During Baltic Fintech Days, we spoke with Gintarė Verbickaitė, CEO of Unicorns Lithuania, about how the country became a fintech hub – and where it’s heading next.
Founded four years ago, Unicorns Lithuania is a national startup and tech association with over 120 members. Our diverse membership includes early-stage startups, scaling companies, and established unicorns, fostering knowledge-sharing and mentorship. We offer services like events, bootcamps for Series A funding, and peer-to-peer support initiatives like ‘Founders to Founders.’ We also advocate for policy improvements to support the startup sector and maintain a database tracking over 1,000 companies, monitoring key metrics such as employment, taxes, and salaries. In 2024, Lithuania’s startup ecosystem is valued at EUR 16 billion, with fintech leading in capital raised.
I think Lithuania’s fintech story is a great example of regulatory foresight and a proactive approach to innovation. The success was largely driven by the leadership and collaboration between the Bank of Lithuania and the Ministry of Finance, the two key institutions overseeing the financial services sector.
There were several motivations behind this initiative. Firstly, Lithuania aimed to strengthen its capital markets and improve access to finance. The domestic financial sector was dominated by a few large banks, so there was a clear and practical need to introduce more competition and offer better financial services to consumers and businesses.
Secondly, the regulators – particularly the Bank of Lithuania – demonstrated a forward-looking mindset and a genuine openness to innovation. They’ve even received recognition from European institutions, including the European Banking Authority, for being among the most innovative regulators. They consistently asked themselves: what’s next? What technologies and business models are emerging globally, and how can Lithuania be among the first to embrace them?
They saw the fintech wave rising globally and recognised an opportunity to be early movers within the EU. This openness to engage with new kinds of financial companies and integrate them into the regulatory framework was crucial.
A third contributing factor was Brexit. As the UK left the EU, many financial services providers – both British and international – had to quickly secure a new base within the EU to continue operating across the single market. Lithuania, having already laid a solid foundation for fintech, became an attractive destination for these companies.
It was, in many ways, a ‘perfect storm.’ Each element – regulatory vision, practical needs, and external circumstances like Brexit – played an important role. Lithuania’s relatively small size turned out to be an advantage. The startup ecosystem and public institutions formed a close-knit, collaborative community, which allowed for quick decision-making and coordinated action.
Unlike larger countries where strategy development and execution can drag on for years, Lithuania was able to align its stakeholders and roll out its first national fintech strategy within just a few months. The message was clear: we’re open for innovation, and we’re ready to move fast.
The Bank of Lithuania was also highly proactive in promoting the country abroad. They participated in international conferences, directly engaging with fintech companies and spreading the message that Lithuania was a place where innovative financial businesses could thrive. Their visibility and practical support made a real impact.
Having major international players in the ecosystem is critical for the development of a strong fintech sector – alongside a thriving local startup scene. The ideal setup includes both: global names that bring scale, credibility, and experience, and local innovators that bring fresh ideas and agility. Large brands mustn’t dominate the space entirely, but rather coexist with and even help uplift local companies.
Revolut is a great example of this dynamic. When they entered Lithuania, they were still in the early stages of their journey. Lithuania became something of a testing ground for them, where they began issuing cards, experimenting with customer acquisition, and refining their offering. At one point, Lithuania became one of Revolut’s largest markets, driven by high local adoption and an openness among consumers to embrace new financial solutions.
This early success allowed them to iterate quickly, improve their product, and then expand into other markets. Over time, they built a stronger operational presence in Lithuania and gradually accumulated more licences, eventually securing a full digital banking licence. It was a clear win-win: Revolut benefited from a supportive environment where they could grow and experiment, while Lithuania attracted a fast-growing tech company whose success brought economic benefits and global visibility.
The collaboration between stakeholders made it possible. Invest Lithuania played a key role in bringing Revolut into the country, and the Bank of Lithuania actively engaged in discussions with Revolut’s leadership. It also helped that some Lithuanians held leadership positions at Revolut at the time, facilitating trust and alignment. This partnership laid the groundwork for Revolut to become a household name in Lithuania and boosted the country's profile on the global fintech map.
