The ongoing Covid-19 virus outbreak has only accelerated dealmaking in fintech, especially in Singapore and Southeast Asia, where digital banking applicants and traditional banks alike are shoring up their capabilities to compete in the new market, according to Senahill's new regional CEO.
«The virus has not slowed things down. It’s made it very clear to everyone that if they’re going to do something, they need to do it as soon as possible.,» said Frank Troise, Senahill Partners' newly appointed regional CEO, in an interview with finews.asia.
«In white-collar space that we’re focused on, the infrastructure still works, the piping still works, the technology still works. So deals are still getting done. But it has created a heightened sense of urgency,» Troise said.
The investment banker and fintech specialist said that none of the 21 consortia applicants who have applied for the license in Singapore are ready to become a full digital bank, so they need to quickly build their capabilities, and as a consequence, are scrambling to buy what they need.
Demand for Fintech Capabilities
Senahill, one of the United States’ leading fintech-focused merchant banks, opened its Singapore office in February, hoping to capitalize on the introduction of digital banking licenses in the region, and the demand for fintech capabilities among applicants.
As regional CEO, Troise will further his cross-border investment banking efforts toward digital inclusion, with a continued focus on bringing American companies to the Asia-Pacific region.
«This endeavor is predicated on the digital banking push happening right now here in Singapore. We felt very strongly that this is a once-in-a-lifetime opportunity in the market,» Troise said.
Consolidation Expected
Troise said he expects an «enormous wave» of consolidation that for the rest of the universe of fintech companies that don’t get acquired as part of this process. «We see it not only occurring in Singapore. We see it happening here first, then rolling out towards the rest of Southeast Asia for the remainder of this year, and going into 2021.»
«If you’re a smaller firm in this environment, you have to start making some quick life or death decisions over the next six to nine months, because I don’t think they’re going to be able to compete,» Troise said.
«It doesn’t matter where they are now – series A, B or C – it is a very difficult time to initiate capital raising. For an early-stage or start-up company with limited capital, we’re encouraging them to have more strategic conversations with their strategic investors.»
