Lithuania aims to become a financial technology (FinTech) industry hub in the region

Lithuania aims to become a financial technology (FinTech) industry hub in the region

In order to attract more investors into the FinTech industry Lithuanian Ministry of Finance submitted additional proposals and the specific measures to the Government that would contribute to the improvement of the FinTech ecosystem in the country.

The proposals are divided into four factors determining FinTech industry development: favourable public policy and legal environment, the capital offers in each stage of development, promotion of FinTech products and services and the professional labour supply. With the mentioned activities it is aimed to avoid unjustified barriers and abolish the statutory provisions of the administrative constraints to business. It is also foreseen to provide services remotely, to provide consultations, information and data for FinTech companies in a „one-window“ principle. It is also expected to open the way Blockchain technology in the future, which allows to simplify the billing, accounting, documentation services.

According Mrs. Inga Karulaitytė-Kvainauskienė, attorney at law at ECOVIS ProventusLaw law firm, specialising in financial law and licensing of financial services companies, Lithuania thus is trying to keep up with the overall FinTech industry growth and purposefully is moving forward. “Favourable attitude towards innovation, business minded and advanced supervisory authority – that is what market participants and investors are looking for and already find here in Lithuania. That‘s why the willingness to develop FinTech ecosystem by adopting relevant legislative changes, more attention to preparation of students in economic and engineering disciplines, public financial literacy promotion is anticipated and is likely to give an even bigger boost to investors”, – says Mrs. Inga-Karulaitytė-Kvainauskienė.

Lithuania is particularly attractive to locate and expand for FinTech companies because of significant advantages: a well-developed information and communication technology infrastructure, supervisory authority open financial market innovations, an attractive legal environment, qualified and competitive workforce, opportunities to operate across the EU basing from Lithuania. Lithuania has also developed strong cyber security system, which is capable to offer for financial technology companies a new approach to cyber-security problems. The important fact to FinTech companies that the Bank of Lithuania allows to submit all the documents required to obtain a license not only in Lithuanian, but also in English. By using the combination of these advantages Lithuania has the potential to attract more FinTech companies and to become a financial centre in the Baltic region.

Proposals to the Government on the development of FinTech sector were prepared by the Ministry of Finance, the Bank of Lithuania, the Information Society Development Committee, “Invest Lithuania”, “Enterprise Lithuania” agencies and other public institutions, experts. The proposals were made in co-operation and consultation with the business community, which was also attended by representatives from ECOVIS ProventusLaw.

Inga Karulaitytė – Kvainauskienė