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 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 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 specific initiatives is the Lithuanian government implementing to sustain the growth of the fintech sector in the coming years?
**Interview: Growth of Fintech in Lithuania**
**Editor:** Today, we have the pleasure of speaking with [Guest’s Name], an expert in the fintech sector and an advocate for digital finance in Lithuania. We’ll dive into the impressive growth of the electronic money and payment institutions sector, which has seen remarkable growth in recent months. Welcome, [Guest’s Name].
**Guest:** Thank you for having me!
**Editor:** To begin with, can you share what factors contributed to the 22 percent revenue increase in the fintech sector over the past year?
**Guest:** Certainly! The growth can be largely attributed to the increasing adoption of digital payment solutions and electronic money services across Europe. Lithuania has created a supportive regulatory environment that attracts international players like Revolut and Airwallex. Moreover, local companies such as TransferGo and Paysera have also been instrumental in driving this growth by innovating and expanding their services.
**Editor:** That’s fascinating! It’s also mentioned that the number of payment transactions surged by more than a third. How does this impact the overall economy of Lithuania?
**Guest:** This surge in payment transactions highlights a growing trust in digital financial services among consumers. It signifies not only the sector’s expansion but also shows that businesses and consumers are prioritizing efficiency and convenience. This transition positively impacts Lithuania’s economy by increasing tax revenues—over €100 million added last year—which can be reinvested into public services and infrastructure.
**Editor:** Regarding international investments, how crucial is the role of the government and policy in maintaining this momentum?
**Guest:** Government policy is essential for fostering a conducive environment for fintech. Continuous support from the Ministry of Finance and the Ministry of Economy is vital. They need to ensure that the guidelines for fintech development from 2023 to 2028 are implemented effectively, supporting both local firms and attracting foreign entities.
**Editor:** You mentioned education as a key area for growth. How important is it for higher education institutions to prepare students for careers in fintech?
**Guest:** Absolutely crucial! With fintech companies planning to expand significantly, there’s a demand for skilled professionals. Higher education institutions need to offer programs that equip students with the necessary skills in finance, technology, and compliance. This will ensure that our youth are ready to fill the well-paid jobs that fintech is set to create.
**Editor:** As we look to the future, what are your hopes for the fintech sector in Lithuania?
**Guest:** I hope to see continued growth and innovation, as well as stable cooperation between the government and market participants. If both sides work together, we can not only maintain but enhance our standing as a leader in the EU fintech landscape. It’s about creating sustainable opportunities that benefit both the industry and the citizens of Lithuania.
**Editor:** Thank you for your insights, [Guest’s Name]. It’s clear that the fintech sector in Lithuania is not only growing but evolving with great potential for the future.
**Guest:** Thank you! It’s an exciting time for Lithuanian fintech, and I look forward to seeing what’s next.