Latvia unveils second national fintech strategy targeting 30% sector growth and Baltic-Nordic hub status
Latvia unveils second national fintech strategy targeting 30% sector growth and Baltic-Nordic hub status #
Latvia’s Ministry of Finance and central bank are preparing to adopt the second edition of a national fintech strategy, setting targets for sector growth and a higher international profile.
The “Latvian FinTech Sector Development Strategy 2025-2027,” co-developed with Latvijas Banka, sets measurable targets: a 30% increase in registered fintech companies, currently around 130; 15% growth in fintech-related investment; and an 18% rise in fintech employment. The strategy’s stated goal is to position Latvia as a competitive fintech hub across the Baltic and Nordic regions.
The strategy rests on four pillars: promoting Latvia’s fintech sector internationally, improving infrastructure and regulation, broadening access to capital, and developing talent. A 22-task action plan assigns specific responsibilities to government bodies and industry associations, with most deadlines set before the end of 2026.
Concrete measures include an assessment of asset tokenisation opportunities and a proposal to allow non-bank financial service providers, including crypto-asset service providers, to act as financial intermediaries in the tax payment process. The government also plans to expand the use of English in public sector communications to attract international fintech firms and specialists.
The strategy is direct about the competitive pressures Latvia faces. “Latvia is competing in this area not only with the Baltic and Nordic countries, but also with other European countries that are investing heavily in the fintech sector,” the document warns, noting that rivals are already exploiting first-mover advantages in blockchain, artificial intelligence, and digital currencies.
The strategy was a central topic at the fourth annual Latvia Fintech Forum in Riga, where Finance Minister Arvils Ašeradens told a 300-strong, largely private-sector audience that the government wants to join forces with industry to achieve the strategy’s goals. Latvijas Banka Governor Mārtiņš Kazāks described the sector’s growth potential as “enormous,” comparing fintech today to a stream “building strength” that will ultimately make traditional banking “much more dynamic.”
On regulation, the strategy notes that Latvia has simplified licensing for a range of fintech activities and has allowed non-bank payment service providers to join its Electronic Clearing System, giving them direct access to SEPA euro payments. The document states that supervisory fees in Latvia are competitive relative to the other 26 EU member states.
Full adoption of the strategy requires political consensus. The document signals that Riga intends to press its case as competition with Tallinn and Vilnius for Baltic fintech leadership continues.
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