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 Lithuania sustain its momentum in the fintech industry based on Dr. Jankauskiene’s recommendations?
**Interview with Dr. Rasa Jankauskiene, Fintech Expert and Professor at Vilnius University**
**Editor:** Thank you for joining us today, Dr. Jankauskiene. The latest figures show that Lithuania’s electronic money and payment institutions sector has grown by over 20% in the first half of the year. What do you attribute this impressive growth to?
**Dr. Jankauskiene:** Thank you for having me. Lithuania’s growth in the fintech sector can be attributed to several key factors: our robust regulatory framework, the proactive approach of the Bank of Lithuania, and the effective collaboration between fintech companies and the government. This collaborative environment has created a fertile ground for innovation and investment.
**Editor:** Speaking of investment, we see that major players like Revolut and Airwallex have entered the Lithuanian market. How does their presence impact local companies and the overall fintech landscape?
**Dr. Jankauskiene:** The entry of major international companies serves as a vote of confidence in Lithuania as a fintech hub. It sets a benchmark for local firms, encouraging them to innovate and improve their services. Moreover, this competition can lead to better products and lower prices for consumers, stimulating the overall market.
**Editor:** The interviews highlight that fintech has played a significant role in enhancing Lithuania’s position on the international tax competitiveness index. How can this create more opportunities for the country?
**Dr. Jankauskiene:** A higher position in the tax competitiveness index attracts more foreign investments, boosts local businesses, and generates additional tax revenues that can be reinvested into public services and infrastructure. This overall economic uplift not only fosters a thriving fintech ecosystem but also enhances Lithuania’s international reputation.
**Editor:** What recommendations do you have for the new government in order to sustain this momentum in the fintech sector?
**Dr. Jankauskiene:** It’s essential that the new government focuses on maintaining continuity in fintech policy, particularly the guidelines outlined for 2023-2028. Continuous dialogue between the government and market participants is crucial. Additionally, enhancing educational programs will prepare our youth for careers in this expanding sector, ensuring that businesses have the skilled workforce they need.
**Editor:** Lastly, with estimates projecting significant growth in the global fintech market, how can Lithuania position itself to fully capitalize on this trend?
**Dr. Jankauskiene:** We need to bolster our regulatory framework while also nurturing homegrown start-ups. The government should provide incentives for innovation, attract talent, and promote Lithuania as a destination for fintech events and conferences. A clear and attractive investment climate will further entice companies to establish themselves here, leading to sustained growth in this promising sector.
**Editor:** Thank you, Dr. Jankauskiene, for your insightful perspectives on the future of Lithuania’s fintech sector. It’s exciting to see how this industry continues to evolve.
**Dr. Jankauskiene:** Thank you for having me. I believe Lithuania has a bright future in fintech, and I look forward to seeing how it develops in the coming years.