According to Forte Asset Solutions director Steve Prendevil’s annual market commentary – seen by InvestorDaily – technology is emerging as a disruptive force in financial services mergers and acquisitions, with a number of technology entrepreneurs eyeing the financial planning market.

“The technology sector is making money and needs distribution and we saw that [platform provider] Hub24 acquires Paragem for $2 million and we will see similar transactions from technology providers for the foreseeable future,” Mr Prendeville wrote.

In addition to the Paragem-Hub24 deal, the consultant and business broker pointed to Rubik’s acquisitions of Revex and Easy Dealer Group and the “effective listing” of Decimal through its acquisition by Aviva Corporation as recent cases likely to be emulated.

Technology providers are joining mortgage brokerages and accounting firms as increasingly likely buyers of financial planning practices and licensees, Mr. Prendeville added.

This proliferation of fintech and advisory deals puts institutions at a competitive disadvantage as smaller vendors become more technologically savvy in the process.

“These [institutions] who choose to remain in the wealth management or advisory business may decide they need to invest further, particularly in next-generation technology or platforms, to reassure advisors and consumers and enhance the competitive value proposition,” is indicated in the comment.

"Many of the emerging technology providers have listed or are planning to list and we will likely see more M&A activity in this space."