Why Investment Banking? Sample Answers

Patrick Curtis

Reviewed by

Patrick Curtis

Expertise: Private Equity | Investment Banking

Updated:

October 6, 2022

The content of this page has been improved and moved under our resources section.

You can check out the updated page here: Why Investment Banking? - What Investment Bankers Want to Hear

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Patrick Curtis is a member of WSO Editorial Board which helps ensure the accuracy of content across top articles on Wall Street Oasis. Prior to becoming our CEO & Founder at Wall Street Oasis, Patrick spent three years as a Private Equity... This content was originally created by member nickleeson and has evolved with the help of our investment banking mentors.

 

This question has a great deal of really bad answers, and a few safe answers. Stick with cookie cutter -- they are cookie cutter because they work.

CompBanker’s Career Guidance Services: https://www.rossettiadvisors.com/
 

I always went with, "Three reasons: the work - it's the type of stuff I enjoy, the experience - learn more in two years than anywhere else, you can take your experience with you anywhere, and the environment - I excel in fast-paced, competitive, intense environments." It worked pretty well.

 

Yea, you really can't blow anybody away with this answer, you just need to not screw up. All you can do is check the box and move on.

Nobody has ever gotten an offer with an answer to this question, but plenty of people have blown offers they already had in the bag...

  • Capt K
- Capt K - "Prestige is like a powerful magnet that warps even your beliefs about what you enjoy. If you want to make ambitious people waste their time on errands, bait the hook with prestige." - Paul Graham
 
Funniest

Bottles and Models?

Jack: They’re all former investment bankers who were laid off from that economic crisis that Nancy Pelosi caused. They have zero real world skills, but God they work hard. -30 Rock
 

It might help to tailor your response to the specific group you're interviewing with. For example, I was a CS major and expressed an interest in tech companies for my tech banking interviews. This works well with industry groups.

 
Leonidas:
Curious if Economics is considered a "liberal arts major".
If your just talking about the "useful" liberal arts and the "useless" liberal arts, it definitely falls in the first category.

I mean, when someone is bashing liberal arts they aren't talking about Econ, if that is what you were looking for.

 

Liberal arts = critical thinking skills.

Also teaches you how to write well and speak intelligently. I would even stereotype that liberal art's majors have better social skills compared to those that came from more technical backgrounds in engineering or even finance.

Perhaps I'm biased considering my liberal arts background. I studied economics and political science though. If you studied music or art then I highly recommend to double-major in something less ridiculous.

 
mb666:
Liberal arts = critical thinking skills.

Also teaches you how to write well and speak intelligently. I would even stereotype that liberal art's majors have better social skills compared to those that came from more technical backgrounds in engineering or even finance.

Perhaps I'm biased considering my liberal arts background. I studied economics and political science though. If you studied music or art then I highly recommend to double-major in something less ridiculous.

I am a Liberal Arts kid as well, but the "write well and speak intelligently" piece, even though I believe it to be correct, is not received well by interviewers. Better to talk about how you 1) have this liberal arts component, and 2) have increasingly become more interested in finance and the deal making process, as demonstrated by XYZ bullshit wealth management/other semi-related internship, and recent coursework, and whatever else you're using to back up your claim of interest.

"There are three ways to make a living in this business: be first, be smarter, or cheat."
 

As a liberal arts kid, depending on the school, you can talk about meaningful interaction with professors and learning how to "see the forest for the trees" so to speak; i.e. you understand what you are doing and why rather than just crunching the numbers. If you were an Econ major like I was, you can talk about having to derive Econometrics formulas, write original research papers, etc. which show a high level of not only intelligence but also innovative thinking (theoretically, at least). From my experience, this goes over very well at boutiques, and can go over well at BB's if you're dealing with people in a tight-knit group.

 

I am not in banking but I think it might appeal to people who enjoy the excitment of selling. Those who do not, will drop out soon, because money is not a sufficient motivator alone (for too long).

 

i really dont have interest in banking but it was the thing to do coming out of my college (think one of the ivys that prepares you specifically for selling out: ie: Princeton, Dartmouth) if it wasnt for peer group pressure...

