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
How does Lithuania’s strong AML compliance impact investor confidence in its fintech industry?
**Title: Interview with Tomas Bliumas, Fintech Expert, on Lithuania’s Growing Fintech Sector**
**Interviewer (I):** Good morning, Tomas! Thank you for joining us today. Lithuania’s electronic money and payment institutions sector has seen impressive growth recently, with reported revenue increases of over 20% in the first half of this year. What do you believe has driven this surge?
**Tomas Bliumas (T):** Good morning! It’s great to be here. The growth in Lithuania’s fintech sector can largely be attributed to a combination of favorable regulations, a strong entrepreneurial spirit, and increasing international interest. The arrival of major players like Revolut and Airwallex has not only validated our market but has also sparked further local innovation and agility among homegrown companies.
**I:** That’s interesting. You mentioned international interest—how do you think Lithuania can sustain its attractiveness to foreign investments moving forward?
**T:** Sustaining this momentum requires a structured approach. Continued collaboration between fintech stakeholders and government bodies is crucial. We need to ensure that policies remain consistent and supportive, particularly in areas like risk assessment and AML compliance, which have become increasingly important. By maintaining a stable regulatory environment, we can nurture investor confidence and further bolster this sector.
**I:** Speaking of regulations, Lithuania has made impressive strides in AML risk management, ranking among the countries with the lowest money laundering risks. How does this impact the growth of the fintech sector?
**T:** It’s a significant asset for us. By prioritizing AML measures, fintech companies demonstrate their commitment to compliance and building trust among consumers and investors alike. This focus on regulation not only enhances our international reputation but also creates a safer environment for innovation to thrive. A credible regulatory framework attracts more businesses willing to enter the market, which is a tremendous opportunity for growth.
**I:** With nearly 7.5 thousand people employed in fintech sectors last year and substantial contributions to the state budget, what do you see as the future workforce needs for this sector?
**T:** As the sector expands, the demand for skilled professionals will only increase. It’s critical that our educational institutions align their curricula with the skills required in fintech. The Ministry of Education and other stakeholders need to invest in programs that equip youth with essential knowledge, particularly in areas like data analytics, cybersecurity, and financial technology. If we don’t develop our talent pool, we risk losing out to countries that do.
**I:** what message would you give to the new government regarding fintech policies?
**T:** I would emphasize the importance of continuity and communication. The new government should engage actively with fintech participants to understand their needs and challenges. Implementing the guidelines for the development of the Lithuanian fintech sector—launched last year—can solidify our leading position in Europe. Our future growth relies on a collaborative approach, ensuring that all voices from the sector can contribute to a thriving investment environment.
**I:** Thank you, Tomas, for your insights. It’s clear that Lithuania’s fintech sector is on an upward trajectory, and your expertise sheds light on how to keep that momentum going.
**T:** Thank you for having me! I’m excited to see how Lithuania continues to evolve in this dynamic landscape.
