Latvia’s FinTech sector development strategy has been drawn up. What are the next steps?
Latvia's vision as defined in the report: "Latvia as a financial technology centre of European Union significance where FinTech companies promote innovation and competition in the financial sector by developing significant, secure and internationally scalable business models".
Currently, Latvia has untapped potential in the financial technology area. Although regulation supporting the financial activity has been established in the country, it is still necessary to reduce barriers to the growth of the FinTech sector. The development of technologies and their integration into financial services should be stimulated to create financial services with high value added that will improve competitiveness. Funds should be invested in the development of artificial intelligence (AI), big data, cloud-based technologies and other technologies to ensure competitiveness in the European market. Currently, Latvia falls behind other European Union Member States in the area of technologies as suggested by, for instance, the Global Innovation Index, AI Readiness Index, Competitiveness Index and ICT Development Index. European countries such as Denmark, France, Germany, Italy, Poland, Spain and Sweden already use AI, big data and blockchains in the financial sector.
Nevertheless, Latvia has a chance of becoming an innovation and business centre together with other Baltic States, provided favourable conditions for the development of FinTech companies are ensured. Latvia's FinTech strategy identifies the responsible authorities and the work to be done in order to improve the environment for the growth of FinTech.
Prerequisites and recommendations for the implementation of strategy development directions
The Financial and Capital Market Commission, which is integrated into Latvijas Banka as of 1 January, the Ministry of Finance, the Fintech Latvia Association, market participants and other institutions took an active part in the creation of Latvia's FinTech strategy. The work has led to the adoption of the plan detailing the activities and tasks of involved institutions and foreseeing the creation of an environment supportive of FinTech, the strengthening of the FinTech ecosystem and the facilitation of the visibility of Latvia as a FinTech development centre outside the country.
In 2023, Latvijas Banka will focus on the following tasks:
The strategy and the tasks performed by the participants of the FinTech sector are available on the single portal for draft legal acts.
Meanwhile, for the news in the FinTech area, visit the website intended for the financial sector participants: fintechlatvia.eu. The website also offers advice by Latvijas Banka's experts, licensing guides and a possibility of applying for consultations at Latvijas Banka's Innovation Hub.
We invite FinTech companies and the authors of innovative ideas to apply for free consultations at the Innovation Hub. Consultations are possible both online and in person. To book a consultation, please fill in this form or write us to firstname.lastname@example.org.
We are looking forward to your applications and questions! Let us develop the FinTech sector together!