Financial technology companies, long seen as a threat by the likes of JPMorgan, are increasingly becoming acquisition targets for traditional U.S. banks as rising interest rates and falling valuations crimp their expansion.The decline presents an opportunity for Main Street banks to buy companies and beef up their technology for digital banking, online payments and other financial services and diversify beyond lending.
“With valuations coming down, and the IPO and SPAC markets all but dried up at the moment, there’s certainly a lot more room for acquisitions by traditional banks into fintech,” said Dan Goerlich, a partner at PwC who focuses on financial deals.
https://www.reuters.com/business/finance/us-banks-pounce-fintech-deals-valuations-plunge-2022-11-17/