A memorandum of understanding (MoU) has been created and signed by multiple institutions in Lithuania to confirm the “National Fintech Guidelines for 2023-2038.”
Lithuania is a hot Fintech market that has punched above its weight for some time now when it comes to innovation in financial services. According to Invest Lithuania, there were 263 Fintechs operating in the country at the end of 2022. It helps that you have one of the lowest tax burdens in the OECD (3rd) and the country is keen on encouraging global Fintechs to set up operations to take advantage of EU access and an entrepreneurial environment.
The Fintech Guidelines include five sections that aim to improve the conditions for businesses. Drafted under the leadership of Lithuania’s Ministry of Finance, the goal is to encourage more development and investment. Reportedly, over 7000 people work in Fintech in Lithuania, an increase of almost 20% in comparison to 2021.
The guidelines include:
- Supporting the quality growth of Lithuania’s Fintech sector
- Attracting Innovative Fintech solutions to Lithuania
- Lithuania as a Fintech centre of competence
- Lithuania as a safe and reliable jurisdiction
- Lithuania as an internationally renowned European Fintech hub
Minister of Finance, Gintare Skaiste, says the MoU provides a “clear roadmap for sustained excellence and growth.”
The hope is to see an annual sector turnover growth rate of 30% and 35 million customers spread out across companies licensed in Lithuania by 2028.
“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,” explains Simonas Krėpšta, Member of the Board at the Bank of Lithuania.
Among the signers of the MoU are the Ministry of Finance, the Bank of Lithuania, city development agency Go Vilnius, and several business associations and hubs, including ROCKIT, Fintech Hub LT, Infobalt, and BCCS
