In a sea of ​​equally talented, likable, and prepared achievers, the “Why investment banking?” the interview question may be the only differentiating question bankers have left to ask; so it is a popular and decisive question.

Whereas for college students who don’t see themselves as banker wannabes on paper (ie, no finance/accessories major, business degree, or relevant work experience) it holds epic significance. After all, you should be able to explain why you want to go into investment banking when your past decisions don’t suggest anything of the sort.

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

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

Typical examples like world-class education, skill development, type of job, the challenge, actual responsibility 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 the banker who interviewed you, 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 ironically benefits the bank: passionate 24 year olds work 100 hours a week. easily after all.

But if I found out he wanted to do IB simply to “build his resume” and/or to secure an exit opportunity, I would, at least in my mind, kick him out the damn door and then proceed to beat the crap out of his blackberry. ! Being made to feel like a halfway house for financial bums, a springboard for mothers, not my idea of ​​good times, you see. So while everyone knows that investment banking is attractive on the resume and the exit, boy, 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 banking who over the years have shared with you what it’s really like to be a banker, both the good and the bad.

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

Not only will I believe you still love banking despite the war stories, but you’ve actually thought it a little further than “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 reasons ‘why investment banking’ and connect them to the sources you learned them from, be it friends, teachers, books, etc.

Want 6 Specific ‘Why Investment Bank’ Reasons That Are Sure to Work? Try talking about how you love the…

1. Fundamental role of investment banks in deals and/or the role they play more broadly within the business world: IBs are to business what the White House is to the world… central headquarters! And that is why bankers are called masters of the universe. So make this point, albeit in more formal language and never mention the ‘masters of the universe’!
2. Coalface exposure to industry and financial marketswhich is unique to the IB: there isn’t a graduate job on the planet that gets you closer to the action than banking.
3. Agreement-oriented and results-based approach – this point distinguishes banking from many other professions such as law, consulting, etc., where players are often paid simply to ‘do’, rather than ‘achieve’. And by specifically mentioning this point, you’ll show bankers that you’re in the right mindset and that you’re not a raise fiend like lawyers. PS Again, make sure you phrase this in a more professional way!
4. Type of people who work in banking – talk about it from both a learning and enjoyment point of view, and most importantly, reference people you know in banking (particularly in that bench) to avoid looking like you’re just shining shoes and kissing ass.
5. nature of work – analysis, problem solving, focused on the real world. If you’re going to talk about this, be sure to mention a handful of examples in passing; eg 10k analysis, comp distribution, deal structuring, etc.
6. 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’ll really narrow the reasons down to specific, tangible, identifiable ones, and that means bankers are more likely to believe and like you. For example, if you tell Goldman Sachs TMT that you want to go into investment banking because you find the business/investor side of the tech industry fascinating after working as an unpaid intern at a social media company for the summer, then you’ll get to the “Why investment banking?” question out of the park!

Whatever you choose, make sure you can talk smart about it if the bankers prove 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 a great experience, it didn’t offer…[reasons why you love IB].

This is a hidden opportunity to follow explain your storyexplain why you want to switch to the bench now and reassure them again that IB is what you really want above all else.

However, any comparison you make must be subtle. Not because your interviewer has worked at KPMG or BCG, but simply because it seems unprofessional to blatantly badmouth 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 investment banking analyst interview (i.e. not a summer internship interview), you’ll need to push your story of why IB is even harder to convince bankers to accept it. This is because bankers hate offering tenure to candidates who might quit the moment the going gets tough.

Passion is a banker’s best insurance policy against this, so make sure you show it off guys!

If you want to go a step further and really impress bankers with your answer, tell them how you got interested in IB years ago and point out the real-life things you’ve done since then that have confirmed your passion; Studies were chosen, university clubs were joined, people were met, friends were talked to, books were read, jobs were accepted.

The idea here is to show a long and considered journey into investment banking.

What is the final secret to a magical answer here?

Recognize the negative aspects of banking, not just the superior ones. The bankers you see want to hire students who aren’t drawn to banking simply because of the Hollywood hype or the glamor of CNBC. They want to know that you’re realistic about the job, that you’re prepared to do the hard work, and yet you’re still very passionate.

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

So, with all of that in mind, during your answer, briefly mention how your friends in banking have also clued you into the realities of work: the long hours, the sacrifice, and other downturns we’ll talk candidly about on Inside Investment Banking System. . when it comes out this fall.

Of course, don’t end your question with disappointment; i.e. be sure to follow up any reality checks with your top 3 reasons why IB repeated them very briefly, something like “…but of course banking is an easy way.” choice for me, due to…”.

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