Although mergers in the banking sector are rare, they do occur. The trend is accelerating, with a surge in deals at the start of 2025. Experts at AURIS Finance, a consultancy specialising in mergers and acquisitions, take a closer look.
‘Too big to merge’. The banking sector has traditionally been reluctant to engage in major mergers. Given the critical mass required for banking activities, the sector is already highly concentrated. In Europe, just a few banking giants share a market of 450 million people.
US$27 billion in transactions
Nevertheless, the European banking landscape is far from set in stone. According to a recent study by consultancy company Oliver Wyman, the value of mergers and acquisitions in the banking sector has doubled since the beginning of 2025 compared with the same period in 2024. In the first six months of this year alone, a record $27 billion worth of deals were recorded, marking a 47% year-on-year increase. According to the study, the top five banks in Europe and the United Kingdom hold just 24% of banking assets, compared with 57% in the United States. Against this backdrop, new mergers are likely. Smaller players are already coming together, following the example set by the acquisition of Helios by Younited, a French fintech company specialising in credit.
Closer ties between giants…
In France, 2025 was marked by a significant merger: BNP Paribas Cardif’s acquisition of AXA Investment Managers. Initiated in August 2024 and finalised in July 2025, the transaction will establish a dominant player in the asset management sector. It will enable the BNP Paribas Group to establish a European platform with over €1.5 trillion in assets under management. Another significant transaction is the planned merger between BPCE and Generali in the form of a 50/50 joint venture between BPCE (via Natixis Investment Managers) and Generali Investments Holding. The aim is once again to create one of the largest asset managers in Europe, with €1.9 trillion in assets under management.
… And small transactions
Currently, banks have one significant advantage over other sectors: their high level of liquidity. Since 2022, European banks have paid out record amounts to their shareholders. For the period 2024–25 alone, analysts estimate that the major European banks will pay out a total of €120 billion in dividends and share buybacks. This puts them in a strong position to absorb smaller companies. The big banks still have a real appetite for fintech companies, particularly those specialising in payments and cybersecurity. For example, BNP Paribas has acquired NICKEL (2017), Gambit Financial Solutions (2021) and Kantox (2022).
Our experts at your service
The giants of the banking sector continue to keep a particularly close eye on innovative fintechs. Acquiring them could enable them to make a technological leap forward or quickly and nimbly roll out a new service. New moves could be on the cards in the near future. At AURIS Finance, our experts specialise by sector and will support you throughout your sale or acquisition.
