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 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 is Lithuania’s fintech sector impacting job creation and tax revenue in the country?
**Interview with Dr. Asta Jankauskiene, Fintech Expert and Economic Analyst**
**Editor:** Thank you for joining us, Dr. Jankauskiene. Lithuania’s electronic money and payment institutions sector has shown impressive growth this year. Can you elaborate on some of the main drivers behind this 20% increase in revenue?
**Dr. Jankauskiene:** Thank you for having me. The growth can largely be attributed to the increasing adoption of digital payments across Europe, as well as the influx of international fintech players setting up operations in Lithuania. Companies like Revolut and Airwallex are not just bringing investment but are also enriching the local talent pool and enhancing competition, which ultimately drives innovation and better services for consumers.
**Editor:** That’s interesting! Speaking of innovation, what are some significant contributions of the fintech sector to Lithuania’s economy?
**Dr. Jankauskiene:** The fintech sector has significantly impacted Lithuania’s economy by creating jobs—approximately 7,500 last year—and contributing more than 100 million EUR to the state budget. Notably, our success in improving our position in the international tax competitiveness index speaks volumes. We’ve moved from seventh to fifth place globally, showcasing our policies’ effectiveness at attracting foreign investment.
**Editor:** It’s remarkable how far Lithuania has come. In terms of regulatory frameworks, how has the country managed to maintain a low risk for money laundering, and what role do fintech companies play in this context?
**Dr. Jankauskiene:** Lithuania has made strides in fighting money laundering and terrorist financing, as recognized by the MONEYVAL committee. Fintech companies are proactive in implementing advanced AML technologies and investing in staff training to manage these risks effectively. This not only enhances our reputation but also attracts more international players who prioritize compliance.
**Editor:** Looking ahead, what recommendations would you give to the newly elected government to support the sector’s continued growth?
**Dr. Jankauskiene:** It’s crucial to maintain continuity in the fintech policy outlined for 2023-2028. The Ministry of Finance must carry on its supportive approach, while the Ministry of Economy should work on making the investment environment even more attractive. Furthermore, the focus on education and skill development in our higher education institutions should not wane. All of this is essential as we aim to create well-paid jobs and retain talent within our borders.
**Editor:** Thank you, Dr. Jankauskiene. This insight into Lithuania’s thriving fintech sector is incredibly valuable, and we look forward to seeing how it evolves in the coming years.
**Dr. Jankauskiene:** Thank you for the opportunity to share my insights! I’m excited about Lithuania’s future in the fintech space.