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
How does the customer base of 27 million EU users impact the future of Lithuania’s fintech industry?
**Interview with Dr. Lina Kovaitė, Fintech Expert and Director at the Lithuanian Financial Services Association**
**Editor:** Thank you for joining us today, Dr. Kovaitė. Lithuania’s fintech sector is experiencing remarkable growth, with a reported 22% increase in revenue in the first half of this year. What do you believe are the primary factors driving this growth?
**Dr. Kovaitė:** Thank you for having me. There are several key factors contributing to the growth of Lithuania’s fintech sector. First, our country has become a hub for electronic money and payment institutions, attracting international players like Revolut and Airwallex. This influx not only boosts local companies but also increases our visibility in the global market. Additionally, a favorable regulatory environment and active support from both the government and industry stakeholders have fostered innovation and investment.
**Editor:** It’s impressive to hear that nearly 27 million EU customers are using services from Lithuanian companies. How significant is this customer base for the future of the sector?
**Dr. Kovaitė:** It’s extremely significant. Having such a wide customer base not only demonstrates the trust and reliance on our services but also serves as a strong incentive for further investment. The more users we have, the more data and feedback we can analyze to improve services and innovate. This growth in user numbers plays a crucial role in enhancing our competitiveness within the EU market.
**Editor:** The recent improvements in Lithuania’s international tax competitiveness index are noteworthy. How has the fintech sector contributed to this success?
**Dr. Kovaitė:** The fintech sector has played a pivotal role in enhancing our tax competitiveness. By contributing over 100 million Euros to the state budget, we are providing the financial resources necessary for the government to invest in infrastructure and services. Moreover, the sector’s commitment to anti-money laundering (AML) initiatives has improved our global standing, making us an attractive market for investors and businesses alike.
**Editor:** You mentioned the importance of continuous cooperation between fintech players and politicians. What steps should the new government take to ensure sustained growth in the sector?
**Dr. Kovaitė:** It is essential for the new government to maintain and implement the fintech development guidelines established for 2023-2028. This includes ensuring that the Ministry of Finance and the Ministry of Economy and Innovation provide consistent support and foster a favorable investment climate. Furthermore, enhancing educational programs to equip young people with relevant skills will be crucial as fintech companies expand across the country.
**Editor:** what is your vision for Lithuania’s fintech sector in the next few years?
**Dr. Kovaitė:** I envision Lithuania solidifying its position as a leading fintech hub in Europe. By continuing to prioritize innovation, developing talent, and fostering international partnerships, we can not only attract more foreign companies but also support our local entrepreneurs. If we maintain our collaborative approach between the government and industry, the possibilities for growth are immense.
**Editor:** Thank you, Dr. Kovaitė, for your insights. It’s clear that Lithuania has a bright future in fintech, driven by collaboration and innovation.
**Dr. Kovaitė:** Thank you! I appreciate the opportunity to discuss this important topic.