Merchant Banking Services Market Size

Global Merchant Banking Services Market size was valued at USD 42.2 billion in 2023 and is poised to grow from USD 49.42 billion in 2024 to USD 174.71 billion by 2032, growing at a CAGR of 17.1% during the forecast period (2025-2032).

Growing number of high net-worth individuals, increasing demand for corporate advisory services, boom in venture capital and equity investments, adoption of digital banking services, and globalization of businesses are key factors promoting the demand for merchant banking services.

Surge in demand for expert financial advice on mergers, acquisitions, and restructuring in businesses is expected to primarily create new business scope for merchant banking services companies. The need for better risk management, capital structuring, and fundraising advisory services in growing businesses around the world is also estimated to boost revenue generation for market players. The world has witnessed a robust increase in high net-worth individuals, which in turn is fueling the demand for better wealth management and investment banking services from merchant banking services providers.

Increasing number of startups around the world have also boosted the demand for private equity and venture capital funding. Merchant banks help startups raise capital through facilitate fundraising through equity placements, mezzanine financing, and venture capital partnerships.

Surging adoption of digital banking coupled with advancements in financial technologies are expected to bolster the global merchant banking services market growth in the long run. On the contrary, regulatory compliance challenges, high competition from commercial banks, cybersecurity risks in digital banking, economic uncertainty, and limited awareness among small enterprises are estimated to be key constraints inhibiting the adoption of merchant banking services companies across the study period and beyond.

How Artificial Intelligence Can Optimize Merchant Banking Services?

Merchant banking service companies can leverage artificial intelligence (AI) technology to streamline their operations and reduce the possibility of manual errors that have been plaguing the banking industry for years. Merchant banking service providers can also utilize AI chatbots in banking to offer round the clock customer support and enhance the overall user experience for businesses and individuals. Use of AI-based banking security solutions integrated with advanced analytics technologies can also help mitigate cybersecurity risks for digital banking solutions.

Which Startups Have been Influential in the Merchant Banking Services Industry?

There are multiple startups revolutionizing the fintech industry but there are some key startups that have been influential in altering the course of the global merchant banking services industry growth.

• Brex: Founded by Henrique Dubugras and Pedro Franceschi back in 2017, the company is known for offering business credit cards and cash management accounts for technology companies. The company is known for its pivotal role in supporting startups with its financial expertise. In June 2024, the company announced the launch of new digital banking products and updates for its flagship business account. The new launch bolsters Brex’s stance as a leading provider of all banking solutions for corporate needs in one integrated offering.

• Revolut: Founded in 2015 and based in London, England, the company has emerged as a key neobank and fintech provider for individuals as well as businesses. Nikolay Storonsky and Vlad Yatsenko founded the company. The company is currently focusing on expanding its presence in different countries such as India and South Africa. In February 2025, the company officially announced the launch of its services in Ukraine as part of its expansion efforts to boost revenue generation potential in the long run.