Southeast Asia’s financial services dealmaking held its ground in the first half of 2026, even as the total value of transactions dropped sharply, suggesting that buyers remain active but more selective in a market still shaped by high uncertainty.
According to EY’s latest financial services M&A analysis, the region recorded 31 publicly disclosed mergers and acquisitions in the first six months of the year, unchanged from the same period in 2025. But disclosed deal value fell to US$936 million from US$1.6 billion a year earlier.
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The headline number points to a market that has not frozen, but has become more cautious. Rather than the large, transformative deals that dominated parts of the previous cycle, Southeast Asia’s financial services activity in early 2026 was led by smaller and mid-sized transactions. For banks, insurers, fintech investors and asset managers, the focus appears to be on assets that can fill specific strategic gaps rather than aggressive expansion at any price.
“The stability in deal activity across Southeast Asia’s financial services sector reflected a market that remains engaged despite economic and geopolitical volatility,” said Stuart Last, EY-Parthenon Partner, Financial Services, Ernst & Young Solutions LLP.
He added that the fall in disclosed deal value suggests investors are pursuing opportunities with a clear strategic rationale, rather than chasing scale for its own sake.
Banks slow, wealth platforms gain ground
The split across sub-sectors shows how investor attention is shifting within the region’s financial services market.
Banking and capital markets remained the largest contributor by value, but activity declined. Deal volume in the segment fell to 14 from 20 a year earlier, while disclosed value dropped to US$669 million from US$1.1 billion.
That decline is not surprising. Banking deals in Southeast Asia are often shaped by regulation, ownership limits and the complexity of integrating legacy systems. While the region’s banks are still under pressure to digitise, improve cost efficiency and compete with fintech players, full-scale acquisitions can be difficult to execute, especially when interest rates, credit risk and capital requirements remain in focus.
Insurance moved in the opposite direction by deal count. The sector recorded nine deals in the first half of 2026, up from eight a year earlier. But disclosed deal value fell to US$123 million from US$478 million, indicating that activity was concentrated in smaller assets.
The more striking change came from wealth and asset management. Deal volume rose to eight from three, while disclosed value jumped to US$145 million from just US$800,000 in the first half of 2025.
That rise reflects one of Southeast Asia’s most persistent financial services themes: the growth of the affluent and mass-affluent population. As income levels rise in markets such as Singapore, Indonesia, Vietnam, Malaysia and Thailand, more consumers are seeking investment products, retirement planning tools and advisory services beyond traditional savings accounts.
For acquirers, wealth platforms can offer access to sticky customer relationships, fee-based revenue and digital distribution channels. In a region where financial literacy and investment participation are still uneven, firms that can combine trust, technology and local market access are becoming more attractive targets.
Last said the sharp rise in wealth and asset management deal value points to growing investor interest in platforms and capabilities that can capture demand from the region’s expanding affluent population.
Foreign buyers remain interested in Southeast Asia
EY’s data also suggests that international appetite for Southeast Asian financial services assets has not disappeared.
The number of non-Southeast Asian firms acquiring targets in the region fell to five in the first half of 2026 from seven a year earlier. However, the total disclosed value of these deals rose to US$410 million from US$344 million.
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That means fewer foreign acquirers were active, but those that did move were willing to commit larger sums. This matters because Southeast Asia continues to be viewed as a long-term growth market despite near-term volatility. The region has a young population, rising digital adoption, a large underbanked base in several markets, and increasing demand for credit, insurance and wealth products.
At the same time, operating across Southeast Asia is rarely straightforward. The region is not a single market. Financial services firms must navigate different regulators, licensing regimes, consumer behaviours, languages and levels of digital infrastructure. That complexity can slow dealmaking, but it can also make established local platforms more valuable.
EY expects larger transactions to return in the second half of 2026 if financing conditions improve and more scaled assets become available.
Global deal count rises, but megadeals thin out
The Southeast Asian pattern mirrors a broader global trend: more deals, but less value.
Globally, banks, insurers and asset managers publicly disclosed 1,137 financial services deals in the first half of 2026, up 3 per cent from 1,101 a year earlier. Yet total disclosed deal value fell to US$134.5 billion from US$191.3 billion.
The drop was largely driven by a thinner pipeline of megadeals. EY recorded 25 transactions above US$1 billion in the first half of 2026, representing 80 per cent of total deal value. That compares with 37 such deals in the first half of 2025 and 55 in the second half of 2025.
The concentration of value among the largest transactions remained high. The ten biggest global financial services deals accounted for US$78.7 billion, or 58 per cent of total value. The top 20 deals accounted for US$100.5 billion, or 75 per cent.
Omar Ali, EY Global Financial Services Leader, said financial services firms have adapted to heightened uncertainty as part of normal operating conditions. But he noted that unpredictability, slower global growth, inflation and supply shocks continue to affect deal value.
“Despite the number of transactions rising, deal value in the first half this year across the world’s major markets is down on 2025 levels, as significantly fewer transactions completed over the US$1 billion mark,” he said.
Asia and Oceania weaken, but cross-border interest grows
Across Asian and Oceanian markets, the first half of 2026 was softer than in Southeast Asia. Publicly disclosed financial services M&A fell 14 per cent to 147 deals from 170 a year earlier. Total disclosed value slipped to US$15.8 billion from US$17.8 billion.
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Banking and capital markets deal volume in the broader region declined to 77 from 87, though deal value rose to US$11.3 billion from US$6.4 billion. Insurance weakened more clearly, with volume falling to 31 from 41 and value dropping to US$2.1 billion from US$5 billion. Wealth and asset management also declined, with volume falling to 39 from 42 and value sliding to US$2.4 billion from US$6.5 billion.
However, foreign interest in Asian and Oceanian targets increased. Non-regional acquirers completed or announced 28 deals, up from 23, while disclosed value rose to US$1.9 billion from US$1.6 billion.
For Southeast Asia, the message is mixed but not gloomy. Dealmakers are not retreating from the region. They are becoming more disciplined, more sector-specific and more careful about valuation. The next phase of activity may depend less on whether buyers have appetite, and more on whether sellers are willing to meet the market.
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