As Lithuania explains, only a short time ago few people knew about the country – much less where it is located. Today, Lithuania punches above its weight class when it comes to attracting innovative young firms – including many Fintechs. According Invest Lithuania and its most recent Business Service Report, the country is the largest Fintech hub in the European Union in terms of licensed companies.
To quote the document:
“Only a short decade ago, Vilnius was relatively unknown amongst other similarly sized European cities. But today, its standing, particularly as a tech powerhouse, far outstrips its size. Rising challenger banks like Revolut and dynamic GameDev companies like Unity have their headquarters here, while the city’s entrepreneurial startup scene has birthed unicorns like the second-hand clothing portal Vinted and the VPN titan Nord Security.”
Currently, Lithuania is home to 260 Fintechs convinced to operate in the country due to the business-friendly regulatory environment a streamlined licensing processes and a good source of educated employees.
Lithuania has incorporated a Fintech Strategy – 2023 – 2028 developed by the Lithuanian Ministry of Finance to ensure the country is a center of excellence and competitive on a global scale. The five parameters guiding the initiative include:
· Supporting the qualitative development of the Fintech sector in Lithuania.
· Attracting innovative Fintech solutions to Lithuania.
· Ensuring that Lithuania is the Centre of Excellence for Fintech.
· Ensuring that Lithuania is a safe and reliable jurisdiction.
· Ensuring that Lithuania is universally recognized as a European Fintech hub.
The report shares that the US is the biggest investor in the country claiming 36% of the employees created by external investment. Financial services drive 47% of employment.
Sensitive to the optics of money laundering and other nefarious activity that proliferate around the world, the Bank of Lithuania launched the Center of Excellence in Anti-Money Laundering
in 2021. It now reports having trained 14,000 individuals on AML related issues in 2022.