The following personal statement is written by an applicant who got accepted to several top business schools in investment banking. Variations of this PS got accepted at U Chicago, UPenn and Columbia. Read this essay to understand what a top personal statement in investment banking should look like.

Example Personal Statement of Investment Banking

Through his Hierarchy of Needs, Maslow delineates human desire and struggle to attain a state where one realizes maximum potential; for some, this maximum may not have any limit. Fulfillment of basic needs drives a desire to meet advanced needs. My parents contributed significantly to fulfilling my basic physiological and security requirements. Educational accomplishments became a source of boosting my self-esteem, and two years of professional experience filled with numerous learning opportunities added to it. So far, I have mostly been at the receiving end. Moving further, I want to give back to society. For this purpose, I need to equip myself better and broaden my exposure, and there cannot be a better way of doing so than through the medium of education.

In Brazil, SMEs employ 80 percent of the total non-agricultural labor force and contribute 40 percent of the country’s real GDP. However, financial constraints on SMEs, such as low access to formal financial sources, result in suboptimal utilization. SMEs need to realize their maximum growth potential. Despite efforts to increase this sector’s financial accessibility, only 6% of the SMEs in the country get their financing requirements through traditional sources. This forces them to resort to informal but exploitative means of finance. This bankrupt credit system of Brazil is ripe for some creative disruption, and that’s what I plan to do after my Master’s.

Four years of experience in the banking industry has exposed me to its major functions. While working for the credit department of a commercial bank, I was acquainted with the skewed distribution of loans. This, in turn, results in the financial exclusion of some essential country segments. The corporate sector’s share in the credit is 66% compared to a mere 8% for SMEs; this is ironic since these enterprises represent 90 percent of the total firms operating in the country. High transaction costs, broken regulatory frameworks, and information asymmetries are some factors that increase the associated risk, resulting in indifference toward SMEs by financial institutions. Innovation in financial products and the development of risk mitigation strategies can help enhance this sector’s financial inclusion.

The financial markets in Brazil need more depth, specifically for SMEs, as banks are this sector’s primary formal source of finance. Alternative financing options in the form of equity markets, venture capital, crowdfunding, etc., are either nonexistent or at a nascent stage. Thus, there is significant room for innovation in designing financing solutions for SMEs in Brazil. In addition, enhanced financial inclusion is accompanied by a greater risk to financial stability. The associated risks must be identified and managed to maintain a balance between the two. To contribute towards this area, I need to pursue a finance degree focusing on Financial Markets/Portfolio & Risk Management. An advanced education will help me explore various financial models and tools available and familiarize myself with a risk evaluation and mitigation strategies.

Using my four years of banking experience, I can grasp advanced knowledge from the perspective of the challenges faced by Brazil. Upon my return home, I want to be part of the institutions continuously working on developing and improving the financial system for the country’s underserved sectors. Therefore, I will resume my job with my current employer, where my upgraded knowledge will help me design better policies based on market demand and international best practices. In addition, different multilateral institutions like ADB and WB are closely coordinating with Brazil’s central bank to improve the country’s financial inclusion. Therefore, my qualifications could be utilized effectively in these institutions as well.

Limited access to finance by SMEs is also a constraint in the US, specifically post the financial crisis of 2008. However, the US offers relatively greater financing avenues for SMEs as these entities are not entirely reliant on banking credit. Moreover, the US has adopted higher risk management and supervisory standards since the financial crisis has made it costly and less attractive for the banking industry to lend to this sector. In this regard, offering financing solutions to SMEs while maintaining financial stability is one of the challenges. Moreover, developing new optimal financing models to improve the flow of credit to SMEs is considered an important area in the US.

In addition, the cultural exposure I would gain through this experience would allow me to grow as a person and explore and appreciate a lifestyle different from my own. This training would prepare me for new experiences, opinions, and viewpoints – crucial to my area of interest. Developing financial markets for SMEs requires acknowledging this sector to be different from the conventional corporate credit market.