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FINTECH M&A
ACROSS VERTICALS
A number of factors are driving consolidation in the FinTech industry. Here, we examine recent mergers,
acquisitions and other large deals within the key verticals of the FinTech ecosystem.
The Pandemic Has Accelerated Consolidation
In a period marked by the pandemic, the FinTech industry saw several major developments that will have a
great impact on the future course of the industry.
M&A activity picked up in the latter half of 2020 and throughout 2021 with several important transactions
announced. Some sectors saw consolidation as major players sold, while in other sectors incumbents
acquired new capabilities as they competed for opportunities.
Fundraising by private FinTechs more than doubled, year over year, in the third-quarter of 2021, according
to S&P Global Market Intelligence data, as private investors vied to increase their exposure to the ongoing
digitalization of financial services. FinTech companies have also started going public at an increasing rate.
As they access capital markets more broadly, it is likely that FinTech companies will increasingly become
acquirers themselves.
