2022_Fintech M&A Insights

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8 DEAL PLAYERS IN FINTECH M&A The arena of FinTech M&A, partnerships, and investments is comprised of a diverse set of players with different aims. Here, we briefly breakdown the key players and their motivations. FINTECHS FinTechs are generally targets of M&A and investments, but increasingly they are becoming acquirers themselves as they seek to expand their customer base and product range. As successful startups, FinTechs typically begin by developing a single product and serving a single customer type, but M&A presents the opportunity to scale more quickly or diversify into other products or services. Deal activity for FinTechs is also driven by a wider re-bundling of financial services and a quest, by some FinTechs, to become a "single money app" for certain client segments. In many cases, partnerships with banks or other financial institutions have been the initial route for growth. For digital advisor platforms, which include robo-advisor technology, partnerships have been a key means for FinTechs seeking to build out their wealth products. Since digital advisors are generally keen to offer their customers bespoke banking products, they partner with a banking institution to provide deposit accounts and other banking products. For example, Stash offers its users a "Stash banking" account through a partnership with Green Dot Bank.

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