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FinTech: BankTech Market Insights – Winter 2024

FinTech
Financial Services
Technology

Market Observations

FinTech Market Update

  • In 2024, the global FinTech M&A deal value reached $183.1 billion, marking a 79% year-over-year increase across 1,405 transactions. This momentum is expected to continue into 2025, as economic conditions stabilize and interest rates decline. While global FinTech funding saw an 8% decline in 2024, it was the smallest annual drop in three years, suggesting that the market is showing signs of recovery.
  • The median FinTech deal size rose to $4 million in 2024, reflecting a 33% increase year-over-year.
    • Despite a slight shift toward larger deals, smaller transactions remained the driving force behind M&A activity, accounting for over 60% of total deal volume. Deals valued over $100 million made up just 13% of the total M&A transactions. Similarly, smaller deals dominated FinTech funding, with 90% of financing rounds under $25 million and only 2% exceeding $50 million.

Industry Snapshot

$183.1B
Global FinTech M&A deal value in 2024

33% increase
In median FinTech deal size in 2024

$4.0M 
Median FinTech deal size in 2024

5 of the top 10 equity deals
in Q4’24 went to payment firms

Donut chart showing global FinTech M&A deals by sector. The largest segment is highlighted in yellow with 386 deals, followed by sectors with 250, 220, 203, 116, 115, 115 deals respectively, each represented by icons indicating different FinTech sectors such as banking, payments, wealth management, blockchain, and more. Title reads "Global FinTech M&A Deals by Sector" on a yellow banner.