 

because it is the most rigorous job anyone can have right out of college, and it offers the best skillset to start off a career in finance. no job in finance comes close to what you learn in ibanking, and none can measure your work ethic the way ibanking does. working on live deals that make headlines and shape the structure of corporate america is something that greatly appeals to me. whether i want to move up within the bank or pursue some other job in high finance, ibanking provides me the experience to do anything i want in finance.

i know many disillusioned, grumpy analysts on 2 hours of sleep will laugh at this and mock me, but its a good cookie-cutter answer that analysts and higher-ups love to hear when they ask me "Why banking?" and there is a degree of truth to it would imagine.

 
pedigreed monkey:
because it is the most rigorous job anyone can have right out of college, and it offers the best skillset to start off a career in finance. no job in finance comes close to what you learn in ibanking, and none can measure your work ethic the way ibanking does. working on live deals that make headlines and shape the structure of corporate america is something that greatly appeals to me. whether i want to move up within the bank or pursue some other job in high finance, ibanking provides me the experience to do anything i want in finance.

i know many disillusioned, grumpy analysts on 2 hours of sleep will laugh at this and mock me, but its a good cookie-cutter answer that analysts and higher-ups love to hear when they ask me "Why banking?" and there is a degree of truth to it would imagine.

I am one of those analysts, and let me say the following:

I cannot tell a lie...you arrrreeeeee, a monkey's...anus.

I used to spout all that shit, there is some truth to it, but there is so in the job of an analyst that is truly demeaning and soul crushing. It is impossible to understand until you do it. Really, truly soul crushing.

 

Well other than the mind numbing and menial formatting stuff, I do enjoy:

1) crafting strategical rationales for potential transactions, i.e. why would company A be a good target to company B? Does it add market share, scale, broaden the scope of products, or redefine business model for company B?

2) drafting management presentations because you can really learn a lot about a company and the industry trends and where it's headed (assuming you actually like the sector to begin with)

But yeah in the end it's really ALL about money. You say that it's the experience that you're after. Well yeah, but what do you need the experience for? To make MORE money in the future!!

 

I'm not sure what's worse: the fact that people BS their own rationales, or that they are very smart people, so they are completely cognisant of their own BSing.

For me, it's a chance to take what I enjoyed doing in college and put the skills to work directly. Alot of people enjoy what they study in college, and do something completely different with what they studied, which is fine, but wasn't for me. I am in because in two years, I will have skills that in high demand in places where you can actually do something good for others/yourself/your wallet (PE/VC/HF), or whatever your rationale is. People forget finance is just a tool. It's a tool to do whatever the hell you want: good things, bad things, smart things, dumb things. So for me, I'm building a skillset so that whatever I choose to do with it, I'll be able to do so.

/rant

 

Even though I wont be starting for a long time, I do see it as a job that will benefit me in the long run. I know the things I will learn, the work ethic I will build upon, and the networking opportunities can't be found in any other business field.

 

hey man, i dont think either alpha or theking explicitly disagreed with me. i know a lot of what i said is fluffy BS and the attitude behind it is very idealistic and naive, but thats the way you have to be in interviews if im not mistaken. analysts and other people in the industry frequently ask me "Why IB?" and in my post i gave the type of answer i would give them. its not like im making the job out to be super glamorous, im just saying that it builds a valuable skillset. even TheKing agreed that he has used these answers when he was a prospective

either way im not really "lying to myself" because among all the fluff, the bottom line of my answer is "IB is the best way to other careers in finance"

pedigreed monkey:
whether i want to move up within the bank or pursue some other job in high finance, ibanking provides me the experience to do anything i want in finance
Alphaholic:
So for me, I'm building a skillset so that whatever I choose to do with it, I'll be able to do so.

that was the last sentence of both of our answers, and its esentially the same thing. i dont mind if you flame or criticize what i have to say, but at least be accurate in your response.

 

I'm not criticizing you in particular, plenty of other people think the same way you. My comment was on the last part of your answer, the fact you're fully aware that you don't totally believe what you're saying. "Building a skillset" is included in your response that you admit you don't totally buy into. You say so after. There's no distinction by you in your statement about what you believe and what you just say because you think others like to hear it.

Which really makes me wonder: if that's the answer you give because bankers/interviewers like to hear it, do you have a real reason/s of your own? Maybe it's that you do want to build a skillset, but you're so confused about why you're in banking and why you say you want to be in that you can't tell the difference.

