The Ministry of Finance of Latvia has published its Fintech Strategy for the period 2025 to 2027, outlining a comprehensive approach to support the continued growth and international competitiveness of the country’s financial technology sector.

Currently home to approximately 130 fintech companies, Latvia aims to strengthen its position as a regional hub for innovation in financial services.

The strategy sets out measures to enhance infrastructure, regulatory clarity, access to capital, and talent development, with the overarching goal of fostering a stable, transparent, and competitive financial ecosystem.

During the strategy period, Latvia is targeting a 30% increase in the number of fintech companies operating in the country, a 15% rise in new fintech-related investments, and an 18% growth in fintech-related employment.

It also seeks recognition as a competitive fintech centre in the Baltic and Nordic regions.

To achieve these goals, the strategy focuses on four priority areas.

These include promoting Latvia internationally to strengthen its visibility as a destination for fintech investment and innovation; improving infrastructure and regulation to better support emerging technologies and business models; ensuring easier access to capital by enhancing funding mechanisms and reducing barriers for early-stage ventures; and addressing talent availability by aligning education and immigration policies with the sector’s demand for skilled professionals.

The document also highlights Latvia’s existing strengths, such as its digitally advanced public administration, favourable tax policies, and the regulatory sandbox operated by the Bank of Latvia.

Riga, the capital, is further recognised for its connectivity, cost-efficiency, and developing startup ecosystem.

Developed in consultation with industry stakeholders, academic institutions, and public authorities, the strategy reflects Latvia’s commitment to adapting to global trends in digital finance, including the rise of tokenised assets, decentralised finance, and AI.

Its implementation will be overseen by a coalition of government ministries and agencies, with progress monitored and adjustments made as necessary.

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