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
How does Tomas Šuminas envision the role of educational programs in preparing the workforce for future opportunities in Lithuania’s fintech sector?
**Interview with Tomas Šuminas, CEO of Fintech Innovations Lithuania**
**Editor:** Tomas, thank you for joining us today. The electronic money and payment institutions sector in Lithuania has reported over 20% growth in revenue this year. What factors do you think contributed to this substantial increase?
**Tomas Šuminas:** Thank you for having me. The impressive growth of our sector can be attributed to several key factors. Firstly, Lithuania’s regulatory environment is very supportive and has established a strong framework for fintech businesses. Additionally, the rise in payment transactions demonstrates the increasing confidence consumers and businesses have in digital payment methods, especially in a post-pandemic landscape. We’ve also seen a significant influx of international players, which brings investment and innovation to our local market.
**Editor:** Speaking of international players, prominent companies like Revolut and Airwallex are setting up operations in Lithuania. What does their arrival say about our country’s fintech landscape?
**Tomas Šuminas:** Their presence is a strong endorsement of Lithuania as a fintech hub. It reinforces our status as an attractive destination for foreign investments, which can be a game-changer for our economy. These companies not only bring their capital but also create jobs, share expertise, and elevate the overall profile of our sector. This also encourages local companies, such as TransferGo and NEO Finance, to elevate their services and innovate continuously.
**Editor:** You mentioned the importance of maintaining a consistent fintech policy. What should the new government focus on to ensure sustained growth in this sector?
**Tomas Šuminas:** It’s crucial for the new government to implement and adhere to the fintech development guidelines introduced for 2023-2028. This includes fostering cooperation between the government and industry players to enhance our competitiveness in the EU. Furthermore, the Ministry of Economy must focus on attracting foreign firms by ensuring a favorable regulatory environment. Lastly, improving the skills of our youth through relevant educational programs is essential to prepare them for the booming job market in fintech.
**Editor:** With nearly 7,500 people employed in fintech and contributions exceeding 100 million EUR to the state budget, how can Lithuania leverage this workforce for future growth?
**Tomas Šuminas:** Our workforce is one of our greatest assets. By investing in training and development, we can nurture talent that meets the evolving demands of the fintech industry. We also need to promote partnerships between universities and fintech companies to ensure that educational programs are aligned with industry needs. This way, we can both support our existing companies and attract new businesses looking for skilled professionals.
**Editor:** Lastly, can you reflect on Lithuania’s ranking in the international tax competitiveness index and how the fintech sector plays a role in that?
**Tomas Šuminas:** Absolutely. Moving from seventh to fifth place in the tax competitiveness index is an amazing achievement and directly correlates with our efforts in the fintech sector. This growth shows that our regulatory framework encourages compliance and responsible innovation, appealing to investors. If we continue to enhance our governance and maintain low money laundering risks, we can continue to build trust and attract more global investors, solidifying Lithuania’s position as a leader in fintech within Europe.
**Editor:** Thank you, Tomas, for your insights. The future of Lithuania’s fintech sector appears promising, and your expectations for sustained growth are encouraging.
**Tomas Šuminas:** Thank you for the opportunity to discuss this important topic. I, too, am optimistic about our future, and I’m excited to see how we can collaborate for continued success.
