Southeast Asia Financial Services Saw Higher Deal Volume but Lower Values in 2025 as Indonesia Turns More Selective

• The region landed 58 disclosed financial services sector deals valued at US$2.1b in 2025; globally, the sector saw 93 announced deals worth over US$1b in value.
• Indonesia’s FS deal landscape is becoming more selective and consolidation-driven, with investors favoring targeted, smaller opportunities over large equity transactions.
• Deal activity in Indonesia is increasingly shaped by digital-led growth in banking, payments and fintech, alongside a rising preference for loan portfolio or asset purchases.

JAKARTA, 23 APRIL 2026. The total value of announced or completed M&A transactions in the global financial services sector in 2025 rose 49% year-on-year (yoy), boosted by a significant annual increase in the number of deals over US$1b, according to the latest EY financial services M&A analysis.

Banks, insurers and asset managers across the world’s major financial services markets publicly disclosed 2,236 deals in 2025 – up slightly from 2,219 deals in 2024, which at the time was a 10-year peak. Total disclosed value for global financial services deals in 2025 rose significantly, from US$282.1b in 2024 to US$418.9b in 2025, with 93 deals announced above US$1b in value, representing 81% of total deal value. This compares with 54 deals above US$1b over 2024. Around 10% of all financial services deals in 2025 were driven by private equity or venture capital firms, with the rest of transactions taking place between corporate institutions.

Omar Ali, EY Global Financial Services Leader, says:

“Market conditions continued to challenge global financial services dealmaking in 2025 but did not dampen investment appetite within the sector. While the number of deals was only up marginally year-on-year, overall value was up 49%. Transactions exceeding $1b rose more than 70%, and every region globally reported growth in deal value.

“With more than 2,000 financial services deals announced or completed worldwide in 2025 – including 93 megadeals – growth, scaling and innovation are clearly at the top of the agenda, and firms are increasingly emboldened to transact higher-quality assets that command premium valuations to achieve their competitive goals.”

2025 Financial Services M&A Overview – Asia and Oceania

Across Asian and Oceanian markets, M&A activity reported a marginal uptick in 2025, with a 0.8% yoy rise in the number of publicly disclosed deals, totaling 360 deals compared with 357 in 2024. Despite this, total disclosed deal value increased, rising from US$40.4b in 2024 to US$65.5b in 2025.

In Southeast Asia (SEA), there were 58 publicly disclosed deals in the financial services sector in 2025, up from 48 deals in 2024. The total disclosed deal value fell from US$4.2b in 2024 to US$2.1b in 2025.

Sumit Narayanan, EY Asean Financial Services Leader, says:

“While deal volume has increased year-on-year, total deal value across Southeast Asia has dipped, signaling a move toward smaller acquisitions and minority investments over larger, more transformative deals. High funding costs and valuation gaps between buyers and sellers have made it harder to pursue mega deals. Greater regulatory and capital scrutiny have also made firms more cautious. Hence, many are focusing on investments that enhance their capabilities in areas such as digital services, payment solutions and wealth management. This reflects a more disciplined, risk-adjusted growth strategy amid macroeconomic and geopolitical uncertainties.”

In Indonesia, the Indonesian Financial Services Authority continues to pursue a strategy aimed at creating a leaner market with fewer but more financially resilient institutions. This approach is fostering a more selective investment environment, where investors are prioritizing targeted opportunities in smaller, specialized operators while increasingly focusing on digital-led growth areas such as digital banking, payments, and fintech.

Reuben Tirtawidjaja, EY-Parthenon Indonesia Strategy and Transactions Partner, states:

“Investors are increasingly selective, often favoring smaller, more specialized operators over large, broad-based transactions when evaluating equity opportunities. From the regulator’s standpoint, this initiative is expected to accelerate industry consolidation.”

At the same time, major players are increasingly favoring loan portfolio or asset acquisitions over full equity deals, particularly when a transaction does not require the license, infrastructure, technology, or distribution networks typically associated with equity investment. While many investors remain cautious about Indonesia, its position as the region’s largest market, with substantial growth headroom, remains compelling. As a result, investors continue to prioritize and deepen their presence, actively pursuing opportunities as suitable assets become available.

Reuben, adds:

“Indonesia’s financial services sector growth continues to be heavily centered on digital banking, payments, and fintech innovation—segments that reflect the nation’s rapidly expanding digital economy and investors’ appetite for fresh digital capabilities alongside, rather than solely through, traditional balance‑sheet‑driven acquisitions.”

2025 Financial Services M&A Overview – Europe

Across Europe, M&A activity rose in 2025, with a 6% yoy increase in the number of publicly disclosed deals, totaling 759 compared with 715 in 2024. Total disclosed deal value also increased across the region, rising from US$49.5b in 2024 to US$141.2b in 2025, due to 30 deals above US$1b and two deals surpassing US$10b in value.

