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 further implementation of the 2023-2028 development guidelines for 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
What are the key factors driving the growth of Lithuania’s fintech sector in recent years?
**Interview with a Fintech Expert: Addressing Lithuania’s Growing Potential in the Sector**
**Interviewer:** Thank you for joining us today. Lithuania’s fintech sector is experiencing impressive growth. Can you share some insights into what has driven this success?
**Expert:** Absolutely, it’s a pleasure to be here. The growth of Lithuania’s electronic money and payment institutions sector—over 20% in the first half of this year—demonstrates a robust demand for digital financial services. The revenues amounted to €275.1 million, marking a 22% increase from the previous year, and transaction volumes rose significantly, nearing €132 billion. It’s clear that companies in Lithuania are catering to around 27 million customers across Europe.
**Interviewer:** With major players like Revolut and Nuvei setting up in Lithuania, what does this mean for local companies?
**Expert:** The influx of these international fintech companies not only boosts visibility but also fosters competition, which can be beneficial for local firms like TransferGo and Paysera. This dynamic encourages innovation and helps to elevate the standards across the board. In turn, it can drive further investment and growth in the sector.
**Interviewer:** That’s impressive! Lithuania has also climbed in the international tax competitiveness index. How significant is this achievement?
**Expert:** It’s a major milestone. Moving from seventh to fifth place in the world reflects our commitment to creating a favorable environment for business. This, combined with our low money laundering risk ranking—as highlighted by the MONEYVAL—positions Lithuania as an attractive option for foreign direct investments. The fintech companies are heavily investing in anti-money laundering (AML) technologies and training, which contributes to this positive image.
**Interviewer:** Speaking of sustainability, what recommendations would you give to the new government for supporting this growth?
**Expert:** I believe it’s crucial to maintain continuity in fintech policies. The Ministry of Finance should prioritize implementing the 2023-2028 development guidelines for our sector. Additionally, fostering collaboration between government entities and market participants will create more opportunities. We also need to invest in education; enhancing the skills of our workforce is essential to meet the expanding demands of the fintech industry.
**Interviewer:** Given the rapid growth of the global fintech market, what should investors and entrepreneurs look out for in the coming years?
**Expert:** The global market may reach around €300 billion by this year’s end and is expected to grow 14% annually, potentially hitting €600 billion by 2029. Entrepreneurs should be prepared to innovate and adapt as technology evolves. For investors, understanding local regulations and the competitive landscape will be critical, especially as the sector continues to mature.
**Interviewer:** Thank you for those insights. It seems the future is bright for Lithuania’s fintech sector!
**Expert:** Indeed, with the right strategies in place, we can solidify our position as a European leader in fintech. Thank you for having me.
