Lithuania's fintech sector has outperformed global investment trends, according to a press release citing a report by Invest Lithuania.
The Fintech Landscape in Lithuania 2022-23 Report shows that the country's fintechs generated EUR 375 million in H1 2022, marking an 80% increase from the same period the previous year. The report highlights that the top ten highest-growth fintechs saw revenue increases of over 100%, contributing to the growth of the sector. Additionally, the report notes that Lithuania is now home to 263 fintech companies employing 7,000 people, representing a 19% increase from the previous year.
The General Manager at Invest Lithuania commented on the sector's resilience, stating that while global fintech investment fell by almost a third in 2022, Lithuania's fintech sector remained robust. Lithuania's proactive approach to creating an environment for fintech growth, as well as its low-risk jurisdiction, has reportedly made it the largest fintech hub in the EU by the number of licences issued. The government's dedication of EUR 80 million to a three-year ‘National Upskilling and Reskilling Programme‘ will also help develop in-demand skills, including those related to fintech and IT.
The report also notes that diversity has contributed to Lithuania's fintech success, with an average share of international staff at 13% and 43% of women in Lithuanian fintech companies, with 34% of women holding leadership positions on executive teams. Despite the challenges expected in 2023, such as the economic slowdown and high inflation rate, revenue growth expectations remain optimistic, with 94% of all fintechs surveyed expecting their revenues to grow in 2023.
A Member of the Board at the Bank of Lithuania commented that Vilnius is now one of the most important European fintech hubs, and the government, banking sector, fintechs and startup ecosystem facilitators share a vision of continued growth. Lithuania's attractiveness to investors is reflected in the varied range of fintechs that have recently joined the Lithuanian ecosystem, according to the official press release.
The report concludes that the Lithuanian fintech sector is in a state of robust health and solid fundamentals, and is well-positioned to continue to grow in the future.
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