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At the meeting of institutions and business representatives of the Nordic-Baltic States and India, organised by the Ministry of External Affairs of India and the Confederation of Industrialists of India, the achievements and development opportunities of Lithuania’s financial technologies (FinTech) sector were presented.

At the online event, Vice-Minister of the Economy and Innovation Marius Skuodis presented the main advantages of Lithuania’s FinTech area and ecosystem: faster access to the EU market, smart regulatory environment and infrastructure, talented and skilled professionals.

‘The development of a favourable environment for FinTech activities and the promotion of innovation in the financial system is one of Lithuania’s strategic trends, the results of which are that Lithuania is currently considered the second largest FinTech centre in Europe after the UK according to the number of licensed financial technology companies. We are winning in the market because we are reliable and encouraging innovation in FinTech,’ says Vice-Minister of the Economy and Innovation Marius Skuodis.

According to the Vice- Minister, Lithuania, which has a unique infrastructure and is rapidly introducing innovation in FinTech, could be an ideal centre for Indian companies to operate in the EU market. In Lithuania, 6-9 months are enough to obtain a licence of electronic money or payment institution, and one licence can open access to the EU market, which unites 448 million consumers and 20 million small and medium-sized enterprises.

According to the Global Fintech Index City Ranking 2020, Lithuania ranks 4th after the United States, the United Kingdom and Singapore in terms of its FinTech attractiveness in the world. At the end of 2019, there were 210 FinTech companies operating in Lithuania, and about 3400 specialists were employed in this sector. The number of new jobs created in the FinTech sector increased by 31 % in 2019.

‘For obtaining a licence of a specialised bank in Lithuania, the initial capital required is 5 times smaller than in the case of the licence of a traditional bank – the minimum capital is only EUR 1 million. This licence is valid throughout the EU. The UK-based financial technology company Revolut, which currently has a value of around EUR 1.7 billion, is the largest company that has received a licence of a specialised bank in Lithuania so far,’ Vice Minister said.

India’s businesses and potential investors might also be interested in the open and modern infrastructure, which operates in Lithuania’s financial technology sector and enables faster innovation. The Newcomer programme is a one-stop shop for meetings and consultations with the supervising Bank of Lithuania. Indian companies could submit licence applications online in English. They would be subject to advanced legislation in Lithuania in the field of crowdfunding, lending and other financial technology. In Lithuania, we also have a successfully functioning Sandbox, which enables financial technology companies to test innovative solutions before they are introduced to Europe and the world.

At the meeting,  representatives of the Nordic and Baltic countries and India discussed the possibilities of using artificial intelligence in health care, financial technologies and logistics. Also, the issues of clean technologies, digital infrastructure, data protection and cyber security were discussed.