Lithuania’s fintech ecosystem is transitioning into a more mature stage of growth. According to new research by Invest Lithuania, the country’s investment promotion agency, the industry is contracting in overall size, yet the talent base remains stable. Furthermore, consolidation is underway, signaling strong investor confidence. At the same time, increased uptake in digital banking, electronic payments, and crowdfunding platforms shows that the economic significance of fintech in Lithuania continues to expand. The research, based on desk studies and an online survey of 62 fintech companies operating in Lithuania, reveals that the growth in the number of fintech companies faced its…

Discussions about the future of banking often revolve around digital channels, cloud migration and mobile apps. At Mobile World Congress 2026 in Barcelona, Huawei placed the spotlight on what comes next. During its Digital Finance session, the company gathered financial institutions and technology partners to discuss how artificial intelligence is beginning to reshape the foundations of modern banking. The event carried the theme “Powering Resilient Intelligence, Co-creating Finance Future” and served as the backdrop for Huawei to introduce upgrades to its Banking AI and Foundation Model Solutions aimed at supporting the next phase of industry transformation. Attention quickly turned to…

Over the past year, the fintech sector in Latvia has evolved from a period of rapid expansion into a phase of stable and measured maturity, solidifying its position as one of the country’s most advanced technology verticals, and increasingly driving the local economy through job creation, profit generation, and tax contributions, according to latest edition of the Fintech Pulse report by the Fintech Latvija Association. Released in December 2025, the report offers a comprehensive overview of the sector’s current state, highlighting industry trends, notable capital market movements, and key industry milestones. It stresses the emergence of fintech as a strategic…

Lithuania has emerged as one of Europe’s most active crowdfunding markets, while Latvia’s sector remains at an early stage. According to a report by the European Securities and Markets Authority (ESMA), over €4 billion was raised across the EU in 2024 via more than 180 licensed crowdfunding platforms. The five largest markets, France, the Netherlands, Spain, Italy and Lithuania, account for over 80% of this activity, with Lithuania alone raising around €280 million. Experts note that Latvia’s crowdfunding platforms could benefit from closer cooperation with public institutions. Lithuania’s experience demonstrates that a supportive regulatory framework and public-private collaboration can drive…

The Latvian startup ecosystem continued to grow over the past year, with the number of ventures, employees and tax contributions all increasing. New data released by Startin.LV, a non-profit non-government organization representing the ecosystem, show that the ecosystem expanded by 11% in 2025, rising from 512 startups at the end of 2024 to 569 a year later. These companies now employ 5,101 individuals, representing a 7.4% increase from 2024. The expanding ecosystem also contributed more to state revenue, paying a total of EUR 110.4 million in taxes to state budget in 2025. This represents a 25.5% increase from 2024, highlighting…

Lithuania is emerging as a significant hub for AI development within the European Union. While global AI infrastructure remains concentrated in a few countries, Lithuania offers a combination of policy foresight, technical expertise, and growing infrastructure that positions it as a strategic European location for AI research and investment. The country was among the first EU member states to adopt a national AI strategy in 2018. Since then, the Ministry of Economy and Innovation has directed over €52 million towards AI resource development and product innovation, including the recent €65 million LitAI centre, a regional AI innovation hub. The government…

Over the past years, the Baltic states of Estonia, Lithuania, and Latvia have emerged as a vibrant fintech hub, collectively hosting over 670 fintech companies, according to startup media platform Labs of Latvia. This success has been driven by a combination of a large engineering talent pool, an ambitious and globally-focused mindset, and an open regulatory environment that offers quick EU‑wide licensing and sandbox support. According to the report, each country has distinct growth patterns and strengths. Estonia leads in digital identity, regtech, and financial software, Lithuania leverages a transparent licensing regime that attracts foreign payment and e‑money institutions, and…

The e-Residency program has proven to be a lucrative source of revenue for Estonia. In 2025, e-Residents and the Estonian companies they founded generated almost EUR 125 million in direct state revenue, bringing the cumulative economic impact of the program since its inception to nearly EUR 400 million and demonstrating how the program has driven substantial fiscal growth, according to government figures. Launched in 2014, the e-Residency initiative gives non-Estonians a government-issued digital identification (ID) card that provides them with access Estonia’s online services. Holders can register a business, sign documents digitally, access banking and payment providers, file taxes, and…

Over the past decade, the Baltic region has emerged as a recognised hub for financial innovation within the European Union. Lithuania, Latvia, and Estonia have built fintech-friendly ecosystems defined by advanced digital infrastructure, responsive regulators, and a highly skilled technology workforce. These conditions have enabled locally founded companies to compete well beyond their home markets. Despite the region’s relatively small population, Baltic entrepreneurs are increasingly building international financial services businesses. One example is Aventus Group, a fintech-driven lending group led by Andrejus Trofimovas, which today operates across four continents and 20 countries. As geopolitical risks rise and regulatory frameworks evolve…

The fintech industry in Latvia is shifting from a fast-moving, fragmented market to a more structured, policy-aware, and economically relevant sector, driven by the growing scale of the industry, deeper regulatory engagement, and ongoing infrastructure development, according to the Fintech Latvia Association. In a new report, the trade group looks at the current state of fintech in Latvia, analyzing developments in 2024 and 2025. In 2024, active fintech companies in Latvia generated nearly EUR 372 million in combined turnover and EUR 97 million in net profit, according to the organization’s Fintech Pulse 2025 report. This marked a 111% year-over-year (YoY) increase…