Not trying to flame anyone in particular. It's just a common response. People get so good at BSing that they forget what they actually wanted in the first place.

 

without a doubt, i do want to build a transferable skillset, and ibanking provides that more than any other career in finance. i never once denied that. i dont think the actual content of my response is BS, but the way it is worded is quite idealistic, and i knew many analysts on this board would laugh at my phrasing and think "oh just wait til he really experiences it." which is exactly what TheKing did, and its understandable becuase analysts do get disillusioned so quickly.

after re-reading my answer above, there is literally nothing about it that i dont truly believe. i was about to say its a half-lie, but its not even that. i do indeed like the idea of working on live deals, as opposed to the equity research im doing at my current internship that just stays on the internet for individuals to read. i just had to throw in that second paragraph to show that i know its not all bottles and models and that a lot of the novelty wears off fast.

i know what i want, and im not trying to BS my way into a job. but im sure everyone can admit that a little bit of BS by telling the person what they want to hear is sometimes necessary not only for interviews but life in general.

TheKing:
so in the job of an analyst that is truly demeaning and soul crushing. It is impossible to understand until you do it. Really, truly soul crushing.

even though ive heard this a million times, why would i ever focus on that in an interview? if you call avoiding talking about that stuff BSing, then it is what it is i guess

 

pedigreed - that's basically what you have to say. I realize everyone in banking feels it is their civil duty to come onto this message board and comment on how the "right" answer is lame as hell and that anyone who uses those pre-recited lines is a major tool. Even still, TheKing mentioned that he did use them himself.

Even the bullshit answers have some truths in them though. I generally said something along the lines of there's no job out of undergrad where you can take on as much responsibility right away or have exposure to senior bankers and/or potentially corporate executives. Well, what do those things have to do with anything? -- They help you to build the skill set you will take with you throughout the rest of your career, and enable you to move into other areas of finance such as hedge funds, pe, etc.

Bottom line though, the bullshit answer is generally the right one.

 

Underground -- they want to hear the cookie cutter answer.

I think a good answer is this (though not for an interview):

I want a job that is exciting, challenging, stable, and pays well. Unfortunately, these jobs are few and far between coming out of college. Ultimately, i have no interest in working 100 hour weeks. However, I would rather work 100 hour weeks in an exciting environment (eventually leading to a lesser workload) than 40 hours a week in a dull environment for the rest of my life.

So the true response is: I don't like either option, but banking sure beats the common alternative. Yes, I know there are a ton of other non-traditional ways to make a living, but i think stability is a very necessary requirement for all of us.

CompBanker’s Career Guidance Services: https://www.rossettiadvisors.com/
 

For 99% of kids, you have three options:

1) Stay in school (med school/law school) 2) Find a sh!tty paying job that lets you work 40 hours 3) Find a high-paying job that breaks your back

I didn't want to spend more time with my nose in a book, and I don't want to be making $40k and either scraping by in the city or living in some middle of nowhere town. Plus, odds are the back-breaking job will give you a helluva good shot at a better-paying, less-intensive job. It sounds cold but that's just the facts. Plus, I do like the financial concepts used in M&A, but I can't tell you it's my life's calling or something.

 

there are other high-paying jobs that are intellectually challenging (consulting, high-tech, trading) but you actually have to be smart for those...haha jk. truth be told, first years out of undergrad are starting at consulting with 85~ all in, google is 75 all in (for biz dev.). Banking is like 130. See the difference. Sacrifice intellectual/personal benefits for 50K a year.

 

Could people stop giving "i think a good answer is..." and "interviewers like to hear..." responses and just answer the OP's question: why are YOU interested in banking? We've all read the vault guide and what have you, but it is much more interesting to read what people's real reasons are.

Personally, I like the thrill of selling things/closing deals. I've worked on the edge of sales environments before (sales ops, brief periods of specialty sales, etc.) and love the pressure, competition, and the rush of closing a sale. However, I find most "products" to be relatively static and boring. Even in high-tech, you are selling a widget that just gets faster/better every six months. You spend your whole career selling the same thing to the same people against the same competition. What excites me about banking is that every company is different, and every deal has different dynamics of buyers/sellers/financials/strategy/etc. Not to mention the fact that if you are working (essentially) on commission, you want to be selling the most expensive things possible, which are companies. I've also worked 40 hours a week long enough to know that I desperately need more intensity to be happy with my work. The only time I care about/enjoy my work is when there is a fire drill, so I'm seeking out a job that has lots of those.

