Lithuania, the EU’s largest fintech hub by the variety of licences issued, loved one other 12 months of regular progress regardless of the persevering with international financial downturn. A brand new report by Make investments Lithuania, the nation’s free-of-charge consultancy service supplier, reveals that in 2023 Lithuania noticed an increase within the variety of fintech firms and specialists.
As a lot of the worldwide tech trade was left rocked by tough macroeconomic situations all through 2023, Lithuania’s fintech ecosystem loved continued development – pushed by efforts and initiatives focusing on the house all through the final decade.
The variety of fintechs working in Lithuania surpassed 270 for the primary time, persevering with a gradual upward development. The likes of Hokodo, Payhawk, Windcave, and innovation platform and accelerator Plug and Play joined the nation’s fintech panorama in 2023.
Hristo Borisov, CEO at Payhawk, defined why the spend administration resolution supplier had opted to broaden to the nation: “Payhawk selected Lithuania to open our newest workplace, largely attributable to its in depth expertise in supporting fintechs. This selection was bolstered by our optimistic licensing expertise and constructive interactions with the Financial institution of Lithuania.”
Consequently, fintech employment figures additionally continued to rise, with the sector’s expertise pool increasing by almost six per cent to over 7,400 professionals.
Not like many different world areas, the sector additionally confirmed notable progress when it comes to gender parity. Throughout 77 Lithuania-based fintechs that participated in Make investments Lithuania’s yearly survey, girls made up 45 per cent of the general workforce and 43 per cent of govt positions. In technical roles, girls accounted for 25 per cent of the workforce, a determine that ranks among the many finest when it comes to feminine illustration within the ICT trade throughout Europe.
Crowdfunding and digital asset development
In 2023, Lithuania continued to embrace promising fintech subsectors, together with blockchain and crowdfunding. The current introduction of Europe-wide crowdfunding regulation noticed the nation’s monetary regulator, the Financial institution of Lithuania, swiftly making the required changes, serving to Lithuania turn into one of many high three nations for licenced crowdfunding service suppliers within the EU.
Blockchain and cryptocurrency-focused fintechs in Lithuania additionally rose from eight per cent in 2022 to 13 per cent in 2023.
In step with this development, Lithuania additionally goals to turn into a frontrunner in embracing the EU’s upcoming Markets in Crypto Property (MiCA) regulation. Recognized for its proactive regulatory stance in monetary know-how, the nation is eager to welcome MiCA-compliant crypto firms able to prioritise and spend money on anti-money laundering and counter-terrorism financing (AML/CTF) capabilities.
Rosvaldas Krušna, advisor to a board member of the Financial institution of Lithuania, commented: “Beneath the brand new rules, the Financial institution of Lithuania can be accountable for licensing crypto firms. We really feel relatively effectively ready to make sure that entry to the market is granted solely to these candidates which are capable of show their maturity and dedication to compliance, with explicit consideration to the AML/CTF space.”
Lithuania’s fintech future seems to be promising
An agile angle in the direction of fintech has enabled Lithuania to construct a secure and more and more mature fintech sector. Make investments Lithuania’s survey means that monetary self-sufficiency is among the elements underpinning this stability. Thirty-nine per cent of fintech companies primarily depend on income funding, suggesting a desire for sustainable development fashions.
As Make investments Lithuania knowledge reveals, the outlook for fintech in Lithuania this 12 months is promising. A exceptional 75 per cent of surveyed Lithuanian fintechs anticipate constant income development in 2024, and over 30 per cent foresee their revenues no less than doubling.
“We view Lithuania as a vital hub for fostering fintech growth, each on a regional and international scale,” defined Dmitrij Sosunov, companion at early-stage VC fund and startup accelerator FIRSTPICK. “Our present focus lies on watching the continuing modernisation efforts in monetary providers throughout enterprises and conventional banks.
“Figuring out present infrastructure shortcomings as a main limiting issue to trade development, we recognise the second for B2B infrastructure-centric fintech firms to emerge, notably these specialising in regulatory know-how (regtech) and funds. There’s undoubtedly sufficient entrepreneurial spirit, expertise and institutional dedication to make issues occur.”
