Lithuania’s fintech evolution: from licencing boom to strategic scaleup

Fintech in Lithuania is shifting from fast licencing to mature growth. We sat down with Greta Ranonytė, Head of Fintech Hub LT to discover how policy, talent, and infrastructure fuel the country’s EU fintech rise.

Can you give us a brief overview of Fintech Hub LT, its mission in supporting fintech growth in Lithuania, and your key priorities for this year?

We're the largest fintech-related association in Lithuania. Currently, we bring together around 90 companies. Out of those, 68 are financial service providers, and the rest are companies that support the ecosystem – offering services to financial institutions.

On the financial services side, our members include banks, electronic money and payment institutions – which make up the majority – peer-to-peer lending and crowdfunding platforms, as well as crypto companies. On the supporting side, we have core banking providers, legal firms, and even global players like Visa as part of the association.

In essence, we unite various players across the fintech landscape. We position ourselves as the main fintech association in the country, with our primary goal being to represent the interests of the fintech sector. That includes advocating for fintech-friendly regulation in Lithuania and acting as the voice of our members in policy discussions.

Beyond policy, we also focus on fostering partnerships, supporting our members' growth, helping them attract clients, organising training and increasing public trust in the fintech ecosystem.

 

How did Lithuania manage to become such an attractive fintech hub, and who are the key players shaping the country’s fintech ecosystem?

Fintech in Lithuania began to take shape around 2017, and it was very much a top-down initiative. Policymakers recognised that the banking sector was highly concentrated and wanted to introduce more competition to drive innovation and improve services, making them cheaper, faster, and more efficient for consumers.

To achieve this, political leaders began actively inviting fintech companies to set up operations in Lithuania. That marked the start of our fintech ecosystem, which has since grown into a diverse and rapidly expanding sector.

Why did so many companies choose Lithuania? There were several key reasons:

1. Fintech-friendly regulation:

Lithuania introduced regulatory frameworks specifically tailored to fintechs, addressing their unique challenges. This proactive approach made the country very attractive for startups and scale-ups alike.

2. Strong infrastructure:

Arguably, the most important factor was the infrastructure, especially for payment companies. To process payments in Europe, firms need access to SEPA (Single Euro Payments Area). Typically, this is done through commercial banks, which can be costly.

In Lithuania, the central bank, Bank of Lithuania, offered indirect access to SEPA through its own payment system, CENTROlink. This initiative greatly reduced the payment processing costs for fintechs. 

The central bank also allowed client funds to be safeguarded directly within its system, which added another layer of security and efficiency.

3. Innovative licencing frameworks:

Lithuania introduced the ‘specialised bank licence,’ which allows banks to operate with lower capital requirements (though without offering investment services). This was a smart way to attract digital-first banks.

For P2P lending and crowdfunding platforms, Lithuania was among the first in Europe to introduce national regulations, providing a clear legal framework for these platforms to grow. As of now, 12 platforms have obtained European-level licences.

4. Talent availability:

The country already had a pool of experienced professionals, particularly in compliance and anti-money laundering (AML). This talent came from major banks and shared service centres, such as those once operated by Barclays and Western Union. When some players exited the market, their skilled employees became available to the emerging fintech sector.

5. Brexit as a catalyst:

Timing also played a crucial role. With Brexit, many UK-based financial institutions could no longer ‘passport’ their services to the EU. These companies needed a new EU base, and Lithuania positioned itself as the ideal gateway. Policymakers seized the moment, promoting Lithuania not just in the UK, but across Asia, the US, and other global markets as a strategic entry point into Europe.

 

What exciting use cases do you see emerging from Lithuania and the broader Baltic region?

In terms of the market landscape, there are several notable players. For example, Revolut Bank is established in Lithuania, and they've integrated various AI-driven solutions to enhance user experience, making their digital app more intuitive for everyday banking, investing in stocks, and more. They’ve recently published the news about introducing mortgages to the Lithuanian market – a huge leap towards increasing competition in the local banking sector. They've also implemented interesting AI tools for fraud prevention, which are particularly advanced compared to traditional banks.

