How To Master the “Why Investment Banking?” Interview Question Like a Pro

Investment banking is historically an interesting and lucrative profession. It is a critical part of the economy that allows companies to raise money, manage investments, and optimize financial decisions.

Whether you advise clients on mergers and acquisitions, take a company public or present vital financial analysis, an investment banker’s work is central to finance.

One of the most asked questions in these interviews is: “Why investment banking?”

This question is more than a formality—it’s a test of your understanding of the industry, your motivations, and your potential to succeed in this demanding role.

Let’s explore how you can impress your interviewers.

Understanding the “Why Investment Banking?” Question

When interviewers ask “Why investment banking?”, they’re looking for more than surface-level answers. They aim to:

• Know your motive: Do you REALLY want to do investment banking or are you just after the paycheck?
• Assess Your Knowledge: Have you thanked the person for the role, or are you out of the loop?
• Evaluate: Are your skills, personality, and career ambitions a good match with what the firm expects?

This question is designed to test your self-awareness, research, and ability to articulate your ambitions clearly.

What Interviewers Are Looking For

1. Passion and Interest: A genuine enthusiasm for the field.
2. Clarity of Goals: A clear understanding of how investment banking fits into your career path.
3. Alignment with the Firm: Evidence that you’ve researched the company and its culture.
4. Capabilities and Potential: Signs that you possess the skills required and a willingness to learn and grow.

Why Investment Banking?

The investment banking industry is definitely dynamic, fast-paced, and notoriously demanding. Here’s why candidates like it:

• Dynamic work environment: The work used to handle major transactions, including M&A and IPOs, which made every single day different and exhilarating.
• Intellectual Stimulation: It is a field that demands analytical thinking, strategic planning, and quicker decision-making.
• Status and Recognition: Investment banking is one of the most respected areas of finance, attracting the brightest minds.

Also Read – The Role of an Investment Banker: What Do They Actually Do?

5 Reasons Why Investment Banking is a Good Career

1. Impressive Salary: High salaries, performance bonuses and potential for lucrative career growth are differentiators.
2. Skill Development: It allows you to develop excellent analytical, financial modeling, and problem-solving skills.
3. Chance to Network: You work with top executives and industry leaders, providing the opportunity to network.
4. Career Mobility: The skills and experience you gain are transferable to other high-profile roles in finance, consulting, or entrepreneurship.
5. Impact: Investment bankers play a crucial role in shaping businesses and economies, which adds a sense of fulfilment to the job.

Common “Why Investment Banking” Interview Questions

The question, “Why investment banking?”, often comes in many different forms during interviews.

Each version helps interviewers understand more about your motivation, preparation, and fit for the role.

Let’s explore the most common variations and how you can answer them confidently and naturally.

1. “What draws you to investment banking specifically?”

This is a question about why investment banking more so than other industries attracts you. Your response needs to speak to what sets the field apart.

How to Answer:

• Discuss the high velocity of the environment and some of the big deal challenges that naturally arise.
• Emphasize your desire to tackle challenging problems and work on projects that impact whole industries.

Example Answer: “I’m drawn to investment banking because it offers a mix of intellectual challenges and real-world impact. I love solving complex problems, and investment banking allows me to do that on a large scale—helping businesses with mergers, acquisitions, or restructuring. The fast-paced environment also excites me, as I thrive under pressure and enjoy learning every day.”

Why This Answer Works:

• Specific: It’s specific to things related to investment banking: deal-making, problem-solving, etc.
• Personal Connection: The candidate connects their strengths (problem-solving skills) to the field.
• Passion: The energy to learn and face challenges shines through organically.

2. “How does your background qualify you for a career in investment banking?”

The question assesses how your previous work and skills align with the field of investment banking.

How to Answer:

• Include relevant classes, work experience, and extracurriculars.
• Intentionally focus on skills such as financial analysis, teamwork or leadership.
• Support your answer with a specific example.

Example Response: “I previously interned towards my finance degree and was responsible for building financial models for a market analysis project. It was a very enriching experience, developed my analytical skills and taught me the way to deal with complex data. Also, through leading my university’s investment club, I experienced working within a team and making time-pressured decisions, which is highly representative of investment banking.

