Fintechs flock to Lithuania as number of companies and jobs increase

A report has identified Lithuania as the second largest fintech hub in Europe. The number of fintechs located in the country increased by a quarter to 210, while the number of jobs in the sector increasing by a third to 3,400.

The landscape continues to be led by companies in the payments and remittances services area, with 78 companies. Over the last year, however, Lithuania’s fintech sector has seen growing diversification, with a significant increase in the number of companies engaged in digital banking, lending, regtech and identity.

The number of fintech in Lithuania is expected to rise beyond 250 by the end of 2020. This will be driven by growth in the number of digital banking and personal finance businesses in 2019.

“We will continue to provide incentives for the creation of new programs that promote innovative financial services, while strengthening our capabilities in terms of security. It will be key for us to continue the seamless collaboration we’ve seen across institutions so far, something that sets us apart from the rest of the world,” said Vilius Šapoka, Lithuania’s Minister of Finance.

“Our capital, Vilnius, is now among the top four fintech hubs globally as well as the most attractive destination for FDI in terms of tech start-ups. Despite these successes, we want to boost our ecosystem further to become even more competitive and attractive for fintech and high-skilled talent from abroad,” said Mantas Katinas, General Manager of Invest Lithuania.

The report also indicates a positive outlook for 2020 in terms of revenue, capital raising and market consolidation. Around a fifth of fintechs expect to raise at least €5 million over the coming year, and 16% expect to raise between €1 to €3 million. Companies in Regtech, wealth management and digital currency expect the strongest growth.

Jobs are expected to grow at a similar rate, with over a thousand new positions expected in 2020 focused on IT, software development, compliance & AML and business development.