Lithuania is the newest hotspot for Fintech


Techfoliance is back on the road to meet Fintech actors across the world. We want to highlight emerging trends to better understand the future of finance. In the spotlight: Lithuania.

Lithuania now position itself as an alternative choice for those considering entry to the European market, diversifying the risk of accessing the single market after BREXIT and FinTech start-ups.

Key figures

The number of potential “Digital Payments” users is expected to amount to 1.9m by 2020.

Transaction Value in the “FinTech” market amounts to US$1,182m in 2016.

The Bank of Lithuania is to grant a license for a specialised bank within 6 months after submission of all required documents (maximum terms 12 months).

Easy set up of companies; Lithuania is #1 in Technological Readiness in the CEE; nearly 100% proficiency in English among young professionals.

The passporting notification procedures executed via the Bank of Lithuania might take 1 (for exercising the freedom to provide services) or 3 months (for establishment of branches in other EEA member state).

Population: 2,9 million people.

Legal and regulatory framework for Fintech in Lithuania

Payments and e-money licensing (article #1):

• Fast licensing – payments and e-money license in 3 months

• Sandbox – no regulatory sanctions for start-ups during their first year of operation

• All payment and e-money institutions located in Lithuania can allocate their own IBAN numbers and access to SEPA payments

• Instant payments (SEPA-MMS) to be implemented under the National Payments Strategy by the end of 2017

New framework for specialised banks (article #2):

• A new framework for so called specialised banks to be effective as of January 2017

• Specialised banks will be eligible to the EU passport and require only 1 million EUR initial capital

P2P and crowdfunding regulation (article #3):

• P2P regulation is in place

• The Law on Crowdfunding will come into effect as of December 2016

• Remote client verification is allowed as of November 2016



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