Financial institutions are building competitive advantage through partnerships and M&A

Financial institutions are building competitive advantage through partnerships and M&A

Financial institutions are strategically positioning themselves through mergers and acquisitions to stay ahead in the competitive landscape. Despite the challenges in the financial services M&A market, there is optimism for growth in 2024.

The emergence of GenAI technology is pushing companies to take proactive steps to prevent their rivals from gaining an edge. Private equity firms are expected to play a more active role in M&A activities as the monetary policy outlook becomes clearer.

To navigate the evolving landscape, banks are increasingly turning to partnerships, acquisitions, and ecosystem development. A survey revealed that 51% of respondents prefer partnerships as a go-to-market strategy due to the limitations of in-house technology.

By collaborating with GenAI technology providers and building ecosystems, financial institutions can enhance their capabilities, drive innovation, and transform their business models.

https://www.ey.com/en_us/strategy-transactions/the-navigator-perspectives-on-financial-services-m-a