Mergers and acquisitions are core activities for banks, but in 2013 M&A deals in FS declined in both number and value as the banking industry faced a flood of strict regulations such as the Dodd-Frank Act in the U.S. However, the scenario may change in the coming years as M&A activity gains traction due to new regulations, especially in the U.S. and Europe. Having the IT function ready from day one of the post-merger period is of paramount importance for successful M&A. A lack of IT integration strategy can create a continuous challenge for banks, leading to higher technology costs.