Once a major hub for cryptocurrency startups, Lithuania has seen its crypto sector contract sharply following the implementation of the Markets in Crypto-Assets Regulation (MiCA) in the European Union (EU). As of January 2026, only three Crypto-Asset Service Provider (CASP) licenses had been granted by the Bank of Lithuania, a far cry from the 324 registered crypto companies in 2024, according to Giedrius Būdvytis, a Lithuanian lawyer specializing in fintech and cryptocurrency. Būdvytis attended a consultative event on the CASP licensing process, organized by the Bank of Lithuania in mid-December 2025. In a LinkedIn post, he shared key takeaways, including…

Latvia’s fintech industry has continued to grow and mature over the past year, showing notable growth in scale, sophistication, and international reach, according to a new report by Venture Faculty, a Riga-based business consultancy. The Latvian Fintech Landscape Update 2025 report, produced in collaboration Dealroom.co, looks at the evolution of the fintech industry in Latvia. It highlights a 10.4% year-over-year (YoY) increase, with the number of fintech companies operating in the country rising from 135 in 2024 to 149 in 2025. Latvian Fintech Map 2025 Payments, and data and IT software remain the top fintech verticals, accounting for 25% and…

Globally, the Nordic and the Baltic regions are emerging as prominent fintech hubs in Europe. In the Nordics, fintech is thriving, driven by high digital trust, strong sustainability initiatives, and close collaboration between banks and startups, with exceptional digital infrastructure underpinning this growth. Denmark is widely recognized as one of the world’s most digitally advanced nations, while Sweden is a pioneer of the cashless society. In particular, the capital cities of Stockholm and Oslo rank among the world’s top 20 fintech hubs, supported by stable political environments, favorable regulatory frameworks, and cutting-edge technology. Today, the Nordic region is home to…

Despite its small size, Estonia has emerged as a global leader in innovation, with fintech standing out as a prominent vertical. With more than 200 startups and several unicorns, this sector has risen on the back of an advanced digital infrastructure and a dynamic startup ecosystem. A new report by Tenity, an early stage venture capital (VC) fund, and Invest Estonia, part of Enterprise Estonia, the government agency promoting foreign investment, analyzes this thriving ecosystem. It highlights key growth drivers and identifies companies that have significantly contributed to the sector’s expansion. According to the report, Estonia’s fintech industry runs on…

Lithuanian startup Kashimi, which develops alternative payment infrastructure for regulated and licensed financial institutions worldwide, has secured a pre-seed investment of US$1.36 million. The round was co-led by venture capital funds Coinvest Capital and US-based Impellent Ventures, with participation from Plug and Play Tech Center and international business angels. The total investment of US$1,358,500 will support Kashimi’s expansion in Europe and the UK, where alternative payment methods are increasingly adopted, as well as entry into the US market, following initial steps taken at the end of 2024. “Alternative payment methods, which started to appear in Europe and the UK following…

Latvijas Banka has granted its second authorisation for crowdfunding services this year, approving FLOW, a platform developed by ERST Finance with legal support from Sorainen. FLOW’s authorisation enables the platform to provide loan facilitation services (loan-based crowdfunding) and other services related to crowdfunding. The license allows FLOW to operate across the European Union in coordination with Latvijas Banka. The approval process demonstrates the ability of the regulator to review applications efficiently. Reports indicate that the license was issued in under three months after submission. This development highlights the growing activity within Latvia’s fintech sector and shows that companies, both domestic…

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…

Creem, an Estonian fintech startup developing financial infrastructure for AI-focused teams, has raised €1.8 million in a pre-seed funding round led by Practica Capital, with participation from Antler and several angel investors. Founded ten months ago, the company has already reached more than US$1 million in annualised revenue and reported monthly payment volumes growing over 300%, despite being operated by two technical founders who previously worked at Google and Adyen. Creem positions itself as a financial operating system for small AI startups, particularly those led by technical founders without dedicated finance or commercial teams. “AI is blowing open the doors…

Estonia’s e-Residency programme generated €68 million in direct income for the state in the first six months of 2025, nearly double initial projections and almost matching the total contribution for 2024, which was €66.8 million. Program Director Liina Vahtras described the results as “overwhelmingly positive,” adding: “These strong results give us every reason to expect further growth in tax revenues in the second half of the year, raising the programme’s annual contribution by at least a third.” Income mainly came from taxes, with €26.2 million from labour taxes and €39.7 million from dividend taxes, alongside €2.1 million in state fees…

Artea Bank, a Lithuanian commercial bank, has selected BPC’s SmartVista platform to modernise its card-issuing infrastructure. The cloud-native, microservices-based solution will be delivered fully in SaaS mode. It provides support for Mastercard debit and credit products, tokenisation for Apple Pay and Google Pay, and fraud management capabilities. The platform enables the bank to issue more than 250,000 cards while maintaining compliance and operational efficiency. In choosing a technology partner, Artea Bank aimed to shorten the time-to-market for new card products and offer customers a modern payments experience. The bank sought technology that would meet EU regulatory requirements, provide scalability for…