 

My personal obsession is owning property debt free. I am and always have been somebody who constantly thinks things are going to go wrong, particularly if they are going well (so I'm constantly convinced that I'm going to be fired in the next year even though rationally I know I most likely won't for various reasons). As a result I've always had it in my head that if I could work in banking for 4-5 years and get enough cash to buy somewhere small without much of a mortgage then at the very least I'd always have a financial safety net in place. So yes at the end of the day it comes down to money. I personally think that on the whole the job is actually pretty interesting and if it was a 9-9 five days a week I'd be happy to do it for the sort of cash consultancies pay. However the extra time requires extra incentive. I know I will reach a point where I'll feel that the extra time is more valuable that the extra money on offer but not there yet.

 

Things that you can stress is that there are more variety in Banking compared to Private Equity. Focus on the point that in Banking (M&A and Advisory), there are more variations in term of deal structures and financing options, and you personally find that to be more interesting. Although you like following the sector in both roles, PE is going to limit you to just looking for the exit (and mostly LBO modeling). As a result, you want to be expose to more different type of deals early in your career.

"I am the hero of the story. I don't need to be saved."
 

Tell them that you really like the transactional aspect of banking and the ability to jump from one deal to the next. In private equity, you have to help operate the company after an acquisition. You are more interested in the intricacies of doing deals than the more mundane operational work with management teams.

 
TechBanking:
Tell them that you really like the transactional aspect of banking and the ability to jump from one deal to the next. In private equity, you have to help operate the company after an acquisition. You are more interested in the intricacies of doing deals than the more mundane operational work with management teams.

Couldn't have said it much better than this. Thanks for pointing it out.

"I am the hero of the story. I don't need to be saved."
 

If you take into account that MBB will probably pay for Bschool then the money becomes a non-issue.

I really can't see why anyone would pick IB over a job at MBB, from what I've researched the work life is way better in consulting. I'm not sure if anyone knows for sure but I think that getting an offer at MBB is generally harder than GS but some might disagree.

 

There is a pretty big difference in terms of what consultants and bankers go on to do after the analyst stint, so it's hard to argue about exit ops being better from one to the other. I wouldn't quantify consulting as a "finance" career by any stretch of the imagination, consulting has a much broader scope and develops a different skillset. I think you are probably a little misguided in terms of what your perspective on consulting is, I doubt that consulting can be considered to offer better quality of life or better prestige.

Bottom line, consulting and banking are pretty different in terms of the type of work you do and the type of career path available. Not to say that consultants don't go to PE or HF and bankers don't go into industry, but it would be a little less likely.

Work-wise, banking is transaction driven, consulting is engagement driven. Very different environments. Sounds like you really need to look into both a little bit more.

 

As a first-year at MBB, you'll find no shortage of bitch-work as an Excel monkey. Overall, the hours are better and the work can be more interesting, but make no mistake that as a first-year you will receive more than your fair share of mindless activities at MBB or a BB bank.

It’s probably also worth noting, as freeloader pointed out, that consulting isn't considered "finance". Granted, you will have chances to interview at the same top PE shops as folks from banking (since these firms are well aware that they are much better off teaching finance to a very smart person as opposed to hiring a mediocre person with lots of experience); however, once you start looking at smaller shops (where the majority of PE associates reside) there is a general bias towards hiring bankers over consultants.

 

a) what the fuck do entry-level consultants even DO? i've heard/read more about these jobs than most people my age, and even i am not all that sure what their job description entails. seems to me that if something goes horribly wrong and you lose your job, a former banker can at least point to his resume and say, "these are specific skills that i've developed. i actually DID something at my last job." the consultant only has the ability to say, "i must be smart and prestigious, right?"

b) better exit opps? there's nothing a consultant can do that a former IB analyst cannot do. even if you are in corp fin at McKinsey, it's harder to get into PE than if you had direct investment banking experience.

look at it this way: IB is wall street. consulting is main street. IB is finance; it's fast-paced and exciting. consulting exit opps usually entail being stuck for years between layers of the hierarchy of a monolithic corporation.

