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 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 does Lithuania’s recognition for low AML risk impact its fintech landscape?
**Interview with Dr. Jurgis Šlekys, Fintech Expert and Advisor to the Ministry of Economy and Innovation in Lithuania**
**Editor:** Thank you for joining us today, Dr. Šlekys. Lithuania’s electronic money and payment institutions sector has seen remarkable growth in the first half of this year, with revenues increasing by over 20%. What do you think are the main factors contributing to this success?
**Dr. Šlekys:** Thank you for having me. The impressive 22% revenue growth, amounting to 275.1 million EUR, can be attributed to several factors. Firstly, our strong regulatory framework has established Lithuania as a hub for fintech innovation. The collaboration between fintech companies and policymakers has fostered a stable environment conducive to growth. Furthermore, the influx of international players like Revolut and Airwallex validates our appeal and attracts new investments.
**Editor:** That’s insightful. With the number of payment transactions increasing by more than a third to nearly 132 billion EUR, how do you foresee this trend evolving?
**Dr. Šlekys:** The trajectory is promising. As technology continues to advance, I expect a further surge in transaction volumes. The growth trend reflects not only the increasing adoption of digital financial services but also the necessity for businesses and consumers to transact swiftly and efficiently in a digital-first world. We anticipate that our user base in the EU, estimated at 27 million, will continue to expand as we innovate and enhance our service offerings.
**Editor:** You mentioned the importance of maintaining a consistent fintech policy. What are the key steps that the new government should take to ensure continued growth in the sector?
**Dr. Šlekys:** Continuity in fintech policy is crucial. The new government should prioritize the implementation of the 2023-2028 guidelines that have been developed in collaboration with industry players. This includes regulation aligned with risk assessment to attract foreign investors, as well as enhancing the overall investment climate. It’s also critical to focus on education and skill development to ensure a trained workforce is available for the growth of this sector.
**Editor:** Regarding the anti-money laundering (AML) measures, Lithuania ranked among the top 10 countries with the lowest AML risk last year. How significant is this for the country’s fintech landscape?
**Dr. Šlekys:** This recognition is a testament to the rigorous standards we have set and the emphasis that our fintech companies place on compliance. By prioritizing AML risk assessment and management, we not only build trust with international partners but also create a robust environment for fintech growth. Local companies are heavily investing in technologies and human resource development, which further enhances our reputation as a secure and reliable fintech hub.
**Editor:** Lastly, with the prediction that the global fintech market could reach nearly 600 billion EUR by 2029, what opportunities do you see for Lithuanian companies on the international stage?
**Dr. Šlekys:** The opportunities are immense. Being a part of this growing global market allows Lithuanian fintech firms to expand their reach and diversify. As firms continue to develop innovative solutions, I foresee greater collaboration across borders and the potential for Lithuanian companies to lead in areas such as digital payments, blockchain, and regulatory technology. By maintaining our competitive edge, we can significantly impact the global fintech narrative.
**Editor:** Thank you, Dr. Šlekys, for your valuable insights. It seems that Lithuania is on an exciting trajectory in the fintech space!
**Dr. Šlekys:** Thank you! It is indeed an exciting time for us, and with the right support and initiatives in place, I believe we will continue to thrive.
