The report below gives a good overview of the Spring 2025 M&A activity in the Financial Services/Fintech Industry Sector. According to the Business Research Company report 2025, the Global Financial Services industry is $35.9 trillion in 2025 and is expected to grow to $47.3 trillion by 2029, reflecting a CAGR of 7.2% during this period. The growth is primarily driven by an increase in demand for real-time fund transfer, adoption of blockchain, rising use of digital banking, insurance reforms led by the government, and strong economic growth. As per NVIDIA, financial institutions are adopting and using AI to increase their revenue, improve their risk management, and streamline their operations. In Europe, the implementation of the EU AI Act in February 2025 has set new standards for using AI in financial services, which promotes accountability and transparency. A positive tone has been set for the industry, especially after reporting strong earnings by European banks. The positive results reflect resilience in the market even after economic and geopolitical challenges, providing banks the confidence to invest more in technology infrastructure and further diversify their revenue streams. In the US, financial institutions are using AI to boost their customer interactions and optimize their overall operations. This integration of AI-driven tools is helping banks to provide personal services, detect fraud, and improve the decision-making process. As organizations are exploring more sources of revenue to increase their profits, the expansion of new business models is expected to promote the growth of the financial services industry.
Posted by David Sinyard.
Read the Entire Spring 2025 Financial Services/Fintech Report Here