Global M&A trends in financial services: 2024 mid-year outlook

Financial services M&A activity declined significantly in H1 2024, with deal volume down 15% and values falling 23% compared to H1 2023. Elevated interest rates, increased regulatory scrutiny, and economic uncertainty drive more selective approach from acquirers. Banking sector focuses on domestic market consolidation to achieve scale economies, whilst insurance companies pursue strategic cross-border acquisitions. Private equity remains active in niche FS segments despite challenging financing environment.