Investment Banking Interview: Questions, Answers, Guide & Tips

Investment banking is one of the most challenging professions today. Since it is a monetary position, the questions are more acute compared to questions in other professions. This is because an investment banker is responsible for the investments and financial futures of individuals, families, and businesses.

This article brings questions and answers for an investment banking interview with tips. It comprises:
1. General questions.
2. Entry level investment banking.
3. Professional investment banking.

1. General Interview Questions

There will be typical interview questions about your education and your qualifications.
The interviewer may actually ask your grades at the business or finance school, MBA business administration, or the departments of finance, accounting, or analysis. This is when the name and reputation of the academic institutes that you attended are important.

Make sure to answer all the questions factually and truthfully. Any error will leave a negative mark on your credibility and may have you lose the interview even before you actually begin answering questions that are in line with your qualifications and the job that you have applied for.

2. Entry Level Questions, Tips, & Answers

Here is a brief guide to generally asked questions for entry level jobs during an investment banking interview:

► Why do you want to become an investment banker?
This is a common question to someone who shows their willingness to join one of the most lucrative professions today. An example of many possible reasons is the money that this job offers. Such individuals may not actually be interested in the work that an investment banker has to perform on a daily basis.

The best way to answer this question is to inform the interviewer about your genuine interest in the profession. You should also mention  that you would like to act as a safeguard of people’s dreams and ambitions by imparting knowledge about what would be the best investment options for them.

► What are your long term career goals as an investment banker?
This question tries to gauge whether you are serious about your career and about working with the bank in the long term. Since it is a financial post, it is quite important for the bank to hire employees who have decided or are prone to decide to stay with the same bank for a long time.

3. Professional Questions and Answers

Here is a guide to prepare for a professional level interview:

► Why do you want to work with our bank?
This is another question that may be viewed as a trick question, but it basically aims to find out whether you have researched the profession and the job that you aim to do. When asked this question, talk about the history of the company. Make sure to stress that you consider working with the firm a definite step forward in your professional life.

► What are the most important qualities for an investment banking career?
This question is really about your academic qualifications and the reasons that you decided to become an investment banker.

To answer this question accurately, you need to refer to your books and understand the concepts that were taught to you in business school. Make sure that the interviewer is confident in your ability to work well with numbers, that you are  well-informed of current and past market statuses, and that you have a solid and dependable financial strategy. These are some of the most important qualities for a career in investment banking.

► What was the most challenging situation that you faced during the stock market fall?
The recession and the fall of the stock market are still fresh in everyone’s mind. Being a person in the financial business, you are bound to have certain experiences during those challenging times. The interviewer wants to know how you handle such situations. The best way to answer this question is to be truthful about any situation that you came across as the stock market fell.

► How do you secure investments? Describe your daily flow of work.
Once the interviewer is satisfied with your skills and that you fit the job, you will be asked questions that are related to your day-to-day activities as an investment banker. At this point, it is safe to assume that you have a good chance of being employed by the company.

To answer this question, ensure that you have done your homework and know the particulars of the business. The best answer, of course, is that you take the traditional way of investing a part of the money in growing companies, while creating a small nest egg in government and government-subsidized companies.

► Describe your investment bank strategy in general. What is your work technique? What methods do you use?
When the interview moves ahead, you will be asked several questions that seem ambiguous but are basically questions that are aimed at knowing whether you are aware of certain situations in the investment market, and what your responsibilities as an investment banker for an individual, family, or company are.

Other questions that can be asked are about your knowledge and use of signs and tools for evaluating the market direction, such as stocks or foreign exchange market software.