FinTech Mergers and acquisitions

The term Fintech combines the words “financial services” and “technology”. Fintech companies are commonly understood to be young, technology-based undertakings that provide specialised and customer-oriented financial services. Given the technology-driven background of Fintech companies, they promote the trend towards digitalisation and customisation.

Fintech is seen as being in competition with traditional, regulated financial services providers. However, Fintechs also supplement the services that these offer. The challenge for regulators is to ensure that Fintech develops in a way that maximises the opportunities and minimises the risks for society. For example, the UK based innovative financial service technology Currencycloud (the financial technology start-up that powers cross-border payments for a number of popular finance apps such as Monzo and Revolut), had just secured a USD 80m in funding from Visa and SAP to fund the Asian expansion.

There is no one-size-fits-all strategy for how traditional financial services firms should interact with Fintech companies. In fact, there are different ways to unlock the benefits of Fintech and make use of the trends towards digitalisation and customisation.

Across the wider BDO Network we have identified the most significant trends in banking, asset management, insurance and payment services and we are well placed to advise you, whether you are looking to acquire, sell or merge in the Fintech space.

Download our Fintech M&A Whitepaper PDF and find out how BDO can help your business