Market Pulse May 2026 Edition (Finch Capital)

Summary

• Payments technology carried the financial tech sector in May 2026, anchoring a record quarter total of €907M.p.5
• Insurance tech growth and VC funding dropped below €50M QTD, marking its lowest level in five quarters.p.4
• Banking & Digital Currency tech recorded major M&A activity highlighted by Santander's €3.1B deal for TSB.p.6
• Wealth & Capital Markets technology saw major consolidation driven by Bullish acquiring Equitini in a €3.7B transaction.p.7
• Lending & Mortgages technology VC funding collapsed to €7M in Q226, leaving M&A to sustain sector activity.p.8
• Finance & Ops led Business Tech fundraising in May 2026, supported by three €30M+ rounds including a €94M round for Fonoa.p.11
• Finch Capital operates as a growth investor with €500m AuM targeting tickets of up to €20m in companies generating €2m+ annualized revenues.p.14

Key insights

1. The proprietary Finch Index tracks the performance of 89 publicly traded companies across 9 Business and Financial Technology themes.p.2
2. Payments tech funding reached €907M in Q226, driven by card and orchestration infrastructure in the UK.p.5
3. Excluding a €2.2B Binance deal from May 2025, Banking & Digital Currency VC funding stood at €219M in Q226.p.6
4. HR & Payroll tech saw funding recover to €191M in Q226 after hitting €54M in Q126.p.10
5. Legal & Compliance funding rose to €451M in Q226, backed by a €70M round for LegalPlace led by XAnge.p.12
6. IT & Data technology funding totaled €420M in Q226, featuring a €34M French AI investment by Sequoia Capital.p.13