A poll conducted by Specialist Banking saw 82% predict mergers and acquisitions within the specialist banking industry over the next 12 months, with 18% disagreeing.

Earlier this month, Tandem announced that it would be acquiring Harrods Bank as it looked to accelerate its growth plans.

Meanwhile, Close Brothers acquired specialist lender Novitas Loans earlier this year, while in mainland Europe, Spanish banks Bankia and BMN approved merger plans.

The idea of banks or companies looking to increase their presence within the banking sector through mergers or acquisitions can be a popular choice.

Alex Letts, founder and chief unbanking officer at U, said: “There is a maturation process in all innovative segments and there's no reason to suspect fintech will be any different.

“The large financial institutions are realising they cannot do what fintech companies do, and ambitious fintech companies need capital and access to customers.

“It is a no-brainer.'

In Secure Trust Bank's recent half-year results, it said it had engaged in a number of discussions relating to inorganic business opportunities.

Paul Lynam, chief executive of Secure Trust Bank, said in the report: “Notwithstanding the current uncertain economic outlook, I believe there is scope to pursue our strategic priorities by developing the business model organically and pursuing attractive acquisition opportunities.

“Our previous M&A [mergers and acquisitions] activities have generated considerable shareholder value due in part to the discipline that we apply.

“We will continue to be disciplined in our approach to opportunities.'

On the other hand, George Bevis, founder and chief executive of Tide, did not expect to see a surge in the number of merger and acquisitions over the next 12 months.

“…There may be more companies looking to sell or merge in two years.

“By then, many of the newer entrants could be struggling to scale among the competition and realise that to grow, they have to team up with rivals or be taken under the wings of larger, well-funded corporates.'

George revealed how Tide was looking to expand.

“Tide, with the backing of its investors, aims to become a global business that supports 50 million small- and medium-sized businesses by 2026.

“We recently secured $14m of investment from high-profile venture capital firms, including specialist fintech fund Anthemis and Creandum, the Scandinavian fund that has backed Spotify and iZettle.

“Overseas expansion into Europe will begin next year.'