_______________________________________ http://www.drmarkklein.blogspot.com/
 
danbush is a XXX:
a) even if you are in corp fin at McKinsey, it's harder to get into PE than if you had direct investment banking experience.

Don't make statements if you don't know what you're talking about. Top consultants at MBB absolutely get placed at large PE funds (and this isn't restricted to Bain Capital). From my class at an MBB, five went to Bain Capital, two went to TPG, one to KKR and at least four others ended up at funds with >$10 bn under management. Perhaps your statement holds true for MBB against GS and one to two other BB's, but aside from that its nonsense.

 

I was halfway through a really long in depth post as to the differences in experiences between the two experiences. But then I had an epiphany, it doesn't matter. People end up where they want to, if you want to go PE, you'll go banking then PE, or really really really top consulting then PE, or go hang out for 5 years anywhere you like, goto B-school and go into PE. Go where you want, meet people you like, and go there. Wherever you work, if they pay you a lot you have to work a lot (or a lot concentrated into a short period), so you better like who you're next to.

--There are stupid questions, so think first.
 

Do some more research on the industry- despite the gripes of many currently working in the industry, there's actually a plethora of reasons why IBD is attractive as an entry-level job (hint: don't say exit ops). Think high level of responsibility, people you're working with, the type of finance you're exposed to etc. It's out there, but its usually specific to each individual, and I'm not sure how many people on this site would give their "exact story". In short, this is a question you should be asking yourself.

 

Honestly, the answer I would want to hear is: "I've always loved finance and business and would love to be a part of exciting transactions that make a real impact on the business world. I want to make sure my clients get top dollar for the businesses they have put so much work into....and since their interests are aligned with mine, that means I get paid well for my efforts also...seems like an attractive career given it rewards my hard work and has a real impact"

I think that mentioning that money indirectly is what makes it ring sincere. I don't think there's anything wrong with wanting to make a lot of money. Why people think this is taboo is beyond me. Money matters.

 

this is how much I banking sucks...people have to ask other random people on the internet as to why they want to do it

"Life all comes down to a few moments. This is one of them." - Bud Fox
 
noke2012:
this is how much I banking sucks...people have to ask other random people on the internet as to why they want to do it

correction: Not why they want to do it. It is rather what I have to say in the interview

 

Reading Liars's Poker the first chapter about investment banking said something that is very funny and very true - ib interviews have set questions and set reponses you are supposed to recite. No need to try to "reinvent the wheel here" [awesome banker boilerplate right there]

analyst investment banking is about finding shit people have already done that worked, ctrl c, ctrl v, updating if needed and ta-da! it works again. same approach should be taken to interview.

so why ib? Boilerplate answers -

  • Fast paced
  • challenging and intense
  • Smart people
  • excitement of working on deals
  • big picture thinking

BOOM there you go, your interviewers will nod in agreement and think you are the greatest thing since the leveraged buyout

 

There are many reasons and if you don't know why beyond money, I have a feeling you will not enjoy the work. Many other jobs pay well with hard work, and so you should love the work you are doing.

"Everyone has a plan until they get punched in the face."
 

for the "interview question" thread. There were some recent posts regarding this issue. Here was my advice:

Talk about the steep learning curve, a ton of exposure to both senior level bankers and c-level executives, high levels of responsibility, working in a deal / transaction environment, exposure to how businesses are run in a variety of industries, exposure to all the different financial products, etc. Don't talk about exit opportunities or money.

 

I'm kind of pissed that there was a truthful response to this thread. If you don't know why you want to be in i-banking or you are just doing it for the money and exit opportunities - you will not make it 2 years. This is a brutal environment and if you don't enjoy what you are doing, you will want to kill yourself. My prediction, 6 months 1 day.

 

Slightly agree with slickmac -- you really ought to have your own reason, that isn't cheap, corny, or about the money/exit ops. Though it was funny, the bank I ended up accepting an offer from kept selling ME exit ops ("We have great out placement!"), which I hadn't even thought of at the time. Anyways, there are a ton of great answers to this question, you just need to find them yourself. If you can't, then your probably missing out on the best parts of this job, and I'm not talking about $$$ or exits.

CompBanker’s Career Guidance Services: https://www.rossettiadvisors.com/
 

I interviewed with a top BB. As an non-business major from a non-target, I thought the education, optionality (mobility within the group, mobility within the team. was emphasized), and just pure interest* was compelling.

