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 factors are contributing to the growth of Lithuania’s fintech sector?
**Interview with Tomas Vaitkus, a Leading Expert in Fintech Development in Lithuania**
**Editor:** Thank you for joining us, Tomas. Lithuania’s fintech sector is experiencing significant growth, with a reported 22% increase in revenue this year. What do you think is driving this impressive expansion?
**Tomas Vaitkus:** Thank you for having me. The growth can be attributed to several factors. Firstly, we have built a solid regulatory framework that encourages innovation while ensuring stability. This has attracted major players like Revolut and Airwallex, boosting both competition and collaboration in the industry. Moreover, the increasing recognition of Lithuania as an attractive investment environment is drawing international attention.
**Editor:** Interestingly, the Bank of Lithuania noted a rise in payment transactions of over 30%. How is this trend impacting local fintech companies?
**Tomas Vaitkus:** This surge in transaction volume is a clear indicator of rising consumer confidence in digital payment solutions. Local companies like TransferGo and Paysera are thriving, benefiting from this increased demand. They are rapidly innovating to enhance their offerings, streamline operations, and attract more customers across EU markets.
**Editor:** You mentioned earlier the importance of policy continuity for the growth of the fintech sector. What specific initiatives are crucial for the new government to focus on?
**Tomas Vaitkus:** It’s vital for the Ministry of Finance to continue implementing the guidelines laid out for the development of the fintech sector through 2028. Meanwhile, the Ministry of Economy and Innovation should work on enhancing the investment climate to ensure that it remains attractive for both local and foreign investors. Moreover, collaboration with educational institutions to improve the skillset of the workforce is essential for sustaining growth and job creation.
**Editor:** With around 7,500 people working in fintech in Lithuania last year, how do you foresee employment trends evolving in this sector?
**Tomas Vaitkus:** I anticipate considerable job growth, particularly as fintech companies expand. We will need to focus on attracting talent not only in major cities but also in the regions. It’s important that we provide educational pathways in higher institutions that align with industry needs to prepare our youth for these opportunities.
**Editor:** what message would you like to convey to the current and future members of the Lithuanian Seimas regarding the fintech sector?
**Tomas Vaitkus:** I would urge them to continue involving market participants in the legislative process. Their insights can be pivotal in crafting policies that are both progressive and pragmatic. We need to work together further to solidify Lithuania’s standing as a leading fintech hub in Europe.
**Editor:** Thank you, Tomas, for sharing your insights on Lithuania’s growing fintech landscape. It will be exciting to see how these developments unfold in the coming years.
**Tomas Vaitkus:** Thank you for having me! It’s an exciting time for fintech in Lithuania.