Which bank will be the next to buy a fintech? (TWIF 1/22)

Which bank will be the next to buy a fintech? (TWIF 1/22)
Basquiat Before Basquiat: East 12th Street, 1979-1980

Hello Fintech Friends,

So far in 2023, we’ve tracked 40 fintech and bank M&A deals, with a number of bank/fintech deals like JP Morgan’s stake in Viva Wallet, MUFG’s purchase of Kanmu, Banco Itaú’s acquisition of Prex, and now American Express’ acquisition of Nipendo.

Something tells me that we are just getting started.

Please find another week of fintech exits and deep reads below.


📺
Sponsored Content

Capital strategy will determine the winners and losers of fintech in 2023. To stay competitive, finance leaders need to understand what's on the horizon when it comes to equity and debt capital—and plan accordingly. Download this report from debt capital platform Finley Technologies to understand the latest benchmarks and trends in fintech funding.

Want to sponsor a newsletter? See our sponsorship information here.


Klaros’ Jonah Crane argues that, “following a challenging year for the fintech sector, enterprising banks may be able to acquire startups whose previous valuations put them out of reach.”

And as per Alex Johnson, "My feeling is that banks will continue to approach the task of investing in, partnering with, and acquiring fintech companies with optimism in 2023 (perhaps a more opportunistic optimism given the challenging financial straits that many early-stage fintech companies find themselves in these days). And this will not be limited to the big banks. According to Cornerstone, roughly 70% of financial institutions said partnerships will be important to their business strategies for the upcoming year."

☯️ Exits
🤝 SPACs
  • Openmarkets, an Australian provider of B2B equities market infrastructure, agreed to go public at an implied $90 million valuation via combination with the Broad Capital Acquisition Corp SPAC.
🤝 M&A - Fintech
  • Small business insurance platform Vouch acquired lending startup Level* (disclosure: an angel portfolio company) to enhance its underwriting capabilities.
  • Credit card network and issuer American Express acquired Israeli firm Nipendo, a provider of solutions for global businesses to automate and streamline B2B) payments.
  • Crypto tax and accounting platform TaxBit acquired its rival Tactic.
  • Australian tech billionaire Richard White personally acquired listed corporate KYC company Kyckr.
  • Financial management software company Proven Optics received a strategic growth investment from digital workflow platform ServiceNow.
  • Crypto exchange WonderFi confirmed that it is in merger talks with rival Coinsquare.
🏦 M&A - Bank and FinServ
  • Wealth management platform FNZ acquired German credit institution Fondsdepot Bank and acquired US fixed income portfolio management technology YieldX.
  • Insurance and financial services giant Liberty Mutual is considering a $1 billion divestment of its entire Latin America business.

🌎 Fintech Around the World

Is Brazil the epicenter of fintech?

‘Financial inclusion in Nigeria requires a lot of fintech’

FT Partners: Fintech in Africa

Internet marketplaces in India

UK payments star can keep defying fintech slump

Buy now, pay later demand soars among all age groups in the UK

📚 Deeper Reads & Features

State of Venture 2022 Report

State of Fintech 2022 Report

The ‘Buy Now, Pay Later’ Bubble Is About to Burst

Americans are piling up credit card debt — and it could prove very costly

Why central banks should not push ahead with CBDCs

Lightspeed: Fintech Trends for 2023 and Beyond

How This Fintech Startup is Tapping into the Carbon Markets

Companies Face Rising Pressure to Offer ESG Retirement Options

When fintechs cut back staff and claw back pensions

The real-time payments world map

5 Predictions For Banking And Fintech In 2023

From product to experience: How Gen Z could change finance

A lot of fintechs ‘have to fix their business models,’ say VCs who invest in fintech

Banking-as-a-service (BaaS) vs embedded finance

Top 10 mobile banking apps of 2022 by number of downloads

This fintech company lost $1B in value as investors fled the sector. Here's what it did next

“Thank you for riding with Mo Mountain Mutts. Would you guys like a complimentary chicken liver with your bus ride?”


📺
Sponsored Content

Capital strategy will determine the winners and losers of fintech in 2023. To stay competitive, finance leaders need to understand what's on the horizon when it comes to equity and debt capital—and plan accordingly. Download this report from debt capital platform Finley Technologies to understand the latest benchmarks and trends in fintech funding.

Want to sponsor a newsletter? See our sponsorship information here.


Have a news item for us? Reach out to news@thisweekinfintech.com