*I love the micro economics of the industry group I was offered. Each industry group is different in terms of business models, revenue streams, cost structures, and consequently offer different opportunities. For example, industrial firms might have higher leverage associated with relatively larger amounts of physical capital. LevFin transaction makes sense here, as compared to say the technology industry with very little leverage through its capital structures. The transaction opportunities associated with the peculiar microeconomics of the industry seem interesting. At this point in my career, I am interested in working with as many different types of transactions as possible.

 

Don't bring up the real reasons you want to do banking. ($$ and exits). Tell them that you enjoy the competition and can't stand losing. In the end, they don't think money will keep you there but they think that uber-competitive people will thrive. That's why JPM told Business Week that they liked recruiting college athletes.

 

"I am interested in banking because it will enable me to see different businesses accross a wide array on industries and sectors. Although I have started my own company in the past, it tied me down to only seeing one ________ of industry/business. In banking, I will see different types of companies while learning that financial skillset that I have decided I would like to obtain. I am also really into a team environment as I have played sports/member of a club in the past, and there is no better team environment in banking where you are working alongside bright and motivated people".

 

scale - your company is pretty small by any standards, and you believe that you need something else (knowledge) in order to have a bigger 2nd venture. banking is a good way to acquire that knowledge as you work on deals that involve complex and large companies, thereby giving you insights on how to build better enterprises. you believe that 10 years down the road that the knowledge from banking will make you a better professional whether at that point you decide to stay in finance or try your hand at another start up.

 

why mm "get more responsibility and experience in the deal team. tighter deal teams. more snr level exposure"

why bb "get to work on newspaper headline deals, get the great training program, get the resources of a full service (cap mkts and M&A) bank, and corporate/commerical banking capabilities for financing alternatives (if at a Citi, JPM, BofA)"

....or so the proper interview answer goes

 

For recruitment you want to figure out what Bank X wants you to tell them; this could be a variety of things on your end. The generic answer is "I love the competitive environment, being surrounded by smart people, and the excellent learning experience", or some variation of this. You probably want to throw in a specific reason you are interested, background permitting.

Personally I like banking because success after you start as an analyst isn't contingent on whether you stay in that career or not. Regardless of whether you go Associate-track at a bank or move to the "buy-side" or go to Corp Dev, or whatever else you do, you'll probably be pretty successful simply because banking teaches you a lot of things in a very short amount of time. This is different than other careers where you are sort of 'locked in' to a particular field or area. Probably not a good interview answer, but something to consider.

 
rockpaperscissors:
What's your answer for this question? Just wondering what people usually say, I'm having a hard time putting it all together.

I don't and never did, but looking back on it, I didn't know that at the time. You don't realize that you don't want to do investment banking until you are doing investment banking, and by then, for most of us, it's too late.

Run a search in the forums as this question has been asked a number of times and lots of good answers have come up. The truth is, all the best parts of investment banking are ones that you can't speak to in an interview (exit ops, money, etc.). If those are truly the only reasons you're getting into it, then you've got a tough road ahead.

CompBanker’s Career Guidance Services: https://www.rossettiadvisors.com/
 

Interview answer: fast paced, lots of responsibility, steep learning curve (which are all true, just way over used)

Personal answer: financial security in the future (maybe??), prestige (sad, but kinda true), interesting work for the most part, and my own competitive nature (because it feels good to beat out xxxx number of candidates for only 1-2 spots).

 
Associate_MA123:
I was going to answer this after reviewing the subject. I proceeded to read the actual post and have decided against it. Retail Banking might be a better fit for you.
Why retail banking?
Live like an artist and work like an analyst......
 

Associate is right you don't really deserve an answer.

-Gorilla A. ------------------- “I've forgotten who I had lunch with earlier, and even more important, where.” ― Bret Easton Ellis, American Psycho
 
HFFBALLfan123:
Yeah, talk about exit opps. That is like telling a girl you want to date her to increase your chances of smashing her friend...

I just found my game plan for the club this weekend, will let you know how it goes.

As for OP, I can see why people have problems with the 'why this bank?' questions, but if you can't beat your chest into a frenzy about why banking, it might be time to look back office.

 
FrankD'anconia:
When I'm on interviews and get asked a question I don't know, I just hang up the phone. Then you call right back and say how you must have lost connection and just bank on them moving on.

