Fintech M&A in 2025: Regulatory Compliance, Due Diligence, Deal Structuring, Developments and Trends

As technologies in the fintech industry have continued to evolve, so too has the M&A landscape in this sector. The fintech M&A landscape has entered a new phase that is no longer experimental. Instead, fintech technologies are essential, and deal making in this space is now centered on profitability, operational efficiency, and strategic consolidation.

Investors in fintech companies (e.g., banking organizations and private equity firms) typically have very different risk appetites and compliance expectations than do new, entrepreneurial fintech firms. These disparate cultures can have important impacts on legal, regulatory, and compliance aspects of fintech transactions.

Certain questions have particular importance when a fintech target is involved. Is the target's business subject to licensing? Are those licenses transferable? What are the required regulatory approvals for the transaction? Has the target operated its business consistent with the buyer's/investor's compliance and risk management standards? What are the parties' rights with respect to the underlying technology and intellectual property? Who controls the timing and terms of an exit transaction? Counsel must address these issues during due diligence and the transaction documentation process.

When more traditional institutions acquire/invest in fintech firms, a particularly important issue centers on the target's historical compliance efforts, its desire for flexibility, and the buyer's/investor's desire for internal controls. Traditional financial institutions, which must answer to regulators, may have a different tolerance for regulatory risk than the target they seek to acquire/invest in. Transactions in the fintech space may also involve important negotiations relating to employment and efforts of key persons or innovators at the target.

Listen as our authoritative panel examines issues particular to fintech M&A transactions. In addition to key deal terms and compliance matters, the panel will discuss how to resolve issues relating to retention of licenses, IP and talent, differences in culture, management control, and more.

I. Trends and developments in fintech M&A

II. Disruption in the industry: heightened adoption of artificial intelligence and machine learning technologies

III. Tech vs. financial institutions: cultural differences and impact on deals

IV. Due diligence of a fintech target

V. Positioning a fintech target for acquisition—gap analysis of compliance protocols

VI. Key deal terms

VII. Addressing transition of management: retaining talent and key persons

VIII. Practitioner pointers

The panel will review these and other key issues:

• What are the current trends in fintech M&A? How have these trends been fueled by AI and machine learning technologies?
• How do fintech companies and fintech investors/acquirers, such as banking institutions and private equity firms, differ in corporate culture, and how might these differences impact a transaction?
• What are the key due diligence concerns for a bank or private equity firm looking to acquire or invest in a fintech company?
• What are some important regulatory compliance challenges specific to fintech M&A deals, and what are strategies for overcoming these hurdles?
• What are some key provisions that should be included in a fintech acquisition or investment agreement?