Fintechs buying banks and banks buying fintechs!

There have been several deals in the last few years featuring fintechs buying banks. Some examples include SoFi purchasing Pacific Bank and Lending Club purchasing Radius Bank. But with the recent announcement of Valley National Bancorp purchasing Bluevine, could the script be about to flip? Could this be the first of multiple transactions involving banks purchasing fintechs? This deal is a game changer and it certainly puts everyone on notice. Banks will need to change their strategy in the years ahead and purchasing a fintech that already has the technology or products that they need is easier than starting from scratch. Conversely, why are banks attractive to fintechs? Multiple reasons that include strong deposit franchise, established lending relationships, sound regulatory and compliance track record, and size and infrastructure. This episode reviewed multiple articles from S&P Global Market Intelligence (subscription required) and a blog post from PCBB titled “Is your CFI on a Fintech’s radar?” A link to the PCBB blog post is included below.

Link: Is Your CFI on a Fintech’s Radar?