How to Answer the "Why Investment Banking?" Interview Question

Investment banking is a very popular industry, especially for new grads who are looking for high levels of compensation and good exit opportunities into other career paths. However, investment banking is also notoriously difficult with a norm of 80+ hours a week in high-stress work environments. For this reason, analysts at investment banks always want to know whether the people they’re interviewing are motivated enough to succeed.

“Why investment banking?” is one of the most common behavioral interview questions, along with, “Why do you want to work at this firm?” In this article, we’ll focus on crafting a great answer to the former question. For the latter, read How to Nail the Second Most Common Investment Banking Interview Question. For other common job interview questions, head to The 20 Most Frequently Asked Investment Banking Technical Interview Questions.

How to Answer “Why Investment Banking?”

Start With Brainstorming

As with any interview, preparing your answers ahead of time is 90% of the battle. To begin, think about what attracts you to investment banking and what your long-term career goals are. If you’re just pursuing the role to pivot to a more attractive industry later on, focus on the skills that are transferable.

For example, with private equity, you can talk about how you’re very interested in growing expertise in valuation and financial modeling and believe that investment banking will help you do so comprehensively and quickly. If your end goal is to start a company, then you can focus more on learning the intricacies of how to raise capital and perform analyses on different companies’ financial statements.

For open-ended questions like this, start by putting down thoughts on paper. It will require self-reflection, but beginning to roughly formulate your ideas will at least set you on the right path.

Here are some questions to ask yourself when brainstorming your response:

• What first sparked your interest in investment banking, and what about the field excites you the most?
• What specific aspects of investment banking (e.g., deal-making, financial modeling, client advisory) appeal to you?
• How does investment banking align with your long-term career goals?
• What skills or experiences do you hope to gain from investment banking, and how will they contribute to your future success?
• Why do you believe investment banking is the best way to achieve your career objectives compared to other finance-related paths?
• What experiences (internships, academic projects, personal endeavors) have prepared you for the challenges of investment banking?
• How have you demonstrated the ability to handle high-pressure environments, long hours, and intense workloads?
• What motivates you to succeed in a fast-paced, competitive industry like investment banking?

Be Realistic

As mentioned, firms want to make sure that you are capable of handling the more challenging circumstances that come with a banking job. Not acknowledging the long hours and stress is not an effective way of alleviating this concern. Instead of proving your work ethic, you’ll come off as naive or overly optimistic. Instead, show that you are aware of the job’s difficulties and spend your time showing that you’re motivated and hard-working enough to succeed regardless.

Use Applicable Examples

When answering the “Why Investment Banking?” question, draw from your professional and personal experiences to demonstrate the qualities investment banks seek in candidates. Focus on instances where you showed commitment, resilience, and a strong work ethic – traits essential for thriving in investment banking.

Show intentionality

When deciding how to frame your examples, also bear in mind that interviewers want to see how your previous work experiences have led you to investment banking. Your resume should show an intentional progression toward banking, with roles that helped you acquire the specific skills required for an analyst position. Your resume should reflect an understanding of different business models and how they contribute to the financial landscape. These roles are highly coveted by senior bankers, and if it seems like you stumbled across the role or are not committed to the industry, you’ll have a harder time selling the company name yourself.

Get Personal

Most of the articles you’ll find on investment banking interviews will provide examples of answers that all have the same principal talking points: the chance to work in a fast-paced environment, in order to learn, to be surrounded by smart people, etc. The best way to avoid clichés and otherwise boring your interviewer is to be personal. Explain your motivations in ways that are unique to your background. Everyone in finance will know generally why you want to work in investment banking; however, they will have no idea what specifically is driving you to apply for the role.

Common Mistakes When Answering “Why Investment Banking?”

