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 has Lithuania’s regulatory framework contributed to its attractiveness for fintech companies?
### Interview with Dr. Eva Šimkūnaitė, Fintech Expert and Advisor to the Bank of Lithuania
**Editor:** Thank you for joining us today, Dr. Šimkūnaitė. Let’s start by discussing the impressive growth you’ve observed in Lithuania’s electronic money and payment institutions sector. What factors do you believe are contributing to this 20% increase in income?
**Dr. Šimkūnaitė:** Thank you for having me. This growth can be attributed to several key factors. Firstly, Lithuania has developed a robust regulatory framework that supports fintech innovation while also ensuring compliance with international standards. This balance has made the country very appealing to both local and foreign investors. Additionally, the notable influx of major players like Revolut and Airwallex has further validated Lithuania’s position in the global fintech landscape.
**Editor:** Speaking of market players, how crucial is the role of these international companies in bolstering the local fintech scene?
**Dr. Šimkūnaitė:** Extremely crucial. Their presence has not only created job opportunities but has also stimulated local startups like TransferGo and Paysera to innovate and improve their services. The competition and collaboration between these big players and local firms enhance the entire ecosystem, making it more attractive for investment and talent.
**Editor:** You mentioned that the fintech sector has improved Lithuania’s position in the international tax competitiveness index. Could you elaborate on the implications of this advancement?
**Dr. Šimkūnaitė:** Certainly. Rising from seventh to fifth in the global rankings is a significant achievement and highlights Lithuania’s commitment to creating a conducive environment for business. This improved standing is likely to attract even more foreign investment, which is essential for sustaining economic growth. Furthermore, it aligns with our objectives to harness fintech as an engine for broader economic development.
**Editor:** Money laundering risks have been a major concern globally. How has Lithuania managed to reduce its risk in this area?
**Dr. Šimkūnaitė:** Lithuania has taken this issue seriously by implementing rigorous anti-money laundering (AML) policies and actively involving fintech companies in the assessment and management of AML risk. The recent recognition by MONEYVAL for our progress in combating money laundering is a testament to the effectiveness of these measures. This also builds trust among investors and customers looking for secure financial environments.
**Editor:** As Lithuania moves forward, what are some of the key actions you believe the new government should prioritize to ensure sustained growth in the fintech sector?
**Dr. Šimkūnaitė:** It’s vital that the government maintains the continuity of its fintech policy and continues to support the guidelines set for 2023-2028. Collaboration between market participants and policymakers must remain a priority. Also, enhancing educational opportunities to equip the youth with necessary skills will be essential for meeting the industry’s growing demands.
**Editor:** Lastly, with the global fintech market predicted to grow significantly, what potential do you see for Lithuania to play a more prominent role on the world stage?
**Dr. Šimkūnaitė:** Lithuania has all the tools at its disposal for further growth—an innovative spirit, strong regulations, and skilled workforce. If we continue to build on the partnerships between the government and the fintech ecosystem, I believe we can not only maintain our status as a leader in Europe but also increase our influence on the global phase of the fintech market.
**Editor:** Thank you, Dr. Šimkūnaitė, for your insights. It’s clear that Lithuania is on an exciting trajectory in the fintech space.
**Dr. Šimkūnaitė:** Thank you! It’s an exciting time for all of us involved in this thriving sector.
