Journal

JJEM: Special Edition 4 (May 2025)

Published On:

2025-05-31

Topic

Disruptive Trends in Banking: The Role of Mergers and Acquisitions in a Tech-Driven Era

Authors

Heenakausar Noorahmed Khatib, Dr.Prakash Hesari Shanmukhappa

Abstract

This paper examines the pivotal role of mergers and acquisitions (M&A) in addressing the technological disruptions reshaping the banking sector. The rapid advancements in artificial intelligence (AI), blockchain, and fintech are significantly altering traditional banking models, compelling financial institutions to adapt quickly to remain competitive. M&A strategies have emerged as a critical response, enabling banks to acquire cutting-edge technologies, broaden their market reach, and enhance operational efficiency. However, the success of M&A in a technology-driven environment requires careful attention to factors such as technological compatibility, cultural integration, and regulatory compliance. This paper explores the interplay between technology and M&A in the banking sector, analyzing how technological innovations impact M&A deal structures and integration processes. It highlights the importance of thorough due diligence, fostering innovation, and aligning organizational cultures for successful M&A outcomes. The paper also assesses the potential benefits and challenges of M&A as banks navigate the evolving tech-driven landscape, offering insights into how these strategic moves can enable long-term growth and resilience.

Keywords

Mergers and Acquisitions, Banking Sector, Technological Disruptions, AI, Blockchain, Fintech, Integration, Due Diligence, Regulatory Compliance