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 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, as mentioned by Dr. Eva Janutienė?
**Interview with Dr. Eva Janutienė, Fintech Expert and Policy Advisor**
**Host:** Welcome, Dr. Janutienė! Thank you for joining us today to discuss the exciting developments in Lithuania’s fintech sector.
**Dr. Janutienė:** Thank you for having me! It’s a pleasure to be here.
**Host:** Let’s dive right in. The latest reports indicate that the income of Lithuania’s electronic money and payment institutions sector has grown by over 20% in the first half of the year. What factors do you think are contributing to this impressive growth?
**Dr. Janutienė:** Absolutely, the growth is substantial! Several factors contribute to this trend. Firstly, Lithuania has built a strong regulatory framework that attracts international players. The presence of companies like Revolut and Airwallex underscores our attractiveness as a destination for fintech investment. The growth also reflects the increasing demand for digital payment solutions and electronic money, particularly in the context of a more digital-savvy population.
**Host:** Speaking of demand, the report states that 27 million customers across the EU are using services from Lithuanian companies. How important is this market size for the sector’s sustainability?
**Dr. Janutienė:** It’s critically important! A broad customer base not only ensures sustainability but also allows for scalability. The more users the companies can attract, the more revenue they generate, facilitating further innovation and investment. It’s a virtuous cycle that drives growth in both local and international markets.
**Host:** You also mentioned the significant contribution of the fintech sector to Lithuania’s tax competitiveness index, moving from seventh to fifth place globally. What implications does this have for the country’s economy?
**Dr. Janutienė:** This improvement is a clear indicator of the sector’s impact on economic health and positioning. A strong tax competitiveness index attracts more foreign direct investment and promotes economic activity, which is vital for job creation. It shows that Lithuania is serious about being an international hub for finance and technology.
**Host:** Last year, Lithuania ranked among the top 10 countries with the lowest money laundering risk. How have fintech firms contributed to this achievement?
**Dr. Janutienė:** Fintech firms have been proactive in implementing strong anti-money laundering (AML) measures. By investing in technology and enhancing employee competencies related to AML compliance, they have significantly reduced the risk profile of their operations. This focus on compliance not only strengthens trust in the sector but also enhances Lithuania’s reputation internationally.
**Host:** As we look to the future, what steps should the new government take to ensure continued growth in the fintech sector?
**Dr. Janutienė:** Cooperation between the government and fintech market participants is essential. The newly elected government should prioritize the implementation of the 2023-2028 fintech guidelines established last year. Moreover, it must continually work to enhance the investment environment, ensuring that we remain competitive globally. Lastly, improving educational frameworks to equip the youth with necessary skills is pivotal for sustaining growth.
**Host:** Thank you, Dr. Janutienė, for your insights on this flourishing sector and the roadmap for its future. It seems that with the right policies, Lithuania is poised to solidify its status as a fintech leader in Europe.
**Dr. Janutienė:** Thank you for having me. I’m excited to see how the sector evolves, and I believe with strong collaboration, the best is yet to come for Lithuania.
