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Cross River Bank and CRB Securities are moving into the investment banking space.
The firm’s investment banking team assists fintech companies with mergers and acquisitions, capital market transactions, and other corporate finance decisions, according to a Monday, Feb. 26 press release. It will be led by industry veterans Benjamin Samuels and Henry Pinel.
“We are proud to launch the broker-dealer’s investment banking division with two industry-respected experts who combine decades of experience in both the fintech industry and capital markets. ,” said Jill Gade, Founder and CEO of Cross River. release. “Ben and Henry are tasked with further strengthening our product offering to fintech partners and other companies, enabling us to solve the individual needs of every client.”
According to the release, CRB Securities has previously focused on assisting clients with private credit transactions, primarily asset-backed securities.
“The decision to expand into investment banking was made in light of the growing demand for creative solutions in fintech and our commitment to serving the strategic needs of all our clients,” the release said. ing.
Mr. Samuels joins CrossRiver after serving as co-head of alternative capital solutions within Morgan Stanley’s Global Capital Markets group. Mr. Pinel previously served as Senior Managing Director and Head of FinTech Investment Banking at SVB Securities. Both will co-head the investment banking division.
Last year, PYMNTS spoke with Anthony Peculik, Head of BaaS and Cards for FinTech Banking at CrossRiver, about the challenges facing small and medium-sized businesses (SMBs).
“It’s definitely a perfect storm, and not in a good way,” Peculich told PYMNTS.
He added: “Given that the cost of capital is at an all-time high, interest rates are very high, and banks and other service providers are stepping up their offerings, small businesses are finding it difficult to find sources of financing at the moment. “We are in a difficult situation,” he added. “And that’s not to mention the challenges small businesses face from consumers who are facing similar macro pressures.”
During the pandemic, small businesses relied on financial lifelines like the Paycheck Protection Program (PPP) to weather the crisis. Once these funds were depleted, they faced inflation and rising interest rates, making traditional funding sources less accessible and affordable.
However, while access to finance is a critical factor for the survival and growth of small businesses, as seen in “Next Steps for Credit: How Lack of Credit Access Impacts Small Businesses,” PYMNTS Intelligence and CrossRiver A study by found that 60% of small businesses are denied a loan. Access to the funds you need.
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