Stakeholders Combine to Boost Lithuania Fintech Powerhouse Claim
Lithuania is steadily increasing its claim to being a fintech powerhouse in Europe and we wanted to find out more. In this edition of the Pay it Forward podcast hosted by payabl., we spoke to Greta Ranonytė, Head of Association at Fintech Hub LT to find out more about their work and the potential this region offers when it comes to fintech.
As it happens the country is the EU’s largest Fintech hub by number of licenses issued and in a split from global trends, actually saw an uptick in growth in 2023. Indeed, as we reported here, the sector’s talent pool expanded by nearly 6% and the share of blockchain and cryptocurrency focused startups grew to 13%. And it’s not just in fintech that there is a clear boom in tech. The country has a diverse startup ecosystem in general and has produced 3 unicorns including e-commerce giant Vinted and NORD Security.
In the interview Ranonytė tells us more about the Fintech Hub LT, which unites licensed fintech companies in Lithuania, and focuses primarily on payment companies. She also goes into the various factors contributing to Lithuania’s fintech success including the collaboration between different stakeholders as a key factor in Lithuania’s fintech success.
Initiatives from the Central Bank and other governmental institutions, as well as being one of the first EU countries to grant access to the SEPA scheme and regulatory sandbox, have attracted many payment companies to Lithuania. In fact, there’s a collective effort to achieve a 30% average revenue growth for fintechs by 2028.
Ranonytė goes on to explain that the sector actually started growing around 2017-2018, partly due to Brexit, as many UK-based companies lost direct access to EU countries and needed licenses in EU member states like Lithuania. In a highly regulated industry such as fintech and finance it’s no wonder that more companies have looked to this route.
We hear about gender diversity in Lithuania too, with a significant percentage of employees and leadership positions being held by women, another statistic that has been revealed in recent years. The EWPN which advocates for women in fintech and payments across Europe is an exciting and important initiative that Ranonytė is also part of, so we hear about some of the work they’ve done in partnership with them.
This rich conversation also touches on competition and cooperation between Baltic states, a balance needed to ensure strength, their inclusion on the IRS approved KYC list, and initiatives to make KYC procedures easier for companies whilst still complying with regulations.
It’s an insightful conversation into Lithuania’s fintech landscape, highlighting the importance of collaboration, regulatory initiatives, gender diversity, and more in achieving business success.
