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 role does government policy play in the growth of Lithuania’s fintech sector?
**Interview with Tomas Jankauskas, Fintech Expert and Consultant**
**Editor:** Tomas, thank you for joining us today. Lithuania’s electronic money and payment institutions sector has shown remarkable growth in the first half of this year. What do you think are the key factors contributing to this increase in revenue?
**Tomas Jankauskas:** Thank you for having me. The growth can primarily be attributed to the increasing number of users and transactions within the market. We’re seeing significant interest from foreign investors, as evidenced by the arrival of major players like Revolut and Airwallex. The collaborative environment between the fintech companies and government institutions has also played a pivotal role in creating a conducive atmosphere for growth.
**Editor:** It’s interesting to note that Lithuania’s fintech sector is contributing to an improved international tax competitiveness index. How significant is this for Lithuania on a global scale?
**Tomas Jankauskas:** It’s incredibly significant. Rising from seventh to fifth place demonstrates Lithuania’s commitment to fostering a competitive and transparent environment. This reputation not only attracts foreign investments but also helps boost the local economy by creating jobs and increasing tax revenues. It positions us as a leader in the European fintech landscape.
**Editor:** Speaking of job creation, how do you see the labor market evolving within the fintech sector in Lithuania?
**Tomas Jankauskas:** The labor market in fintech is rapidly evolving. Last year, approximately 7,500 individuals were employed in this sector, and companies are planning to expand further. To support this growth, it’s crucial that our education system aligns with the skills needed in this industry. We need to ensure that young people are equipped with the necessary knowledge and expertise to fill these positions.
**Editor:** You mentioned the importance of collaboration between market participants and politicians. What are your expectations for the new government in terms of fintech development?
**Tomas Jankauskas:** I hope the new government will prioritize the continuity of the fintech policy laid out in the 2023-2028 guidelines. These guidelines are essential for maintaining our leading position in Europe. We need proactive measures from the Ministry of Finance and the Ministry of Economy and Innovation to further solidify Lithuania’s status as a top destination for fintech companies.
**Editor:** With the global fintech market set to reach an estimated 600 billion EUR by 2029, how can Lithuania position itself to take advantage of this growth?
**Tomas Jankauskas:** We must continue to foster a supportive regulatory environment and promote dialogue between the private and public sectors. Additionally, investing in technology and talent will be crucial. It’s about creating a sustainable ecosystem where innovation can thrive, ultimately benefiting both the economy and the population.
**Editor:** Thank you, Tomas, for sharing your insights. It seems that Lithuania is on a promising path in the fintech sector, and we look forward to seeing how it continues to evolve.
**Tomas Jankauskas:** Thank you for having me. Exciting times lie ahead!
