How to Answer the Interview Question: "Why Finance?”

Interview Preparation
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The questions “Why finance?” or "Why do you want to work in the finance industry?” are difficult to answer because of their generic nature.

Here are a few base answers that are frequently given:

  • Enjoying working with numbers
  • A willingness to learn and evolve
  • Wanting to work alongside like-minded people
  • Thriving in high pressure environments

What Does the Interviewer Want to Hear?

Here are a few points the interviewer will want you to evidence in your answer:

  • That you understand the financial industry
  • That you know why you want to work in finance
  • That you know what to expect working in finance

1. You Understand the Financial Industry

The finance industry is a vital, fast-paced and continually evolving area. Its ethos is focused on financial data and economics.

It is a varied industry that involves many technical and soft skills.

Whoever is interviewing you will want to see your understanding of the range and impact finance has on the world and that you fully comprehend the importance of the job.

2. You Know Why You Want to Work in Finance

This might seem like an obvious enough question; however, understanding why you want to work in this industry is crucial.

Could it be the quality of people? The challenges? Your love of math? Or could it be the financial rewards?

If it is the latter, you should not mention this when initially asked this question – we will touch upon why later in the article.

Try to answer this question honestly to yourself first and perhaps take notes of the main reasons why this industry appeals to you in a bullet point list.

As soon as you start writing down your list, you could discover a reason you might not have realized before. This could potentially set you apart from other candidates. Candour is always appreciated at interviews.

3. You Know What to Expect When Working in Finance

If you are a recent graduate with limited work experience, you might not possess experience working in the finance industry as a full-time employee.

Therefore, hiring managers want to ensure you comprehend the realities of working in the finance arena and in the role you are applying for, and have the correct skills and qualifications that will ensure you are successful.

Sometimes, you will be expected to work long hours as you will be handling significant amounts of data; therefore, displaying that you are aware of the hard work that goes into this industry and have the attention to detail necessary is appealing to an interviewer.

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Investment banking, markets, and research are common areas of employment in the finance industry (my knowledge about these jobs is limited so I might have missed some points here and there). Because the most sought-after companies in this field have a limited number of openings, they prefer candidates who have excelled academically (Gold medal in undergraduate education and All India Rank in CA Foundation, Intermediate, and/or Final) and/or who have passed at least one level of certifications such as CFA, FRM, CAIA, and so on. This significantly reduces the pool of candidates, at least during the summer placement period. In this field, the PPO to internship offer ratio is a little lower than in consulting, with some firms offering conditional PPOs.

People who want to work in this field must get exceptional grades and select financial electives. Completing at least one CFA, FRM, or CAIA level lends credibility to their resume. If all of this is accomplished, students will almost certainly receive shortlists and even job offers from these companies during final placements.v

Even if you don’t land an internship with these firms, if you achieve strong marks and establish your profile according to your area of interest, you will certainly get opportunities in these areas for final placements.

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For acing the finance companies during placements, the candidate must ensure all the concepts of financial management, accounts, security, and investment analysis. Financial product firms look for these concepts, but for banks knowledge of financial statement analysis provides leverage.

All listed companies had their financial statements and annual reports submitted on the internet to get some practical knowledge. Could you go through them to get an idea? Basic knowledge or a go-through of the concepts will give you an idea. Later on, when questioned into the interviews, you’ll be able to connect the dots and answer.

Examine some financial or business websites, such as Harvard Business Review, in addition to your academic understanding. Keep up with the economic situation in and around your country by reading business newspapers.

  • Finance Fundamentals is a good place to start. You should be well-versed in it because most employers would ask you about finance fundamentals. You should be well-versed in financial statement preparation.
  • It would help if you were well-versed in the fundamentals of the disciplines you study in school.
  • If you have completed an internship with a financial firm, take it seriously because it is paramount for a placement interview.
  • Every day, read an excellent business newspaper.
  • Make a list of the concepts or use flashcards to help you remember them, then ask and answer questions yourself.
  • For concept cleaning, you should also check out Money Control and Investopedia.

Examine some financial or business websites, such as Harvard Business Review, in addition to your academic understanding. Keep up with the economic environment in and around your country by reading business newspapers.