For the first time on record, fintech companies have out-acquired banks in M&A activity, according to a new report from N5Deal, a fintech platform of licensed financial businesses across 36+ jurisdictions. The 2026 Fintech M&A Report, released today, documents a structural shift in how licensed financial companies are valued, bought, and sold, and underscores the critical role of regulatory foundations in dealmaking.
Global fintech M&A volume is on track to reach $40–60 billion in 2026, up from roughly $25–30 billion in 2024, as strategic buyers—including banks, payment processors, and private equity firms—race to acquire capabilities they cannot build organically at speed. However, the report identifies a persistent problem: many participants still approach these deals with frameworks designed for software or digital-asset transactions, leading to mispricing and lost value.
The core issue, the report explains, is that a licensed financial business is not priced like an ordinary company. A money-transmitter licence, an EMI authorisation, or a banking charter can take a seller five to seven years and significant capital to obtain, and it is rarely transferable automatically on change of control—re-licensing alone can take 6–24 months. When buyers price a regulated entity purely on its revenue multiple, they misjudge the single most valuable thing they are acquiring: the regulatory foundation itself.
“The most expensive mistake we see is buyers pricing a licensed fintech as if it were a software business,” said Ihor Vlasov, co-founder of N5Deal. “That regulatory foundation is often worth more than the revenue multiple, and the market is only now learning to price it correctly. We published this report to give buyers and sellers a clearer map of where value actually sits.”
The report’s key findings include the following:
Regulatory foundations now drive deal rationale. Acquiring a licensed entity lets buyers enter regulated markets years faster than building from scratch—a time-to-market advantage that has become a primary motive in cross-border payments and banking-as-a-service (BaaS) consolidation.
AI-native compliance is repricing valuations. The report cites data showing AI-enabled fintechs trading at 20–25% premiums across subsectors, with the highest in RegTech. By 2029, buyers are expected to discount entities that lack automated compliance rather than pay a premium for those that have it.
Conditions favour prepared buyers and sellers. Private equity holds record dry powder and financing has loosened. For sellers, documentation quality now determines whether an asset clears diligence at all; for buyers, acquiring a licensed entity can compress a compliance timeline by 12–24 months.
“Fintechs out-acquiring banks reflects a deeper change in who builds financial infrastructure,” said Egor Podkolzin, founder of N5 Bank. “Buyers today aren't acquiring a product—they're acquiring a regulated operating foundation.”
This report provides crucial insights for anyone involved in fintech M&A, highlighting the need to properly value regulatory licenses and the growing importance of AI in compliance. As the market continues to evolve, understanding these dynamics will be essential for successful transactions.