2025 Financial Services M&A Overview – North America

In the United States and Canada, M&A activity fell in 2025, with an 5% yoy decline in the number of publicly disclosed deals, totaling 947 deals compared with 998 deals in 2024. Despite this, total disclosed deal value in North America increased, from US$166.9b in 2024 to US$188.7b in 2025.

Sector Specific M&A Activity Across Asia and Oceania’s Major Financial Markets

• Banking deals in Asia and Oceania fell from 190 in 2024 to 185 in 2025, while deal value rose from US$31.8b in 2024 to US$45.1b in 2025.
• Insurance deals in Asia and Oceania increased from 69 in 2024 to 87 in 2025, and deal value rose from US$6.3b in 2024 to US$11.1b in 2025.
• Wealth and asset management deals in Asia and Oceania fell from 98 in 2024 to 88 in 2025, but deal value significantly rose from US$2.3b in 2024 to US$9.3b in 2025.

The number of non-Asian and Oceanian firms acquiring Asian and Oceanian targets decreased from 56 in 2024 and to 54 in 2025, while the total disclosed deal value increased from US$4.3b in 2024 to US$10.2b in 2025. The number of Asian and Oceanian firms acquiring targets from other markets rose from 29 in 2024 to 30 in 2025, and total disclosed deal value increased from US$14.8b in 2024 to US$19.4b in 2025.

Within SEA:

• Banking deals rose from 32 in 2024 to 35 in 2025, while total disclosed deal value declined from US$2.3b in 2024 to US$1.2b in 2025.
• Insurance deals fell slightly from 12 in 2024 to 11 in 2025, and total disclosed deal value also decreased, from US$1.6b in 2024 to US$0.8b in 2025.
• Wealth and asset management deals increased from 4 in 2024 to 12 in 2025, but total disclosed deal value declined from US$0.3bn in 2024 to US$28m in 2025.

The number of non-SEA firms acquiring SEA targets declined from 31 in 2024 to 24 in 2025, with total disclosed deal value dropping from US$4.2b in 2024 to US$0.7b in 2025. SEA firms acquiring overseas targets decreased from 16 in 2024 to 10 in 2025, and total disclosed deal value fell from US$1.1b in 2024 to US$0.1b in 2025.

Sector-Specific M&A Activity Across Europe’s Financial Markets

• European banking deals rose from 183 in 2024 to 219 in 2025, and deal value rose more than quadrupled, from US$17.5b in 2024 to US$73.5b in 2025.
• European insurance deals fell from 309 in 2024 to 297 in 2025, while deal value more than quadrupled, from US$11.1b in 2024 to US$49.2b in 2025.
• European wealth and asset management deals increased from 223 deals in 2024 to 243 in 2025, but deal value fell, from US$20.9b in 2024 to US$18.5b in 2025.

The number of non-European firms acquiring European targets rose from 107 in 2024 to 119 in 2025, while total disclosed deal value increased significantly, rising from US$5.1b in 2024 to US$47.9b in 2025. The number of European firms acquiring targets from other markets increased marginally from 64 in 2024 to 66 in 2025, with total disclosed deal value rising from US$5.1b in 2024 to US$8.4b in 2025.

Sector-Specific M&A Activity Across North America’s Financial Markets

• North American banking deals rose from 236 in 2024 to 270 in 2025, and deal value increased from US$78.7b in 2024 to US$119.1b in 2025.
• North American insurance deals fell from 455 in 2024 to 355 in 2025, and deal value also fell, from US$48.7b in 2024 to US$41.6b in 2025.
• North American wealth and asset management deals rose from 307 in 2024 to 322 in 2025, while deal value decreased from US$39.5b in 2024 to US$27.9b in 2025.

The number of non-US or Canadian firms acquiring US and Canadian targets increased from 39 in 2024 to 52 in 2025, and the total disclosed deal value rose from US$12.1b in 2024 to US$16.3b in 2025. The number of US and Canadian firms acquiring targets from other markets increased from 107 in 2024 to 148 in 2025, and total disclosed deal value increased significantly from US$5.8b in 2024 to US$51.8b in 2025.

-ends-

Notes to editors:

• Within the analysis, deals include transactions (announced or completed) where the target is in one of the three financial services sectors: banking, insurance, or asset management
• European markets cover the entire region without exception
• North American markets cover the US and Canada
• Asian and Oceanian markets include: India, Pakistan, Japan, Singapore, Hong Kong, Chinese mainland, Australia, Indonesia, New Zealand, Sri Lanka, South Korea, Thailand, Philippines, Vietnam, Malaysia, Bangladesh, Taiwan, Cambodia, Nepal, Macau, Papua N Guinea, North Korea, Fiji, Maldives, Western Samoa, Brunei, Mongolia, Myanmar, Laos, Guam, Solomon Islands, Vanuatu
• Equity investments are included, but joint ventures are not
• Deals where less than 20% (disclosed) of the company or a minority stake was acquired have been excluded
• Data range: 1 January - 31 December 2025
• There is no minimum disclosed value deal threshold

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