Latvijas Banka coordinates the development of Latvia’s Fintech strategy

This strategic initiative is being developed in close collaboration with other public institutions and ministries, industry representatives, and private sector experts to build a modern and competitive financial services ecosystem in Latvia.

Why focus on fintech?

The fintech sector is revolutionizing financial services by offering faster payments, broader investment services, alternative financing solutions, and by facilitating the process for financial services to become more accessible and cost-efficient. At the moment, more than 130 fintech companies, with the potential to grow, work in these areas in Latvia.

Latvia's goal is to harness this potential and impact economic growth through value-added financial services, attracting international investors, and creating high-value jobs. By fostering innovation and modernizing financial services, Latvia aims to become a leading destination for fintech companies within the Baltic-Nordic region.

Latvijas Banka's support for innovative financial service providers

Latvijas Banka implemented a supportive European Union regulatory framework. To achieve this, Latvijas Banka provides a basket of initiatives to facilitate financial innovations:

• Innovation Hub,
• Regulatory Sandbox,
• Pre-licensing process as a fast track,
• Access to Latvijas Banka's payment system for non-bank payment providers,
• Securities Sandbox,
• Q&A sessions that enable fintech startups to ensure both compliance and innovation.

Building a Fintech strategy together

A supportive regulatory framework is just one crucial element in fostering the growth of the fintech sector. The ecosystem also requires access to capital and a strong talent pool, while Latvia must strengthen its international profile. The new Fintech strategy is a collaborative effort, in both its creation and implementation.

Fintech strategy tasks will enhance funding opportunities for fintech companies through specific state financing programs and by attracting international investors, creating a robust investment ecosystem.

In addition, supporting retraining programs, and improving relocation processes are key to building a skilled workforce. Collaboration with universities and the introduction of startup-friendly entry steps will attract the best talent to Latvia.

Latvia must actively enhance its global visibility through targeted marketing campaigns, participation in international fintech events, and by positioning itself as a transparent and sustainable jurisdiction for financial innovation. We look forward to close cooperation with the institutions entrusted with achieving this goal.

The Fintech strategy is a process of partnerships between public institutions like the Ministry of Finance, Ministry of Economy, associations, and private sector stakeholders. Significant steps are being taken in this process with the aim to present the first draft of the Fintech strategy to the Financial sector's development council at the end of Q1 2025. All public institutions are invited to collaborate. More information will follow.