Why do you want to work in investment banking?
Theme: Motivation Role: Investment Banker Function: Finance
Interview Question for Investment Banker: See sample answers, motivations & red flags for this common interview question. About Investment Banker: Advises clients on financial investments and deals. This role falls within the Finance function of a firm. See other interview questions & further information for this role here
Sample Answer
Example response for question delving into Motivation with the key points that need to be covered in an effective response. Customize this to your own experience with concrete examples and evidence
- Passion for Finance & Economics: I have always been fascinated by the world of finance and economics. I enjoy analyzing market trends, studying financial statements, and understanding how different factors impact the global economy. Investment banking provides an opportunity to work at the forefront of these fields, allowing me to apply my knowledge and skills to help clients make informed financial decisions
- Challenging & Dynamic Environment: Investment banking is known for its fast-paced and challenging nature. The industry constantly evolves, requiring professionals to stay updated with market trends, regulations, and financial products. This dynamic environment excites me as it offers continuous learning opportunities and the chance to work on complex financial transactions that have a significant impact on businesses and economies
- Deal-Making & Problem-Solving: Investment banking involves deal-making and problem-solving on a daily basis. I am drawn to the opportunity of structuring and executing financial transactions, such as mergers and acquisitions, initial public offerings, and debt issuances. These transactions require strategic thinking, negotiation skills, and the ability to analyze risks and rewards. Being part of such high-stakes deals and contributing to the success of clients is a rewarding aspect of investment banking
- Teamwork & Collaboration: Investment banking is a team-oriented industry that thrives on collaboration. Working in diverse teams with professionals from various backgrounds fosters creativity, different perspectives, and innovative solutions. I enjoy the idea of working alongside talented individuals, leveraging each other's strengths, and collectively achieving common goals
- Global Exposure & Networking Opportunities: Investment banking offers extensive global exposure and networking opportunities. The industry operates on a global scale, allowing professionals to work with clients and colleagues from different countries and cultures. This exposure not only enhances my understanding of international markets but also provides a platform to build a strong professional network, which is crucial for long-term career growth in finance
- Potential for Personal & Professional Growth: Investment banking is renowned for its rigorous training programs and the potential for rapid career progression. The industry demands a high level of dedication, analytical skills, and attention to detail, which I believe will push me to constantly improve and develop as a professional. The exposure to diverse industries, clients, and financial products will broaden my skill set and open doors to future opportunities in finance
- Financial Rewards: While financial rewards should not be the sole motivation, investment banking offers attractive compensation packages. The industry recognizes and rewards hard work, long hours, and exceptional performance. The potential for significant financial rewards is an added incentive that aligns with my career aspirations and long-term financial goals
Underlying Motivations
What the Interviewer is trying to find out about you and your experiences through this question
- Passion for finance: Assessing if the candidate has a genuine interest in the field of finance and investment banking
- Understanding career goals: Determining if the candidate sees investment banking as a long-term career path
- Fit with company culture: Evaluating if the candidate's values align with the organization's culture and values
- Analytical & problem-solving skills: Assessing if the candidate possesses the necessary skills for investment banking, such as critical thinking and problem-solving abilities
- Commitment & work ethic: Determining if the candidate is willing to put in the long hours and hard work required in investment banking
Potential Minefields
How to avoid some common minefields when answering this question in order to not raise any red flags
- Lack of knowledge about investment banking: Not being able to articulate the specific role and responsibilities of an investment banker or the industry as a whole
- Lack of passion or genuine interest: Giving generic or vague reasons without showing enthusiasm or a clear understanding of the field
- Money-focused motivation: Emphasizing the desire for high salaries or financial rewards as the primary reason for wanting to work in investment banking
- Inability to handle high-pressure environments: Not demonstrating resilience, ability to work long hours, or handle stressful situations that are common in investment banking
- Lack of teamwork & interpersonal skills: Failing to mention the importance of collaboration, relationship-building, and effective communication skills in investment banking