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Financial institutions M&A: Sector trends - July 2022

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July 2022

We highlight the key UK & European M&A trends in H2 2021 and H1 2022, and provide our insights into the outlook for M&A moving forward.

Introduction

Key highlights from H2 2021 include the following:

  • Banks: High levels of M&A across the UK and Europe, notwithstanding uncertainty ignited by the Russia/Ukraine conflict. Europe's banks have emerged from COVID-19 turmoil resolute in their ambitions to shed non-core assets, consolidate regional strongholds and rigorously pursue digitalisation strategies.
  • Fintech: Europe has bucked the global trend of tightening private capital purse strings. While successful funding rounds rage on, fintechs with critical mass are deploying M&A strategies to consolidate horizontally and integrate vertically.
  • Asset/Wealth Management: With over 350 deals in the European AWM sector in 2021, M&A consolidation activity is hotter than it has ever been in the past 15 years. Conventional wisdom is now under the microscope—is bigger really better?
  • Payments: Investor appetite is at an all-time high—while VC investors back growing service providers, PE investors supercharge IPO glide paths and established banks refuse to abdicate market share.
  • Stock Exchanges/Trading Venues: Europe’s FMI goes digital—data analytics, capital markets solutions, RegTech and DLT-based tech acquisitions feed the steady stream of M&A activity.
  • Brokers/Corporate Finance: Marginal improvement in investor sentiment for high-quality brokers, particularly across online brokerage, crypto trading and carbon credit trading.
  • Consumer Finance: BNPL steals the show—20 successful European BNPL provider funding rounds in the past 12 months, covering the full spectrum from Seed through to late-stage.
  • Specialty Finance/Marketplace Lending: Marginal uptick in M&A levels in the past 12 months, with property, automotive and revenue-based finance attracting the most investor interest.

M&A Forecast legend

European financial services M&A trends

Europe’s banks emerge from the COVID-19 pandemic resolute in their ambitions

High levels of M&A across the UK and Europe, notwithstanding uncertainty ignited by the Russia/Ukraine conflict. Europe's banks have emerged from COVID-19 turmoil resolute in their ambitions to shed non-core assets, consolidate regional strongholds and rigorously pursue digitalisation strategies

FIG M&A Sector Trends - July 2022

The long-awaited arrival of Europe’s new breed of decacorns

Europe has bucked the global trend of tightening private capital purse strings. While successful funding rounds rage on, fintechs with critical mass are deploying M&A strategies to consolidate horizontally and integrate vertically

FIG M&A Sector Trends - July 2022

Asset/Wealth Management

With over 350 deals in the European AWM sector in 2021, M&A consolidation activity is hotter than it has ever been in the past 15 years. Conventional wisdom is now under the microscope—is bigger really better?

FIG M&A Sector Trends - July 2022

Payments

Investor appetite is at an all-time high—while VC investors back growing service providers, PE investors supercharge IPO glide paths and established banks refuse to abdicate market share

FIG M&A Sector Trends - July 2022

Stock Exchanges/Trading Venues

Europe's FMI goes digital—data analytics, capital markets solutions, RegTech and DLT-based tech acquisitions feed the steady stream of M&A activity

stock market

Brokers/Corporate Finance

Marginal improvement in investor sentiment for high-quality brokers, particularly across online brokerage, crypto trading and carbon credit trading

FIG M&A Sector Trends - July 2022

Consumer Finance

BNPL steals the show—20 successful European BNPL provider funding rounds in the past 12 months, covering the full spectrum from Seed through to late-stage

credit cards

Specialty Finance/Marketplace Lending

Marginal uptick in M&A levels in the past 12 months, with property, automotive and revenue-based finance attracting the most investor interest

stock market graph
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