When international companies choose a country, it's not by chance – they conduct due diligence and evaluate multiple jurisdictions. So, when a company like Revolut selects Lithuania, it sends a strong signal to the market that the country offers real advantages. That kind of validation built early trust in what was, at the time, a relatively unknown ecosystem.
Following this momentum, Brexit accelerated the trend, prompting more companies – especially those based in the UK – to consider Lithuania. And the interest wasn’t limited to British firms. Companies from the US and other regions also started looking to Lithuania as a serious alternative.
Part of Lithuania’s appeal lies in its financial incentives. For example, there’s support available for relocating talent and companies, and startups can receive up to three times their R&D spending, compared to just one time in the UK, where the process is also more complex. While capital gains taxes can vary, the overall corporate tax regime remains highly competitive. Small businesses can benefit from 0% corporate tax in their first year, and the general rate remains low, even after a recent increase from 15% to 16%.
Beyond the numbers, Lithuania offers a streamlined business environment: it’s easy to set up and run a business, digital government services are robust, and the high level of English proficiency makes operations smoother, especially for international teams. All of this is complemented by a regulator that’s not only experienced but also familiar with the pace and needs of the fintech sector.
In short, Lithuania offers a powerful combination: a supportive regulatory environment, financial incentives, ease of doing business, and a collaborative ecosystem. That blend continues to attract both startups and established players looking to innovate and grow in the EU market.
Over time, Lithuania’s licencing environment has begun to align more closely with other European jurisdictions. However, in its early stages, one of the key differentiators was the introduction of a Specialised Banking Licence (SBL) – a unique, lighter alternative to a full banking licence.
This licence allowed companies to offer certain core banking services, such as accepting deposits, without requiring them to meet the full capital and infrastructure requirements of a traditional banking licence. It provided a faster and more accessible route to market for new entrants, with lower thresholds and simplified processes. Revolut, for example, was one of the first to take advantage of this option before later upgrading to a full banking licence.
At the time, this approach was quite innovative – no other EU country offered such a structure. However, over time, European authorities began to express concerns. They preferred more consistency across member states and gradually encouraged the Bank of Lithuania to phase out the SBL model. Despite this, it served as a powerful catalyst during Lithuania’s initial fintech acceleration phase.
Another standout feature of Lithuania’s regulatory ecosystem is the Newcomer Programme. This initiative provided early-stage guidance to companies considering entry into the Lithuanian market. Prospective applicants could consult directly with experts at the Bank of Lithuania, who would help assess their readiness to apply for a licence, provide feedback on necessary improvements, and offer direction on the appropriate licencing pathway. This hands-on support continued throughout the licensing process, making it far more navigable compared to other jurisdictions.
The licensing itself was known for being both streamlined and efficient. Dedicated teams ensured that applications were handled with speed and transparency – significantly faster than in many other EU countries at the time. Today, Lithuania is no longer promoting speed as its primary value proposition.
There’s now a stronger focus on quality and credibility. The Bank of Lithuania has made it clear that it does not want to compromise on rigorous oversight or associate fast approvals with relaxed standards. The goal is to uphold a reputation for excellence in regulatory practice, ensuring that only well-prepared and serious companies are granted licences.
As a result, Lithuania’s pitch has shifted from ‘fast-track licensing’ to offering a mature, high-quality regulatory environment backed by experience, transparency, and strong working relationships between regulators and market participants. The evolving ecosystem has brought with it a natural shift in positioning: success today is measured not just by how quickly you can launch, but by the long-term stability, trust, and impact that companies can build from within the Lithuanian financial services landscape.
Lithuania's fintech sector has traditionally been dominated by payments, but the ecosystem is maturing. While digital banking and Embedded Finance have grown significantly, newer trends are also emerging, particularly as the market diversifies beyond its payment-centric origins.
One especially notable trend is the entry of non-fintech companies into the regulated financial services space. These are businesses that initially had no intention of becoming fintechs but, as they scaled, realised that acquiring a licence would give them greater control over user experience, cost efficiency, and service integration.