What if you get 2 hard questions in a row. Hang up and call tomorrow lolz

 
FrankD'anconia:
When I'm on interviews and get asked a question I don't know, I just hang up the phone. Then you call right back and say how you must have lost connection and just bank on them moving on.
I do something similar in office visits. When asked a tough question, I leave the room, take a lap around the floor, and then re-enter the interview room. At this point I introduce myself and begin as if it is the start of the interview. Works every time.
 

honestly most people give the exact same answers, but i think giving a personal+slightly different answer helps you stand out a lot.

i worked at a really small boutique my sophomore year, and so i got a lot of client interaction. So, for my 'why banking,' i talked about how i really enjoyed 1. being able to humanize a company/put a face+personality to a business 2. the relationship driven nature of investment banking and cultivating that skillset in the long run

 
kidflash:
honestly most people give the exact same answers, but i think giving a personal+slightly different answer helps you stand out a lot.

i worked at a really small boutique my sophomore year, and so i got a lot of client interaction. So, for my 'why banking,' i talked about how i really enjoyed 1. being able to humanize a company/put a face+personality to a business 2. the relationship driven nature of investment banking and cultivating that skillset in the long run

Thanks dude, it helps a lot....
Live like an artist and work like an analyst......
 
kidflash:
honestly most people give the exact same answers, but i think giving a personal+slightly different answer helps you stand out a lot.

i worked at a really small boutique my sophomore year, and so i got a lot of client interaction. So, for my 'why banking,' i talked about how i really enjoyed 1. being able to humanize a company/put a face+personality to a business 2. the relationship driven nature of investment banking and cultivating that skillset in the long run

Thx, dude, One more quick question, how to break into a boutique IB?
Live like an artist and work like an analyst......
 

I've actually heard a few candidates say they wanted to do banking to get rich and the interviewer loved it. In this case that was what the interviewer started banking to do so he related well. You really need to paint the picture of how you life led you and prepared you for banking with your resume and personal experiences.

 

I call total BS on this one. Seriously, stop lying.

The best answer would typically be some combination of: -excitement of working on big deals -caliber of your colleagues -gaining a strong financial foundation to either continue in banking or move on to something else -strong interest in finance (best if you are a finance major and can otherwise demonstrate a history of "finance loving")

ap:
I've actually heard a few candidates say they wanted to do banking to get rich and the interviewer loved it. In this case that was what the interviewer started banking to do so he related well. You really need to paint the picture of how you life led you and prepared you for banking with your resume and personal experiences.

I call total BS on this one. Seriously, stop lying.

The best answer would typically be some combination of: -excitement of working on big deals -caliber of your colleagues -gaining a strong financial foundation to either continue in banking or move on to something else -strong interest in finance (best if you are a finance major and can otherwise demonstrate a history of "finance loving")

 

If you want to say $$$, you are taking a big risk. Some interviewers think it's brilliant, while many others I know deem it an automatic ding. For analysts, say something along building skill-sets, excitement of being involved in headline transactions, aptitude for numbers/finance etc. Draw on your past experiences (family, school, part time work etc.) to support your reasons.

One more thing: if there is one question that you want to answer with conviction and passion, this is it. Look the interviewer in the eye when you deliver your answer. How you say it is just as important as what you say.

I think i did a pretty good job at faking passion during my interview. No one really likes banking. People like the $$$ and the perceived prestige.

 

Genuine, honest answers are ALWAYS the best. Even if they don't relate, they'll detect it. And never miss an opportunity to get 'em laughing... "Bottles and models, next question."...priceless

This question varys depending on your area, you answer it differently (by displaying your skills) depending on which area your going to S&T, CorpFin/M&A, Research etc...

Talk about how your activities relate to the division too.

 

This is wrong for a couple reasons. First, there are lots of ways you can make the same or more money as in banking and do it with significantly less work. Hedge funds and PEs, for example, make more with less work, and outside of finance you could start your own business and make more money with less effort. And then there are other methods like selling drugs (not that I'm recommending anything illegal).

Good answers to give:

-You want to be Jack Bauer - you like excitement and the rush that comes from not knowing what each day will bring or what will happen. Every day really IS different.

-Strong interest in a career in finance - no better way to enter than banking.

