Brexit has undoubtedly left many UK citizens and companies still looking to be part of the European Union at a loss. What can companies do if they would still like to remain part of the vast EU market? Well for many UK fintechs, it seems the answer lies in Lithuania. Due to Brexit, Lithuania has become a hub for many UK fintechs to get their licenses so that they can continue to do business as part of the EU. This is not only great for UK businesses as it allows them to continue business operations at a much larger scale, but great for Lithuania as the small country is now home to 230 of the leading fintechs across the entire EU. Not only that, but claims have been made stating that the licensing process is speedy and that good and friendly people are there to help. Lithuania actually has the ability to process licenses in as little as three months which is much quicker than most other places in the EU.
On top of this quick and great service, Lithuania’s Central Bank has also set up what they call a “regulatory sandbox” which allows fintechs getting their licenses to test out their innovations in their future potential markets. A concern for many involved in this is most likely how coronavirus has disrupted the process of licensing or testing for their fintechs. And in positive news, it appears that reliable internet connections and speeds, and the people of Lithuania willing to help and cooperate has made the process experience very little disruptions than it would during non-pandemic times. It’s not all positive news for Lithuania however, as the surge in fintechs and all online communication also brings about the possibility of money laundering occuring at a much larger scale than normal. To combat this, new data-driven prevention methods have been implemented and more people have been brought onto staff to ensure that money laundering is being monitored and maintained during all operations.
This news has definitely provided hope and positive reactions from those in the UK still looking to do business in the larger EU market. Lithuania has provided an excellent mutually beneficial relationship where fintechs are able to get their licenses fast, secure, and have an overall pleasant experience from multiple customers’ reviews. It is also reassuring that Lithuania is aware of money laundering concerns and has issued plans to keep it at an all-time low. Time will only tell if this will become a permanent solution for many UK fintechs for a while or if the terms of Brexit will come back into discussion.