According to the “The Fintech Landscape in Lithuania” report, Lithuania is the largest fintech hub in the EU in terms of licensed companies. According to the same report, Open Banking ranks 1st with 58%, as the biggest opportunity fintechs see in 2022.
Why is the country at the forefront of Open Banking innovation? Because providing payment functions through third-party platforms, such as e-commerce and e-government, is something that the country had been doing for the past two decades. When PSD2 arrived, little changed from a consumer’s perspective, meaning that people did not have to go through an adjustment period.
According to Simonas Krėpšta, Member of the Board at the Bank of Lithuania, specialised banks, saw their share of the banking market, in terms of assets, increase from 0.6% to 2.3% in the span of one year. Going forward, the participants of Lithuania’s Fintech sector might consider moving beyond payment or lending services, such as insurance (Insurtech) or capital and investment services (Wealthtech).
Sky’s the limit for OB in Lithuania, as the country is perfectly set to act as a launchpad for the technology.