-Learning - works especially well if you're coming from a non-finance background. You will learn a ton especially in the first 6 months or so, more than in most other jobs.

I would not mention anything like money, prestige - these could work really well depending on your interviewer or they could backfire and make you lose the job.

I'm writing an upcoming blog post on this very topic so stay tuned.

 

"You want to be Jack Bauer - you like excitement and the rush that comes from not knowing what each day will bring or what will happen. Every day really IS different."

If someone told me they wanted to work in finance b/c they want to be Jack Bauer....i don't think i'd be able to contain myself....

 

Banana_Milkshake and dosk17 have it right. $$$ is indeed way too risky unless you really have a good feel for the personality of the interviewer. second, this is absolutetly the most important question you can be asked if you are new to banking. it's your chance not only to show you have the right personality and attitude but also to show that you have a basic understanding of what the job entails (i.e. do you know what you are getting into). don't underestimate the importance of the latter.

a link to some examples of what to say: http://www.ibankingfaq.com/interviewing-common-qualitative-fit-question… and what not to say: http://www.ibankingfaq.com/interviewing-common-qualitative-fit-question…

Author of www.IBankingFAQ.com
 

Dosk17,

I would love to see you try to make more money with "significantly" less effort engaging in any of the aforementioned endeavors. To say that you can make more in HF/PE with less work is asinine (unless you are referring solely to total # of hours) and I bet you couldn't even run a successful banana nut bread lemonade stand on the corner, which also requires significant effort.

I'm also still trying to find a single similarity between Jack Bauer and an investment banker, good analogy.

 

My big pont was that I am not sure what I want to be doing in 10 years but I have enjoyed my previous m&a experience and that there is no better way to prepare myself for the future careers in finance.

I did have one MD who told me that he found it funny how things had changed since all he told his Drexel Burnham interviewer was that he wanted to make as much as he could as quickly as he could, but granted it was the 80's when greed was good.

 
jws43yale:
I did have one MD who told me that he found it funny how things had changed since all he told his Drexel Burnham interviewer was that he wanted to make as much as he could as quickly as he could, but granted it was the 80's when greed was good.

I so wish it was still cool to say that. I think I could deliver that line pretty DAMN convincingly ;)

 

I wouldn't even bother finishing an interview with a kid who had the balls to say "money". Of course, I also would never ask that question.

Here's a suggestion: let's say you come to work in M&A, versus going to work for a company, any company. Where are you more likely to meet the company's CEO, CFO or Board members? In which situation is your work more likely to influence their decision making? That's why you'd want to be a banker.

That's an answer you can deliver with some conviction and with at least a modicum of credibility.

 
Banana_milkshake:
I honestly don't think that you can influence CEO thinking as an analyst. LOL.

Don't be silly - of course not.

What I said is that as an analyst, you may sit in meetings somewhat regularly with people like Ivan Seidenberg or Doreen Toben. You go to work for Verizon out of college and you're a long way from ever catching a glimpse of them. And the analyst's work will definitely influence the CEO's strategy.

Make no mistake, if one of my analysts decides to speak out of turn at a client meeting with, say, the Board of 3M and I will end his career that same day. As an analyst, you do not advise companies. I do. You support my ability to provide sound advice, and in return for that I bring you along to learn about what you might do someday when you sit in my seat. Regardless, that puts you a whole lot closer to the executive suite at your Fortune 500 client than almost anyone short of the CFO of that company.

 

Because I need some way to get tuition for law school.

Of course, I'd never say that.....I'm thinking I'll interview for IB, apply to law school at the same time, do the internship (if I don't get dinged), and "decide" to go to law school when I intended to go to law school all along. So my parents can't say "I thought you were gonna do finance." I'll say "it didn't work out so I'm going to law school."

"We are lawyers! We sue people! Occasionally, we get aggressive and garnish wages, but WE DO NOT ABDUCT!" -Boston Legal-

"We are lawyers! We sue people! Occasionally, we get aggressive and garnish wages, but WE DO NOT ABDUCT!" -Boston Legal-
 

"We are lawyers! We sue people! Occasionally, we get aggressive and garnish wages, but WE DO NOT ABDUCT!" -Boston Legal-

"We are lawyers! We sue people! Occasionally, we get aggressive and garnish wages, but WE DO NOT ABDUCT!" -Boston Legal-
 

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