The “Why Investment Banking?” Interview Query

In a sea of overachievers who are equally talented, likeable and ready, the “Why investment banking?” interview query can be the only differentiating query left for bankers to ask producing it each a well known & decisive query.

While for college students who never appear like aspiring bankers on paper (i.e. no fin/acc significant, enterprise degree or relevant perform knowledge) it really is of epic significance. Immediately after all, you guys will need to be capable to clarify why you want to do investment banking when your previous choices never recommend something of the type.

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

There is a large choice of points you could make, but retain it brief and sharp. Normally a excellent answer will include three-five strong factors why you are interested in IB.

Common examples like planet class education, expertise improvement, sort of perform, the challenge, true duty in billion dollar transactions and so forth. are all acceptable.

But attempt not to trot out the similar BS as absolutely everyone else.

Importantly, stay away from factors that are self-centered in a ‘bad’ way

Let me clarify. As a banker interviewing you I’d be OK if you pointed out investment banking attracts you since of the mastering possibilities, as this is a selfish cause that also, and ironically, rewards the bank – passionate 24 year olds place in 100-hour perform weeks with ease soon after all.

But if I heard you wanted to do IB just in order to ‘build your resume’ and/or to safe an exit chance I would – in my thoughts at least – throw you out the freaking door and then proceed to lay a BlackBerry beat down! Getting produced to really feel like a halfway property for monetary vagrants, a mere stepping-stone, is not my notion of excellent instances you see. So even although absolutely everyone knows investment banking is desirable for the resume & exit oops never say it!

What can support you stay away from a BlackBerry Beat Down? Nicely, you would get me particularly interested if you answered the “Why investment banking?” interview query by speaking about how you have older close friends in banking who have more than the years shared with you what it really is truly like to be a banker – each the excellent and the negative.

And then how that is produced you understand three certain items about banking which make it stand out above any other graduate job.

Not only will I think you nevertheless enjoy banking in spite of the war stories, but that you have essentially offered it some believed beyond “I will need a salary of Blankfein proportions if I am ever going to spend off these student debts”.

What I am attempting to say is that a good answer will list exceptional and certain factors ‘why investment banking’ and it will connect them to the sources you discovered them from regardless of whether they be close friends, professors, books and so forth.

Want six certain factors ‘Why investment banking’ that are confident to perform? Attempt speaking about how you enjoy the…

  1. Cornerstone part investment banks play in bargains and/or the part they play additional broadly inside the planet of enterprise – IBs are to enterprise what the White Residence is to the planet…central hub HQ! And this is why bankers are referred to as masters of the universe. So bring up this point, albeit laced in additional formal language and with no ever mentioning ‘masters of the universe’!!
  2. Coalface exposure to business and monetary markets, which is exceptional to IB – there is not a graduate job on the planet that puts you closer to the action than banking.
  3. Benefits-driven deal-oriented strategy – this point distinguishes banking from so lots of other professions like law, consulting and so forth, exactly where players usually get paid for just ‘doing’, as opposed to ‘achieving’. And by especially mentioning this point you will show bankers that you have got the appropriate mentality and that you are not an increment-fiend like lawyers. PS When once more be confident to phrase this in a additional experienced kinda way!
  4. Kind of people today that perform in banking – speak about this from each a mastering and enjoyment point of view, and most importantly reference people today you know in banking (especially at that bank) to stay away from seeking like you are just shining footwear and kissing ass!
  5. Nature of the perform – analyzing, difficulty solving, true-planet focused. If you are going to speak about this then make confident you bring up a handful of examples in passing eg 10k evaluation, spreading comps, deal structuring and so forth.
  6. The certain business/item group you are interviewing with – this is a ought to! By speaking about why IB via the lens of that certain group, you will truly narrow the factors down to certain, tangible, relatable ones – and that suggests bankers are additional most likely to think you and like you. eg If you say to Goldman Sachs TMT that you want to do investment banking since you uncover the enterprise/investing side of the tech business fascinating soon after operating as an unpaid intern at a social media begin up more than summer season, then you will hit the “Why investment banking?” query out of the park!

What ever you decide on, be confident you can speak intelligently about it if probed by the bankers.

Specific note for these of you with non-banking knowledge

If you have perform knowledge in accounting, consulting and so forth. then inform the bankers that while your time at KPMG or BCG or wherever you worked was a terrific knowledge, it did not present…[reasons why you love IB].

This is a hidden chance to additional clarify your story, point out why you want to modify into banking now and assure them once more that IB is what you really want above all else.

Any comparison you make really should be delivered subtly although. Not since your interviewer could have worked at KPMG or BCG, but just since it appears unprofessional to blatantly badmouth other people. Negativity in any kind does not appear excellent.

Specific note for aspiring investment banking analysts

PS for these of you who get this query in an investment banking analyst interview (ie not a summer season internship interview), you will will need to push your story of why IB even tougher to convince bankers to take you on. This is since bankers hate providing permanent spots to candidates who could quit the minute items get challenging.

Passion is a banker’s greatest insurance coverage policy against this – so make confident you show it guys!!

If you want to go one particular step additional and truly impress the bankers with your answer, then inform them how you became interested in IB years ago and point to the true life items you have considering that carried out that have confirmed your passion research elected, college clubs joined, people today met, close friends talked to, books study, jobs taken.

Displaying a lengthy and thought of journey to get into investment banking is the notion right here.

What is the final secret to a magic answer right here?

Recognize the downers of banking, not just the uppers. Bankers you see, want to employ students who are not becoming drawn to banking primarily based just on Hollywood-hype or CNBC-glamor. They want to know you are realistic about the job, ready to do grunt perform, and but nevertheless super passionate.

Immediately after all, the Jimmy Cramer fan club and the Gekko Wannabe students will never ever be capable to hack it when they uncover out what investment banking truly includes – and this sort of drop out charges the banks a bomb.

So with all that in thoughts, for the duration of your answer briefly mention how your close friends in banking have clued you in on the realities of the job also – the lengthy hours, sacrifice and other downers which we’ll speak candidly about in the Inside Investment Banking Technique when it comes out this fall.

Of course, never finish your query on a downer – which means be confident to stick to up any reality checking with your three major factors why IB repeated in incredibly incredibly brief kind, type of like “…but of course banking is an effortless selection for me, since of…”.

Now that you have conquered the “Why investment banking?” interview query, verify out our suggestions on other prevalent investment banking interview questions and answers now.