Seventy percent of banking leaders have completed or attempted a merger or acquisition in the past year, and many are using those deals as a springboard for modernization. New research from Exploring M&A trends and challenges in banking, fielded in April 2025 by TechStudio™, an Energize Marketing® company, and FIS® shows that M&A is no longer just a growth tactic. It has become a strategic lever for integrating proven technologies, boosting efficiency, and delivering seamless digital experiences.
While modernization is a clear goal, executives are realistic about the risks. Half of executives cite financial stability of potential acquisition targets as their top concern, 41 percent cite cultural misalignment as a concern, 37 percent point to technology or infrastructure challenges, and 35 percent flag regulatory or compliance risks.
These concerns are not slowing activity. Two-thirds of executives expect M&A momentum to continue or increase over the next 12 to 24 months, with 26 percent predicting a strong uptick. Regional and community banks are actively pursuing growth through M&A, with 56 percent hunting for targets and 12 percent preparing to be acquired.
“M&A creates more opportunities to sell more products to more people — a golden opportunity for any bank.” – Chief Risk Officer, Regional Bank
To extract the most value, banking and IT leaders plan to leverage technology that extends legacy systems and enables new digital services. Regardless of the growth strategy, banks cannot afford to treat modernization as an afterthought. The survey findings show it should be built into the deal from the start.
The survey also points to urgency. Nearly a third of banking leaders expect to complete a deal within six months, and another 23 percent anticipate closing within a year. This reflects the strong near-term focus on M&A despite economic and regulatory headwinds.
📊 By the Numbers: M&A + Modernization
72% of banks assessed potential cost savings or synergies before deals
40% cite IT modernization and operational efficiency as critical post-M&A drivers
56% say API capabilities and integration influence which core systems they keep
The research also underscores the importance of taking a holistic approach to transformation that connects people, process, and technology. This ensures that post-merger modernization delivers not only operational efficiency and integration, but also scalable systems, a stronger customer experience, and long-term stability.
👉 To explore all findings, download the full Exploring M&A trends and challenges in banking report (fielded in April 2025).