Fintech M&A Poised to Surge According to PwC Report

Fintech M&A
Talk about coincidence and timing (and we are), here’s a piece echoing what we at FintekNews just commented on. Those big financial institutions (banks, etc) are NOT going to give up a hunk of their revenue with out a countermeasure. So, MERGER/ACQUISITIONS. The old adage was “if you can’t beat them join them”. Now, “if you see them coming, BUY them”. Hello investment banking fees. Looks like a lot of Fintech M&A deal activity may be shaping up.  And we just ran another piece on a different aspect of this study today as well – see “Banks Could Lose 25% of Revenue in 3-5 Years To Fintech Competition“.

(Bill Taylor/CEO)

“Big banks may have scoffed when a gaggle of financial technology upstarts promised to reinvent their business. Now they want to buy them.

Almost 50 percent of financial services firms around the world plan to acquire fintech startups in the three to five years, according to a report Thursday by PricewaterhouseCoopers LLP. And eight out of 10 institutions foresee making strategic partnerships with peer-to-peer lenders, digital money transfer platforms, and myriad other firms that are reshaping the business of money.

The findings show that fintech is shifting into a new deal-making phase, said Steve Davies, the head of PwC’s fintech practice in Europe, the Middle East and Africa.
“Fintech collaboration is not about jumping on the latest bandwagon — it’s about finding the best, most efficient way to deliver your business strategy and ultimately better serve your customers,” Davies said in a statement. “The financial services industry has embraced fintech.”

Fear may be motivating finance leaders as much as the desire for innovation. The 20-page report, titled “Redrawing the Lines: FinTech’s Growing Influence on Financial Services,” found that four of five banking executives worry they will lose revenues to independent fintech firms. PwC polled 1,308 financial services managers worldwide for the study.”

Source: Bloomberg