Lithuania-based financial technology (fintech) companies generated record revenues last year amid a jump in the adoption of innovative technologies in the region. In 2021, fintech firms in the country generated more than 500 million euros worth of revenues, which is up by over 25% compared to the same period in 2020.
Additionally, Regional financial technology startups hired people at a rapid pace as the overall number of employees reached 5,900, which is up 48% compared to the previous year. According to a recent report published by Invest Lithuania, the country is ranked first in the EU with a total of 147 licensed fintech firms.
"Fintech companies have proven, time and time again, that Lithuania is a stable partner for business growth. By establishing such core competencies as compliance, customer onboarding and support, product development, business development, and sales here, the majority of international fintech firms trust Lithuania with essential functions of their business," says the Head of Technology Team at Invest Lithuania, Gintarė Bačiulienė.
During the last 12 months, several global fintech companies have opened offices in Lithuania and expanded their presence in the region.
International Fintech Sector
In 2021, the global financial technology sector attracted record funding. According to a report published by KPMG in February 2022, UK-based fintech firms attracted more than $37 billion worth of investment in 2021. In addition, the overall volume of deals jumped by nearly 27%.
The latest report published by Invest Lithuania shows that the growth in the country’s fintech sector was led by payments companies and financial software providers. Furthermore, digital banking startups have witnessed decent growth in the past 12 months.
"This is only a start. The Bank of Lithuania aims to develop the country's potential for fintech solutions for capital markets, with an emphasis on Crowdfunding, Wealthtech and Green Finance sectors," said Bačiulienė.
