Fintech companies have out-acquired banks in M&A activity for the first time on record, according to a new report from N5Deal, a platform for licensed financial businesses. The 2026 Fintech M&A Report, released today, examines how licensed financial companies are valued and traded in the current market cycle.
Global fintech M&A volume is projected 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 internally at speed. However, the report warns that many participants still approach these deals with frameworks designed for software or digital-asset transactions, leading to significant value loss.
The report identifies a core issue: licensed financial businesses are not priced like ordinary companies. Obtaining a money-transmitter licence, an EMI authorisation, or a banking charter can take sellers five to seven years and substantial capital, and these licences are 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 regulatory foundation's true value.
"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."
The report highlights several key findings. Regulatory foundations now drive deal rationale, as acquiring a licensed entity allows buyers to enter regulated markets years faster than building from scratch. AI-native compliance is also repricing valuations, with AI-enabled fintechs trading at 20–25% premiums across subsectors, particularly in RegTech. By 2029, buyers are expected to discount entities lacking automated compliance rather than pay a premium for those that have it.
Current 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."
The full report is available on the N5Deal website, providing a comprehensive analysis of the current M&A landscape for licensed financial businesses.
