Fintech themes drive APAC banking and payments sector M&A deal value by 167% in Q2 2021, reveals GlobalData

The mergers and acquisition (M&A) activity in the Asia-Pacific (APAC) banking and payments sector witnessed a staggering 167% quarter-on-quarter growth to US$44bn in Q2 2021, primarily driven by fintech themes including digital payments, online payments, and robo-advice, according to GlobalData, a leading data and analytics company.

Snigdha Parida, Senior Analyst in GlobalData’s Thematic Team, says: “The COVID-19 pandemic has made remote banking vital for consumers. Banking and payments companies are engaging in M&A activity around fintech to add innovative services to sharpen their competitive edge.”

An analysis of GlobalData’s financial deals database reveals that the M&A transaction value in the APAC banking and payments sector has been increasing since Q3 2020.

Notable acquisitions in the region during Q2 2021 include the merger between Gojek and Tokopedia for US$7.5bn, the merger between Grab Holdings and Altimeter Capital for US$4.5bn, the merger between Washington H. Soul Pattinson and Company and Milton Corporation for US$3.0bn, and the acquisition of 49% stake in VPBank Finance from Vietnam Prosperity by SMBC Consumer Finance for US$1.4bn.

Ms Parida concludes: “The recent announcement of Square’s US$29bn planned acquisition of Australia-based fintech company Afterpay reflects the continuing boom in M&A activity in the banking & payments sector across the APAC region. GlobalData expects to see more high-value transactions in the second half of 2021 as competition increases.”

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