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 based 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 such 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 can educational institutions better prepare students for careers in the expanding fintech sector?
**Interview with Tomas Vaitkus, CEO of Fintech Lithuania**
**Editor:** Welcome, 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. Can you tell us what you think has been driving this success?
**Tomas Vaitkus:** Thank you for having me! The growth we’ve witnessed—over 20% in income and significant increases in payment transactions—can be attributed to several key factors. First, Lithuania has effectively positioned itself as a hub for fintech innovation. This has attracted major players like Revolut and Airwallex, who bring not only investment but also a wealth of expertise that benefits local companies.
**Editor:** That’s impressive. The Bank of Lithuania has indicated that approximately 27 million people are now using services from companies based in Lithuania. How do you see this impacting the local job market and economy?
**Tomas Vaitkus:** The increase in users signifies demand for fintech services, which in turn leads to job creation. Last year, nearly 7,500 people were employed in the sector, and companies have contributed over €100 million to the state budget. As fintech continues to expand, we expect to see even more well-paying jobs being created, particularly in larger cities and underserved regions.
**Editor:** Speaking of job creation, what measures need to be in place to ensure that our workforce is prepared for the growing demands of the fintech sector?
**Tomas Vaitkus:** It’s crucial for the Ministry of Education and higher education institutions to provide programs focused on fintech skills. Our youth need access to courses that equip them with the necessary knowledge for financial services roles. Collaboration is key; we need to encourage partnerships between educational institutions and fintech companies to align curricula with industry needs.
**Editor:** Lithuania has recently seen improvements in its international tax competitiveness index. What role does the fintech sector play in achieving this?
**Tomas Vaitkus:** The fintech sector is indeed a significant contributor. By adopting rigorous anti-money laundering measures and fostering a stable investment environment, we’ve been able to enhance our international reputation. This has also attracted foreign investments and improved our overall economic stability, which is pivotal for Lithuania’s growth as a fintech leader.
**Editor:** Looking towards the future, what are your hopes for the new government’s policies regarding fintech?
**Tomas Vaitkus:** I hope they will maintain a collaborative approach with industry participants. It’s essential that the upcoming government supports the 2023-2028 guidelines for fintech development. Ensuring continuity in policies will be vital to keep Lithuania competitive in the EU, and I also hope they focus on risk assessment in regulation to encourage further investment.
**Editor:** Thank you, Tomas, for sharing your insights today. It sounds like Lithuania has a promising future in the fintech industry, and we look forward to seeing continued growth.
**Tomas Vaitkus:** Thank you! I’m optimistic about what’s ahead for Lithuania’s fintech landscape, and I appreciate the opportunity to discuss this important topic.