Why This Answer Works:

• Relevance: The candidate clearly ties their background to skills needed in investment banking.
• Examples: Specific experiences (internship, investment club) make the answer credible.
• Alignment: It shows how past experiences have prepared them for the challenges of the role.

3. “What do you think is the biggest challenge in investment banking today?”

This question tests your understanding of the industry and your ability to think critically about its challenges.

How to Answer:

• Identify a current industry trend or challenge, like technology changes, regulatory issues, or global economic conditions.
• Show that you understand the challenge and are eager to adapt to it.

Example Answer: “One of the biggest challenges in investment banking today is keeping up with rapid technological advancements, like the use of AI and automation. While these tools improve efficiency, they also require professionals to continuously learn and adapt. I find this exciting because I enjoy staying updated with new trends and believe that technology will open up opportunities for even more innovative solutions in the field.”

Why This Answer Works:

• Awareness: It shows the candidate understands real challenges facing the industry.
• Proactive Attitude: The eagerness to adapt to technological changes reflects a growth mindset.
• Optimism: The answer frames challenges as opportunities, which is a desirable trait in candidates.

4. “Why not other finance roles, like asset management or private equity?”

The interviewer is checking if you’ve thought about your options and are genuinely interested in investment banking.

How to Answer:

• Highlight what makes investment banking unique, like its fast pace and focus on transactions.
• Contrast it with other roles in a way that aligns with your personality and career goals.

Example Answer: “Although positions such as asset management and private equity are appealing, I find that my interest in investment banking stems from the fast-paced industry and range of potential projects. I love the intense nature behind working with high-impact deals, like M&As, and I thrive under pressure; the accelerated tempo suits the way I operate. It also has crystal clear promotion paths, which aligns with my long-term goals.”

Why This Answer Works:

• Comparison: The candidate thoughtfully contrasts investment banking with other roles.
• Personal Fit: They explain why the fast-paced environment and challenging projects suit their personality.
• Clarity: The answer is focused and directly addresses the question.

5. “What excites you about working for our firm?”

This question helps interviewers understand if you’ve researched the company and why you’re interested in joining them.

How to Answer:

• Mention specific aspects of the firm, such as recent deals, culture, or training programs.
• Align your answer with the firm’s values and how they match your goals.

Example Answer: “I am drawn to [Firm Name] because of your excellence in M&A and your various innovative aspects in these types of deals, such as [specific deal]. I appreciate your emphasis on collaboration and professional development because I do value teamwork and constant learning. I am sure this environment will allow me to grow and contribute meaningfully to the team. ”

Why This Answer Works:

• Research: When a candidate mentions deals and the firm’s culture
• Alignment: It establishes the firm’s values compared to the candidate’s goals.
• Excitement: Display genuine excitement toward joining the firm.

6. “How do you handle high-pressure situations?”

Investment banking is a high-pressure job. This question tests whether you can stay calm and focused when things get tough.

How to Answer:

• Share a specific example of a high-pressure situation and how you handled it.
• Stay organized and calm and communicate with confidence.

Example Answer: “In one of my internships I was given a detailed financial report to prepare under a strict timeline. Knowing that, I took the task one step at a time and identified the most important aspects. I also kept in close touch with my team to make sure all was on track. I managed my time and delivered the report on time, and it was well received by the manager.”

Why This Answer Works:

• Real Example: The candidate showcases their said skill with a real-life situation.
• Skills: They call out important attributes such as organization, communication and attention to detail.
• Outcome: This positive result strengthens their confidence to perform under pressure.

7. “What are your long-term career goals?”

This question checks whether your ambitions fit the bill of investment banking.

How to Answer:

• Candidly describe your goals while tying them back to the skills and experience you’ll learn in investment banking.

Example Answer: “My long-term goal is to become an expert in mergers and acquisitions and eventually lead a team in an investment bank. Starting as an analyst will prepare me for the skills I need. I’m looking forward to working on impactful deals and joining your company that is equally ambitious will provide an avenue for development and evolution.”

Why This Answer Works:

• Clarity: The candidate’s objectives are broad but consistent with career objectives in investment banking.
• Focus: Learning and Development are part of their journey.
• Alignment: The response demonstrates how this role fits into their long-term plan.