A prime example is Vinted, the popular second-hand marketplace. Initially focused on communications, logistics, and third-party payment handling, the company eventually decided to bring financial services in-house. As a result, Vinted acquired an Electronic Money Institution (EMI) licence in Lithuania, enabling it to provide payment services directly to its customers.
This trend isn’t isolated. Other companies – like Payhawk, a Bulgarian unicorn that began as corporate accounting software – have also chosen to expand into fintech. Payhawk evolved from a travel expense management tool into a platform offering payments and corporate cards, recognising that embedding financial services into their core platform created new value. Like Vinted, Payhawk obtained an EMI licence in Lithuania, despite Bulgaria also being an EU member – highlighting Lithuania’s comparative regulatory attractiveness.
Similarly, DriveWealth, a US-based unicorn, recently entered the Lithuanian market. The company offers infrastructure for fractional stock and bond investing, primarily targeting other fintechs looking to embed investment services. Their choice to acquire a licence in Lithuania underlines the country's growing appeal for specialised, global-scale financial innovators.
What unites these cases is a common pattern: as tech companies scale, they often reach a point where owning their financial infrastructure becomes strategic. Lithuania, with its established fintech ecosystem and regulator openness, continues to position itself as a preferred jurisdiction for such expansions.
While the specialised banking licence once played a central role in Lithuania’s fintech boom, today’s appeal lies more in the quality of regulatory support, the ecosystem maturity, and the responsiveness of the Bank of Lithuania. As the landscape evolves, we’re seeing the rise of hybrid business models, where finance is embedded in unexpected sectors, and Lithuania is capitalising on this shift.
Looking ahead, Lithuania’s fintech sector is expected to continue maturing, with established players like TransferGo poised for further growth. While these firms may still be considered relatively small on a global scale, their steady expansion, ongoing capital raises, and increasing product depth signal long-term potential.
At the same time, there's anticipation for new waves of innovation, particularly at the intersection of AI and financial services. Many Lithuanian fintechs are exploring how to integrate AI into their offerings, though most current efforts remain exploratory. I expect more distinct, AI-driven fintech innovations to emerge soon, bringing novel value propositions to the market.
Regulatory readiness around AI remains a key issue. While the EU AI Act lays the groundwork for a unified approach, much will depend on how each country implements it. Lithuania’s goal is to strike a balance, ensuring compliance without over-regulating and thereby discouraging innovation. Industry associations are actively advocating for a competitive national implementation that aligns with EU obligations but avoids adding unnecessary burdens on startups.
The Bank of Lithuania has already explored AI use internally, particularly in areas like transaction monitoring and pattern detection using machine learning. However, the current state of these initiatives isn’t publicly detailed.
On the macro level, concerns about AI’s impact on employment, ethics, and economic models remain pressing. While fears persist around job displacement, a recent report by Danish consultancy Implement Consulting Group suggests a more nuanced picture for Lithuania: effective adoption of AI could create up to 23,000 new jobs and generate EUR 1.4 billion in additional economic value, driven by improved productivity and innovation.
Still, I believe that these new roles may not be entry-level, highlighting the need for reskilling and talent development strategies to ensure the workforce keeps pace with technological change.
In summary, Lithuania’s fintech future lies in a dual track: scaling mature players while fostering AI-powered innovation, all underpinned by smart, enabling regulation and a future-focused workforce strategy.
Gintarė has over 15 years of business consulting, economic development, foreign direct investment attraction (FDI), and policy advocacy experience across private, government, and non-profit sectors in Australia, Estonia, and Lithuania. In 2024, Gintarė was appointed CEO of Unicorns Lithuania, an association representing over 120 technology startups and scaleups. Her leadership focuses on scaling Lithuania's startup ecosystem and advocating for policies that drive innovation and economic growth.
Unicorns Lithuania brings together 120+ startup and tech companies, sharing knowledge and experiences to drive faster growth and collaboratively solve challenges. Association’s mission is to inspire and empower startups and the community to shape the future of Lithuania as nation built on a high value-added economy.
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