Can Lithuania succeed in the global fintech arena?

Over the past decade, Lithuania has worked to transform itself into an attractive location for fintech companies. In many areas, it has succeeded, ranking 1st in the EU in terms of the number of authorized and listed fintech companies among the 10 lowest risk jurisdictions all over the world.

But as a relatively small country, Lithuania faces some distinct challenges in its quest to become a universally recognized country. fintech hotspots by 2028the goal outlined by its own Ministry of Finance. This raises a crucial question: can a small nation become a global fintech leader? And if so, how?

Small country, unique advantages

New Releases Charts European Fintech Index suggest that smaller countries may actually be in a prime position for fintech success, as the index shows that nations such as Estonia and Luxembourg rank higher on key metrics than their larger counterparts.

Estonia, for example, excels in the corporate and fintech sectors, ranking 1st and 2nd respectively in Europe, thanks to its strong presence of unicorns per capita and favorable regulatory frameworks. Similarly, Luxembourg has earned a reputation for its strong financial sector and has the highest number of fintech deals per capita. These examples highlight how small nations can leverage agility, focused efforts, and supportive ecosystems to excel in the fintech arena.

“We have seen substantial progress in Lithuania,” says Marius Galdikas, CEO of ConnectPay, an all-in-one financial platform based in Vilnius. “A combination of innovation-focused policies and a supportive ecosystem has provided fintech companies with a suitable environment to operate efficiently and scale services across the EU.” Looking ahead, several key factors are set to play a major role in Lithuania’s goals for global recognition as a fintech hub.

Fast Track to a Dynamic and Collaborative Market

One of the significant advantages of Lithuania lies in its simplified processes for business registration and licensing, facilitating a quick entry for fintech companies. The country boasts fast-track licensing procedures that can be 2-3 times faster compared to other EU jurisdictions. This efficiency paves the way for fintech companies seeking faster market entry and operational expansion across the European Economic Area, which is possible through Lithuania’s passport licenses.

For new market entrants, initiatives such as “Newcomers Program“provide direct guidance from state authorities and the Bank of Lithuania during the establishment phase, simplifying legislative and regulatory hurdles.

“The Bank of Lithuania’s regulatory bodies welcomed us and worked closely with us to ensure that we could meet the regulatory standards required to operate and complete the licensing process in a timely manner,” says Virgilijus Mirkės, Country Manager for Lithuania at Aereiwallex, the global financial and payment platform that opened an operations/service hub in Lithuania in 2023.

There are also several non-banking organizations, such as Fintech Hub LT, Rockit and Unicorns Lithuania, that facilitate collaboration, innovation and continuous growth among fintechs operating in the country.

Knowledge is Lithuania’s IT power

Lithuania presents its talent pool as one of its strongest assets. The country places a strong emphasis on STEM (Science, Technology, Engineering and Mathematics) education, producing a skilled and multilingual workforce, equipped for the fintech sector.

According to Mirkės, the availability of talent was a crucial element in choosing an operational hub. While around 2,000 IT students graduate from local universities each year, an even more significant addition comes from retraining and upskilling programmes, which produce around 2,500 new IT specialists annually.

Furthermore, over 95% of the working age population speaks one or more foreign languageswhich directly facilitates their integration into international companies.

High quality of life without high costs

Finally, Lithuania aims to offer an attractive quality of life, balancing professional ambitions with personal well-being. Ranked 11th place for work-life balance Among OECD countries, Lithuania is known for its rich culture, safe environment and abundant green spaces. Its capital, Vilnius, has been named European Green Capital for 2025.

“The quality of life here directly complements the business environment,” says Galdikas. “Professionals can enjoy a rewarding work-life balance, which leads to better creative thinking and greater overall productivity.”

A recent study by Intelligence fDi It also recognized Lithuanian cities as some of the most affordable medium-sized and small-sized cities in the world, positioning Lithuania as a cost-effective yet high-quality operating environment for fintech companies.

The combination of these factors can paint Lithuania in a positive light as it strives to achieve its ambitions of becoming a global fintech hub. Whether it can fully realize this goal remains to be seen, but its current trajectory shows promising signs.

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