Survey respondents remain bullish on the future of dealmaking in the financial services industry, with 22% expecting it to see the most M&A activity over the next year. Although enthusiasm remains stable, the strategies driving it beneath the surface are shifting in real time.

Bank consolidation continued in 2026, though at a more selective pace than the prior year. Banco Santander’s proposed $12.2 billion acquisition of Webster Financial and Huntington Bancshares’ $7.4 billion merger with Cadence Bank both reflect a familiar logic: scale, deposit base, and geographic reach still matter, even as overall deal volume abates.

Fintech remains one of the more active corners of the sector, and the rationale behind those deals has shifted. Capital One’s $5.15 billion acquisition of Brex, an AI-native corporate card and expense management platform, is the latest example of banks choosing to buy their way into AI-driven capabilities rather than build them internally. That buy-versus-build dynamic is evidenced across the sector as institutions race to embed AI into payments, compliance, and customer engagement before their competitors. Regulatory clarity around digital assets is also inviting more activity in stablecoin infrastructure and tokenization, an area traditional banks have mostly watched from the sidelines until now.

Insurance tells a similar story, albeit at a different pace. Zurich Insurance Group’s $10.9 billion acquisition of Beazley and the proposed $22 billion merger between Corebridge Financial and Equitable Holdings rank among the year’s largest deals. Broker and Managing General Agent consolidation continues as well, though buyers are shifting from pure roll-up plays toward deals that demonstrate real integration, clean data, and organic growth.

With more than $2 trillion in assets under management, private credit funds have become financing partners, strategic buyers, and, in some cases, direct competitors to banks, reshaping how financial services deals are funded and structured. Recent stress in parts of the private credit market has raised real questions about concentration risk, but it hasn’t slowed the broader shift. Across banking, fintech, and insurance, the institutions coming out ahead are those treating M&A as a shortcut to capability, not just a path to scale.