Even though London has become the undisputed European Fintech capital quite a while ago, Baltic States have strong ambitions to become yet another European Fintech hub given the strong ties that countries have with one another. Such ambitions are not hollow – regulatory and infrastructural advantages in Baltics, compared to EU member states, are providing a solid ground for Fintech entrepreneurs to make Lithuania, Latvia and Estonia a central European hub.
In the recent years Baltic States have become a lot more active in Fintech sector and the most rapidly growing areas are lending, payments and insurance. Thanks to the local Peer-to-Peer lending companies, the Baltic region has also undergone an uprising in alternative loan segment. According to the research performed by KPMG, in 2016 Latvia alone broke into the top 3 countries by the size of alternative lending volume with the third largest volume of funded loans archived in Q1-Q3 2016. Here’s the list of top 10 most prominent Baltic Fintech disruptors that have experienced rapid growth and are the most promising players in the Fintech arena so far.
Blockchain specialists supporting transaction processing, property rights registry, analytics and Platform-as-a-Service (PaaS). Created in Latvia, BitFury is currently operating in the US, Iceland, United Kingdom, Netherlands, Georgia and Hong Kong.
An online platform for fixed-income investments in European personal loans or simply the largest Estonian secondary market for P2P loans. Since 2009 Bondora has been consistently delivering double-digit returns to over 14,000 investors on the platform.
Latvian-launched personal finance company providing paperless loans in 6 countries within and outside of Europe. Aiming to provide one-click loans to consumers globally, the company uses machine-learning capabilities to evaluate and score its clients based on Smart Data scoring method. In 2016, Creamfinance was acknowledged as a second fastest-growing European company by Inc.5000.
Factury is Latvian-founded blockchain solution supporting secondary market trading of bank loans, smart invoice payment and settlement. The company uses advances in distributed ledger technology and data cryptography to modernize the costly, complicated, and obsolete processes in capital acquisition, loan securitization, and secondary loan markets.
An Estonian international mobile payment provider, offering a number of mobile payment solutions for web services and mobile applications. Fortumo has recently teamed up with the Swedish music and video streaming service Spotify to expand direct carrier billing availability in Asia.
Launched in Latvia, Mintos is a peer-to-peer marketplace where investors can invest in loans originated by non-bank lenders. The marketplace, which has launched in 2015, includes personal and corporate loans in both primary and secondary markets. The company is operating across Europe working with both private and institutional investors.
Founded in 2013 in Latvia, Monea is a P2P micro payment application providing money transfers via phonebook contacts from bank account into the receiver’s bank account. The company is currently serving Latvian clients only.
TransferGo is a global money transfer company that supports migrant workers to send money back to their relatives without paying unnecessary bank fees. Founded in 2012 in Lithuania.
Estonian peer-to-peer money transfer service. Launched in 2011 and currently has over 1 million customers who send more than £800m via the platform every month. In August 2015 TransferWise was named a World Economic Forum Tech Pioneer.
Twino is a privately-owned marketplace lender, operating across 10 countries with headquarters in Riga, Latvia. Previously known as Finabay, the company has originated over €380M in unsecured consumer loans since 2009.