The potential is also confirmed by the fact that in the first half of this year, the income of the Lithuanian electronic money and payment institutions sector grew by more than 20 percent. Lithuania has every opportunity to maintain consistent growth and become an even more attractive space for foreign investments.
According to the Bank of Lithuania, the revenue of the sector’s licensed activities in the first half of the year amounted to 275.1 million. EUR – compared to the corresponding period last year, they increased by 22 percent. The amount of payment transactions increased by more than a third – almost to 132 billion. Eur. It is estimated that 27 million people use the services of companies located in Lithuania. customers across the EU.
The field of electronic money and payment services is one of the engines of Lithuanian fintech. And the fact that the country is attractive to international investors is confirmed by the arrival of major players in this sector, such as Revolut, Airwallex, Nuvei, to Lithuania. This also led to the growth of local companies such as TransferGo, NEO Finance, Paysera.
It is worth noting that the “fintech” sector contributed significantly to Lithuania improving its position in the international tax competitiveness index, rising from seventh to fifth place in the world. This is a major achievement for a country that is constantly seeking to attract foreign investment and stimulate economic activity.
Last year, out of 34 countries, Lithuania was among the 10 countries with the lowest money laundering (AML) risk (ranked 9th). This year’s Council of Europe Committee of Experts for the Evaluation of Measures to Combat Money Laundering and Terrorist Financing (MONEYVAL) emphasized the significant progress of our country in the fight against money laundering and terrorist financing. Fintech companies, which pay a lot of attention to AML risk assessment and management, have contributed to these achievements. Market participants are actively investing in human resources, increasing employee competencies, and implementing the latest AML technologies.
It is estimated that almost 7.5 thousand people worked in “fintech” companies in Lithuania last year. employees, and the companies added more than 100 million to the state budget. Eur.
According to Expert Market Research, the global fintech market has grown rapidly in recent years and continues to expand at an impressive pace. It is predicted that by the end of this year the total market value may reach about 300 billion. EUR, and in the future the market is expected to grow by approximately 14 percent annually. and until 2029 can reach almost 600 billion Eur.
How to ensure the growth of the sector
Even three elections were held in Lithuania this year. For the successful further growth of the fintech sector, it is necessary to maintain the continuity of the fintech policy. In a few years, Lithuania has become one of the fintech leaders in the EU. One of the main reasons for this growth – successful cooperation between fintech market participants and politicians. I believe that with active cooperation, the sector can go even further, creating more opportunities and benefits for the people of Lithuania.
A few wishes for the new government, what should be paid attention to when thinking about the growth of fintech. I think it is especially important that the Ministry of Finance continues to ensure the 2023-2028 presented last year. Further implementation of the guidelines for the development of the Lithuanian “fintech” sector. The guidelines prepared together with partners provide for essential work in order to continue to maintain the country’s leading position in Europe.
The Ministry of Economy and Innovation, which is responsible for increasing the attractiveness of the investment environment, and regulation of the fintech sector based on risk assessment, plays a very important role in the growth of fintech. Recently, there is a lot of communication with companies providing international financial services that are considering establishing themselves in Lithuania. In order to attract these companies to our country, it is necessary to continue to ensure a good investment environment.
The Ministry of Education, Science and Sports should continue to focus on improving the skills of the youth. Fintech companies plan active expansion and intend to create more well-paid jobs both in large cities and in regions. Therefore, it is extremely important that young people have opportunities to acquire skills and knowledge in higher education institutions, which would allow them to get a job in companies providing financial services.
As for the Seimas, I would like to wish the newly elected members of the Seimas to continue involving market participants in the legislative process. After all, the best decisions are born only in detailed discussions.
The active cooperation of the Lithuanian institutions, the Bank of Lithuania, the Financial Crimes Investigation Service, the Money Laundering Prevention Competence Center of VšĮ with market participants should be further encouraged. “Fintech” companies listen to the recommendations of Lithuanian institutions, implement the requirements for the prevention of money laundering and terrorist financing, and submit proposals.
The Government Chancellery also plays an important role. The people working there are responsible for coordinating fintech issues between different institutions.
In history, you can find many successful examples where great victories and important achievements come only by working together. I have no doubt that the cooperation between the fintech sector and the authorities will continue to be one of the successful examples of how a small country can become a market leader.
#Greta #Ranonytė #elections #whats #Fintech #sectors #expectations #government #Business
What regulatory changes have had the most significant impact on the growth of fintech companies in Lithuania?
**Interview with Maria Šuminas, Head of the Lithuanian Fintech Association**
**Editor:** Good afternoon, Maria. Thank you for joining us today. Lithuania’s fintech sector has seen remarkable growth recently, with a reported income increase of over 20% in the first half of the year. What do you attribute this growth to?
**Maria Šuminas:** Good afternoon, and thank you for having me! The growth can be attributed to a combination of factors. First and foremost, Lithuania has created a very supportive regulatory environment that encourages innovation. We’ve also seen an influx of major international players like Revolut and Airwallex, which not only boosts our visibility but also enhances our local ecosystem. Additionally, we have dedicated companies like TransferGo and Paysera that are driving local innovation and competition.
**Editor:** That’s impressive. The Bank of Lithuania reported that almost 132 billion euros in payments were transacted. How does this volume reflect on the fintech landscape in Lithuania?
**Maria Šuminas:** These numbers are indeed monumental and demonstrate how integrated fintech has become in everyday transactions. With 27 million customers across the EU utilizing our services, it indicates strong trust and reliance on Lithuanian fintech companies. It’s a testament to the quality of services we offer and shows that we are increasingly becoming a hub for financial technology in Europe.
**Editor:** You also mentioned that Lithuania has made significant progress in combating money laundering, ranking 9th among 34 countries on the risk index. How important is this for attracting foreign investment?
**Maria Šuminas:** Extremely important. A solid reputation in terms of compliance and risk management is crucial for attracting international investors. Our fintech companies have been proactive in investing in AML technologies and human resources, showcasing our commitment to maintaining a robust financial system. This credibility not only reassures investors but also encourages more substantial investments into Lithuania.
**Editor:** Looking ahead, what should the new government focus on in order to foster further growth in the fintech sector?
**Maria Šuminas:** The continuity of our fintech policy is vital. The Ministry of Finance must implement the guidelines for 2023-2028 effectively, ensuring that we do not lose our competitive edge in Europe. Additionally, the Ministry of Economy and Innovation must enhance the investment environment further, while the Ministry of Education should focus on skills development in higher education to prepare the workforce for the evolving landscape. This is pivotal as we anticipate the need for more skilled professionals in our growing sector.
**Editor:** Thank you, Maria. any last thoughts on the future of Lithuania as a fintech hub?
**Maria Šuminas:** Lithuania has established itself as a fintech leader through collaboration among market participants, the government, and educational institutions. If we continue focusing on these partnerships and building on our current successes, I believe we can achieve even greater heights and offer more benefits to our citizens and the wider European market.
**Editor:** Thank you for your insights, Maria. It’s an exciting time for Lithuania’s fintech sector, and we look forward to seeing how it evolves.
