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 do you foresee the impact of global fintech trends on the future development of Lithuania’s electronic money and payment institutions?
**Interview with Dr. Aistė Šuminas, Fintech Expert and Advisor**
**Editor:** Thank you for joining us today, Dr. Šuminas. Lithuania’s electronic money and payment institutions sector has shown remarkable growth recently, with a 22% increase in revenue in the first half of the year. What do you think are the main factors contributing to this expansion?
**Dr. Šuminas:** Thank you for having me. The growth can be attributed to a combination of factors, including an increasingly supportive regulatory environment and the arrival of international players such as Revolut and Airwallex. This has not only brought in investment but has also spurred the growth of local companies. Additionally, our emphasis on compliance, particularly in anti-money laundering, has increased investor confidence.
**Editor:** You mentioned the importance of international players in this market. How significant is their presence for the local fintech ecosystem?
**Dr. Šuminas:** Very significant. The entry of major players provides not just capital but also expertise and technology transfer. This has a cascading effect: local firms adopt best practices and raise their standards, which in turn makes Lithuania a more attractive destination for further investments. We’ve observed local startups like TransferGo and Paysera thriving from this ecosystem.
**Editor:** It’s impressive that Lithuania ranks high in the international tax competitiveness index and is noted for low money laundering risk. How do these factors enhance the attractiveness for foreign investments?
**Dr. Šuminas:** A favorable tax environment reduces operational costs for businesses, while our high compliance standards build trust. Investors are increasingly looking for transparency and security, and Lithuania demonstrates that it prioritizes these through its regulations and the active efforts of fintech companies in risk management.
**Editor:** Looking ahead, you mentioned the need for policy continuity for fintech growth. What specific areas should the new government focus on to maintain this momentum?
**Dr. Šuminas:** The Ministry of Finance should continue to implement the 2023-2028 guidelines for our fintech sector. This includes fostering collaboration between market participants and ensuring that regulations evolve in line with market needs. Moreover, the Ministry of Economy and Innovation should focus on enhancing the investment climate, while the Ministry of Education must work to equip young people with relevant skills, preparing them for potential jobs in fintech.
**Editor:** how do you envision the future of Lithuania’s fintech landscape given the global trends you mentioned, especially with predictions of significant growth in the sector?
**Dr. Šuminas:** If we maintain our current trajectory and continue to adapt to global trends, I believe Lithuania can truly cement its position as a hub for fintech in Europe. The ongoing investment in talent and regulatory support, combined with a strong emphasis on innovation, could help us not only meet but exceed the projected growth rates and create a vibrant, sustainable fintech ecosystem.
**Editor:** Thank you, Dr. Šuminas, for sharing your insights on the vibrant fintech scene in Lithuania. It’s clear that with the right policies and support, the future looks promising.
**Dr. Šuminas:** Thank you for having me; I’m excited to see where we go from here!
