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
– What are the key factors driving the growth of Lithuania’s fintech sector, according to Dr. Lina Lukošaitė?
**Interview with Dr. Lina Lukošaitė, Fintech Expert and Consultant**
**Editor:** Welcome, Dr. Lukošaitė. The growth of Lithuania’s electronic money and payment institutions sector is quite impressive, with a reported revenue increase of 22% in the first half of the year. What do you attribute this growth to?
**Dr. Lukošaitė:** Thank you for having me! This growth can largely be attributed to Lithuania’s robust regulatory framework, which has created a fertile environment for fintech innovation. Additionally, the influx of major international players like Revolut and Airwallex has undeniably elevated our sector’s profile, drawing more investments and fostering local talent.
**Editor:** Speaking of local talent, it’s noted that nearly 7,500 people are employed in Lithuania’s fintech sector. How significant is this workforce for the future of the industry?
**Dr. Lukošaitė:** It’s extremely significant. A skilled workforce is the backbone of any thriving industry. As fintech companies continue to expand, the need for highly skilled professionals will only grow. By investing in education and upskilling initiatives, we can ensure that our young people are prepared for the opportunities that lie ahead.
**Editor:** Lithuania’s position in the international tax competitiveness index has improved, which is noteworthy. How do you see this impacting foreign investment?
**Dr. Lukošaitė:** A higher ranking in the tax competitiveness index sends a strong message to potential investors: Lithuania is open for business and is committed to fostering a thriving economic environment. This improvement in perception can lead to increased foreign direct investment, which is crucial for sustaining our growth in the fintech sector.
**Editor:** You’ve mentioned the importance of government cooperation. What specific actions should the new government take to support the fintech industry?
**Dr. Lukošaitė:** The government must maintain a clear and consistent fintech policy. Continued dialogue between policymakers and industry experts is key to understanding and responding to market needs. I would also emphasize the importance of the Ministry of Economy and Innovation in creating a favorable investment climate and ensuring that regulatory processes are streamlined yet rigorous.
**Editor:** Lastly, what can the Ministry of Education, Science and Sports do to prepare the next generation for careers in fintech?
**Dr. Lukošaitė:** They can focus on aligning educational programs with industry needs, promoting STEM fields, and fostering partnerships between educational institutions and fintech companies. This would create a talent pipeline that not only addresses current job market demands but also anticipates future trends in technology and finance.
**Editor:** Thank you, Dr. Lukošaitė, for sharing your insights on Lithuania’s burgeoning fintech sector. It’s clear that with strategic support and collaboration, the future looks bright for Lithuania in this field.
**Dr. Lukošaitė:** Thank you! I’m optimistic about our potential and excited to see how we can further enhance our position as a fintech leader in Europe.
