Explore Latvia’s fintech roadmap in “Fintech Pulse 2023,” a guide for investors, highlighting its ambitions to thrive as a key hub in the EU.
At the FinTech Forum, the Fintech Latvia Association released “Fintech Pulse 2023,” its second industry report. It provides prospective investors with a road map by examining the key trends in the fintech industry both domestically and internationally.
The Fintech Latvia Association report offers important insights and conclusions on recent changes in the legal framework to both public sector authorities and business specialists. This is on top of the difficulties and tasks that need to be completed in the coming days. The research demonstrates how Latvia may solidify its standing as a significant fintech hub inside the European Union as a consequence of these initiatives.
According to Tīna Lūse, general director of the Fintech Latvia Association, “fintech is playing an emerging role globally, with many countries now focusing on creating an environment that is attractive to fintech companies.”
Consequently, it is imperative that we keep up with the times. Latvia must stay up to date and enact laws that are favourable to business. It is impossible to overlook the changes the industry has undergone recently. Therefore, it is imperative to underscore the importance of tight collaboration between state partners, especially regulators, and industry players.
“This cooperation—which includes incorporating the MiCA Regulation on cryptocurrency-asset markets into national laws—may be the most important element in Latvia’s continued regional leadership in the fintech sector.”
Latvian expansion
According to estimations from the Latvian Ministry of Economics, financial technology is one of the few industries in Latvia that has had a rise in employment recently and has continuously paid better pay than other industries.
The Fintech Sector Development Strategy, which was adopted this year, also takes into account the sector’s expansion at the national level. It outlines Latvia’s goals for the industry and what has to be done to encourage innovation in the banking sector and further the industry’s overall growth.
“A thorough summary of Latvia’s present fintech scene may be found in Fintech Pulse 2023. Lūse continues, “It emphasises the benefits of Latvia’s very tiny economy.
First of all, doing business in a small nation enables businesses to build cooperative connections with partners in the public sector and regulators, who are viewed as approachable and transparent. Local fintech companies compare working with regulators to collaborating with other fintech companies.
Second, the region’s fintech industry has a lot of room to grow because of the strong banking and financial traditions in the area and the high concentration of highly qualified people in Riga, the largest city in the Baltic region.
Furthermore, fintech startups exhibit great exportability by securing a licence and operating in Latvia, utilising the country’s relatively small market as a “sandbox” or testing ground for larger markets.
A how-to manual for thriving in Latvia
According to Jūlija Feščenko, head of AS LPB Bank’s marketing and communication department, challenges and possibilities develop at the same rate as technology. The Digital Report aids in our comprehension of the obstacles that lie ahead and how to seize them. It was not only our decision to take part in this initiative; it was also our duty. Our goal is for this online publication to become into a valuable resource for anyone hoping to comprehend and be successful in the fintech sector in Latvia.
“TWINO’s transformation from a regional start-up to a major participant in the fintech industry has been made possible by Latvia’s tech-savvy and encouraging fintech ecosystem. Our continuous cooperation with the regulator highlights a collaborative and flexible regulatory structure that blends innovation, consumer protection, and transparency. TWINO Investments CEO Helvijs Henšelis stated, “We are still dedicated to collaborating with other industry participants and the Bank of Latvia to implement best practises and develop more advancements that will promote expansion and new prospects.
The digital report gives a summary of current support systems, capital access, and fundraising strategies together with instances of fintech company operations. A chapter on innovation in the industry, including how to overcome obstacles and leverage them to your advantage (including artificial intelligence), wraps out Fintech Pulse 2023.
