Financial institutions M&A: Sector trends

September 2021

We highlight the key European M&A trends in the first half of 2021, and provide our insights into the outlook for M&A moving forward.

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Introduction

As COVID-19 lockdowns and travel bans across Europe end, so too does the hiatus of European financial services M&A. With M&A surging to levels not seen since the fabled heyday of the 1990s, 2021 promises a bull market of extraordinary proportions.

In this edition, bring you the key deal highlights and M&A trends across Europe and the UK. Focusing on Banks, Fintech and Other Financial Services, we also provide our insights on the outlook for M&A in H2 2021 and beyond. 

Key highlights from H1 2021 include the following:

  • Banks: As the COVID-19 hiatus of bank consolidation activity ends, European bank M&A 
    consolidation activity reaches unprecedented levels.
  • Fintech: E-commerce and online financial services experienced exponential growth during 
    the COVID-19 pandemic. The significance of digital offerings, and the RegTech
    tools to safeguard institutions and customers, has never been more apparent. 
    Europe's unicorns are at full gallop towards the digital future.
  • Asset/Wealth Management: Market consolidation continues at a feverish pace. The UK tops the 
    leader board, notching up 17 noteworthy deals in H1 2021
  • Payments: The COVID-19 pandemic drove e-commerce to levels never seen 
    before—payment rail, service and solution providers responded with 
    an unprecedented flurry of M&A activity
  • Stock Exchanges/Clearing Houses/Trading Venues: Global FMI juggernauts snatch up fund platforms, trading venues 
    and data analytics providers, under the increasingly vigilant gaze of 
    European competition authorities
  • Brokers/Corporate Finance: Financial advisers turn to M&A to deliver additional bandwidth, 
    capability and resources to ride the post-lockdown M&A tidal wave
  • Consumer Finance: Hyper-specialisation of the European consumer finance market 
    continues, with POS, entrepreneur, freelancer, migrant and payroll 
    finance businesses securing growth capital in H1 2021
  • Specialty Finance/Marketplace Lending: M&A levels dipped in H1 2021. Whilst institutional banks backed 
    trade and B2B finance platforms and VC supported P2P, SME and 
    treasury finance disruptors, both investor categories required 
    convincing to part with cash

M&A Forecast legend

European financial services M&A trends

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Domestic banking champions across Europe merge, blinking into the sunlight

As the COVID-19 hiatus of bank consolidation activity ends, European bank M&A consolidation activity reaches unprecedented levels.

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unicorn statue

Europe’s unicorns come of age—COVID-19 lockdowns drive customer familiarity, utilisation and reliance on fintech

E-commerce and online financial services experienced exponential growth during the COVID-19 pandemic. The significance of digital offerings, and the RegTech tools to safeguard institutions and customers, has never been more apparent. Europe’s unicorns are at full gallop towards the digital future.

Read More
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stock market

Asset/Wealth Management

Market consolidation continues at a feverish pace. The UK tops the leader board, notching up 17 noteworthy deals in H1 2021

Read More
vault
vault

Payments

The COVID-19 pandemic drove e-commerce to levels never seen before—payment rail, service and solution providers responded with an unprecedented flurry of M&A activity

Read More
stock market
stock market

Stock Exchanges/Trading Venues

Global FMI juggernauts snatch up fund platforms, trading venues and data analytics providers, under the increasingly vigilant gaze of European competition authorities

Read More
stock market
stock market

Brokers/Corporate Finance

Financial advisers turn to M&A to deliver additional bandwidth, capability and resources to ride the post-lockdown M&A tidal wave

Read More
unicorn statue
unicorn statue

Consumer Finance

Hyper-specialisation of the European consumer finance market continues, with POS, entrepreneur, freelancer, migrant and payroll finance businesses securing growth capital in H1 2021

Read More
vault
vault

Specialty Finance/ Marketplace Lending

M&A levels dipped in H1 2021. Whilst institutional banks backed trade and B2B finance platforms and VC supported P2P, SME and treasury finance disruptors, both investor categories required convincing to part with cash

Read More