Why fintechs choose Lithuania

November 7, 2022
Why fintechs choose Lithuania

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

  1. 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.

  1. 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.

Related insights

January 14, 2024

Crypto license in Lithuania: main advantages

Сrypto-currency space is relatively young, but its popularity is only growing annually. Plenty of private capital-holders view crypto-currencies as means of investing and preserving capital; it entails large cash injections into the industry. Since the sphere of crypto-currencies is becoming more identified with investment tools and financial markets, this area doesn’t go unnoticed by regulative...
December 15, 2023

Accounting features in Lithuania

In the dynamic landscape of global enterprise, country has emerged as a promising destination for entrepreneurs and enterprises seeking growth opportunities in the European market. A crucial aspect of establishing and maintaining a successful enterprise in country is understanding the accounting landscape. In this article, we will delve into the key features of accounting services...
December 4, 2023

Lithuania as a Modern Cybersecurity Hub for International Operations

Lithuania, positioned as an advanced center for safeguarding digital activities on the global stage, has become a noteworthy figure in the digital defense domain. Particularly in the post-COVID-19 era, where increased online activities emphasize the imperative need for robust protection, Lithuania stands firm in securing its critical infrastructure and citizens, asserting itself as a leader...
November 2, 2023

Legal Services in Lithuania

Lithuania, a picturesque Baltic nation, boasts a rich cultural heritage and natural beauty. It also harbors a sophisticated legal system that is integral to maintaining a just and equitable society. For residents, entrepreneurs, and foreign investors alike, a thorough understanding of the diverse legal services available in Lithuania is essential. In this extensive article, we...
October 5, 2023

PI/API license in Lithuania

In recent years, Lithuania has emerged as a thriving hub for economic technology (FinTech) firms, attracting both startups and established players from around the world. One of the key drivers behind this growth is Lithuania’s Payment Institution license, which has opened up new avenues for economic innovation and accommodations in the country. In this article,...
August 16, 2023

How to incorporate a company in Lithuania?

Lithuania receives great marks for both economic freedom and human development. Lithuania’s production, property, and transportation industries constitute more than half of its GDP. Since 2000, the nation’s economy has almost doubled. This indicates that the country is a worthy place for forming a business presence. Registering a Business: legal forms In Lithuanian jurisdiction, one...
June 29, 2023

Lithuania raises investments into Science and Business fields

Lithuania’s investment landscape has undergone a remarkable transformation in recent years. The governance, recognizing the importance of science and technology in driving competitiveness and sustainable development, has placed a strong emphasis on attracting investments into these critical sectors. This strategic approach has yielded impressive results, propelling Lithuania onto the international stage as a vibrant hub...
March 19, 2023

Vilnius – best city for foreign investment

Vilnius is a great city for investments. When evaluating it by taking a look at economical potential-forces, commercial basis, quality of life, costs efficiency and connections, Vilnius is among the best ranked cities in Europe. Vilnius is a young, growing city that is pleased to meet investments and businesses. It is not surprising that in...

Feel free to contact us

Send your request for any info:

Frequently asked questions

  • To incorporate a company in any jurisdiction, please contact our specialist, we’ll send you all relevant information.

  • You can find prices for company incorporation in Prices section, to get price for other services please contact our specialist via e-mail or contact form.

  • To obtain the new license, please contact our specialist, we’ll send you requirements and list of documents needed for the procedure.

  • We have wide range of ready-made companies available, to get details about specific company, please contact our specialist.