德勤：2022年银行和资本市场并购展望-24页_2mb

2022 Banking and Capital Markets M&A Outlook Summary

Overview

The banking and capital markets sector's M&A activity is experiencing unprecedented growth, fueled by digital transformation, pent-up demand from the COVID-19 pandemic, and abundant capital. Despite challenges like regulatory hurdles and competition for merger partners, M&A momentum remains strong in 2022, with a focus on enhancing competitiveness, scale, and technological capabilities.

Banking M&A

• In 2021, banking M&A rebounded significantly, with 210 deals and a record $77.6 billion in disclosed value, driven by megadeals and regional consolidation. Deal volume disproportionately occurred at the small-bank level but increased across asset tiers.
• Key challenges include access to capital, asset valuations, and late-2021 regulatory activities impacting large mergers.
• For 2022: Focus on capabilities plays for digital transformation (e.g., acquiring STEM talent and tech platforms), regional banking consolidation to address regulatory demands, and partnerships to tackle low loan growth and deposit issues. M&A may pressure net interest margins, spurring acquisitions in high-demand loan origination areas.

Investment Management and Wealth Management M&A

• 2021 featured a 50% increase in transactions, totaling 316 deals, centered on digital technologies and diversification into alternatives like real estate and private credit.
• Regulatory shifts, such as the CRA revamp, may influence future deal approvals, but firms are prioritizing talent retention and tech integration.
• For 2022: Continued M&A for capabilities (e.g., indexing technology and direct-advising platforms), enhanced digital engagement to meet client expectations, and talent acquisition driven by the "war for talent." Greater scale and distribution expansion are key strategic drivers.

Fintech, Payments, and Exchanges M&A

• Record fintech funding in 2021 ($61 billion, up 153% YoY) and M&A reflect rapid growth in areas like BNPL lending and digital assets.
• Partnerships with fintechs are strengthening, offering white-label products and tools, though cultural gaps often hinder collaboration.
• For 2022: Technological acquisitions focused on AI, chatbots, and payment capabilities; talent retention to support innovation. BNPL expansion and regulatory clarity on cryptocurrencies will drive consolidation in emerging fintech sectors.

Trends and Drivers for 2022

• Portfolio Reassessment: Firms are exiting non-core businesses (e.g., insurance or traditional banking services) to focus on digital strengths.
• Megadeals and Challenges: High-value deals constrain inventory of suitable partners, especially at scale.
• Alliances and Regulation: Growing fintech collaborations address customer demands, but regulatory flux (e.g., banking merger reviews, corporate tax changes) complicates deals.
• Overall Outlook: M&A remains robust due to FOMO and strategic imperatives, with buyers facing supply-demand imbalances.

Conclusion

Deals in 2022 prioritize digital capabilities, talent, and market expansion. 2021 performance sets a precedence, with regulatory and economic uncertainties serving as headwinds but not stalling growth.