Bank of America has merged its FinTech and technology investment banking teams.
The 50 bankers on its FinTech team will join the 200 in its technology group, reflecting the growing similarities between the two sectors, Bloomberg reported Monday (October 14).
“Payments and FinTech software will inevitably intersect” Kevin Brunerpresident of global mergers and acquisitions and global head of technology, media and telecommunications investment banking at Bank of America, said in the report.
The move comes after Brunner was appointed to his new role this summer after serving as co-head of global mergers and acquisitions, according to the report.
The announcement of organizational changes at Bank of America comes at a time when the PYMNTS FinTech IPO Index gained 0.4% last week, with several platforms rising by double-digit percentage points.
On October 2, it was reported that a major banker from JPMorgan Chase said that the IPO (IPO) for private equity-backed companies is heating up as companies look to reduce debt or provide existing investors with an opportunity to profit.
In September, a top Citigroup banker reportedly said a handful of tech companies were considering go public on the American stock exchanges before the end of the year and that they could benefit from the demand for high-growth stocks.
Investors view high-growth stocks like those of technology companies as more resilient to economic downturns and more likely to benefit from lower interest rates, said Paul Abrahimzadeh, co-head of Americas equity capital markets. of the North at Citigroup.
On the mergers and acquisitions On the M&A front, a September report indicated that M&A activity was expected to slow during the fourth quarter due to uncertainty surrounding the U.S. election, before recovering in 2025.
Companies are postponing major transactions until after the election to get a better sense of the new administration’s likely regulatory and economic policies, to avoid becoming a “campaign talking point,” and to await the expected outcome. Federal Reserve rate cuts which should contribute to an increase in transactions next year.
Private equity buyouts are also expected to accelerate.
