Leading global law firm Shearman & Sterling teamed up with FinTech advisor and incubator Rise, created by Barclays, and premier market data and research provider S&P Global Market Intelligence, to produce a mid-year report on M&A activity in the U.S. FinTech sector. The report brings together perspectives and advice regarding the key trends, market forces and deal players that are shaping the consolidation of the U.S. FinTech industry.
Key highlights from the newly released report include:
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A review of the top 10 legal and regulatory challenges for FinTech M&A transactions
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Highlights and trends from key vertical categories including payments, digital lending, consumer trading, insurance and digital-only banks
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A closer look at the deal players who are driving M&A in the FinTech space
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A spotlight on the role of SPACs in the current wave of consolidation and acquisitions
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Data and analysis showing sustained growth and momentum in FinTech M&A, driven by changing consumer preferences that emerged during the COVID-19 pandemic
“This report is the latest collaboration in a multi-year partnership between Shearman & Sterling and Rise, created by Barclays, to provide information, advice and support to the wider FinTech ecosystem,” said Donna Parisi, Global Head of Financial Services and FinTech at Shearman & Sterling. “The analysis and conclusions in this report are based on data provided by our colleagues at S&P Global Market Intelligence, underlining their role as a market-leading provider of information, research and analysis in the FinTech sector and beyond.”
S&P Global Market Intelligence provided data highlighting deal volume and significant transactions, as well as research analysis into important trends in different industry verticals that are likely to influence deal activity moving forward.
“The specific characteristics of the COVID-19 crisis accelerated the adoption of digital financial services, which will impact the ways in which a maturing fintech industry converges and collides with the incumbent financial services infrastructure. The value of digital has become even more pronounced than before across a variety of industry verticals. As the value equation shifts, deal activity and capital investment will be impacted. This report provides insights for investors and industry participants who are grappling with how to design and execute FinTech transactions and/or deploy capital into the space,” said Nimayi Dixit, Research Analyst with S&P Global Market Intelligence.
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The report also provides a brief retrospective on how the pandemic affected several major industry verticals differently, and discusses how those domains may evolve going forward.
Brian Luciani, Head of Rise New York, Barclays, said: “Rise is a global community of innovators that includes FinTech companies across all stages of the lifecycle. Our mission is to identify global trends and future strategic opportunities to keep Barclays at the forefront of innovation. We are excited to share this report that clearly outlines a new era for growth for the FinTech industry.”
