For decades, Lithuania has maintained the status of an international trade hub bridging gaps between the East and the West. Now, this traditional role has developed into its newest version – Lithuanian jurisdiction has become the EU’s central Fintech hub. To date, approximately 200 Fintechs with international outreach perform their services in Lithuania. The country’s capital city Vilnius is now considered No. 1 in the global arena in attracting foreign direct investments for Fintech startups in Lithuania.
Probably the main contributing aspect to the fast development of the Fintech landscape in Lithuania has been the business-friendly regulative policies of the Bank of Lithuania (further mentioned as BoL). Having played a crucial role in establishing an innovation-conducive regulative climate, the BoL has greatly contributed to attracting many international Fintech companies looking for EU-wide licenses for operation.
Overview of Fintech in Lithuania
Placing a leading position in the EU by the number of licensed EMIs (e-money institutions) and PIs (payment institutions), Lithuania is included in the TOP10 of the Global Fintech Index. With a constant focus on enhancing its business and regulative climate, Lithuania has strengthened its position as one of the top ecosystems worldwide for designing and scaling new Fintech solutions. A commercially-friendly regulative mechanism with effective licensing procedures and a large talent pool in software development, AML, customer support, and operations are not the only advantages of the jurisdiction.
Why choose Lithuania for Fintech business
- Multidisciplinary talent in the financial technology domain
At the very center of each Fintech stand individuals, able to co-create and deliver successful projects. Business-minded, multilingual, and diverse Lithuania’s talent pool is here to benefit your business.
- Regulator at the avant-garde of innovations
Lithuania Fintech’s approach to licensing provides a local infrastructure with EU outreach and effective licensing solutions to implement your growth. The Fintech license in Lithuania has the following branches:
- E-money license
EMI and PI licenses are valid across the European Union; the application process typically takes 6 – 9 months.
- Lite Bank License for challenger banks.
This type of financial license sets 5 times lower initial capital obligation.
- AML Center
AML center is committed to counteracting illicit money circulation and financing terroristic organizations by combining the efforts of both state organizations and market players.
- Regulative sandbox
The sandbox allows potential and in-business financial market players to test their innovations in real conditions under the administration of the BoL.
- Crowdfunding
Crowdfunding is a way of raising money to finance projects and businesses that harnesses the power of social networks and the internet to allow fundraisers to collect money from a large number of people via a special platform. Crowdfunding operators take advantage of choosing Lithuania as a gateway to access the EU market under the new EU regulation.
- CENTROlink
CENTROlink is a one-of-its-kind payment system run by the BoL that delivers technical access for all types of PSPs licensed within the EEA, permitting them to send and receive SEPA payments and issue IBAN accounts.
Final words
The development of the financial technology (FinTech) sector in Lithuania at a phenomenally fast pace has resulted in the disruption in the domain of traditional banking services. FinTech has fostered the pace of innovation introduction and turned customer expectations in the field of financial services at a new level.
Our banking and financial law specialists will gladly assist you with developing your business concept, working on a business strategy to licensing your business, and becoming a successful financial market participant.