A New Dawn for European Bank M&A Top 5 Trends

European banking M&A activity in 2021 is on track to outpace both 2020 and 2019 levels as a range of factors, including cost pressures, low interest rates and digitalization, encourage deal making in the industry. Heading into 2022, activity is expected to continue apace, but the nature of these transactions is shifting away from typical consolidation plays to much more nuanced, strategic projects. Banks will continue to have to make tough decisions about their operations after years of low interest rates and competitive pressures. Meanwhile, a range of non-bank players, include Big Tech and private equity firms, are casting their eye over the market and could have a major impact on the European banking landscape.

5 key trends to expect in 2022:

1. M&A activity is anticipated to ramp up, though big takeovers may be in short supply.
2. Increasing competitive and cost pressures will force European banks to make choices.
3. The range of players involved in the European bank M&A market is expanding.
4. Cooperation with fintechs will continue to play an important role.
5. The specter of Big Tech remains.