How to Answer the “Why Investment Banking?” Interview Question

How to Answer the “Why Investment Banking?” Interview Question

The question, “Why investment banking?” is more than a standard interview opener — it’s a strategic filter. In almost every interview for analyst and associate roles, this question will likely appear early in the conversation. And it’s not just a formality: the response will set the tone for everything that follows.

To answer this question well, a candidate will need more than enthusiasm; the interviewer will be hoping to hear a clear, authentic rationale that shows they have done the work to understand what investment banking demands — and are committed to it.

Why Do Banks Ask This Question?

Interviewers always expect to see more than just a surface-level interest in finance. They’re trying to assess whether candidates understand the day-to-day reality of banking — and to assess whether they are mentally and emotionally equipped for it.

Investment banking is demanding – it involves long hours, intense pressure and meticulous execution on high-stakes transactions. If interviewees don’t show genuine commitment and commercial awareness in their answers, it will be perceived as a risk — no matter how strong a resume is.

At its core, this question asks: Do you really want this? Do you know what it takes? And are you going to stay when things get difficult?

The Right Way to Frame Your Answer

Strong candidates will approach this question like a narrative, rather than a preplanned script. The best answers should reflect a personal journey — how interests evolved, what experiences confirmed the choice, and why investment banking is the right platform for career goals.

When brainstorming what your answer would look like, start by identifying the moment your interest in finance or business strategy became real. This could be an academic project, a competition, an internship, or even a conversation that opened your eyes to the world of transactions, valuations, or market dynamics. It may be due to an interaction with someone in the industry that sparked the idea that you have shared interests and goals.

From there, walk the interviewer through how you pursued this interest — perhaps through coursework, undertaking side projects, seeking internships, or networking with professionals in the industry. Your goal is to show that your decision is intentional and backed by action.

Then to convince an interviewer that you are the right person for the role, try to pivot into your understanding of the role. Acknowledge that banking requires tough hours, commitment and a fast pace that you are more than willing to participate in. Instead of downplaying the challenge, show that you’re motivated by it. This communicates maturity and mental toughness — qualities that every bank will value.

Why Generic Answers to “Why Investment Banking?” Don’t Work

If your answer to “Why investment banking?” sounds like, “I want a fast-paced job with lots of responsibility,” you will have already lost the interviewer’s attention.

The reason is that this response could apply to dozens of careers — from emergency medicine to firefighting or even racing car driving! It doesn’t show any unique understanding of investment banking per se. Interviewers will challenge vague answers with follow-ups like, “Why not sales & trading?” or “Why not corporate finance?” If the only reply is, “Because I’m a finance major,” this will not make a compelling case.

Generic answers always suggest that the candidate has not done their homework. A light response doesn’t suggest any understanding about what investment analysts actually do on a daily basis. The role involves building excel models, preparing pitch books and analyzing live transactions all in a time-sensitive manner. A keen candidate would hopefully take steps to explore those areas through internships or personal projects.

A good answer to the question should reflect real exposure to the field, a clear understanding of the work, and a thoughtful reason for choosing banking over other high-pressure roles. That’s how candidates can prove that they’re serious — and ready to step into a role.

How to Answer “Why Investment Banking?” Effectively

Much like the classic opener, “Walk me through your resume,” this question should be approached as a narrative. The best answers are concise but personal, well-reasoned but natural, and always relevant to the job at hand. This is also an opportunity to show the interviewer what character you have and demonstrate how you can curate a compelling response to an open-ended question.

Start by identifying what sparked your interest in finance or corporate transactions. This could be anything from a university course or extracurricular experience to an internship or even a specific deal that caught your attention. What matters is that the interest feels authentic and personal.

Once you’ve established this starting point, take the interviewer through the steps you’ve taken since then to move closer to a career in banking. This might include courses in financial modeling or accounting or involvement in finance societies. It might be an internship that gave you hands-on experience. The goal is to show that your decision to pursue investment banking is not a whim — it’s been validated by effort and exposure.

However, a great answer doesn’t just end with past experiences. A winning candidate should also demonstrate that they know what the job involves and that they are very keen to realize this. Acknowledge the long hours, the hierarchy, and the pressure — and frame these as challenges you’re ready to face, not drawbacks you’re hoping to avoid.

Interview Guidelines That Set Top Candidates Apart

Delivering a standout answer doesn’t come down to talent alone — it comes down to preparation. In this case, it means structuring an answer to show depth, drive, and professionalism.

Responses should always follow a logical sequence, ideally chronological, so the interviewer can easily track your thought process. Use a storytelling approach to keep your listener engaged, but don’t stray into exaggeration or cliché. A strong answer should be under one minute, and every sentence should support your commitment to the role. This may require practice at home to avoid the pitfalls of slipping into unnecessary anecdotes and explanations!

An impressive response to this question will always tie everything back to the position being applied for. If the interest in banking stems from a desire to build technical skills, develop under pressure, and work on high-stakes transactions, then make sure the interviewer knows this! Demonstrate that your personal goals align directly with what the job offers — and that you’re ready to deliver value from day one.

