Why Investment Banking? How to Answer with Examples

Why This Question Appears in Every Interview

"Why investment banking?" is the most common question you will face across every interview round from first screens to final Superdays. The question appears simple, but it serves as a critical filter that reveals more about candidates than most technical questions.

Your answer demonstrates whether you truly understand the industry, have done meaningful research, and possess genuine motivation beyond prestige or compensation. Interviewers have heard thousands of responses to this question and can distinguish authentic interest from rehearsed talking points.

A weak answer signals you are interviewing blindly or chasing a brand name. A strong answer demonstrates clarity of purpose, industry knowledge, and authentic interest that aligns with what the role actually demands. This question sets the tone for everything that follows.

What Interviewers Actually Evaluate

When interviewers ask "Why investment banking?" they are assessing multiple dimensions simultaneously:

Genuine interest determines whether you actually want to do this work or are merely exploring options. Candidates with shallow motivation often struggle when the work becomes demanding.

Industry understanding reveals whether you know what bankers actually do day-to-day. Generic answers suggest insufficient preparation.

Preparation quality indicates whether you have researched thoroughly and thought critically about fit. Strong candidates have specific, informed reasons for their interest.

Communication skills show whether you can articulate complex motivations clearly and concisely. This skill matters for client-facing work.

Understanding the complete interview process helps you see why this question appears consistently across every stage and every firm.

Elements of a Strong Answer

Building a compelling response requires several key elements working together.

Show Progression, Not Instant Passion

Avoid the cliche: "I've always been passionate about finance." Nobody is born passionate about M&A advisory. Claims of lifelong interest sound insincere because they obviously are.

Instead, show how your interest developed over time through specific experiences. Your progression might include early exposure through a class or project, reinforcement through an internship or competition, and confirmation through hands-on experience that validated your interest.

Example progression: "My interest in investment banking started when I took a corporate finance course and became fascinated by valuation. That led me to join our finance club, where I worked on a stock pitch competition. The experience of analyzing a company, building a model, and presenting recommendations showed me I wanted to work on real transactions. My internship in corporate finance confirmed that interest because I loved the analytical rigor and fast-paced environment."

This approach shows logical development rather than overnight epiphany.

Demonstrate You Understand the Role

Show you know what investment banking actually involves rather than describing it in generic terms:

Transaction advisory means guiding companies through mergers, acquisitions, capital raises, and restructurings. You work with management teams on strategic decisions.

Technical work includes building financial models, conducting valuation analyses, performing due diligence, and supporting deal execution.

Client interaction involves preparing materials, participating in meetings, and communicating recommendations to sophisticated audiences.

Deal execution requires managing multiple workstreams under tight deadlines while coordinating with lawyers, accountants, and company management.

Avoid saying: "I want to work with companies and do deals."

Instead say: "I'm drawn to the advisory side of finance, specifically working with management teams on strategic transactions, building valuation models to support decisions, and seeing deals through from pitch to closing."

The specificity shows you have done your homework.

Explain Why IB Over Alternatives

Be ready to differentiate investment banking from other paths you might have considered:

Versus consulting: "While I considered consulting, I prefer the financial rigor and transaction focus of banking. I want to develop deep technical skills in valuation and M&A rather than broader operational strategy."

Versus asset management: "I prefer the advisory side to the investing side. I want to work with companies on transactions rather than managing portfolios, and I value the direct client interaction that banking provides."

Versus corporate finance: "I want the breadth of exposure to different industries and deal types that banking offers. I prefer working across multiple transactions simultaneously rather than focusing on one company long-term."

This demonstrates thoughtful consideration rather than random selection.

Highlight Skills You Want to Build

Strong candidates articulate what they want to learn from the experience:

Financial modeling across different deal types and industries builds technical foundation that applies throughout finance careers.

Deal mechanics understanding develops through seeing transactions from origination to closing.

Industry exposure across sectors and business models builds commercial awareness.

Working under pressure develops resilience and time management skills.

Client communication improves through preparing deliverables for sophisticated audiences.

Example framing: "I want to build a strong technical foundation in valuation and understand how deals are actually structured and executed. I know analysts work on multiple live transactions simultaneously, and that exposure to real-world deal work is exactly what I'm looking for."

This shows you value the learning experience beyond just credentials.

Practice articulating your motivation: Download our iOS app to rehearse "why banking" and other common behavioral questions until your delivery sounds natural.

Common Mistakes That Hurt Candidates

Understanding what weakens answers helps you avoid common pitfalls.

Being Too Generic

Weak answer: "I'm interested in finance and want to work with smart people on important deals."

This could apply to consulting, corporate development, private equity, or dozens of other roles. It tells interviewers nothing about why banking specifically.

Stronger answer: "I'm specifically drawn to M&A advisory because I want to build valuation models, analyze deal structures, and work with companies on strategic transactions. My internship showed me I thrive in fast-paced, analytical environments with direct client exposure."

Leading with Money or Prestige

Even if true, these responses signal you are not genuinely interested in the work itself. Candidates motivated primarily by compensation often struggle when hours become demanding. Interviewers want to hire people who find the work intrinsically engaging.

Better approach: Focus on learning, deal exposure, and skill development. Save discussion of exits for when they ask about long-term goals.

Admitting Insufficient Preparation

Weak answer: "I'm not entirely sure what investment bankers do day-to-day, but I'm excited to learn."

This shows you have not prepared adequately. If you are interviewing for a role, you should already know what it involves. Admitting ignorance wastes an interview opportunity.

Better approach: Research thoroughly before any interview. Read deal announcements, understand the role structure, and talk to current analysts during networking.

