How bigger deals pushed financial services acquisitions to $499b

Global transactions reached 612 in 2025 compared with 605 in 2024.

Financial services mergers and acquisitions (M&A) continued to recover in 2025, with total deal value rising by about 40% from the previous year to $499b.

Deal volume was broadly unchanged, with 612 transactions globally in 2025 compared with 605 in 2024, according to McKinsey & Co.'s 

The increase in value was driven by larger transactions. The average deal size rose from $590m in 2024 to $815m in 2025, whilst deals valued between $1b and $10b made up more than half of the total deal value.

Financial technology (fintech) was a major part of the rebound. The sector recorded 55 deals in 2025, with total deal value reaching $64b. That was 108% higher than in 2024. The average fintech deal value rose to about $1.2b, up 131% year on year.

Large payment transactions contributed to the increase in fintech deal value. 

Banks also continued to buy selected technology capabilities to improve their systems and product ranges. 

Examples included Allica Bank’s acquisition of Kriya’s embedded finance platform in October 2025 and Banca Ifis’s acquisition of Illimity in January 2025.

The recovery follows a weaker period for global financial services M&A in 2023. Stronger bank profitability and higher interest rates improved balance sheets and supported more strategic transactions. 

Banks reported about $1.2t in net income in 2024, the highest of any sector, but continued to trade at around 0.9 times price-to-book value.

With many banks still holding excess capital, the valuation gap could support further M&A activity in 2026, particularly amongst institutions looking to scale, modernise technology and strengthen their market positions.