If you walk the streets of Riga, you might not notice the scale of the fintech sector, but inside co-working spaces and behind secure servers, a modern financial industry is emerging that is slowly building real economic value. On Friday, at the Fintech Breakfast hosted by the Fintech Latvia Association, one thing became clear to everyone in the room: Latvia is ready to step forward with confidence in what it has built so far and where it wants to go next.
The event introduced two new initiatives called the Fintech Pulse 2025-2026 and the Fintech Observatory, which are designed to collect data and present it clearly so stakeholders across the ecosystem can make decisions with confidence, and as one speaker put it plainly, Latvia needs to finally take ownership of its story.
These tools mark a turning point in how Latvia measures and communicates the progress of its fintech sector, which is already showing signs of maturity.
“Latvia’s fintech sector has reached a clear stage of maturity. Our companies are exporting technology, attracting international capital, and building products for global markets, often far beyond Latvia itself. What has changed most in recent years is not only the scale of activity, but the quality of cooperation: the public sector has become an active partner, supporting international visibility, investment attraction, and ecosystem development.” says Tina Luse, Managing Director of the Fintech Latvia Association.
A Sector Rooted in Local Strength
The Fintech Observatory showed that Latvia has 127 fintech companies that collectively employ over 3,600 people and contributed 91 million euros in taxes last year, and most of these firms have Latvian roots, which is a key detail according to Tina Luse, who noted that while Latvia has a strong offer, the outside world still does not know enough about it.
These companies are not branches of foreign firms but are built and run in Latvia with local talent and local infrastructure powering business models that generate revenue from international markets, and this is already a functioning, export-capable part of the economy.
This reality means that Latvia has developed a self-sufficient fintech base that is no longer theoretical or experimental but delivering measurable impact today.
Growth Goals and Operational Challenges
Viktors Valainis, Minister of Economics, laid out a clear and specific target for growth, stating that by 2027 the sector should grow to 160 companies and 4,500 jobs, and he emphasized that every decision in policy and execution must be tested against whether it helps reach those goals.
Tina Luse explained one of the main operational issues still holding companies back, describing how the licensing process feels to many firms like tailoring a custom suit for someone who has not even been born yet and then being forced to immediately tear it apart and rebuild it when the person finally arrives.
Firms that are building real products need a faster and more predictable process from application to full licensing, with fewer surprises and more structured support from institutions that understand their business models and risks.
Download Latvia’s Fintech Pulse here
Leadership and Collaboration
The panel discussion brought together leaders from across the public and private sectors, including representatives from government ministries, regulators, traditional finance, and blockchain, and while each person brought a different view, there was shared agreement that Latvia needs coordinated leadership to move forward with clarity.
Mārtiņš Kazāks, Governor of the Bank of Latvia, acknowledged that while risk management has improved significantly, no single institution can manage or grow the sector alone and that a full national effort is needed to move from plans to results.
Uldis Cerps, Managing Director of the Finance Latvia Association, added an important perspective from the banking and investment side of the market, saying, “We need clear indicators in terms of international positioning, and our ambitions should be higher than just catching up with Lithuania. The strategy must include the broader financial sector, not just startups. We achieve more when banks and fintechs sit at the same table”.
Cerps also pointed out that innovation is not limited to new players, as traditional banks in Latvia invest tens of millions of euros annually into financial technology, and this contribution must be reflected in any long-term strategic plan.
The current fintech strategy is still in development, and while progress is being made, full adoption and alignment across institutions is necessary for faster movement, as Kazāks noted that the strategy may not become official until 2026, meaning the country still operates without a formal guiding document.
Fintech development depends on decisions being made and executed consistently by everyone involved, from regulators and ministries to investment agencies and associations.
Crypto Licensing Signals Market Readiness
Reinis Znotiņš of the Latvian Blockchain Association presented a strong case for Latvia’s progress in crypto licensing by pointing to two MiCA licenses that have already been issued, including one company that relocated from Hungary to Latvia and is now building its team and paying taxes locally, which he called a major improvement in competitiveness.
There are hundreds of crypto firms in Poland that may need to relocate soon due to regulatory changes, and Latvia is well-positioned to attract them if it makes the right moves now, which is why Reinis asked directly whether the ecosystem is ready to meet these companies, approach them actively, and bring them into the country.
The ability to attract these firms depends not just on regulation being in place but on active outreach and clear messaging about what Latvia can offer.
Execution Over Perfection
Tina Luse highlighted a key concern across the ecosystem by pointing out that the search for perfection is slowing progress, saying that some companies are blocked by an expectation of flawless documentation when what they really need is a clear framework that allows them to improve and adjust over time while continuing to operate and contribute to the market.
The Fintech Observatory and Pulse now offer a stable and data-rich view of the sector that helps measure employment, tax contribution, company age, and business segments in real time, which gives all stakeholders, from founders to regulators, a shared starting point for decision-making and policy evaluation.
Latvia has the human capital, the regulatory foundation, and the digital infrastructure to support high-quality fintech firms and now must act with speed to turn that capacity into international visibility and market traction.
What’s Next for Latvia
Fintech in Latvia is a functioning part of the national economy that creates jobs, exports digital services, attracts capital, and builds technical skills that benefit other sectors as well.
The platform is operating, the legal tools are in place, investor interest is growing, and there is a growing sense that Latvia can become a reliable home for financial technology firms that want to grow inside the European Union with local support.
Latvia’s fintech sector has spent too long under the radar without the recognition it deserves, and that period is ending as more voices, data, and leadership come together around a shared goal.
With alignment across institutions and proactive steps from industry and government, Latvia can now move from being Europe’s best-kept fintech secret to becoming one of its most respected and sought-after fintech destinations.
The opportunity is ripe, the foundation is ready, and the time to act is now.
Download Latvia’s Fintech Pulse here
