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 may reach almost 600 billion by 2029. 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 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 factors are driving the growth of Lithuania’s fintech sector, particularly in electronic money and payment institutions?
**Interview with Viktorija, a Fintech Industry Analyst in Lithuania**
**Interviewer:** Welcome, Viktorija. Thank you for joining us today to discuss the recent developments in Lithuania’s fintech sector. It’s been reported that income in the electronic money and payment institutions sector grew by over 20% in the first half of the year. What do you attribute this impressive growth to?
**Viktorija:** Thank you for having me! The growth can primarily be attributed to the increasing demand for digital financial solutions, especially following the pandemic. More people and businesses are turning to electronic payment methods, leading to a rise in transactions and, consequently, revenue. Moreover, Lithuania’s regulatory environment is particularly favorable, which makes it appealing for both local start-ups and foreign companies to establish operations here.
**Interviewer:** You mentioned the regulatory environment. Can you expand on how Lithuania has positioned itself as an attractive space for international investors?
**Viktorija:** Certainly. Our government has implemented clear and supportive fintech regulations that enhance the business landscape. The arrival of major players like Revolut and Airwallex is a testament to this. Additionally, the significant progress we’ve made in combating money laundering has helped reassure investors, evidenced by our ranking as having one of the lowest AML risks globally.
**Interviewer:** That’s impressive! The sector also reportedly contributed over 100 million euros to the state budget last year. How do you see the fintech sector contributing to Lithuania’s overall economy?
**Viktorija:** The fintech sector is becoming a crucial pillar of Lithuania’s economy. Beyond the substantial contributions to the budget, it also provides thousands of jobs and drives innovation. As fintech companies expand, they create well-paid jobs, which not only boosts the economy but enriches our talent pool. This, in turn, encourages more investment and further growth.
**Interviewer:** Looking forward, what steps do you think the new government should take to ensure the continued growth of the fintech sector?
**Viktorija:** Continuity is key. The new government must adhere to the 2023-2028 development guidelines. Additionally, collaboration between fintech stakeholders and government bodies must be intensified. We also need to focus on enhancing the skills of our youth, as they are tomorrow’s workforce. Ensuring that our educational institutions equip students with the necessary skills for fintech careers will be vital.
**Interviewer:** It sounds like a multi-faceted approach is needed. As we see predictions of the global fintech market potentially reaching 600 billion euros by 2029, how optimistic are you about Lithuania’s share in this market?
**Viktorija:** I am quite optimistic. With our current trajectory, commitment to innovation, and attractive regulatory environment, Lithuania can capitalize on the growing global fintech market. If we maintain our focus on collaboration and skill development while continuing to adapt to global trends, I believe we can significantly enhance our role in the international fintech arena.
**Interviewer:** Thank you, Viktorija! Your insights into the Lithuanian fintech sector are invaluable and give us great hope for the future.
**Viktorija:** Thank you for having me! It’s an exciting time for fintech in Lithuania, and I look forward to seeing how we evolve in the coming years.
