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 important is government support in shaping the growth of the fintech ecosystem in Lithuania?
**Interview with Kaunas Žemaitis, CEO of FinTech Innovations, on Lithuania’s Rise as a Fintech Hub**
**Interviewer:** Thank you for joining us today, Kaunas. Lithuania has seen remarkable growth in its fintech sector lately, with an impressive 22% increase in revenue. What do you attribute this success to?
**Kaunas Žemaitis:** Thank you for having me! The growth can largely be attributed to a few key factors: our favorable regulatory environment, active cooperation between the government and industry players, and the influx of significant international firms choosing to establish themselves here. This collaboration encourages innovation and investment, allowing local startups to thrive alongside established names like Revolut and Airwallex.
**Interviewer:** It’s fascinating to see major players entering the Lithuanian market. How has this impacted local companies?
**Kaunas Žemaitis:** The arrival of these international giants has created a ripple effect. Local companies like TransferGo, NEO Finance, and Paysera have benefited from increased visibility and new networking opportunities. The resulting competition also drives innovation, pushing everyone in the sector to improve their services and technology.
**Interviewer:** The sector also reported that almost 7,500 people were employed last year, contributing significantly to the state budget. What is your outlook on job creation in this sector?
**Kaunas Žemaitis:** The prospects are very promising! As fintech companies expand, they are looking to hire more skilled workers, particularly in larger cities and regions. However, for growth to be sustainable, it’s crucial that we focus on education and skill development. We need to ensure that our workforce is equipped with the necessary competencies to meet the increasing demand in the sector.
**Interviewer:** Regarding the fight against money laundering, Lithuania ranked ninth among 34 countries in AML risk. How are fintech companies aiding in this effort?
**Kaunas Žemaitis:** Fintech firms are at the forefront of combating money laundering by investing in advanced technologies and rigorous compliance processes. We’ve also seen a significant commitment to training employees on the latest AML practices. This not only helps improve our international standing but also builds trust with consumers and investors alike.
**Interviewer:** Moving forward, what steps do you believe are critical for maintaining this growth trajectory in the fintech sector?
**Kaunas Žemaitis:** Continuity in fintech policy is essential. The new government should carry forward the 2023-2028 guidelines for the sector, enhancing support for the Ministry of Economy and Innovation. Transparent regulations that are adaptable to market changes will further solidify Lithuania’s position as a leader in fintech. Stakeholder engagement is vital—market players must be involved in shaping policies that affect our industry.
**Interviewer:** Thank you for your insights, Kaunas. It’s clear that Lithuania’s approach to fostering a robust fintech ecosystem could serve as a model for other countries.
**Kaunas Žemaitis:** Thank you. I’m enthusiastic about what the future holds for Lithuania’s fintech sector, and I believe we can achieve even greater heights with collaborative efforts.
