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 this 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 the opportunity 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 do international fintech players impact the local ecosystem and competition in Lithuania?
**Interview with Ms. Emilija Grigoryan, Fintech Expert and Consultant**
**Interviewer:** Welcome Ms. Grigoryan, and thank you for joining us today to discuss the growth of the fintech sector in Lithuania. The latest reports show that the income of the electronic money and payment institutions sector has increased significantly. What do you attribute this growth to?
**Emilija Grigoryan:** Thank you for having me! The growth of over 20% in the first half of this year is indeed impressive, and it highlights the dynamic nature of Lithuania’s fintech landscape. A key factor contributing to this success is the collaborative environment that has been fostered between financial institutions, fintech companies, and policymakers. This synergy has positioned Lithuania as an attractive destination for both local and international players, including major firms like Revolut and Airwallex.
**Interviewer:** Interesting! You mentioned the influx of international players. How has their presence influenced the local fintech ecosystem?
**Emilija Grigoryan:** The arrival of major international players has not only increased competition but has also raised the standards for services and innovation within the local market. It encourages local fintech companies such as TransferGo and Paysera to enhance their offerings and adopt new technologies. Furthermore, these international firms can also inspire partnerships and knowledge transfer, ultimately benefiting the entire ecosystem.
**Interviewer:** Lithuania has also improved its position in the international tax competitiveness index. What role does fintech play in this achievement?
**Emilija Grigoryan:** Fintech’s contribution to improving Lithuania’s tax competitiveness should not be underestimated. The sector has generated significant revenue for the state, with companies contributing over 100 million euros to the budget last year alone. Also, the emphasis on transparent operations and compliance with regulations, particularly in anti-money laundering practices, has enhanced our reputation globally, attracting even more foreign investment.
**Interviewer:** Speaking of the future, what do you see as the main challenges that Lithuania’s fintech sector might face going forward?
**Emilija Grigoryan:** One of the main challenges is maintaining policy continuity, especially with elections happening this year. Stability in fintech regulations is vital for sustaining growth and ensuring that we remain an attractive investment destination. Additionally, as the sector expands, it’s crucial that we address the skills gap. The Ministry of Education must ensure that higher education institutions adapt to offer relevant training and programs to equip young people for well-paying jobs in fintech.
**Interviewer:** Lastly, what message would you like to convey to the newly elected members of the Seimas regarding the fintech sector?
**Emilija Grigoryan:** I would urge the new government to continue engaging with fintech market participants actively. Listening to industry experts and ensuring their voices are included in policy-making can lead to more effective and supportive regulations. Consistent communication will foster an environment where innovation can thrive, ultimately benefiting all Lithuanians.
**Interviewer:** Thank you, Ms. Grigoryan, for sharing your insights on the promising future of Lithuania’s fintech sector. Your expertise is invaluable as we navigate these exciting developments.
**Emilija Grigoryan:** Thank you for having me! It’s an exciting time for Lithuania’s fintech industry, and I look forward to seeing its continued growth.
