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
What are the key factors contributing to the growth of the fintech sector in Lithuania?
**Interview with Sarah Johnson, Fintech Expert and Analyst**
**Editor:** Thank you for joining us today, Sarah. There’s been significant growth in the Lithuanian fintech sector recently. Can you give us an overview of what’s driving this development?
**Sarah Johnson:** Absolutely! The Lithuanian fintech sector is experiencing remarkable growth, primarily due to its supportive regulatory environment and ongoing investment from both domestic and international players. Revenue from electronic money and payment institutions rose by 22% this year, reaching approximately €275 million, and the volume of payment transactions surged nearly 40%. This trend highlights Lithuania’s appeal as a fintech hub in Europe.
**Editor:** It’s interesting to see that major global players like Revolut and Airwallex are setting up in Lithuania. How does their presence influence the local market?
**Sarah Johnson:** The entry of these major companies significantly boosts competition and innovation within the local market. It provides a great opportunity for local firms, like TransferGo and Paysera, to elevate their services and reach. Moreover, it validates Lithuania’s reputation as a reliable location for fintech operations, attracting even more foreign investment and creating new job opportunities.
**Editor:** You also mentioned Lithuania’s improvements in the international tax competitiveness index and its low money laundering risk. How do these factors impact the fintech landscape?
**Sarah Johnson:** These achievements enhance Lithuania’s attractiveness to global investors and firms. A stable and transparent regulatory framework fosters investor confidence. The focus on anti-money laundering (AML) efforts not only reduces risk but also helps fintech companies build credibility, which is crucial in gaining customer trust across Europe.
**Editor:** In light of the recent elections, what key actions should the new government take to maintain this growth momentum?
**Sarah Johnson:** Continuity in fintech policy is crucial. The government must continue supporting the 2023-2028 guidelines established for fintech development. It’s essential for the Ministry of Finance to engage collaboratively with industry players. They need to ensure regulatory frameworks adapt and evolve with market needs. Moreover, boosting collaboration with educational institutions to enhance digital and financial skills among the youth will ensure a talent pool that meets the demands of the expanding sector.
**Editor:** with the global fintech market poised to grow significantly, how can Lithuania capitalize on this trend?
**Sarah Johnson:** Lithuania can capitalize on this trend by strengthening its ecosystem. This includes enhancing regulatory frameworks, retaining a strong focus on AML compliance, and fostering partnerships among fintech companies. Furthermore, attracting talent and facilitating skill development in financial technology will be paramount to sustaining growth and maintaining its status as a leading fintech hub in Europe.
**Editor:** Thank you, Sarah, for your insights on the dynamic fintech landscape in Lithuania. It will be exciting to see how the sector evolves in the coming years.
**Sarah Johnson:** Thank you for having me! It’s an exciting time for Lithuania, and I look forward to seeing what the future holds.
