Southeast Asia’s financial services sector witnessed an increase in deal volume in 2025, with 58 publicly disclosed deals compared to 48 in 2024. However, the total disclosed deal value fell significantly from $4.2b in 2024 to $2.1b in 2025, according to the latest EY financial services M&A analysis.
Globally, the financial services sector saw a 49% year-on-year rise in the total value of mergers and acquisitions (M&A), with 2,236 deals disclosed in 2025, up from 2,219 in 2024. Omar Ali, EY Global Financial Services Leader, noted that despite challenging market conditions, investment appetite remained strong, with transactions exceeding $1 billion rising by more than 70%.
In Southeast Asia, the shift towards smaller acquisitions and minority investments was attributed to high funding costs and valuation gaps, as explained by Sumit Narayanan, EY Asean Financial Services Leader. This trend reflects a cautious approach amid macroeconomic and geopolitical uncertainties, with firms focusing on enhancing capabilities in digital services, payment solutions, and wealth management.
Looking ahead, Southeast Asia remains an attractive region for investment, with Singapore expected to drive increased deal activity in 2026, particularly in the insurance and wealth management sectors. Stuart Last, EY-Parthenon Partner, highlighted the potential for profitable regional platforms in the FinTech sector to move towards initial public offerings (IPOs) in the medium term, supported by interim funding rounds.
