Lithuania has become a hub for fintech businesses, and there are several reasons why. Among the main ones undoubtedly are ambitious startups, public authorities providing a forward-thinking regulatory environment, and an attractive legal environment fintech law specialists continually strive to create. So, how has a small country with a population of less than 3 million reached significant results in the fintech field relatively quickly and attracted global attention? Read on and learn 3 inspiring insights that prove Lithuania is a perfect place to start or expand fintech businesses.
1. Impact of the Bank of Lithuania and Local Authorities Decisions
While many factors impacted significant fintech sector growth in Lithuania, it might’ve been a combination of both that was a major game changer – companies’ interest and investments in the latest technologies and the attention of the local authorities and institutions. Regarding the latter, here are just a few interesting facts to mention:
- In 2019, the Bank of Lithuania launched a regulatory sandbox, allowing fintech companies to test innovative products and services in a controlled environment.
- It also promoted open banking, encouraging banks to open their APIs and allowing third-party providers to access customer data. Result? New opportunities for fintech companies and innovative services and products to consumers.
- The Lithuanian government has also played a significant role by actively promoting the growth of the fintech sector. How? Such initiatives include establishing the Vilnius Tech Park, a tech startups and innovators hub.
These are just a few examples that encouraged and supported ambitious fintech businesses. A supportive environment is crucial for any company in any market. Still, in this case, it played a massive part in creating a thriving fintech ecosystem in Lithuania, attracting new players to the market, promoting innovation and competition, and creating new opportunities for consumers.
2. Exceptional Attention to Fintech Law
We must also mention the impact of innovative fintech law firms in Lithuania that actively strive to create a more secure and efficient legal environment. Everyday experts specialising in the fintech law field keep encouraging innovation and growth in the industry while maintaining the integrity and stability of the financial system. Not only do they work with local authorities and businesses to create a more attractive legal environment for the sector, but they also contribute to the training of fintech specialists and participate in business communities.
3. Surprising Numbers that Prove Significant Progress
Now, such initiatives and support, ambitious startups and a growing number of highly skilled fintech market professionals led to Lithuania being home to one of Europe’s fastest-growing fintech sectors, with over 260 fintech companies operating in the country. Over the last five years, the number of fintech companies more than doubled. According to the latest Invest Lithuania report of 2022-2023, Lithuania is the largest fintech hub in the EU by licenses issued.
Getting into the nitty-gritty of the fintech environment and what makes it unique here, there’s no wonder that more and more major fintech players worldwide choose to establish operations in Lithuania. Not to mention locally based businesses that perform significantly, gaining trust in the country and globally. That said, those insights might become lessons for becoming a fintech businesses hub in a relatively short period.