Lithuania is an ideal place for fintech companies
Lithuania is a leader in the development of technology in the field of finance - this can be said from the report of experts. The Central Bank of this jurisdiction has created a plan to promote the industry, while there are already some results. For more information on the opening of companies, please contact our specialists in IT-OFFSHORE.
Features of the new industry
Fintech is a finance-related start-up that is being developed as a replacement or addition to existing finance services. Examples of such technologies are EPS, electronic wallets, cryptocurrency, etc. According to the results of KPMG, in the first half year alone in 2019 more than 50 billion USD were invested in the sphere of fintech, which significantly exceeds the figures for 2017.
In the future, it is planned to recommend the country as a point from which the FINTECH organizations could operate throughout Europe. According to existing laws, companies in the EU can obtain a license in one of the member countries in order to subsequently work throughout the European Union.
What changes in the country have already been implemented:
• Legalization of remote customer identification;
• Identification of regulators for platforms promoting startups;
• Implementation of an electronic licensing system, where companies can apply for a permit;
• Prohibition of sanctions in the first 12 months of the organization. In case of violations, an analysis is carried out and a solution is found to avoid such situations in the future.
Central Bank continues to develop a positive climate for companies working in this direction. It is planned to introduce electronic residency, to develop a law on cryptocurrency, to create a system of access to information about the organization.
The pace of development of the industry
Since then, 35 FINTECh startups have been registered in Lithuania. This indicator is one of the highest in the European Union. In general, more than 117 such companies are currently operating in the jurisdiction. They all opened in the last five years.
There are some reasons for choosing Lithuania for the development of startups - lack of strict regulation, developed banking system, infrastructure, access to a large number of clients in the EU. According to experts, one of the main advantages of Lithuania is the key to the EU market. Most of all startups view Europe as a target market.
It can be said that Lithuania is increasing its momentum and provides a comfortable atmosphere for the development of such projects. The country occupies the 6th position in the EU ranking on the ease of starting a business. In the world ranking of the country on this indicator has 14 place.
Almost 50% of Fintech companies provide payment services, 15% are engaged in lending, about 1/10 operate in the banking sector. One of the main obstacles to the functioning of a startup is marketing. This is evidenced by the fact that more than half of the organizations see partners in the organization of the sale of goods in banks and other financial institutions.