Priya Patel
TLDR:
- Lithuania’s fintech sector saw continued growth in 2023 despite global economic challenges.
- The number of fintech companies in Lithuania surpassed 270 for the first time, with an increase in professionals and gender diversity.
Lithuania, known as the EU’s largest fintech hub by the number of licenses issued, experienced steady growth in its fintech ecosystem throughout 2023 despite the ongoing global economic downturn. According to a report by Invest Lithuania, the country saw an increase in the number of fintech companies and specialists operating within its borders. This growth was attributed to the country’s proactive efforts and initiatives towards cultivating the fintech space over the past decade.
In 2023, Lithuania welcomed new players in the fintech industry, such as Hokodo, Payhawk, Windcave, and Plug and Play. The CEO of Payhawk, Hristo Borisov, highlighted Lithuania’s support for fintechs as a key factor in the company’s decision to expand to the country. In terms of employment, the fintech sector in Lithuania saw a nearly six percent increase in its talent pool, with women making up 45 percent of the overall workforce and 43 percent of executive positions.
Furthermore, Lithuania embraced promising fintech subsectors like blockchain and crowdfunding in 2023. The country quickly adapted to Europe-wide crowdfunding regulations and saw an increase in blockchain and cryptocurrency-focused fintech companies. Lithuania aims to become a leader in complying with the EU’s upcoming Markets in Crypto Assets (MiCA) regulation, emphasizing anti-money laundering and counter-terrorism financing functions.
Looking ahead, Lithuania’s fintech future appears promising, with a focus on sustainable growth models. A significant percentage of surveyed fintech companies anticipate revenue growth in 2024, with over 30 percent expecting their revenues to double. Stakeholders in the industry see Lithuania as a crucial hub for fintech development, particularly in regulatory technology and payments.
