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.
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How can educational institutions adapt their curricula to better prepare students for careers in the fintech industry?
**Interview with Mr. Tomas Jankauskas, CEO of Fintech Lithuania**
**Editor:** Thank you for joining us, Mr. Jankauskas. Recent reports highlight impressive growth in Lithuania’s electronic money and payment institutions sector. What factors are contributing to this growth?
**Jankauskas:** Thank you for having me. The sector has indeed seen remarkable growth, with a revenue increase of 22% in the first half of this year. Several factors have contributed to this success. Firstly, Lithuania has established itself as a leading fintech ecosystem in Europe, offering a favorable regulatory environment and strong support from government institutions. We’ve seen major international players like Revolut and Airwallex entering the market, which boosts our visibility and credibility.
**Editor:** That’s an encouraging perspective. How has this growth impacted the overall economy and employment in Lithuania?
**Jankauskas:** The fintech sector has had a considerable positive impact on our economy. Last year alone, fintech companies added over 100 million EUR to the state budget and employed approximately 7,500 people. This growth not only creates well-paying jobs but also contributes to our international tax competitiveness, where we recently climbed from seventh to fifth place globally.
**Editor:** With such rapid expansion, what do you believe are the key areas the new government should focus on to sustain this growth trajectory?
**Jankauskas:** It’s crucial for the new administration to ensure continuity in fintech policy. Following the guidelines set for the 2023-2028 development plan is vital to maintain our leading position. The Ministry of Finance must prioritize these initiatives, while the Ministry of Economy and Innovation should continue to cultivate an attractive investment environment. Furthermore, we need to enhance educational opportunities in fintech to prepare the next generation for a rapidly evolving job market.
**Editor:** Speaking of education, how can the local workforce be prepared to meet the demands of the growing fintech sector?
**Jankauskas:** The emphasis on improving skills in higher education is vital. We need to ensure that our young people are equipped with the necessary skills and knowledge to succeed in fintech roles. Collaborations between universities, fintech companies, and the government will be instrumental in creating tailored programs that respond to industry needs.
**Editor:** Lastly, what is your vision for Lithuania’s fintech sector in the next five years?
**Jankauskas:** I envision Lithuania solidifying its position as a key player in the European fintech landscape. By fostering collaboration between the public and private sectors, leveraging technological advancements, and promoting a culture of innovation, we can create an ecosystem that not only attracts foreign investments but also supports local startups. The future is bright for Lithuanian fintech, and I believe we’re just getting started.
**Editor:** Thank you, Mr. Jankauskas, for your insights. We wish you and the fintech sector continued success in the coming years.
