By CEO Marc Cooper
Tannon Krumpelman joined Solomon Partners in April as a Partner in our rapidly expanding Financial Institutions Group. Tannon works with clients across multiple subsectors of the industry, including financial technology, asset & wealth management, banking, specialty finance, and capital markets companies, as well as private equity and other alternative investment firms. We recently discussed his observations about the sector and an article he co-authored with Matthew Cornish about high-deductible health insurance plans and the rise of “buy now, pay later” payment options in the Healthcare sector.
Tannon, your advisory experience and client relationships span a wide range of areas within financial services.
Most definitely, Marc. My practice is diversified across the industry by design—enabling me to provide a unique perspective of how certain businesses or subsectors may be better together or when they should come apart.
Can you share your insights on the current state of the financial services industry?
The industry is evolving through both convergence and unbundling. Integrated models—like financial supermarkets and global alternative asset managers—leverage scale, availability and cost of capital, efficiency, and tech innovation. Meanwhile, independent firms, such as boutique banks and fee-only advisors, offer specialized, conflict-free expertise. This duality of consolidation and specialization continues to shape strategic and investment opportunities across the sector.
What are some areas within financial services where you are seeing activity?
I think we are passing an inflection point and seeing an increase in strategic discussions across the board. There is significant pent-up demand for consolidation and private equity monetizations—and now we have a relatively stable macro and business-forward regulatory backdrop.
Businesses that are non-correlated to interest rates or market volatility continue to be in demand. Investors are paying up for these assets, recognizing their stability in uncertain times.
We are also seeing insurance and private credit players actively pursuing proprietary strategies for specialty finance asset origination. We are witnessing the green shoots of the next wave of regional bank consolidation. Broader payments activity has been lighter due to valuation pullbacks and there is a retrench toward more pure-play models. Other fintech conversations are ongoing, with a focus on services-side businesses like wealthtech and insurtech.
How do you see the regulatory environment impacting the industry?
From a regulatory standpoint, the pendulum has swung toward deregulation. The shift has created a more constructive posture toward M&A and investment activities as well as greater acceptance of new business models. We are seeing these themes play out in areas like large bank mergers and the acceptance of new and innovative business models, such as in the digital-asset space or alternative lending.
Speaking of new alternative lending models, let’s turn to the article you recently wrote with Matt. Could you explain how high-deductible health insurance plans are impacting Americans’ ability to afford medical care?
High-deductible health insurance plans, along with material co-insurance contributions and limited coverage for many elective procedures, are causing many Americans to struggle with out-of-pocket medical expenses.
According to Bankrate’s 2025 Annual Emergency Savings Report, nearly 60 percent of Americans do not have enough savings to cover an unexpected emergency expense over $1,000.
This financial challenge has led to the emergence of digital BNPL or “buy now, pay later” and other installment payment models as viable solutions for medical care, allowing consumers to pay for necessary or elective procedures over time. This could make healthcare more accessible to those who might otherwise defer treatment due to financial constraints.
What types of companies offer these payment plans and what impact are they having?
These BNPL options are offered by fintechs, financial institutions, and some medical providers, helping to attract a broader patient base and potentially leading to higher overall collections and lower costs for procedures due to economies of scale. However, the impact of BNPL on overall healthcare costs and patient debt remains uncertain. Learn more about this trend in the article Matt Cornish and I wrote.
