The financial services (FS) deals market is likely to remain muted for the remainder of 2024, marked by continued uncertainty stemming from challenging macroeconomic conditions and geopolitical tensions. In this environment, mega deals, in particular, face obstacles.

Dealmakers should nonetheless remain positive about the medium-term M&A outlook because of many different factors putting pressure on FS players to accelerate their transformations to remain relevant and profitable. Some factors are cross-sector such as digitalisation, sustainability and workforce challenges. In addition, FS has more sector specific factors such as pressure on costs and quality of assets, as well as uncertainty regarding interest rate policies by central banks worldwide—which are all leading to pressure on profitability and equity of FS players.