FinTech in Latvia: Status Quo, Current Developments and Challenges Ahead

Abstract

FinTech has been in the focus of the discussion for quite some time. However, the market share of FinTech companies is still relatively small in compared to more traditional financial services. The purpose of this paper is to analyse the status quo, current developments and challenges ahead for the Latvian FinTech sector. We combine three analyses: the political and legal, the economic, the social and the technological environment (PEST) analysis, an analysis of the size and performance of FinTech companies during the last 10 years, and a survey among FinTech companies. We find that the current status of regulation is one of the main obstacles to FinTech development, because it does not sufficiently consider FinTech-specific aspects. Problems in attracting skilled workforce, and an environment that is not very supportive of new developments in finance are further challenges and might explain at least part of the growth and performance difficulties. A revision, modernization and harmonization of regulation is essential to create a level playing field for all market participants: FinTech companies, traditional financial service providers and those originally traditional players that are integrating FinTech solutions in their business model. Further efforts are also required to foster the Latvia’s attractiveness for skilled workforce. We hope that this study helps increase the visibility of Latvian FinTech and contributes to the development of the new Latvian FinTech strategy.

Digital Transformation of Public Pensions: A Case Study of Four European Countries

“…Digitization can further improve the coordination of social security systems and support fair labour mobility. Old-age pension can be claimed by completing a form in person at the Insurance Agency Branch Office (SSIA) or by sending the completed form signed with an e-signature to the SSIA or by electronic application (Rupeika-Apoga et al, 2020). E-service information on social insurance, payments and the value of benefits, pensions and maintenance payments that can be requested using Internet banking or electronic signature.…”