This topic has shown up in several places during the last few days so I've decided to take a swing at providing our readers with insight on how to effectively answer this question. One of the most important questions you will be asked in a banking interview will be some form of the question, "Why are you interested in investment banking?" We've discussed this issue before but I'd like to take a deeper dive on the topic.
For obvious reasons, you should never tell the truth when answering this question; "The compensation, you ignoramus!" Or "models and bottles," usually don't fly well with bankers, or anyone else for that matter. There are plenty of wrong ways to answer this question.
On a more serious note, there are numerous ways to answer this question effectively. In fact, creativity is highly valued by bankers so your unique answer to this question may be better than any response found here. The list below is not exhaustive but probably contains a reason that you can relate to and will present during interviews:
- The transactional nature of the business
- Investment banking is the pinnacle of the financial system
- Working with some of the world's smartest people
- Analyst/Associate positions are extremely challenging
- The educational experience and world class training
- Develop fuller, more well-rounded business acumen
- Investment banking is the next logical step in my progression
- My long-term commitment to banking
There you have it! There is our short list of reasons why investment banking. I personally used several of these answers in my interviews that ultimately led to an offer. When answering this question, and all interview questions, it is imperative to speak in concise statements that quickly and intelligently communicate your message. Be prepared to list these reasons quickly and consecutively without thinking about it.
Please leave a comment if you have something to add to this list.
5 comments:
Thanks for the tips.. they really help! Emily
Good point, this question is not always easy to answer, as "Why this position?" or "Why this firm?"
Hello Friends,
Good way to knowing about an interview question about investment banking. It is a particular form of banking, which finances capital requirements of enterprises. It is a field of banking that aids companies in acquiring funds. Thanks a lot!
would it be a good idea or a bad idea to mention your long-term goals in this answer? (assume that your long-term goal is in the finance industry, but not necessarily in IBD)
Better have some good answers in the interview.
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