Latvia Steps Up Bid to Become a Major EU Fintech Hub

Latvia is intensifying efforts to position itself as a leading European fintech centre, seeking to compete more directly with neighbouring Lithuania and Estonia for companies looking for a base inside the EU.

Latvia Steps Up Bid to Become Major EU Fintech Hub

Since the start of 2026, Latvijas Banka has issued more than 20 licences to fintech businesses, including payment institutions, crowdfunding platforms, investment firms and crypto-asset service providers. Further companies are progressing through licensing or pre-licensing consultations.

The push is being coordinated by the FinTech Latvia Association and the Investment and Development Agency of Latvia, which are working to promote the country more aggressively to international fintechs considering entry into the European market.

Licensing Speed Becomes a Competitive Tool

A central part of Latvia’s pitch is regulatory accessibility.

Officials say well-prepared applicants can secure licences within a few months, supported by pre-licensing discussions designed to make regulatory expectations clear before a formal application is submitted.

For fintechs weighing different EU jurisdictions, that combination of speed and regulatory dialogue could prove commercially important.

Latvia’s fintech sector currently comprises 127 companies. At the end of 2024, the industry employed 3,644 people, up 9% year on year, and generated almost €372m in domestic turnover, with profits of €97m.

The sector also contributed more than €91m in taxes, 28% more than in 2023.

Payments and Investment Platforms Drive International Reach

Latvia is already being used as a base for businesses serving clients well beyond the domestic market.

More than 800,000 overseas investors use investment platforms licensed in the country, while more than €13bn has been invested through those platforms.

The largest fintech groups headquartered in Riga operate across multiple international markets, demonstrating how a Latvian regulatory base can support broader European expansion.

That cross-border reach is important because Latvia’s domestic market is small. The commercial case therefore depends heavily on attracting firms that see the country as a gateway into the wider EU.

Lithuania Remains the Benchmark

Latvia still has ground to make up. Lithuania remains one of Europe’s largest fintech centres, with more than 280 active fintech businesses and a particularly strong electronic money institution sector serving customers across the continent.

Latvia’s Financial Technology Sector Development Strategy for 2025–2027 aims to close some of that gap by increasing the number of fintech companies by 30%, attracting 15% more investment and raising employment in the sector by 18%.

The competition between Baltic jurisdictions is therefore becoming increasingly strategic.

For fintechs choosing an EU base, the battle is no longer simply about regulatory approval. It is about which market can combine licensing speed, supervisory credibility, talent and access to the wider European economy most effectively.