Vilnius, the capital of Lithuania, is now among the top 4 fintech hubs, according to the country’s minister of finance. With the second-highest number of EMI and payment licenses issued in the EU, Lithuania has attracted world-renowned financial institutions, the most notable being Revolut, which obtained a banking license in Lithuania in 2018.
In early 2020, the digital bank unicorn announced its decision to relocate to Lithuania from the UK to better serve its European customers due to uncertainty caused by Brexit. Revolut, valued at $5.5bn, represents the success and potential of modern financial software in the banking sector.
Read more about what it takes to build a Revolut-like digital bank in our previous article.
Jurisdictions with the latest number of licenses issued. Source: Invest Lithuania
Although the number of fintechs is expected to go beyond 250 by the end of 2020, Lithuania’s banks are still considered digital adopters or followers, according to Deloitte’s research. Unlike Switzerland or Poland, in terms of digital banking maturity, Lithuanian financial institutions have been slow in updating their bank software.
Expectations regarding the level of service which should be available in digital channels create significant customer pressure on Lithuania’s banking sector. More than 10% of Lithuania’s population have a Revolut account. Combined with competition from other newcomer fintechs, Lithuanian banks need to redevelop their bank software or risk losing even more market share to more digitally mature competitors.
Given the investment necessary to develop financial software from scratch, many banks decide to adapt existing white-label software solutions in Lithuania to their needs. Collaboration between incumbents and specialized fintechs can address these digitalization pressures and lead the way to the future of banking.
Lithuanian Banking Software Provider
Vilnius based banking software vendor SDK.finance and their core banking platform has been particularly successful at leveraging advanced tools to help financial institutions modernize their bank software in Lithuania faster, cheaper, and more efficiently. The digital retail banking software is available in all popular formats: web, iOS, and Android applications that help to reach the new generation of mobile customers quicker.
SDK.finance provides technology and supports banks of all kinds at every stage of the digital transformation from market research to product launch and scaling. Banking customers can benefit from a modern and secure experience guaranteed by two-factor authentication, biometric checks, security notifications, and Strong Customer Authorization for payments.
The Platform consists of 5 main components: a back-end wrapped in 400+ API endpoints, 3 front-end frameworks, and a web for system management with capabilities in iOS and Android for our clients.
Advantages of software that is built on API-first architecture:
- The speed of releasing new features and functionality is much faster
- The cost of ownership is more economical
- Fewer bugs and more stable products exist
- Better flexibility, scalability, and features are just some of the advantages of the SDK.finance core banking software ready for Lithuanian banking.
Click here to find out more about the Lithuania banking software solution and how it can help your business unlock new opportunities.