Fintech wreckage spells opportunity for bargain-hunting banks

Atstock Productions via Getty Images The mergers and acquisitions landscape in 2023 could be promising for banks on the hunt for fintech deals, experts say. Following a challenging year for the fintech sector, which has experienced a global drop in funding and mass layoffs , enterprising banks may be able to acquire startups whose previous valuations put them out of reach in prior years, said Jonah Crane, a partner at regulatory advisory firm Klaros Group. “We were for years in what appears to have been a bubble in fintech stocks. We’ve now come through that and had a major correction and just on price alone, it could be an interesting opportunity [for banks],” he said. According to PitchBook , valuations of publicly traded fintechs plummeted 60% to 80% in 2022, a stark contrast to prior years when the fintech sector’s soaring price points were a source of frustration for some banks that were eager to make deals in the space, said Dan Goerlich, PwC’s banking and capital markets deals leader. “Over the past five years, fintech valuations were extremely high because it was such a sought-after property. Everyone felt like they were disrupting the sector,” he said. “As a […]

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