As published on: financefeeds.com, Friday 30 June, 2023.
“The new Lithuanian Fintech strategy underscores Lithuania’s ambition to become the highest quality Fintech hub in Europe.”
The main institutional actors in Lithuania’s Fintech ecosystem have signed a Memorandum of Understanding confirming the National Fintech Guidelines for 2023-2028.
The guidelines consist of five separate directions and are aimed at improving the conditions for businesses and continuously developing an open, transparent, and secure regulatory framework.
Among the signers of the MoU are the Ministry of Finance, the Bank of Lithuania, city development agency Go Vilnius, and a number of business associations and hubs, including ROCKIT, Fintech Hub LT, Infobalt, and BCCS.
Simonas Krėpšta, Member of the Board at the Bank of Lithuania, said: “Today, more than 25 million Europeans are benefiting from the financial services of companies licensed in Lithuania. This is both an acknowledgement of Lithuania and a significant responsibility. Recent events in the global markets have highlighted the importance of striking a balance between developing financial innovations and managing risks. The new Lithuanian Fintech strategy underscores Lithuania’s ambition to become the highest quality Fintech hub in Europe.”
Today, the country is the largest Fintech hub in the EU by licenses issued. It is also one of the lowest-risk jurisdictions globally, according to the Basel AML Index. The Fintech Landscape in Lithuania 2022-23 Report published by Invest Lithuania revealed that more than 260 Fintech companies are now domiciled in Lithuania employing 7,000 people – a 19% increase over 2021.
Drafted under the supervision of Lithuania’s Ministry of Finance, who said they provide a clear roadmap for sustained excellence and growth, the guidelines comprise five directions, each assigned to a concrete project owner and several cooperating institutions.
With these guidelines, Lithuania not only seeks to strengthen its position as a regional fintech hub, but also aims to become a globally recognized high-value added fintech center.
These fintech guidelines have brought together some of the most influential experts from Lithuania’s institutions, businesses, and associations. The outcome is a document that defines long-term national and international goals for the entire sector.
Specific KPIs are attached to each of the five directions. These include an annual sector turnover growth rate of 30% and 35 million customers spread out across companies licensed in Lithuania by 2028.
Attracting and retaining international Fintech companies is seen as a top priority, with the Bank of Lithuania’s Newcomer programme viewed as paramount in achieving this.
According to the announcements, Lithuanian institutions also pay much attention to the issues of Anti-Money Laundering and Cyber Security, with the country’s Centre of Excellence in Anti-Money Laundering as a key institution for training specialists and sharing knowledge. In addition to these and other measures, the Guidelines specify the need for even closer cooperation with educational institutions, ensuring talent supply for the sector.