Fintechs to drive M&A in Saudi banking sector – KPMG
- Date: 25-Jul-2021
- Source: Zawya
- Sector:Financial Services
- Country:Saudi Arabia
Fintechs to drive M&A in Saudi banking sector – KPMG
RIYADH: The rise of financial technology companies in Saudi Arabia will stimulate merger and acquisition activity in the coming years, according to global management consultancy KPMG.
The fintech boom in the Kingdom has the potential to put pressure on traditional banks as the new companies appeal to its young, digital savvy population, the KPMG report said, according to Al-Sharq Al-Awsat.
Fintech startups have increased the prevalence of flexible digital transactions, helped ease regulatory barriers, and led to greater cooperation between financial technology companies and traditional financial institutions, KPMG said.
Bank M&A will also be spurred by factors including the increasing scope of rescue and restructuring deals, private equity interests and the booming of the bad loans market, it said.
The coronavirus pandemic represents an additional incentive to conclude merger and acquisition deals, especially if doubtful loans continue to grow, according to the consultancy.
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