Financial institutions M&A:
Sector trends
Opportunities for M&A transactions in the European financial services sector
Introduction
Inorganic growth strategies are key to remaining competitive and winning market share in the European financial services sector
Almost a decade after the financial crisis, most European financial institutions are still grappling with the combined effects of higher regulation, lower interest rates, the explosion of new technology, and the arrival of many new 'disruptors' that are threatening the business models of even the best-capitalised and most sophisticated banks, asset managers, insurers and other key players in the financial services sector.
Navigating the complex and rapidly evolving European financial services ecosystem can be extremely challenging. In such a highly interconnected environment, individual financial services subsectors cannot—and should not—be considered in isolation.
With this in mind, our report highlights the key European M&A trends that span the main financial services subsectors, and offers insight into the outlook for M&A in each:
- Banks
- State-aided banks
- Fintech
- Asset management
- Market infrastructure
- Consumer credit
- Insurance
European financial services
M&A trends
“In a highly interconnected
European financial services
ecosystem, individual sectors
cannot—and should not—
be considered in isolation”
Banks
Systemically important banks are streamlining within geographic borders, continuing to generate deals through non-core disposals and strategic acquisitions
State-aided banks
Increasing pressure from the ECB and local regulators—alongside challenges faced by government stability funds—is continuing to drive M&A
Asset management
By Gavin Weir
Increasing competition, pressure on costs and changes in investor behaviour have already led to some consolidation in the industry. Much more is on the horizon
Market infrastructure
By James Greig
Regulatory change continues to be a key driver of M&A activity
Consumer credit
With many larger banks focusing on corporate lending, consumers are turning to alternative finance sources, potentially heralding a new era of inorganic growth for specialty finance businesses
Insurance
By Roger Kiem
Favourable environment for insurance M&A including ongoing consolidation in the life insurance sector
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