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
How do regulatory policies in Lithuania compare to other European countries in fostering fintech growth?
**Interview with Dr. Lina Simanauskaitė, Director of the Lithuanian Fintech Association**
**Editor:** Welcome, Dr. Simanauskaitė! We’re thrilled to have you here today to discuss the incredible growth in Lithuania’s fintech sector.
**Dr. Simanauskaitė:** Thank you for having me! It’s an exciting time for fintech in Lithuania.
**Editor:** The recent report from the Bank of Lithuania indicates a revenue increase of 22% in the electronic money and payment institutions sector. What factors do you believe contribute to this significant growth?
**Dr. Simanauskaitė:** Several factors are driving this growth. First, Lithuania has established itself as a regulatory-friendly environment, which attracts international players like Revolut and Airwallex. Additionally, there’s a strong culture of collaboration between fintech companies and policymakers, which has facilitated the sector’s expansion.
**Editor:** That collaboration is key. With almost 27 million customers using services from Lithuanian companies across the EU, how does this impact employment in the sector?
**Dr. Simanauskaitė:** Absolutely. Last year, the fintech sector employed nearly 7,500 people, contributing over 100 million euros to the state budget. The ongoing demand for skilled professionals means there are ample job opportunities, particularly for young graduates.
**Editor:** Speaking of youth, you mentioned the importance of education in your earlier comments. What initiatives are being implemented to ensure that students are prepared for careers in fintech?
**Dr. Simanauskaitė:** That’s a critical point. The Ministry of Education is focusing on enhancing the curriculum to include relevant skills in digital finance and technology. We need to equip students with the knowledge necessary to thrive in a rapidly evolving sector.
**Editor:** As Lithuania aims to maintain its position as a fintech leader in Europe, what are the key steps the government should take moving forward?
**Dr. Simanauskaitė:** Continuity in fintech policy is essential. The government should implement the guidelines for the sector’s growth effectively, facilitating a conducive investment environment and enhancing support for skills development. The collaboration between market participants and legislators must continue to nurture this ecosystem.
**Editor:** Lastly, Lithuania has made strides in combating money laundering, ranking 9th out of 34 countries in AML risk. How have fintech companies contributed to this achievement?
**Dr. Simanauskaitė:** Fintech companies have been proactive in integrating robust AML practices. By investing in technology and human resources, they not only mitigate risks but also contribute positively to Lithuania’s international standing. This commitment enhances our attractiveness to investors as well.
**Editor:** Thank you, Dr. Simanauskaitė, for sharing these insights. The growth of the fintech sector in Lithuania is certainly promising, and it seems the future holds even greater potential.
**Dr. Simanauskaitė:** Thank you! I’m looking forward to seeing how our sector continues to evolve and contribute to Lithuania’s economy.