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 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 FinTech in Lithuania?
**Interview: The Future of FinTech in Lithuania**
*Interviewer:* Today, we’re joined by Dr. Lina Stankeviciute, an expert on FinTech development and an advisor to the Bank of Lithuania. Dr. Stankeviciute, Lithuania has recently seen a significant increase in the revenue of its electronic money and payment institutions. Could you share your thoughts on what this growth signifies for the sector?
*Dr. Stankeviciute:* Thank you for having me. The over 20% growth in income within our electronic money and payment sector validates Lithuania’s position as a burgeoning hub for FinTech innovation. With revenue reaching 275.1 million EUR in the first half of this year, it showcases not only the strength of local businesses but also reinforces our attractiveness to international investors.
*Interviewer:* Speaking of international investors, we’ve seen notable companies like Revolut and Airwallex establish a presence in Lithuania. What do you think draws these major players to the Lithuanian market?
*Dr. Stankeviciute:* Several factors contribute to their interest. Lithuania offers a FinTech-friendly regulatory environment, and our relatively low risk for money laundering, as highlighted in recent international rankings, is particularly appealing. Moreover, the synergy between market participants and government support facilitates an ecosystem ripe for innovation, helping these companies flourish.
*Interviewer:* It’s impressive that nearly 27 million individuals across the EU utilize services from Lithuanian companies. What role does this customer base play in driving local innovation?
*Dr. Stankeviciute:* The large customer base provides invaluable feedback and a real-world testing ground for new products and services. This dynamic enables companies to adapt rapidly to consumer needs, ensuring that they stay competitive. The significant increase in payment transactions, which reached almost 132 billion EUR, is a testament to the trust and reliance that users have placed in our services.
*Interviewer:* With growth comes responsibility. How is the sector addressing challenges like money laundering and regulatory compliance?
*Dr. Stankeviciute:* That’s an excellent question. The FinTech sector in Lithuania has been proactive, investing in human resources and new technologies to enhance AML practices. Last year, we ranked 9th in a survey evaluating money laundering risk, demonstrating our commitment to creating a safe financial environment. This diligence not only protects the integrity of our sector but also boosts investor confidence.
*Interviewer:* As we look to the future, what recommendations do you have for the new government to ensure continued growth in FinTech?
*Dr. Stankeviciute:* Continuity in FinTech policy is crucial. I urge the new government to continue fostering collaboration amongst fintech stakeholders, and ensure that the guidelines established for our sector’s development from 2023 to 2028 are actively pursued. Additionally, enhancing educational programs to equip our youth with relevant skills is vital for sustaining this growth.
*Interviewer:* Thank you, Dr. Stankeviciute, for your insights on the opportunities and challenges within Lithuania’s FinTech landscape. It seems like the future is quite promising!
*Dr. Stankeviciute:* Thank you! Indeed, with our current trajectory and collaborative spirit, I am optimistic about what’s ahead for Lithuania’s FinTech sector.