Additional Variations of the Question

1. “How do you think investment banking will evolve in the next five years?”

   • Talk about trends like sustainable finance, digital innovation, or globalization.
   • Show your awareness of industry changes and your eagerness to adapt.

Example: “I think sustainable finance will play a bigger role in the next five years as companies focus on environmental, social, and governance (ESG) criteria. Investment banks will need to innovate to help clients meet these goals, and I’m excited to be part of that change.”

2. “What skills do you think are most important for an investment banker?”

   • Mention analytical skills, communication, teamwork, and adaptability.
   • Back it up with an example of how you’ve demonstrated these skills.

Example: “Analytical skills are crucial for understanding data, while communication helps in presenting findings clearly. I’ve developed these skills during my internships and group projects, where I worked with diverse teams to solve complex problems.”

3. “What sets you apart from other candidates?”

   • Highlight unique experiences, personal traits, or achievements that make you a strong fit.
   • Avoid generic answers like “I work hard.”

Example: “What sets me apart is my combination of analytical skills and a strong work ethic. During my internship, I not only completed financial analysis tasks but also identified new opportunities for the team, which they appreciated. I’m proactive and always eager to contribute beyond my responsibilities.”

Tips for Mastering the “Why Investment Banking?” Interview Question Like a Pro

Practice and Feedback

1. Mock Interviews: Practice your answers with friends, mentors, or through professional mock interviews.
2. Record Yourself: Listening to your own responses can help you identify areas for improvement.
3. Seek Feedback: Constructive criticism from experienced professionals can help refine your answers.

Confidence and Authenticity

• Be Genuine: Show your true motivations. Avoid sounding rehearsed or insincere.
• Stay Positive: Focus on your strengths and aspirations rather than perceived weaknesses.
• Speak with Clarity: Practice speaking confidently but avoid overcomplicating your answers.

Common Mistakes to Avoid

• Generic Responses: Responses such as “I want to make lots of money” are original and uninspired.
• Not Doing Your Research: Not referring to specifics about the firm can create an impression of preparedness.
• Slight hubris or arrogance: Confidence is important; humility is too.
• Meandering: Be succinct (clear and precise) in your answers.

IMS Proschool’s Investment Banking Program

In order to help you become an investment banker, you need special training, and that’s where IMS Proschool’s Investment Banking program comes into play.

Designed to help you with middle & back-office jobs, this 4-Month Course gives you all the skills that you need to win in the playfield. Key highlights include:

• 100% Job Guarantee: In your success lies our success.
• Flexible Payment: 50% upfront & 50% post placement.
• NISM Certification Prep: Get hands-on experience with NISM series 12, 7 and 8 exams to enhance your paper qualifications.

Let us help you take your first step towards a dream career with the IMS Proschool Investment Banking Course.

Conclusion

Being able to prepare answers to the right questions is a key differentiator in interviews.

A thoughtful, authentic answer can showcase your passion, preparation, effort, and suitability for the role.

The Investment Banking course from IMS Proschool serves as the perfect launchpad for those serious about a career in investment banking.

Arming yourself with the right preparation will not only give you the confidence to answer the question with authority but also launch into a successful career in the field.

For those serious about a career in investment banking, programs like the Investment Banking course by IMS Proschool’s offer the perfect starting point.

When you have excellent support and mentorship, you’ll not only answer the question with confidence but also embark on a successful career in this field.

FAQs

What are the top qualities interviewers look for in investment banking candidates?

Strong analytical skills, passion for finance, resilience, ability to handle pressure, and excellent communication.

How can I research a firm before my investment banking interview?

Start with the firm’s website, recent news articles, annual reports, and platforms like LinkedIn and Glassdoor. Understand their deals, culture, and key values.

What should I avoid saying when answering the “Why investment banking?” question?

Avoid focusing solely on money, giving generic responses, or appearing unprepared by not mentioning specific aspects of the firm.

How can I demonstrate my knowledge of the investment banking industry in interviews?

Stay updated on market trends, discuss recent high-profile deals, and mention challenges and innovations in the field.

What are some resources to help me prepare for investment banking interviews?

IMS Proschool’s Investment Banking program, finance-focused books, financial news platforms like Bloomberg and CNBC, and mock interview sessions.