Insights on financial services M&A | September 2019
Insights on financial services M&A | September 2019
Insight

Insights on financial services M&A

May 2018

Successful adaptation: buy, build, or partner

As emerging technologies continue to radically change the landscape of financial services, traditional financial services firms have found themselves at a critical juncture: buy, build, or partner to address emerging technologies, changing consumer behaviors, and today’s industry risks.

Financial technology (fintech) has become increasingly relevant in recent years, posing a more viable threat to incumbent providers. However, a recent survey of financial institutions conducted by KPMG indicates only 50% of bank respondents had a fintech strategy in place. The remaining 50% were either in the process of developing a fintech strategy, or had not contemplated a strategy at all.

Traditional financial services providers are adapting to the changing landscape in different ways. Some are developing strategic relationships with fintech companies. Others have acquired specific technologies or standalone fintech firms to supplement or enable in-house capabilities. Certain others, traditionalists in the past, changed tact to evolve from within. These firms are addressing the threat of obsolescence and grasping opportunity by developing technologies internally to fulfil customer needs or compete with fintech offerings in the market.

Fintech will continue to evolve and transform the way financial services firms interact with their customers. Successful firms will align their business strategy to be at the forefront of adaptation, whether through partnerships, acquisitions, development, or a combination thereof.

Additional KPMG insights

Financial services experience a surge in cross-sector M&A
A new breed of buyer is shaking up the global financial services M&A space. Many of these new, cross-sector acquirers are conglomerates, often from the construction and real estate, industrial, technology and energy sectors. Amongst the main targets are rental and leasing, asset management, and retail and commercial banking. Additionally, a few Chinese non-financial services family offices or privately-owned enterprises are acquiring European banks to get an EU license.

Transformation through transaction: How innovative investment strategies are helping CEOs embrace disruption
Investment strategies such as acquisition, partnerships and divestitures give firms the benefit of agility without the upheaval of wholesale transformation. This report discusses how companies can minimize disruption and hedge their bets on what future business models will look like by investing in strategic partnerships and corporate venturing.

Forging the future: Embracing fintech to evolve and grow
This KPMG global survey and report explores how global financial institutions are designing strategies and adopting fintech innovation, as well as best practices for forging the path ahead.

Managing the chaotic middle: Insurance in the age of autonomy
Many are thrilled about the massive changes that vehicle autonomy would bring to cities and communities, and the dramatic impact on driver safety, efficiency and productivity. But, as with any revolutionary technology, concerns arise. In this case, those concerns are not related to the technology, safety or even data (although those have their own issues, too). The issue is that many insurers may be underestimating the pace and severity of the change, which will create challenges across the wider insurance and financial industries.

The real deal on tax and transactions: The strategic role of the tax function to M&A value creation
In winter 2017, more than 100 senior-level tax and finance professionals were surveyed about how tax issues play into the M&A space. This report reveals insights on how corporate leaders can more effectively and strategically leverage the tax team as they evaluate, plan, and execute deals.

Some or all of the services described herein may not be permissible for KPMG audit clients and their affiliates and related entities.

 

© 2018 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

The KPMG name and logo are registered trademarks or trademarks of KPMG International.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.

Financial services valuation trends

Additional KPMG insights
 

Financial services experience a surge in cross-sector M&A
A new breed of buyer is shaking up the global financial services M&A space. Many of these new, cross-sector acquirers are conglomerates, often from the construction and real estate, industrial, technology and energy sectors. Amongst the main targets are rental and leasing, asset management, and retail and commercial banking. Additionally, a few Chinese non-financial services family offices or privately-owned enterprises are acquiring European banks to get an EU license.

Transformation through transaction: How innovative investment strategies are helping CEOs embrace disruption
Investment strategies such as acquisition, partnerships and divestitures give firms the benefit of agility without the upheaval of wholesale transformation. This report discusses how companies can minimize disruption and hedge their bets on what future business models will look like by investing in strategic partnerships and corporate venturing.

Forging the future: Embracing fintech to evolve and grow
This KPMG global survey and report explores how global financial institutions are designing strategies and adopting fintech innovation, as well as best practices for forging the path ahead.

Managing the chaotic middle: Insurance in the age of autonomy
Many are thrilled about the massive changes that vehicle autonomy would bring to cities and communities, and the dramatic impact on driver safety, efficiency and productivity. But, as with any revolutionary technology, concerns arise. In this case, those concerns are not related to the technology, safety or even data (although those have their own issues, too). The issue is that many insurers may be underestimating the pace and severity of the change, which will create challenges across the wider insurance and financial industries.

The real deal on tax and transactions: The strategic role of the tax function to M&A value creation
In winter 2017, more than 100 senior-level tax and finance professionals were surveyed about how tax issues play into the M&A space. This report reveals insights on how corporate leaders can more effectively and strategically leverage the tax team as they evaluate, plan, and execute deals.

Some or all of the services described herein may not be permissible for KPMG audit clients and their affiliates and related entities.

 

© 2018 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

The KPMG name and logo are registered trademarks or trademarks of KPMG International.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.