Can Customer-Centric Innovation and AI Ensure Fintech Resilience?
Faced with industry-wide challenges, fintech companies must innovate and adapt. Daumantas Dvilinskas, CEO of TransferGo, shares insights on how Lithuania’s fintech sector fosters resilience while encouraging growth.
Daumantas Dvilinskas, CEO of TransferGO
“In the next 5-10 years, fintech companies will need to navigate a complex landscape of macroeconomic pressures, regulatory challenges, and shifting market dynamics,” says Daumantas Dvilinskas, CEO and co-founder of TransferGo, a Lithuania-based fintech that offers international money transfer services. TransferGo has demonstrated its ability to adapt to global changes in recent years, by expanding into emerging markets like Nigeria and facilitating over $500 million in low-cost transfers to Ukraine annually, accounting for more than 40% of total remittances to the country within the European market. The company is eyeing further expansion into Asia-Pacific region, with the latest $10 million investment from Taiwan-based fund Taiwania Capital Management. While the fintech sector will no doubt face challenges in the coming years, Dvilinskas sees a path to success through mindful customer-centric innovations and strategic management.
Navigating challenges through AI and regulatory support
According to Dvilinskas, one key opportunity lies in the thoughtful application of artificial intelligence (AI). AI offers fintech companies effective avenues to enhance profitability by minimizing risk and reducing operating costs. It also boosts efficiency by streamlining customer service operations and improving user experience. “AI is not just about technology; it’s about smartly integrating tools that make us more resilient and competitive,” Dvilinskas says.
Regulatory support is another crucial element. Lithuania’s regulatory framework sets a strong example for fostering fintech innovation. With advanced risk-based regulations, the Bank of Lithuania sets a foundation for sustainable growth and international competitiveness. Electronic money and payment institutions in Lithuania serve over 35 million customers across Europe, generating €275.1 million recently – a 22% year-on-year increase.
Investing in talent and building client trust
Scaling businesses in current times also demands addressing the global talent shortage. This is a widespread challenge, but Lithuania shows a proactive way forward.
The government-supported upskilling programs are estimated to bring additional €51 million to the state budget through taxes on the income generated by newly qualified IT professionals. Such initiatives can help improve the number and quality of skilled workers available to fintech companies, helping them to expand and innovate. A recent survey indicates that ICT companies in Lithuania will be ready to hire as many as 7,600 IT professionals in the coming years, focusing on areas of cybersecurity, software development, and telecommunications.
But ultimately, building and maintaining trusted relationships with the client remains fundamental to success in the industry. “In fintech, trust is not just an asset; it’s the cornerstone of long-term success,” Dvilinskas emphasizes. “Every advancement should make life simpler for clients, providing them with more ways to make best of their hard-earned money.” Lithuanian fintechs have focused on fostering client trust, a practice that enhances business performance and drives innovation.
Despite obstacles, Lithuania’s fintech ecosystem exemplifies resilience, blending regulatory foresight, investment in talent, and a commitment to technology. As the industry evolves, these elements will be essential for fintech companies worldwide striving for sustained growth and success.
