Bank of Lithuania’s exceptional conditions for FinTech Companies are already fruitful
It is no coincidence that Vilnius is quickly becoming the top regional hotspot for the FinTech sector. Together with a well-defined national legal framework for FinTech companies and streamlined relocation policies, Vilnius is cost-effective and provides an attractive work/life balance. Complementing these factors is the effort the Bank of Lithuania has been putting into ensuring competitive advantages for FinTech companies setting up operations in their country.
In recent years, the Bank of Lithuania has sought to:
- Create an effective and highly competitive market for all financial operations, with Vilnius at its centre.
- Ensure favourable conditions for innovations that could bring more convenient, reliable and cost-effective means of executing payments within the Single Euro Payments Area (SEPA).
- Grant non-bank payment service providers technical access to the country’s payment infrastructure through the SEPA-MMS initiative.
The SEPA-MMS initiative is quite simple; FinTech companies that have acquired an electronic money institution or payment institution licence are able to generate IBAN accounts for their clients, allowing them to gain direct technical access to SEPA payments. This also works to ensure a level playing field for all payment service providers operating in the country.
As Jekatarina Govina, Advisor to Board Member Marius Jurgilas of the Bank of Lithuania, points out, “By acting as a Mega regulator in Lithuania, authorising and supervising all financial companies – from consumer credit advisors to banks – the Bank of Lithuania has implemented a one-stop-shop for potential financial market participants wishing to enter the Lithuanian market.”
Big players like Barclays are already thriving and expanding operations in Vilnius, and notable FinTech outfits like Senjo Group, Contis Group, IBS, deVere E-Money, and Blender – among many others – are also taking advantage of a climate conducive to access and growth.
With its FinTech-friendly ecosystem, the future of the sector in Vilnius is promising, offering a world of opportunities for companies looking to gain quick and cost-effective access to the EU market.