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 based 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 such 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 main factors driving the 20% income increase in Lithuania’s electronic money and payments sector this year?
**Interview with Mindaugas Žilinskas, Fintech Expert and Consultant**
**Editor:** Thank you for joining us today, Mindaugas. Lithuania’s electronic money and payments sector has reported impressive growth this year. Can you elaborate on the significance of the 20% increase in income for this sector?
**Mindaugas Žilinskas:** Thank you for having me. The 20% increase in income is indicative of the robust health of Lithuania’s fintech ecosystem. It not only highlights the strong demand for electronic payment solutions but also reflects confidence from both local and international players in our market. This growth presents an opportunity for Lithuania to further establish itself as a leading fintech hub in Europe.
**Editor:** The Bank of Lithuania reported a significant rise in payment transactions, almost reaching €132 billion. What does this indicate about consumer behavior in the region?
**Mindaugas Žilinskas:** It shows a clear shift towards digital solutions among consumers in Lithuania and across the EU. With nearly 27 million customers using these services, it’s evident that people are increasingly relying on electronic money and payment systems for their day-to-day transactions. This trend is likely to continue as digitalization expands and more innovative solutions emerge.
**Editor:** Major companies like Revolut and Nuvei have entered the Lithuanian market. What impact does this have on local businesses?
**Mindaugas Žilinskas:** The entry of these major players not only validates Lithuania’s position as a fintech center but also creates a competitive environment. Local companies like TransferGo and Paysera can learn from these international firms, adopt best practices, and enhance their services. This competition can drive innovation and better customer experiences across the board.
**Editor:** Lithuania has improved its ranking in the international tax competitiveness index and is recognized for its low money laundering risk. How crucial are these factors for attracting foreign investment in the fintech sector?
**Mindaugas Žilinskas:** Extremely crucial. A favorable tax environment and low AML risk increase investor confidence. Investors are more likely to commit resources to countries they perceive as stable and conducive for business. Lithuania’s proactive approach in enhancing its regulatory framework, especially around AML, sends a strong message to international investors about our commitment to maintaining a safe and robust financial system.
**Editor:** Looking ahead, what are your recommendations for the new government to sustain the growth of the fintech sector in Lithuania?
**Mindaugas Žilinskas:** It’s vital for the government to ensure continuity in fintech policies and maintain active cooperation with market participants. Specifically, the Ministry of Finance should continue implementing the 2023-2028 guidelines for fintech development. The Ministries of Economy and Education also play critical roles in enhancing Lithuania’s allure as an investment destination and ensuring that our youth acquire relevant skills for the impending job market.
**Editor:** Thank you, Mindaugas, for your insights on the promising future of Lithuania’s fintech sector.
**Mindaugas Žilinskas:** Thank you for having me. I look forward to seeing how our sector evolves in the coming years.
