannabe students will never be able to hack into it when they find out what investment banking really entails, and this kind of abandonment costs banks a bomb.

So with all of that in mind, during your answer briefly mention how your friends in banking have also given you clues about the realities of work: the long hours, sacrifice, and other depressions that we will speak frankly about in the Banking System. of internal investment. when it comes out this fall.

Of course, don’t end your question with a disappointment, which means be sure to follow up on any reality checks with your top 3 reasons why IB repeated in a very, very short form, something like “.. . but, of course, banking is an easy task. choice for me, by … “.

Now that you have conquered the “Why Investment Banking?” interview question, check out our tips on other common investment banking interview questions and answers now.