TLDR:
- European fintech M&A activity expected to rebound in 2024
- Traditional banks eye struggling fintech startups for tech capabilities
Mergers and acquisitions (M&A) activity in the European banking sector is expected to rebound in 2024 as lower valuations entice traditional lenders to acquire struggling fintech startups. The European market saw a decline in 2023, but 2024 presents new opportunities for joint ventures and partnerships. Banks are looking to enhance their services and reach new customer segments by acquiring fintech companies struggling for profitability. Payment modernization is a key focus, with early activity seen in 2024. European banks are also eyeing opportunities in specialty finance and investment banking to strengthen their positions. Reports suggest that European banks will heavily invest in digital transformation strategies in 2024 to meet customer demands, enhance customer experience, and mitigate risks. Overall, 2024 is expected to be a year of large-scale mergers in the European banking industry.