The types of fintechs operating in Lithuania vary depending on the segment. In payments, many fintechs target SMEs, especially exporters or digital ecommerce platforms, who need fast and reliable cross-border transactions. These businesses often struggle to get serviced by traditional banks due to perceived higher risk. Fintechs step in to fill that gap by offering tailored payment solutions.

As these financial service providers grow, they create demand for supporting technologies. That has led to a rise in tech companies offering compliance and infrastructure solutions, like:

• KYC (Know Your Customer) tools powered by AI, allowing users to onboard remotely by verifying ID documents and matching biometric data with passport photos.
• Fraud detection and transaction monitoring systems, which help payment companies identify suspicious behaviour in real time.

This ecosystem effect means that even non-financial companies with specialised tech, such as onboarding, compliance, or analytics, are thriving by offering services to fintechs.

In lending, Lithuania hosts platforms in both crowdfunding (lending to businesses) and peer-to-peer (P2P) lending (lending to individuals). This distinction is important, as in some countries, like Singapore, P2P lending is not permitted. But in Lithuania, it’s regulated, active, and growing. Licenced platforms are scaling up each year.

What’s remarkable is how normalised digital financial services have become in Lithuania. For many people, including myself, visiting a physical bank is a thing of the past. Everything happens digitally, and the infrastructure enables that.

A recent example of this evolving ecosystem is DriveWealth, a US-based unicorn that was just licenced in Lithuania. Interestingly, Revolut had previously used DriveWealth’s infrastructure to offer investment services. DriveWealth provides the backend for investing, so fintechs don’t need to build that functionality from scratch. They can simply plug into DriveWealth and offer investment products to clients.

This model, where fintechs outsource specific capabilities to specialised providers, has become the norm. Instead of building everything in-house, companies rely on an ecosystem of partners to deliver different components of their services. As a result, we’re seeing many niche, highly focused companies emerge to solve targeted problems within the broader FinTech value chain.

 

Are there any standout companies leading the innovation in payments, lending, wealth, or blockchain?

When it comes to payments, some of the key Lithuanian-born players include TransferGo, NEO Finance,  ConnectPay, and Vinted, among others. We also have Revolut, Nuvei, SumUp, Airwallex, and Payhawk, global players that chose Lithuania as a base for their operations.

One interesting case is Vinted. While primarily an ecommerce platform, they also need to handle payments internally – after all, users need to pay when buying items on the platform. Typically, ecommerce platforms partner with licenced payment providers, but relying on third parties can be costly. To reduce expenses and gain more control, companies like Vinted opt to get their own licences and process payments in-house.

This trend is growing. More large ecommerce platforms are exploring how to internalise payment processing, aiming to be more efficient, reduce costs, and become less dependent on external providers. Once they obtain the licence, they can develop or use internal infrastructure, gaining greater flexibility and operational independence.

We’re also seeing big international names showing interest in the Lithuanian market. Robinhood, for example, has established a presence here, receiving both MiFID and MiCA licences. From the investment side, there’s also DriveWealth, which I mentioned earlier.

In crypto, Lithuania is home to companies like Binance and Blockchain.com, both of which have a footprint in the local market.

In the crowdfunding and peer-to-peer lending space, we mainly see local players such as NEO Finance, SAVY, and FinBee. These platforms are growing steadily and contribute significantly to the local lending landscape.

On the technology side, several support companies have emerged, offering solutions that power the broader fintech ecosystem. Some notable names include Inventi, BankingLab, CyberUpgrade and others that have recently gained attention.

 

What sectors within fintech do you see the most growth potential in Lithuania?

All segments of Lithuania’s fintech sector are experiencing strong growth.

