Latvia Fintech: Growth, Investment & European Center Ambitions

Latvia Positions Itself as a Leading European Fintech Hub

Latvia ⁤is actively working to establish itself as a central hub for financial technology (Fintech) innovation in Europe, according to recent statements by​ the president ‍of the Bank of Latvia. ⁣This push comes as the European Fintech market is experiencing⁤ rapid growth,‍ projected to exceed €70 ‌billion this year and increase by 15% annually through ⁢2030 – significantly outpacing the ‍6% annual growth of conventional banking.

Currently, Fintech already contributes a substantial €128-175 billion, representing 5% of the global banking sector’s net revenue, and is forecast to more than double by 2028, ​reaching over €342 billion. The Bank of Latvia recognizes this growth​ signifies Fintech’s established role, its current relative size, and immense potential for further expansion.

Leveraging its existing strong foundation in electronic payments and ⁤cryptocurrencies, ⁣latvia is proactively creating a supportive habitat for‌ Fintech companies. Last year,​ the Bank of Latvia initiated a program allowing ⁢direct connection to the national payment system, a benefit already utilized by seven companies with over ten more planning to join.A prioritized submission process, ‌launched earlier this year,⁢ is currently processing ⁤applications ⁣from more than 15 companies.

further bolstering this initiative, the Bank of Latvia is also proposing regulatory⁤ changes‌ to the Saeima (Latvian⁤ Parliament) to facilitate ‌the issuance of small bank licenses to Fintech ​firms.

Latvia is attracting Fintech businesses with⁤ key⁤ advantages including direct access‌ to the central bank’s payment system, a fast-track licensing ‌process, and a 0% tax rate on reinvested profits. The ⁣Bank of Latvia aims for Latvia to be a key driver in shaping the future of⁤ finance in Europe, and is encouraging‍ the Fintech industry to foster innovation ‍and build the financial landscape of tomorrow.