Fintech M&A activity predicted to rebound amid rapid innovation
Private-equity sponsors of fintech M&A will focus on the typical attributes for such deals, including revenue growth potential. Illustration iStock
The pace of new technology is so rapid that traditional banking and financial services players are struggling to keep up. As a result, M&A activity in the fintech space is highly strategic, with many organisations simply choosing to acquire their upstart competitors rather than attempt to regain their technology lead. In addition, many of the more established fintechs are acquiring smaller rivals in order to accelerate scale building and expand capability.
And while there was a dip in activity last year due to overall uncertainty in the market, prompted at least partly by shocks such as the implosion of the FTX crypto exchange and the collapse of Silicon Valley Bank, experts have predicted a rebound year for mergers and acquisitions in fintech in 2024.
