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 strategies Lithuania is implementing to maintain its competitiveness in the global fintech landscape?
**Interview with Jurgita Slapikaitė, Head of the Lithuanian Fintech Association**
**Editor:** Thank you for joining us today, Jurgita. Lithuania’s fintech sector has shown remarkable growth recently, with a 20 percent increase in revenue in the first half of the year. What do you think are the main factors driving this success?
**Jurgita Slapikaitė:** Thank you for having me. The growth in Lithuania’s fintech sector can largely be attributed to a supportive regulatory environment and strong collaboration between fintech companies, stakeholders, and policymakers. The arrival of major players like Revolut and Airwallex has also enhanced our global competitiveness and visibility, attracting more international investments.
**Editor:** The statistics are impressive—275.1 million EUR in sector revenue and nearly 132 billion EUR in payment transactions. How does Lithuania plan to maintain this upward trajectory?
**Jurgita Slapikaitė:** We believe that continuity in fintech policy is essential. It’s crucial that our new government adheres to the 2023-2028 development guidelines for the fintech sector. We need to maintain open lines of communication with foreign companies interested in establishing operations in Lithuania while ensuring a robust risk-based regulatory environment.
**Editor:** You mentioned the importance of investing in human resources. How is the fintech sector addressing talent acquisition and skill development?
**Jurgita Slapikaitė:** One significant focus is on improving education and training for young people. Fintech companies are actively seeking skilled workers, and it’s vital to ensure that our educational institutions align their curricula to meet industry demands. We want to equip the next generation with the skills needed for well-paying jobs in our sector.
**Editor:** Lithuania has made notable progress in anti-money laundering efforts, ranking 9th out of 34 countries. How has this improved reputation influenced foreign investments?
**Jurgita Slapikaitė:** A strong reputation in combating money laundering has significantly enhanced our attractiveness to foreign investors. Fintech companies in Lithuania prioritize AML compliance and have invested heavily in technologies and training for staff. This commitment shows that we take financial regulations seriously, providing confidence for international players looking to enter our market.
**Editor:** Lastly, as we look ahead, what advice would you give to the newly elected members of the Seimas regarding the growth of the fintech sector?
**Jurgita Slapikaitė:** I would encourage them to prioritize collaboration with all market participants. By engaging with the fintech community, they can understand industry needs and create policies that not only support growth but also foster innovation. Listening to our sector’s perspectives will ultimately strengthen Lithuania’s position as a leading fintech hub in Europe.
**Editor:** Thank you, Jurgita, for sharing your insights on Lithuania’s burgeoning fintech sector and its promising future.
**Jurgita Slapikaitė:** Thank you for having me—it’s a pleasure to discuss our exciting developments!
