Updated time: May 07, 2020, 06:23 (UTC+03:00)
Lithuania is recognized as one of the most dynamic Fintech hubs on the globe. The year 2019 was a milestone for Fintech development in Lithuania and across Europe, and Lithuania witnessed a large number of companies in the sector rising considerably, with more than 200 companies.
The country is now having a 24% increase in the number of Fintech organisations compared with the previous year, and has issued 102 licenses going towards electronic money institutions (EMIs), payment institutions, and so-called special purpose banks. In 2019, the number of people employed by companies in the sector rose 30% to 3,400, making this nation become the second largest Fintech hub in the world after the UK.
Jurisdictions with the latest number of licensed issued, The Fintech Landscape in Lithuania 2019-2020 Report, Invest Lithuania (Source: fintechbaltic.com)
Lithuania’s fintech ecosystem began a fast growth trend in 2016. Since then, the rate rocketed around 30% per year. Today, the Fintech sector in Lithuania has covered a wide range of industries from payments, wealthtech, regtech and digital identity, insurtech, digital banking, and blockchain.
Payments and remittance is the most crowded segment within Lithuania’s fintech startups ecosystem with 78 companies (accounting for 37%). Other developed segments include financial software (accounting for 10%), digital banking (with 8%), online investment and peer-to-peer (P2P) lending (at 8%), and consumer lending (at 7%).
According to some recent statistics, if global Fintech investment in 2013 just reached around 4 billion USD, that number in 2016 saw an upward trend and peaked at 20 billion USD, and projected increase to 120 billion USD at the end of 2020.
Fintech ecosystem in Lithuania
In Lithuania, all companies in the sector apply the practice of IMF and World Bank’s guiding principles regarding fintech regulation and ways to maximise the potential. To achieve a balanced approach, the Lithuanian government has imposed strictly regulatory compliance to ensure appropriate risk management.
In addition, the Bank of Lithuania has paid more attention to the ability of ensuring compliance with Anti-money laundering (AML) and other security requirements as well as improving service quality.
In 2020, the nation expects to witness a strong growth in the number of new joiners to the industry, estimated to reach about 250 Startup companies in Lithuania. New startups in Lithuania primarily focus on digital banking, personal finance and open banking.
DSBC is proud to be one of the pioneer members in Lithuania Fintech ecosystem. With the fast developing pace in Fintech, we improve our service daily and comply strictly with risk management guidelines as well as update technology to optimise the potential.
You can learn more information about us and our services in terms of current account, payment service, foreign exchange, wire transfer or merchant account, you can visit https://www.dsbc.eu or contact us now.
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