Brexit could bring Lithuania closer to China, US in FinTech race

It’s been nearly two years since we first reported on the “battle” to be a future home of FinTech, a sector which was nascent at the time but which had already been growing in three main hubs – China, the UK, and the US.

A woman is seen using the Empower app on May 10, 2017. [Photo: IC]

Since then, the “battle” has turned into more of a collaborative effort, with a series of investment deals and partnerships agreed between FinTech firms and investors around the world.

Now, however, a fourth hub is vying to use Brexit as an opportunity to grow in the FinTech sector.

That hub is Lithuania, which is keen to attract British firms to move there.

As often now seems to be the case with stories like this, the uncertainty surrounding Brexit negotiations has been highlighted as a key factor.

Financial firms fear that they may lose the rights to “passport” within the European Union, meaning that a base in the United Kingdom might not allow them to trade fully around the rest of Europe.

Lithuania offers a burgeoning FinTech sector, relatively low wages, a stable economy and access to the European market, so it’s easy to see how it could be an attractive option to firms looking to leave the UK.