Latvia Positions Itself as a Leading European Fintech Hub
Latvia โคis actively working to establish itself as a central hub for financial technology (Fintech) innovation in Europe, according to recent statements byโ the president โof the Bank of Latvia. โฃThis push comes as the European Fintech market is experiencingโค rapid growth,โ projected to exceed โฌ70 โbillion this year and increase by 15% annually through โข2030 – significantly outpacing the โ6% annual growth of conventional banking.
Currently, Fintech already contributes a substantial โฌ128-175 billion, representing 5% of the global banking sector’s net revenue, and is forecast to more than double by 2028, โreaching over โฌ342 billion. The Bank of Latvia recognizes this growthโ signifies Fintech’s established role, its current relative size, and immense potential for further expansion.
Leveraging its existing strong foundation in electronic payments and โคcryptocurrencies, โฃlatvia is proactively creating a supportive habitat forโ Fintech companies. Last year,โ the Bank of Latvia initiated a program allowing โขdirect connection to the national payment system, a benefit already utilized by seven companies with over ten more planning to join.A prioritized submission process, โlaunched earlier this year,โข is currently processing โคapplications โฃfrom more than 15 companies.
further bolstering this initiative, the Bank of Latvia is also proposing regulatoryโค changesโ to the Saeima (Latvianโค Parliament) to facilitate โthe issuance of small bank licenses to Fintech โfirms.
Latvia is attracting Fintech businesses withโค keyโค advantages including direct accessโ to the central bank’s payment system, a fast-track licensing โprocess, and a 0% tax rate on reinvested profits. The โฃBank of Latvia aims for Latvia to be a key driver in shaping the future ofโค finance in Europe, and is encouragingโ the Fintech industry to foster innovation โand build the financial landscape of tomorrow.