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Fintech/wealth M&A set to soar

By Aleks Vickovich
3 minute read

Financial institutions will be forced to invest more heavily in technology to compete as smaller wealth managers tie up with tech providers, a mergers and acquisitions consultant has predicted.

According to Forte Asset Solutions director Steve Prendeville’s annual market commentary – seen by InvestorDaily – technology is emerging as a disruptive force in financial services mergers and acquisitions, with a number of tech entrepreneurs eyeing up the financial planning market.

“The technology sector is getting cashed up and needs distribution and we saw [platform provider] Hub24 acquire Paragem for $2 million and we will see similar transactions by technology providers in the foreseeable future,” Mr Prendeville wrote.

In addition to the Paragem-Hub24 deal, the consultant and business broker pointed to Rubik’s acquisitions of Revex and Easy Dealer Group and Decimal’s “effective listing” by way of its acquisition by Aviva Corporation as recent cases likely to be emulated.


Technology providers are joining mortgage broking companies and accounting firms as increasingly likely buyers of financial planning practices and licensees, Mr Prendeville added.

This proliferation of deals between fintech and advice firms is putting the institutions at a competitive disadvantage as smaller providers become more tech-savvy in the process.

“Those [institutions] that decide to stay in the wealth management or advice business may decide they need to invest further especially in the area of technology or new generation platforms to placate advisers and consumers and raise competitive value proposition,” the commentary states.

“Many of the new technology providers are listed or plan to list and we will likely see more M&A activity in this space.”