Fintech in Latvia: 127 companies, 91 million in taxes, and the ambition to grow in global markets

There are 127 financial technology companies operating in Latvia, employing more than 3,600 people, generating a turnover close to 400 million euros, and paying over 91 million euros in taxes annually. These facts were highlighted today at the Fintech Breakfast “What is needed to realize Latvia’s FinTech ambitions?”, held at RTU Riga Business School (RBS) and organized by the Fintech Latvia Association and the RBS Baltic Financial Center. During the event, participants were introduced to the latest industry data, development dynamics, and its impact on the national economy, as well as key directions and practical steps for strengthening the sector going forward.

Latvian Fintech Observatory — a foundation for data-driven policymaking

To set the stage for further discussion, Kristīne Dambe, Director of the RBS Baltic Financial Center, presented the newly developed pilot tool — the “Latvian Fintech Observatory”, a comprehensive database of Latvian fintech companies. The tool is designed to provide policymakers, university students, lecturers, and other stakeholders with an independent, data-driven view of sector development. “The industry must take collective responsibility for its own progress. We can shape our own narrative and learn from our neighbors, but it is crucial to base decisions on data that reflect real trends and can serve as input for strategy. We hope the observatory will encourage discussions grounded in facts rather than assumptions and inspire the next generation of fintech creators,” emphasized Dambe.

Policymakers: fintech — export potential and global competitiveness

Minister of Economics Viktors Valainis highlighted the importance of export capacity: “We all want Latvian-founded companies not only to strengthen the local economy but also to become export-capable technology firms. In fintech, we have several strong players proving that we can be competitive internationally. Therefore it is important to create an environment that encourages companies to choose Latvia as a place to grow and develop both regionally and globally, and to actively promote Latvia internationally by engaging potential investors and partners. The industry has great potential, and we have planned a series of initiatives on our side to continue supporting it.”

Bank of Latvia: the foundations are ready — now it’s time to use them

Bank of Latvia President Mārtiņš Kazāks also emphasized a practical and responsible approach to fintech development: “Latvia can become a significant European fintech hub not merely because of ambition, but because the foundations are already in place — we have talent, entrepreneurs, strong financial infrastructure, and an accessible public sector. Fintech growth requires not only new ideas but also a reliable and predictable environment where innovation develops alongside stability and clear rules. Our task is to ensure that solutions can scale and provide real value to the economy. The foundations are set — now it’s time to use them for growth and for the ambitions of industry players.”

Fintech Pulse: Latvian fintech becoming a strategic driver of economic growth

Presenting “Fintech Pulse 2025/2026”, Fintech Latvia Association Director Tīna Lūse emphasized that Latvia is currently one of the most dynamic and rapidly growing fintech ecosystems in the region. The data from the observatory confirms this, but according to Lūse, the most important shift is not only in the numbers. The public sector has become an active partner — state institutions are involved not only in regulation but also in international promotion of the industry. LIAA organizes national pavilions at global exhibitions, helps companies attract investors, showcase their solutions, and build global partnerships. While there is still room for improvement in cross-sector collaboration, recent years — in which policymakers and the regulator have begun recognizing the sector’s potential and ambitions — can be evaluated positively.

There is good reason for this — early 2025 indicators confirm the sector’s maturity and ability to compete internationally. Significant investments have been attracted in Latvia, large bond issuances have taken place, and companies with Latvian roots are expanding in Africa and other markets, becoming banks and raising international capital.

“Our companies don’t follow trends — they create them. And that is why fintech is not just an industry, but a strategic pillar of Latvia’s economy,” Lūse stressed.

Shared understanding of the path ahead

A panel discussion on implementing the National Fintech Strategy and practical next steps brought together Minister of Economics Viktors Valainis, Bank of Latvia President Mārtiņš Kazāks, Finance Latvia Association Chairman Uldis Cērps, Fintech Latvia Association Director Tīna Lūse, and Blockchain Association of Latvia Executive Director Reinis Znotiņš. The discussion was moderated by Kristīne Dambe, Director of the RBS Baltic Financial Center.

The discussion highlighted a shared understanding that while the development of the National Fintech Strategy has been significant, the decisive factor will be the practical steps that follow. Participants emphasized the need to strengthen fintech as a strategic economic sector with a clear export focus, balance ambition with predictable regulation and responsible risk management, foster cooperation between banks and fintechs within a unified financial ecosystem, strategically leverage Latvia’s advantages in crypto and MiCA licensing, and ensure leadership in the practical implementation of the strategy.

The event was organized by the RBS Baltic Financial Center in cooperation with the Fintech Latvia Association and was supported by the EU Recovery and Resilience Facility.