Why Investment Banking? How to Answer with Examples

Why This Question Matters

"Why investment banking?" is the most common question you'll face in every IB interview—from first-round screens to final Superdays. It appears simple, but it's a critical filter. Your answer reveals whether you truly understand the industry, have done your homework, and possess genuine motivation beyond prestige or compensation.

A weak answer signals you're 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.

Interviewers use this question to assess:

This isn't just an opener—it sets the tone for everything that follows.

What Interviewers Are Really Asking

When someone asks "Why investment banking?", they're actually asking several questions at once:

1. Do you understand what investment banking is? They want to see you can articulate the role beyond generic statements about "working with companies" or "doing deals."

2. Why this career over alternatives? What makes IB more appealing than consulting, corporate finance, asset management, or other finance paths?

3. Will you survive? Investment banking demands long hours and intense pressure. Does your motivation run deep enough to handle difficult moments?

4. Are you here for the right reasons? Candidates motivated by learning, deal exposure, and skill development tend to succeed. Those chasing prestige alone often struggle.

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

Elements of a Strong Answer

1. Show Progression, Not a Lightning Bolt

Avoid the cliché: "I've always been passionate about finance." Nobody is born passionate about M&A advisory.

Instead, show how your interest developed over time through specific experiences:

Example structure: "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 [related role] confirmed that interest—I loved the analytical rigor and fast-paced environment."

This shows logical progression, not overnight epiphany.

2. Demonstrate You Understand the Role

Show you know what investment banking actually involves:

Don't say: "I want to work with companies and do deals."

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

The specificity shows you've done your homework.

3. Explain Why IB Over Other Paths

Be ready to differentiate investment banking from:

- 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."

- Asset management: "I prefer the advisory side to the investing side—working with companies on transactions rather than managing portfolios. I value the direct client interaction and deal execution experience."

- 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 shows thoughtful consideration, not random selection.

4. Highlight Specific Skills You Want to Build

Strong candidates articulate what they want to learn:

Example: "I want to build a strong technical foundation in valuation—learning to model companies across different sectors and understanding how deals are structured. I'm also drawn to the intensity and collaborative environment. I know analysts work on multiple live transactions, and that exposure to real-world deal work is exactly what I'm looking for."

This shows you value the learning experience, not just the exit opportunities.

5. Connect to Your Background

Tie your past experiences to why banking makes sense for you:

- If you have consulting experience: "My consulting work gave me exposure to corporate strategy, but I want to focus specifically on transaction advisory and build deeper financial modeling skills."

- If you're from a non-finance background: "My [engineering/science] background taught me analytical rigor and problem-solving. I'm now applying those skills to financial analysis and want to focus on M&A advisory."

- If you have relevant internships: "My internship at [firm] exposed me to financial modeling and due diligence work. It confirmed my interest in transaction advisory and showed me investment banking is where I want to develop my career."

Make your path feel logical, not random.

Build confidence in articulating your story: While you're refining your "why banking" answer, practice with our iOS app featuring 400+ behavioral and technical questions to ensure you're prepared for every aspect of IB interviews.

Common Mistakes to Avoid

1. Being Too Generic

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

Why it fails: Could apply to consulting, corporate development, PE, or dozens of other roles.

Better: "I'm specifically drawn to M&A advisory—building valuation models, analyzing deal structures, and working with companies on strategic transactions. My internship in [role] showed me I thrive in fast-paced, analytical environments."

2. Leading with Money or Prestige

Why it fails: Even if true, it signals you're not genuinely interested in the work itself. You won't survive the hours if compensation is your only motivation.

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

3. Admitting You Don't Know Much

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

Why it fails: Shows insufficient preparation. If you're interviewing, you should already know.

Better: Research thoroughly before any interview. Read deal announcements, understand the role, talk to current analysts.

4. Saying "I've Always Wanted This"

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

Why it fails: Sounds insincere. Nobody dreams about building pitch books as a child.

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

5. Neglecting Firm-Specific Reasons

Don't give a generic answer that could apply to any bank. After explaining why investment banking broadly, add why this specific firm:

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

Sample Answers by Background

Example 1: Undergraduate with Finance Internship

"My interest in investment banking developed through a combination of 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 potential acquisition targets for a stock pitch competition. The experience of building models, conducting due diligence, and presenting investment recommendations showed me I wanted to work on real transactions.

My internship at [boutique bank/corporate finance] confirmed that interest. I worked on pitch books and financial models for M&A advisory, and I loved the fast-paced environment and the exposure to different companies and industries. I realized investment banking offers exactly what I'm looking for: intensive technical training, exposure to live deal work, and the chance to develop expertise in transaction advisory.

What specifically draws me to your firm is [specific reason—recent deal, sector strength, culture, conversation with alumni]. That's why I'm confident this is the right fit for me."

Example 2: Consultant Transitioning to Banking

"I've spent the past 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 the financial analysis—valuation modeling, due diligence on potential acquisitions, and transaction support. I realized 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 [coverage group/product group] because [specific reason]. From my conversations with [alumni/current employee], I understand the team focuses on [specific deal types], which aligns perfectly with where I want to develop my expertise."

Example 3: Non-Finance Background (Engineering, Science, etc.)

"I studied [engineering/science], 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 [class/project/competition] where I first worked on financial modeling and company valuation. I was fascinated by the process of analyzing businesses, understanding their operations through financial statements, and determining appropriate valuation.

That led me to pursue [finance club role/internship/certificate program] where I gained hands-on experience with M&A advisory work. I built financial models, analyzed deal structures, and worked under tight deadlines—and I realized this is exactly what I want to do long-term.

I'm drawn to investment banking because it combines the analytical rigor of my technical background with business strategy and real-world impact. The learning curve is steep, but that's what I'm looking for—intensive technical training and exposure to live transactions.

Your firm stands out because [specific reason—sector strength, deal flow, training program, culture]. That's why I'm confident this is where I want to start my career in finance."

Adapting Your Answer to Different Contexts

First-Round Screening

Superday with Senior Bankers

Coffee Chats or Networking Calls

Connecting to Other Interview Questions

Your "why investment banking" answer should align seamlessly with:

Inconsistency across answers raises red flags. Practice until your story is polished and coherent.

Practice Framework

Here's how to prepare your answer:

1. Write it out: Don't memorize word-for-word, but draft key points

2. Time yourself: Aim for 90-120 seconds for the core answer

3. Record yourself: Check for filler words, confidence, pacing

4. Test with friends: Get feedback on clarity and authenticity

5. Refine based on feedback: Adjust until it sounds natural

Important: Your answer should sound conversational, not robotic. Practice enough that you're comfortable, but not so much that you sound scripted.

Key Takeaways

Conclusion

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

Remember: 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 the 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'll stand out as a candidate who truly belongs in investment banking.

Master every interview question with structured preparation: Download our comprehensive guide featuring 400+ behavioral and technical questions with detailed frameworks, sample answers, and everything you need to confidently navigate IB interviews from first round to offer.