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.