Lithuania’s Fintech Landscape 2024

Lithuania’s fintech industry defied global economic challenges in 2023, experiencing steady growth. Invest Lithuania, a government agency promoting investment, reported a 5% increase in fintech companies, reaching over 270. The industry’s talent pool also expanded by 6%, exceeding 7,400 professionals.

A survey by Invest Lithuania found optimism within the sector. 77 industry stakeholders participated, representing 28% of the market. Among them, a majority (64%) reported revenue growth in 2023, with 15% anticipating their revenue to more than double. Looking ahead, the outlook is even brighter. A remarkable 75% of Lithuanian fintech companies expect consistent revenue growth in 2024, and over 30% project at least doubling their revenue.

To support this anticipated growth, fintech companies plan to increase their workforce in 2024. The focus will be on software development (40%), compliance and anti-money laundering (AML) (29%), and business development (29%).

The report also highlighted progress in gender equality. Women comprised 45% of the overall workforce and 43% of executive positions in 2023. In technical roles, women accounted for 25%, ranking Lithuania among the best in Europe for female representation in the ICT industry.

Despite the positive trends, challenges remain. Compliance and regulations (44%), economic conditions (43%), and the geopolitical climate (43%) were identified as the top concerns for 2024.

Significant Developments in 2023

• Fintech Guidelines 2023-2028: This framework outlines the future growth and development of the sector.
• Top 3 for Licensed Crowdfunding: Lithuania became a leading player in the European Union for licensed crowdfunding service providers.
• MiCA Regulation Readiness: Lithuania is actively preparing to embrace the upcoming Markets in Crypto-Assets (MiCA) regulation, aiming to be a hub for MiCA-compliant crypto businesses in Europe.

Growth and Notable Newcomers

Data from fintech hub Rockit shows Lithuania is now home to 277 fintech companies, up from 263 in 2022. Several notable organizations joined the Lithuanian fintech landscape in 2023, including Hokodo (UK buy now, pay later provider), Payhawk (UK spend management solution), Windcave (New Zealand payment gateway), and Plug and Play (global venture capital firm).

Funding Trends

The 2023 industry study indicates a stable and maturing fintech market in Lithuania. Around 39% of the sector relies primarily on revenue funding, and 57% of surveyed companies are not actively seeking additional funds. This suggests a preference for sustainable growth models and a cautious approach to fundraising.

Lithuania is becoming a more popular jurisdiction. International Fintech Business (IFB) can help you enter the fintech industry in Lithuania. We can help you incorporate a company with a financial license or buy a ready-made company with a financial license. Our experts can answer any questions you may have. Contact us today!