Latvia’s Fintech Sector Grows in Scale and Regulatory Engagement

Latvia’s fintech industry is entering a new phase of maturity, driven by solid growth metrics, deeper collaboration with regulators, and a more diversified ecosystem. With 126 fintech companies now active across the country, the sector has evolved from a fast-growing niche to a strategic contributor to the national economy.

The latest figures show an impressive rise in both profitability and fiscal impact. In 2024, Latvian fintechs generated over €370 million in turnover and nearly €100 million in net profit—more than double the previous year’s profit. This performance was accompanied by strong contributions to public finances, with over €91 million paid in taxes. Employment across the sector has grown as well, now surpassing 3,600 professionals, many of whom are in high-skilled roles.

New licenses and regulatory alignment have helped pave the way for this expansion. In the past year alone, several new entrants received licenses under crowdfunding, payments, and crypto regulation, including those authorised under Europe’s evolving MiCA framework. Many fintechs have also successfully connected to the national electronic clearing system, enhancing the accessibility and resilience of Latvia’s digital payments infrastructure.

The Fintech Latvia Association has emerged as a central player in strengthening industry representation and dialogue. Around 35% of local fintech companies are now members, actively contributing to legislative feedback, ecosystem development and policy advocacy. This spirit of collaboration is helping the sector align innovation with regulatory clarity.

In terms of business models, lending and payments remain core verticals, but there is growing activity in digital banking, blockchain, and crypto solutions. Larger players are scaling, while newcomers are exploring niche opportunities that leverage Latvia’s reputation for regulatory agility and fintech innovation.

With consistent growth, proactive regulatory engagement, and a stronger foundation for international competitiveness, Latvia’s fintech sector is well positioned to lead regional innovation in financial technology.

Source = https://fintechbaltic.com/11172/fintechlatvia/latvias-fintech-sector-matures-with-greater-scale-and-deeper-regulatory-engagement/