Don’t: Stay generic

Most of the articles you’ll find on investment banking interviews will provide examples of answers to interviews that all have the same principal talking points: the chance to work in a fast-paced environment, to learn, to be surrounded by smart people, etc. The best way to avoid clichés and otherwise boring your interviewer is to be personal. Explain what makes you extremely excited about the role and how your unique background aligns with it. Explain your past experiences and motivations in ways that are unique to your background. Everyone on the corporate finance side will know generally why you want to work in investment banking; however, they will have no idea what specifically is driving you to apply for the role.

Don’t: Talk About the Salary

When answering the "Why Investment Banking?" question, steer clear of mentioning compensation as a primary motivator. While the high salaries associated with investment banking are undoubtedly attractive, leading with this one answer can give interviewers the impression that you’re solely motivated by money. Banks want candidates who are genuinely interested in the challenges, skill-building opportunities, and unique experiences that the role offers, not just the paycheck.

Instead, focus on reasons that highlight your commitment to the field and your enthusiasm for the learning and growth opportunities investment banking provides. Discussing factors like the steep learning curve, exposure to high-profile clients and transactions, and the chance to develop a comprehensive skill set shows that you’re pursuing the role for professional development and a genuine interest in finance.

Why Avoiding Salary as a Motivation Is Important

Investment banks look for candidates who demonstrate a long-term interest in the field and the resilience to manage their demands. If you emphasize financial gain too heavily in the example answer, it can suggest that your commitment might waver if the role becomes too challenging. Instead, centering your response around career growth and meaningful experiences positions you as a candidate with a genuine passion for the private equity industry.

Don’t: Hint that you want a different job (or are using this as a stepping stone)

It’s not unlikely that you are pursuing a career in investment banking as a way to get to a different and potentially more lucrative or competitive field, like a private equity firm or hedge funds. Both of these industries are common post-banking paths as many of the skills are directly applicable.

If that’s the case, avoid inferring from bad answers that the role is only a stepping stone. The hiring manager doesn’t need to know what your ultimate long-term goal after investment bank is. The question is not “What do you want to do after investment banking?” but rather, “Why investment banking?”

Common Motivations for Pursuing Investment Banking

Investment banking is a highly sought-after career path for ambitious individuals, but the true motivations behind pursuing it often go beyond surface-level benefits. These motivations are highly personalized, reflecting each individual’s unique background, career goals, and aspirations for growth within the industry.

1. Unparalleled Learning Opportunities – Investment banking offers early-career professionals exposure to complex financial transactions and strategic business decisions. The steep learning curve and fast-paced environment provide a crash course in valuation, financial modeling, and deal structuring, skills that are difficult to acquire so quickly in other fields.
2. Exposure to High-Impact Work – Few roles allow you to directly contribute to transformative transactions such as mergers, acquisitions, or IPOs. Investment banking gives professionals a front-row seat to high-stakes decisions that shape industries and economies.
3. Access to the Best of the Best – Working alongside some of the brightest minds in finance fosters personal and professional growth. The team-oriented nature of investment banking means learning from experienced mentors and peers while tackling complex challenges together.
4. Analytical and Technical Expertise Development – Investment banking demands precision and rigor, requiring professionals to master advanced financial analysis, data interpretation, and market research. This technical expertise becomes a powerful foundation for future roles in finance, strategy, or entrepreneurship.
5. Fast-Paced Work Environment – For those who thrive under pressure, the dynamic and unpredictable nature of investment banking is a major draw. The constantly changing landscape of deals, markets, and client needs keeps the work exciting and intellectually stimulating.
6. Building a Versatile (and Transferable) Skill Set – The skills gained in investment banking such as problem-solving, time management, client communication, and adaptability are not only valuable in finance but also transferable to roles in private equity, venture capital, corporate strategy, and beyond.
7. Exposure to a Broad Range of Industries – Investment banking provides insight into multiple industries through diverse deal exposure. Analysts often develop a deep understanding of various sectors, from technology to healthcare, which can inform their long-term career direction.

