Insight

Where the deals are in financial services

In Q3’21, growth opportunities, digitization, and ESG drove brisk M&A activity

Timothy Johnson

Timothy Johnson

Financial Services Industry Leader, Deal Advisory, KPMG US

+1 312-665-1048

Bob Ruark

Bob Ruark

Principal, Banking & Fintech Strategy Leader, KPMG US

+1 704-371-5271

Marc Bromstad

Marc Bromstad

Director, Deal Advisory and Strategy, KPMG US

+1 404-222-7226

Ram Menon

Ram Menon

Partner, Global Head of Insurance, Advisory, KPMG US

+1 212-954-3448

Vineet Wilson

Vineet Wilson

Principal, Advisory, Strategy, KPMG US

+1 312-665-1542

Asaf Buchner

Asaf Buchner

Director Advisory, Strategy, KPMG US

+1 212-997-0500

In Q3’21, deal making in financial services—banking, capital markets, and insurance—maintained the brisk pace set in the prior quarter.

Overall, deal count in Q3’21 dipped slightly to 1,974, while total deal value jumped to $381 billion. The value was driven partly by mega deals, including the $29 billion purchase of Afterpay by Square Inc. in August. (Please see the interactive charts below for additional highlights.)

Some highlights from Q3’21:

  • The Afterpay deal highlights a fast-growing niche in the payments business—so-called buy-now/pay later (BNPL) platforms.
  • In banking, Q3’21 was nearly a rerun of Q1, with more mergers of equals, including deals by regional banks to expand their geographic footprints.
  • Asset managers continued to make acquisitions to expand their product offerings with an emphasis on ESG.
  • Across capital markets, companies are acquiring digital capabilities, including “reg-techs” that help with compliance.
  • The transformation of the insurance industry continues as insurers adjust portfolios to sell off slow-growth products to focus on faster growth opportunities.

Financial Services Deal Volume and Deal Value

Capital Markets Deal Volume and Deal Value


 

Banking Deal Volume and Deal Value

Insurance Deal Volume and Deal Value


We expect deal activity to remain strong across financial services through the end of the year. There are possible headwinds, including FTC actions that could dampen deal activity. There are also concerns about the impact of new tax legislation on deal math. KPMG expects the pressure for efficiencies to remain throughout the financial services sector.

In this quarterly report, we unpack the trends across each of the sectors as well as deep dives on key areas, including:


Download the full report to uncover what is happening in these dynamic industries, how deals are being done today—and why.

Where the deals are in financial services
M&A Trends in FS, Q3 21 | Download PDF