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In financial technology expansion is often seen as the natural next step for growing companies. But moving into new markets, especially international ones, isn’t a straightforward process. As financial software providers aim to scale their offerings globally, several challenges come to light — from understanding the structural complexities of different regions to navigating mergers and acquisitions.
At FinTech Weekly, we believe the future of fintech hinges not only on technological advances but on the people and strategies driving these changes. That’s why we had the opportunity to speak with Elias Apel, CEO of Lucanet, who has a wealth of experience expanding businesses across both mature and emerging markets. His insights on international expansion, M&A, and the evolving role of CFOs offer a fresh perspective on what it takes to succeed in today’s competitive fintech environment.
Enjoy the interview!
1. You’ve led international expansion efforts across both mature and emerging markets. What are the earliest signs that a market is truly ready for new financial software or infrastructure?
There are three main aspects I consider in terms of international expansion.
- Market complexity
Understanding the structural complexity of a market is key. For example, in the US, company structures tend to be simpler as companies are operating in one large market, whereas similar mid-sized companies in Europe are likely to be operating across borders in different national jurisdictions, handling multiple currencies, and therefore face greater complexity.
- Maturity level of the CFO office
Financial software typically sits on top of companies’ existing systems of record. The value it can add largely depends on the quality and structure of the underlying data. In some countries, such as Germany, the data systems are fragmented and need to be connected in order to maximize the value of financial software.
- Trigger events
Market developments can stimulate or accelerate demand for new solutions. Regulatory changes are a prime example, as businesses need to be prepared. This was the case in Spain with the introduction of the European Single Electronic Format (ESEF) in 2020/2021, and across Europe with the implementation of Pillar 2 global minimum tax compliance. Such events are among some of the triggers for companies to search for financial technology solutions.
2. Having spent years in corporate finance and M&A, what patterns have you seen in how strategic acquisitions succeed—or fail—once they move from deal table to integration?
In more than a decade as an M&A advisor, I identified three tendencies when it came to preparing for deals.
Cultural aspects are often significantly underestimated, yet they play an important role in the success of any M&A transaction. Post-merger integration is crucial, as I have experienced first-hand in my leadership roles.
Revenue synergies are often overestimated as they can be more of an art than a science. In contrast cost synergies, which vary according to business model and organizational setup, can be predicted with greater accuracy.
The impact on the acquirer is often underestimated. Deals require a huge amount of time and energy from the management team and everyone involved, resulting in a big opportunity cost. For the integration to be successful, it also needs openness to and acceptance of change from the staff of the acquiring company.
In my experience, it is important to be deliberately thoughtful when it comes to estimating revenue synergies. It is also necessary to invest a lot of time in testing the target’s products and speaking with customers because if the product itself isn’t right, then the investment won’t be a success. And you have to get a good understanding of the company culture through employee surveys and other means, in order to assess potential resistance to change.
Unlike an advisor, whose work typically ends when the transaction completes, a leader’s work really starts with the integration process and while strategies may change, the product or the culture are much harder to alter. That’s why it is crucial to get these aspects right from the outset. As I always say, “better no deal than any deal”, which makes sense when you consider that 60% of mergers and acquisitions destroy value, according to a recent analysis of 2,500 transactions by L.E.K. Consulting.
3. Moving from CFO to CEO often means widening your lens without losing precision. How has your finance background shaped your approach to decision-making in a broader strategic role?
For me, the key is confidence in decision-making. My CFO experience gave me strong analytical skills and the ability to make quick assessments. From back-of-the-envelope calculations I know whether a decision is directionally right or not. I believe this is a common strength for CFOs moving into CEO roles.
4. You’ve worked across very different regional business environments. In your experience, what are the most overlooked operational challenges when scaling across borders?
When entering new markets, you have to balance the global perspective with local specificities and requirements. There is no one-size-fits-all model. The question is really around the level of localization required for each operational aspect of the business, such as hiring, pricing, buyer personas, and marketing.
5. The role of the CFO has expanded dramatically in recent years. From your perspective, what core skills are now essential for finance leaders who want to contribute beyond reporting and compliance?
For me, the transformation of the role of the CFO from a steward of financial data to a strategic business partner with far greater responsibilities, driving digitalization, automation and commercial thinking, happened 20 or so years ago.
What is more recent is the speed of change of the environment, alongside a high level of uncertainty, that CFOs must navigate. CFOs need to be agile, rapidly assessing the implications of geopolitical and regulatory developments, as well as changes at the local level, to decide what should be a priority for the business. Technology is an enabler of accuracy and efficiency, as well as agility.
6. With continued interest in automation, analytics, and consolidation in financial tech, where do you think real innovation is still underdeveloped?
From my perspective there are two clear areas that stand out. The first is at the intersection of the finance tooling landscape (e.g. finance and accounting software, BI tools, document management systems) and the broader IT infrastructure. This is a critical area where valuable operational insights can be overlooked due to siloed systems and fragmented data flows. Better systems integration and the use of AI can bridge gaps and ensure more accurate cash flow forecasting and dynamic budgeting that reflect real-time market conditions.
The second area of innovation lies at the intersection of the office of the CFO and regulatory bodies – for example, compliant disclosures to the Ministry of Finance. Technology has the potential to streamline disclosures and compliance processes, reducing effort for businesses as well as regulators. Closer engagement between technology providers and regulators will significantly improve efficiency in this area.
7. For professionals looking to step into leadership roles from technical or finance functions, what perspective or discipline has served you best in making that transition effectively?
CFOs today need to have a broad vision and interest in all aspects of a company’s business. Their strategic role means that they are well positioned to become CEOs, but crucially, I don’t believe the CFO role should be seen only as a stepping stone. Of course, you have to be willing to take on an even broader range of responsibilities. But most importantly, you need to empower your team – only by making yourself redundant will you be able to successfully transition to new responsibilities.
About Elias Apel
Elias Apel is Chief Executive Officer at Lucanet.
After studying business administration in Ingolstadt (Germany) and Nice (France) with specializations in international management, accounting and controlling, Elias Apel spent more than a decade working in mergers and acquisitions and corporate finance consulting. In 2018, he took on the responsibility of expanding the international partner channel for Lucanet and in 2020 for all international go-to-market activities in existing as well as new growth markets.
Elias joined the Lucanet board in May 2022 as CFO before transitioning into the role of CEO in October 2023. As CEO, he is responsible for strategy, finance, mergers and acquisitions, and business development.
