The news: The number and total value of deals in financial services fell in Q2, according to KPMG research, as surging inflation and economic uncertainty continued to hamper dealmakers.
By the numbers: The report found the downward trajectory of M&A has continued as low market confidence impacts deals.
- The number of financial services deals declined 31% QoQ to 1,442 in Q2 .
- The total value of financial services deals dropped 15% to $163 billion.
- Banking deal volume fell 47% compared to Q1 while the total value of deals was 87% lower.
Analyst’s take: “A perfect storm of factors has cooled fintechs’ funding frenzy, including steep inflation, rising interest rates, the war in Ukraine, and fears of a looming recession,” says Insider Intelligence principal analyst Eleni Digalaki.
“Weathering the storm will require cost cuts, a singular focus on offering products that can bring in money, and securing good deals for external funding.”
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