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 the opportunity 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 the presence of international fintech companies impact local startups like TransferGo and NEO Finance?
**Interview with Andrius, a Fintech Expert in Lithuania**
**Interviewer:** Thank you for joining us today, Andrius. Lithuania’s electronic money and payment institutions sector has shown impressive growth. Can you tell us what factors contributed to this 20% increase in income in the first half of this year?
**Andrius:** Thank you for having me! The growth can be attributed to several key factors, including a robust regulatory framework, increasing consumer demand for digital payment solutions, and the entry of major international players like Revolut and Airwallex. This influx of global talent and capital has not only boosted competition but also enhanced innovation within our local market.
**Interviewer:** Interesting! You mentioned the arrival of international players. How does this affect local companies like TransferGo and NEO Finance?
**Andrius:** The presence of global giants actually creates a stimulating environment for local startups. It pushes them to innovate and improve their services to compete effectively. Plus, local companies have benefited from knowledge transfer and best practices from these established firms. It’s a win-win scenario that elevates the entire sector.
**Interviewer:** Lithuania has moved up the international tax competitiveness index. What does this mean for the fintech sector?
**Andrius:** Improving our position from seventh to fifth in the world signifies that we are creating a more favorable climate for business. This reinforces investor confidence and attracts foreign investment, which is vital for the growth of our fintech scene. It’s an essential indicator that promises sustained growth and economic stability.
**Interviewer:** Money laundering risks remain a significant concern globally. How has Lithuania managed to rank among the top ten countries with the lowest AML risk?
**Andrius:** We have made substantial progress in enhancing our AML measures through rigorous regulatory oversight and a commitment to compliance. Fintech companies in Lithuania are heavily investing in technology and workforce training to combat these risks effectively. This diligence has led to tangible results, earning us recognition from international bodies like MONEYVAL.
**Interviewer:** In terms of workforce, how is the fintech sector preparing for future expansion?
**Andrius:** The sector is poised for growth, with companies actively seeking to hire more staff. It’s crucial that our educational institutions align with industry needs. This means providing relevant skills and knowledge that students need to thrive in financial services. Collaboration between educational bodies and fintech firms will be key to creating well-paid jobs and developing a skilled workforce.
**Interviewer:** With new elections and changes in the government, what message would you like to convey to policymakers regarding the fintech sector?
**Andrius:** Continuity in fintech policy is vital. I encourage the new government to focus on implementing the 2023-2028 guidelines aimed at supporting fintech growth. This should include fostering partnerships between industry stakeholders and government and ensuring a vibrant investment climate that attracts further international businesses.
**Interviewer:** Thank you for your insights, Andrius. It sounds like an exciting time for Lithuania’s fintech sector!
**Andrius:** Absolutely! The potential is immense, and with the right strategies in place, we can realize our vision of becoming a fintech leader in Europe. Thank you for having me!
