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Lithuania sees flood of fintech firms apply for licences ahead of Brexit

Reuters  |  VILNIUS 

By Sytas

(Reuters) - About 100 financial companies and from Britain and elsewhere are applying for a licence in burgeoning fintech hub to ensure they have access to the after Brexit, the country's central told

Britain is due to leave the on March 29, but has not yet reached a deal on a post-Brexit relationship, meaning companies with UK-issued licences may no longer have the right to provide some in the EU.

The companies, a quarter of which hail from Britain, are looking to get electronic money institution licences, Marius Jurgilas, at the central bank, told in an interview.

"It seems that the companies, many of which are quite large, are behaving like a student who only starts worrying on the eve of an exam," he said.

He said can process an electronic money institution licence application in as little as three months, compared to about a year in some EU countries, giving it an advantage over other fintech centres such as Luxembourg, or

"It is an onslaught ... We do not have the resources to process all the applicants. We have to pick-and-choose, prioritising the least risky applicants," said Jurgilas, who did not provide names of the companies due to confidentiality rules.

said in October that it had seen a surge in firms seeking to set up or extend their operations in as a result of Brexit and is processing over 100 applications.

began attracting fintech companies a few years ago, and as of January has issued a total of 83 licences to such firms, second only to Britain among countries, according to government figures.

The newcomers include a payment arm of Alphabet Inc's and Revolut, a British digital-only bank, and Jurgilas said the central is ready to step up its oversight capabilities as the sector grows.

Jurgilas dismissed suggestions that firms were drawn to Lithuania by a benign regulatory regime.

The "European Union has institutions which make sure that market supervisors in all its countries, including Lithuania, work to the same standard, and if any Lithuanian-registered bank grows into significant size, its supervision will be taken over by the European Central Bank", he said.

(Reporting By Sytas; Editing by Elaine Hardcastle)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, February 08 2019. 20:02 IST