Best Practices for Interview Day

In a high-stakes interview, even small details matter. Before stepping into the room — or logging onto the Zoom call — spend time carefully researching the firm. You should know their history, major transactions, industry specialties, and any standout cultural values that resonate with you. Being able to mention a recent deal, press release or explain why the firm’s approach to client work appeals to you will set you apart immediately.

Also, do you research on those who will be conducting the interviews. This may of course change on the day, but make sure you understand what each person’s role is, either in HR or on a banking team, and know what they are responsible for.

It’s critical to maintain humility and remain polite throughout the interview conversation. Remember that your interviewer likely has far more real-world experience than you, even if you have completed technical internships or studied finance intensively. It’s always helpful to position yourself as a student of the industry — not an expert in it.

Keep your tone conversational and your answers structured. It’s helpful to take a brief pause and think about a question before you speak. Don’t be afraid of a moment of silence while you gather your thoughts. Keeping composure whilst under pressure is part of what’s being evaluated.

Structuring a Compelling Answer

The answer should always be structured clearly and naturally. It shouldn’t need to follow a rigid template, but should reflect:

• A personal catalyst for your interest in investment banking
• Evidence of follow-through (courses, internships, projects) – and hopefully a brief nod to the part your particularly enjoyed
• An understanding of the job’s demands — and a willingness to embrace them
• A logical connection between your ambitions and the role you’re interviewing for

Most importantly, it should wrap around to the specific firm if possible. Even a brief reference to the bank’s deal history, culture, or focus area adds weight to your response and helps align you to a role within the firm.

An Interview-Ready Example

Here is an example of an interview-ready response:

“My interest in investment banking began during my second year at university when I led a team in a corporate finance simulation. I enjoyed the challenge of analyzing businesses, building models, and making recommendations under tight deadlines. That experience pushed me to explore real-world applications — I enrolled in excel modeling courses, joined my university’s finance club, and completed an internship where I supported deal teams on equity offerings. I know this role demands long hours and a steep learning curve, but I’m excited by that intensity. I see investment banking as the best platform to build deep technical skills, gain exposure to high-stakes decisions, and grow within a culture that rewards discipline and impact.”

This answer works because it’s specific, it demonstrates commitment, and it shows that the candidate understands what they’re getting into — and still wants the role. Each individual’s answer will be different so it may be helpful to stick to this structure. Even if the catalyst is not directly related to banking, that it ties back into a banking role.

Why Investment Banking Over Other Careers?

How to Justify the Career Pivot — With Strong, Strategic Examples

If you’re making a career switch into investment banking — either from private equity, corporate finance, or even Big 4 advisory — you’ll need more than enthusiasm to convince an interviewer. The truth is, they’re not just evaluating your technical readiness; they’re assessing your intentionality.

It will require more than saying “I’ve always been interested in investment banking” if your background sits in another part of finance. These candidates will need to clearly articulate why banking is the right move for them now. Previous experience should be used to support this decision, rather than compete with it.

This type of answer will require some compelling evidence: the best answers acknowledge what has been gained from a prior role, while highlighting why investment banking offers a better alignment with long-term goals.

The Mistakes That Can Cost Candidates Offers

Poor responses typically fall into one of several traps. The most common one that misses the mark is vagueness. Saying you “like finance” or “enjoy working in a team environment” doesn’t mean much if you can’t back it up with relevant experience or insight.

Another frequent mistake is mentioning compensation or exit opportunities. It is well known that banking careers pay well. And yes, many analysts move into private equity or other fields. But framing an answer around those points sends the wrong message. It can make candidates look opportunistic rather than committed to the underlying role.

Other red flags include sounding overly rehearsed, neglecting to reference the firm you’re interviewing with, or giving off an air of entitlement. Confidence is essential — but so is humility and a willingness to learn. Interviews are designed to help seek out team players and character who would be a good fit for the bank.

What Makes Investment Banking a Unique Career Choice?

For those who want to accelerate their development in finance, there’s no better platform than investment banking. It offers enormous exposure to a wide variety of industries, business models, and strategic scenarios in a short amount of time so is the ideal place to being a finance career.

Those who secure roles will be working directly with senior bankers, legal teams, CFOs, and CEOs — not as a passive observer, but as a contributor. Whether this is running valuations, assembling pitch books, or supporting due diligence, it will be “in the trenches” with the rest of the team. The learning curve is sharp, but so is the growth trajectory.

Unlike roles in corporate finance or strategy that evolve over slower timelines, investment banking can throw you into high-impact decisions from day one. For candidates who are analytical, curious, and thrive under pressure, it’s the ultimate proving ground.

Conclusion

The “Why investment banking?” question may seem like a simple opener, but it carries a lot of weight with interviewers. It sets the tone for the interview and determines whether the conversation builds momentum — or flatlines.

Prepare thoughtfully, know your story and understand the demands of the role being offered. Be honest with yourself about why this path excites you. When candidates speak from a place of clarity, conviction, and commercial understanding, the answer won’t just check a box — it’ll leave a lasting impression.

Further boost your chances of success in an interview with the free download: practice 50 technical questions that may be asked during analyst interviews to test technical knowledge and understanding of fundamental valuation techniques.

Additional Resources

Investment Banking Interview Questions

Investment Banking Interview – How to Prepare

Top 10 Investment Banking Interview Questions

Walk me Through a DCF  5 Steps

Investment Banking Course