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 does Lithuania plan to equip its youth with the necessary skills for a career in fintech?
**Interview with Mindaugas Šuminas, CEO of Fintech Lithuania**
**Editor:** Good afternoon, Mindaugas. The latest data from the Lithuanian electronic money and payment institutions sector reveals impressive growth. Can you share your insights on what has driven this 22% increase in revenue during the first half of the year?
**Mindaugas Šuminas:** Good afternoon! Absolutely, the growth we’re seeing is largely due to several factors. Firstly, Lithuania has established itself as a fintech hub thanks to its favorable regulatory environment and support from governmental bodies. Major international players have also entered the market, boosting confidence and attracting further investment. This influx of foreign companies like Revolut and Nuvei has catalyzed local innovation and encouraged existing firms to expand their services.
**Editor:** That makes sense. With nearly 27 million users across the EU, how do you think Lithuania can maintain its competitive edge in the fintech industry moving forward?
**Mindaugas Šuminas:** Continuity in fintech policy is crucial. The cooperation between the government and fintech companies has played a significant role in our success. The Ministry of Finance’s guidelines for the sector’s development from 2023 to 2028 are essential – they need to continue to be actively implemented to ensure we maintain our position as one of the leading players in Europe. Furthermore, enhancing our investment environment and retaining talented individuals within the industry will be vital.
**Editor:** Speaking of talent, you mentioned the importance of educational initiatives. What steps should be taken to ensure that the youth are equipped with the necessary skills for the fintech sector?
**Mindaugas Šuminas:** We need to focus on aligning higher education with the skills demanded by the fintech industry. This includes expanding relevant programs and promoting internships within fintech companies. By fostering a strong pipeline of skilled individuals, we can support both local growth and the demands of international firms looking to set up in Lithuania.
**Editor:** Lastly, the recent recognition of Lithuania as having one of the lowest money laundering risks is impressive. How has the fintech sector contributed to that achievement?
**Mindaugas Šuminas:** Fintech companies are heavily investing in compliance, particularly in anti-money laundering (AML) technologies and staff training. By prioritizing risk assessment and upholding strict regulatory standards, we’ve not only enhanced our industry’s reputation but also improved our attractiveness to international investors. This progress highlights our commitment to creating a responsible financial ecosystem.
**Editor:** Thank you for those insights, Mindaugas. It’s clear that Lithuania’s fintech sector is on a promising trajectory, and we look forward to seeing how it continues to evolve.
**Mindaugas Šuminas:** Thank you for having me! I’m excited about the future of fintech in Lithuania and eager to see the positive impact it will have on our economy.