Example Answers to the “Why Investment Banking?” Interview Question

Example 1

"I’m drawn to investment banking because of the unparalleled learning opportunities and exposure to high-impact transactions early in my career. During my internship at [Mid-Sized Investment Firm], I worked closely with the M&A team on a $150M acquisition in the tech sector, assisting with market research and initial valuation analysis. I loved the fast-paced environment and the opportunity to contribute directly to such a significant deal. Investment banking offers the ideal foundation for developing technical expertise in valuation, financial modeling, and strategic thinking while honing skills like client management and teamwork. I’m particularly excited about [Firm] because of its strong presence in the [specific industry, e.g., technology or healthcare] sector and its emphasis on mentorship. Joining your team would allow me to further develop the skills I need to contribute meaningfully and build a long-term career in finance."

Why it’s a good answer:

This answer is strong because it ties a specific, tangible experience – working on a $150M tech-sector acquisition – to the candidate’s interest in investment banking. It highlights technical skills (valuation, financial modeling) gained during a relevant internship and connects them to the structured learning and mentorship opportunities offered by the firm. The candidate also demonstrates industry awareness by referencing the firm's focus on a specific sector, showcasing a well-researched and tailored interest.

Example 2

"My interest in investment banking stems from a desire to work at the intersection of finance and strategic decision-making. At [University], I completed a corporate finance project where we developed a valuation model for a retail company’s expansion plan. I became fascinated with how financial tools can drive real-world business decisions. During my internship at [Company], I further explored this by conducting DCF analyses and preparing pitch decks for clients. I thrive in environments where precision and analysis can shape transformative deals, and I’m eager to bring that passion to investment banking. [Firm’s] reputation for advising on landmark transactions, such as [specific deal or project], resonates with me because it demonstrates your commitment to excellence and innovation. I see this role as the perfect way to contribute to complex, high-stakes projects while developing the expertise and resilience needed to excel in this demanding field."

Why it’s a good answer:

This response is impactful because it draws a direct line between the candidate’s academic experience (building a valuation model) and their real-world internship work (conducting DCF analyses). It positions the candidate as someone who understands both the theoretical and practical sides of investment banking. Referencing a specific deal the firm worked on further personalizes the answer, demonstrating a deep understanding of the firm’s work and values, while their focus on “precision and analysis” underscores readiness for the field's challenges.

Example 3

"I’ve always enjoyed solving complex problems, and investment banking allows me to do that on a larger scale while helping businesses achieve their goals. Last summer, I interned at [Boutique Investment Firm], where I worked on a capital-raising project for a startup in the renewable energy sector. I built an initial investor deck, analyzed cash flow projections, and saw firsthand how financial solutions can turn a company’s vision into reality. I’m excited about the prospect of working on such transformative deals at [Firm], where your focus on innovation in [specific area, e.g., capital markets or M&A] aligns with my interests. I’m also drawn to the collaborative nature of the role—working in teams to address complex challenges and deliver impactful results. I see investment banking as a career that combines my analytical strengths with my desire to make a tangible impact, and I’m eager to contribute to [Firm’s] success as a summer analyst."

Why it’s a good answer:

This response stands out because it integrates a specific and unique internship experience (capital-raising for a renewable energy startup) into the narrative, tying the candidate’s problem-solving skills to impactful financial work. The mention of preparing an investor deck and analyzing cash flows provides concrete evidence of relevant skills. Additionally, the candidate’s interest in the firm’s specific area of focus (e.g., capital markets or M&A) demonstrates careful research and alignment, while the emphasis on teamwork conveys an understanding of the collaborative nature of investment banking.

Improve Your Interview Answers

Gain access to a library of example answers, resume templates, and proven strategies to craft compelling responses like “Why Investment Banking?” Learn how to leverage personal experiences, tailor your answers to specific firms, and showcase your skills effectively.

Bonus: How to Answer “Why Are You Interested in Finance?