Claiming Lifelong Passion

Weak answer: "I've always dreamed of working in investment banking since I was young."

This sounds insincere because it obviously is not true. Nobody dreams about building pitch books as a child. Interviewers recognize this as a rehearsed line rather than genuine reflection.

Better approach: Show authentic progression through specific experiences that built your interest over time.

Neglecting Firm-Specific Reasons

Generic answers that could apply to any bank suggest you are not genuinely interested in this particular opportunity. After explaining why banking broadly, add specific reasons for this firm:

Recent deals they have advised on that you found interesting

Sector strength in areas that align with your interests

Culture or training reputation based on your research

Conversations with current employees that informed your interest

Example: "Beyond investment banking generally, I'm particularly interested in your firm's healthcare M&A group. I followed your advisory work on the recent pharma deal, and my conversations with alumni confirmed that the mentorship and deal exposure here matches what I'm looking for."

Sample Answers by Background

Different backgrounds require different approaches while maintaining the same core elements.

Undergraduate with Finance Internship

"My interest in investment banking developed through coursework and hands-on experience. I first became interested when I took a corporate valuation class and realized I enjoyed the analytical rigor of modeling companies and understanding deal structures.

That interest led me to join our investment club, where I led a team analyzing acquisition targets for a stock pitch competition. Building models, conducting due diligence, and presenting recommendations showed me I wanted to work on real transactions.

My internship at a regional bank confirmed that interest. I worked on pitch books and financial models for M&A advisory, and I loved the fast-paced environment and exposure to different companies. Investment banking offers exactly what I'm looking for: intensive technical training, live deal exposure, and expertise development in transaction advisory.

What specifically draws me to your firm is the strength of your TMT practice and the deal flow I've researched. That's why I'm confident this is the right fit."

Consultant Transitioning to Banking

"I've spent two years in management consulting, which gave me strong exposure to corporate strategy and problem-solving. However, I realized I want to focus specifically on M&A advisory and transaction execution rather than broader operational consulting.

In my consulting projects, the work I found most engaging was always financial analysis: valuation modeling, acquisition due diligence, and transaction support. I prefer the transactional focus and financial rigor of investment banking to the operational side of consulting.

I'm making this transition now because I want to build deep technical skills in valuation and deal structuring while I'm still early in my career. Investment banking offers the intensity, technical training, and breadth of deal exposure I'm looking for.

I'm particularly interested in your industrials group because of the cross-border deal flow. From conversations with current team members, I understand the group focuses on complex transactions that would let me apply my analytical background while building new skills."

Non-Finance Background

"I studied engineering, which taught me rigorous analytical thinking and problem-solving. Over time, I realized I wanted to apply those skills to business and financial analysis.

My interest in investment banking specifically came from a finance course where I first worked on valuation and company analysis. I was fascinated by the process of understanding businesses through financial statements and determining appropriate valuation.

That led me to pursue leadership in our finance club, where I gained hands-on experience with M&A advisory concepts. I built financial models, analyzed deal structures, and worked under tight deadlines. This showed me investment banking is exactly what I want to do.

I'm drawn to banking because it combines analytical rigor from my technical background with business strategy and real-world impact. The learning curve is steep, but that's what I'm looking for.

Your firm stands out because of the training program reputation and deal flow in sectors I find compelling. That's why I'm confident this is where I want to start my finance career."

Get comprehensive preparation: Download our complete interview guide with 400+ questions covering every behavioral and technical topic tested in investment banking interviews.

Adapting to Different Contexts

The same core story should flex based on interview context.

First-Round Screening

Keep your answer concise at 60 to 90 seconds covering quick progression of interest, why IB over alternatives, specific skills you want to build, and brief firm-specific reasoning.

Final-Round Superday

Go deeper with two to three minutes of detail on specific experiences, demonstrated industry knowledge, understanding of role demands, and thoughtful follow-up questions.

Networking and Coffee Chats

Be more conversational. Share your story naturally, ask about their experience, show genuine curiosity, and keep it authentic rather than rehearsed.

Maintaining Consistency Across Questions

Your "why investment banking" answer should align seamlessly with other responses throughout the interview.

Walk me through your resume: Your progression should match the story you tell about your background.

Long-term goals: If you say you want to work in banking long-term, your "why IB" should reflect career commitment rather than exit opportunity focus.

Why this firm: Your general "why banking" should flow naturally into firm-specific reasons.

Inconsistency across answers raises red flags. If you claim passion for M&A in one answer and mention considering equity research in another, interviewers notice.

Preparation Framework

Follow this process to develop your answer:

Write key points without memorizing word-for-word. Know what you want to cover rather than scripting exact language.

Time yourself aiming for 90 to 120 seconds for the core answer.

Record yourself and review for filler words, confidence, and pacing.

Test with others to get feedback on clarity and authenticity.

Refine based on feedback until it sounds natural.

Your answer should sound conversational, not robotic. Practice enough that you are comfortable but not so much that you sound scripted.

Key Takeaways

Conclusion

"Why investment banking?" is your opportunity to control the narrative and demonstrate genuine, researched interest. A strong answer shows logical progression, industry understanding, and authentic motivation that goes beyond prestige.

Interviewers have heard thousands of answers to this question. What sets you apart is specificity, authenticity, and clear articulation of why this role matches your skills, interests, and career goals.

Take time to craft your story thoughtfully. When you can explain not just what you want to do but why it makes sense given your background and what you want to learn, you stand out as a candidate who truly belongs in investment banking.

Once you master this foundational question, continue preparing for the technical topics that follow. Our guide on tell me about yourself covers another critical opening question that often appears alongside or immediately after "why banking."