- UK and European banks are accelerating M&A and portfolio reshaping, backed by roughly US$600bn of excess capital and rising public/hostile bids.
- Fintech funding fell sharply in 2024, but EMEA showed a H1 2025 rebound led by later-stage scale-ups with proven models.
- Payments consolidation and portfolio realignment accelerated with Global Payments buying Worldpay for US$24.25bn while selling Issuer Solutions to FIS for US$13.5bn.
- Financial market infrastructure is also consolidating, highlighted by KKR’s US$3.1bn acquisition of post-trade provider OSTTRA.
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The banking sector in the UK and Europe is undergoing a pronounced shift from defensive posturing toward active consolidation. Freed from state ownership and buoyed by high interest rates, large banks are sitting on excess capital—US$600 billion among the top 20—and are deploying it via
Supporting Notes
- Over 50 M&A deals among UK & European banks in the 12 months ending 30 June 2025; top banks sit on US$600 billion in excess capital.
- UK’s fintech investment in 2024 fell by ~37%; global fintech investment dropped ~20% YoY, driven by macro uncertainty and valuation concerns.
- In EMEA in H1 2025 fintech investment rebounded to US$13.7 billion across 759 deals; UK captured over half of that funding.
- Global Payments⸺Worldpay deal valued at US$24.25 billion (EV) and Issuer Solutions sale to FIS at US$13.5 billion; deal expected to close in H1 2026.
- Worldpay transaction multiples: ~8.5× adjusted EBITDA net of synergies; Issuer Solutions at ~12.3×.
- Cost synergies of US$600 million and revenue synergies of at least US$200 million projected post-deal within three years.
- KKR completed OSTTRA purchase for US$3.1 billion from S&P Global and CME Group. OSTTRA is a key post-trade infrastructure provider across interest rates, FX, credit and equity markets.
- White & Case highlights trends including: banks shedding non-core units, branch closures, share buy-backs; example: Metro Bank sells £2.5bn residential mortgage portfolio; HSBC divests German custody business.