In addition to “Why investment banking”, you may also get a “Why finance?” question. Explaining your interest in the field requires a strategic, well-thought-out response that demonstrates both your genuine enthusiasm for the field and your readiness for its challenges.

Step #1: Connect to a personal experience

Start by sharing a specific experience that sparked your interest in finance. This could be an internship, a class project, or even a personal endeavor like managing a small investment portfolio. Ground your answer in a tangible example that shows you’ve already engaged with the field meaningfully.

Example: "My interest in finance began during an internship at [Company], where I was tasked with analyzing market data to create a financial forecast for a client’s expansion plan. I enjoyed the intellectual challenge of interpreting complex data and seeing how my insights influenced decision-making. That experience motivated me to deepen my knowledge of finance and pursue a career in investment banking."

Step #2: Highlight your alignment with the industry’s demands

Address specific aspects of finance that excite you, such as problem-solving, working on high-stakes transactions, or the fast-paced environment.

Example: "What excites me most about finance is the opportunity to tackle complex problems and contribute to transformative business decisions. The dynamic nature of the industry, paired with the chance to work on impactful transactions, aligns with both my skills and my professional goals."

Step #3: Use metrics to quantify your impact

Whenever possible, include numbers to show the tangible outcomes of your work. Investment banking is a results-driven industry, so use specific data to make your achievements more compelling.

Example: "I led a team of three to complete a valuation analysis for a startup, identifying cost-saving opportunities that resulted in a 15% reduction in projected overhead. That experience strengthened my analytical skills and reinforced my interest in leveraging data to drive strategic decisions."

Step #4: Show that you’ve done your research

Finally, demonstrate that you’ve done your research on the firm and the field. Reference industry-specific terminology and connect your goals to the firm’s values.

Example: "What draws me to [Firm] specifically is its reputation for innovation in deal structuring and its commitment to client-centric solutions. I’m particularly inspired by your recent work on [specific transaction or deal], and I’m eager to contribute to similar projects by applying my skills in financial modeling and market analysis."

FAQs

How do you answer the why investment why you are interested in investment banking?

• To answer this effectively, focus on specific aspects of investment banking that attract you, such as the steep learning curve, exposure to high-profile transactions, and opportunities to develop skills in financial modeling and valuation. Mention your motivation to work in a fast-paced environment and your commitment to building a career in finance.

How should you respond to "Why are you interested in finance?" in an interview?

• When answering why you’re interested in finance, highlight your passion for understanding markets, analyzing financial data, or working with corporate clients. Emphasize any relevant experiences that demonstrate your commitment to finance, such as internships, coursework, or personal projects, and connect these to the skills needed in the industry.

Why are you interested in banking and finance?

• A good response might focus on the dynamic nature of banking and finance, where you get to engage with complex financial transactions and work directly with companies to drive growth. You could mention a specific area of interest, like corporate finance or capital markets, and explain how it aligns with your skills and career goals.

Why did you choose investment banking?

• Explain that investment banking offers a unique combination of learning, responsibility, and exposure to significant transactions early in your career. Discuss your interest in gaining hands-on experience in financial modeling, working alongside senior bankers, and contributing to high-stakes projects. Additionally, mentioning long-term goals, such as a career in finance or corporate development, can show that you’re committed to the industry.

Banking Coach Recommendations

Remember that the purpose of behavioral interviews is primarily to determine whether the banks would be comfortable putting you in the same room as a client. In other words, you’re trying to pass the, “Would I want to sit next to this person on a plane for two hours?” test.

Your answers should be genuine and honest. Practice your responses so that they’ll flow when the interview does happen. Doing a mock interview with an investment banking coach is one of the best ways, but a roommate, colleague, or mentor will also work!

To receive one-on-one guidance when pursuing a career in investment banking, work with a Leland coach for advice that's customized to your background and goals. They'll be able to help you polish your resume, prep for interviews, figure out your networking strategies, learn about individual banks, and much more. Below are some of our highest-rated and most popular IB coaches, browse all of them here.

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