To give you a sense of scale, in 2023, Lithuanian fintech companies generated EUR 2.1 billion in income, up from EUR 1.7 billion in 2022 – an increase of EUR 400 million in just one year. When we break that down by sector, all categories are growing.

For example, in 2024, electronic money (EMI) and payment institutions (PI) processed payments worth EUR 152 billion. Lithuania’s fintechs  now serve 30 million clients across Europe, with the majority being Revolut users (around 28 million), and the rest using services from other licenced entities like EMIs and PIs.

To put the EUR 152 billion in context: this represents a 30% increase compared to the previous year.

Other areas are also showing strong momentum:

• Crowdfunding and peer-to-peer lending are growing by approximately 20% annually
• Specialised (digital-first) banks are seeing 40% annual growth in market share.

However, it’s important to note that growth isn’t coming from the number of new companies, but rather from the scaling of existing ones. Currently, there are 282 fintech companies in Lithuania (according to the most recent data). This number is fairly stable, but those already operating in the market are expanding rapidly – processing more payments, serving more clients, and launching more products.

Lithuania also stands out in crowdfunding and P2P lending:

• In terms of number of investors on these platforms, Lithuanians rank #1 in Europe.
• When it comes to total amounts invested, Lithuania ranks #3, behind only the Netherlands and France.

However, this success brings a new challenge: platforms are struggling to find enough projects to finance. There's high investor demand but a shortage of viable projects. That’s partly because even though the crowdfunding licence can be passported across the EU, it takes a bit more time to enter new markets for lending activities.

That said, when it comes to payments, the story is different: scaling is much easier, and Lithuanian fintechs are leveraging that advantage to grow across Europe.

When it comes to investment and wealthtech, the potential for scaling is also significant. Take Robinhood, for example, as they secured a licence in Lithuania, the country will likely be just a launchpad within a much broader European strategy. Since Robinhood is already a well-known brand, they wouldn’t need to spend time building name recognition and could expand across EU markets quickly.

That’s exactly what the Bank of Lithuania and local policymakers are focused on: attracting established international players – companies with strong reputations and existing global footprints – to set up operations and obtain their EU licence in Lithuania. The goal is to make Lithuania their European hub.

By bringing in these globally recognised firms, the country benefits not only from increased activity but also from the credibility and visibility that such names bring. And because they’re not small startups, they’re more resilient to potential operational risks.

 

How does the country’s fintech future look like for you?

The evolution of Lithuania’s fintech sector has unfolded in distinct stages.

The first stage was marked by rapid quantitative growth, particularly in the number of licences issued. During this phase, many new and often smaller players entered the market. However, not all of them were able to sustain their operations – some struggled due to intense competition, while others took on high-risk clients they couldn't properly manage. As a result, several licences were revoked.

The second stage focused on market maturity. While it wouldn’t be fair to call it a ‘clean-out,’ there was a shift toward ensuring that companies in the ecosystem were serious, compliant, and sustainable. Fintech is part of the financial services industry, which means consumer protection is paramount. Companies that wanted to remain in the market had to demonstrate a high level of maturity – this meant rigorous compliance, strong internal governance, and robust risk management practices.

As some companies put it, ‘80% of our resources went into compliance, not business development.’ That’s the kind of environment the sector entered during this stage.

Now, we’re transitioning into the third stage, where the companies still active in Lithuania are far more mature than they were seven years ago. Many of them have already achieved the key milestones in their original roadmaps and built out their core product offerings.

The focus now is shifting from building to scaling sustainably – that means developing strong brand awareness, building trust with clients, and pursuing more deliberate, long-term growth. It’s a slower phase, but one that’s much more intentional and strategic.

About Greta Ranonytė

Greta Ranonytė is Head of Fintech Hub LT, Lithuania’s fintech association since October 2023. Former advisor at Ministry of Finance, she led Lithuania’s Fintech Strategy 2023–2028, uniting 60+ licenced fintech companies.