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 can Lithuania address the challenges of managing AML risks while continuing to attract foreign investments in the fintech sector?
**Interview with Tomas Jurgilas, Head of the Lithuanian Fintech Association**
**Editor:** Welcome, Tomas! Thank you for joining us today to discuss the impressive growth of the fintech sector in Lithuania. To start off, what do you attribute the remarkable 22% revenue increase in electronic money and payment institutions to this year?
**Tomas Jurgilas:** Thank you for having me! The substantial growth can be linked to several factors. First, Lithuania has established itself as a fintech hub in Europe, attracting major international players like Revolut and Nuvei. The supportive regulatory framework and cooperative relationship between policymakers and market participants have also fostered innovation and investment. Additionally, consumer demand for electronic payment solutions has surged, reflecting a broader global trend towards digital finance.
**Editor:** That’s encouraging to hear. You mentioned the support from policymakers. How crucial is it for the new government to maintain the 2023-2028 fintech strategy for continued success?
**Tomas Jurgilas:** It’s absolutely vital. The continuity of our fintech policy is essential for building on the momentum we’ve gained. The strategy laid out by the Ministry of Finance outlines necessary steps to further our position as a leader in Europe. I believe staying committed to these guidelines will help attract more foreign investments and create even more opportunities in the sector.
**Editor:** In terms of challenges, how can Lithuania ensure it continues to manage AML risks effectively, especially with the praise from MONEYVAL?
**Tomas Jurgilas:** We need to maintain our strong focus on compliance and risk assessment. Fintech companies are already investing heavily in developing their AML strategies and technologies. It’s essential that we continue to collaborate with both national and international regulatory bodies to ensure we adhere to best practices. Additionally, ongoing education and skill development for employees in this area will be crucial to mitigate risks effectively.
**Editor:** Speaking of skill development, how important is it for the education system to adapt to the needs of the fintech sector?
**Tomas Jurgilas:** Extremely important! Our fintech sector is expanding, and with that comes the need for a skilled workforce. Higher education institutions must equip young people with the necessary skills and knowledge to thrive in this industry. We want to ensure that job opportunities, particularly well-paid ones, are accessible not just in big cities but also in other regions, so that talent can flourish across the country.
**Editor:** Lastly, with projections indicating that the global fintech market could reach nearly 600 billion EUR by 2029, where do you see Lithuania fitting into this picture?
**Tomas Jurgilas:** Lithuania is well-positioned to be a significant player in the global fintech landscape. If we continue our collaborative approach between the government and industry, maintain our competitive regulatory environment, and invest in talent, we can capitalize on the expanding market. There are tremendous opportunities ahead, not just for companies but for the economy and citizens as a whole.
**Editor:** Thank you so much for your insights, Tomas. It’s evident that with the right strategies and investments, Lithuania’s fintech sector can continue to thrive.
**Tomas Jurgilas:** Thank you for having me! It’s always a pleasure to discuss the exciting future of fintech in Lithuania.
