FinTech Industry in Lithuania – more possibilities to remote identity verification

The Government has approved a new regulation that will better enable  financial institutions and other organisations to identify customers in a non-physical manner (i.e. not face to face identification). It is expected that this will enhance the development of the financial technology industry (FinTech) and result in more investment in the field in Lithuania.

“New regulation will contribute to the development of financial technology, promote investment and  create more possibilities for companies, especially start-ups. It will enhance Lithuania’s competitiveness in this field and contribute to economic growth and job creation,” said Minister of Finance, Rasa Budbergytė.

The minister explained further: “We want to use all the potential that has been created so far in the country to foster the growth of the Fintech sector in Lithuania. We have a great eco system for business and start-ups, a very open-minded government, a positive approach by the regulators, constructive cooperation with industry, good infrastructure, talented people, as well as a readiness by universities to work closely with business.”

According to the new regulation, remote identification will be possible not only by using a qualified electronic signature, but also by applying two supplementary methods, that is, by using the means of electronic identification issued in the European Union under notified electronic identification schemes and by electronic means allowing video streaming/video transmissions.

The new regulation will enter into force as of 1 December, 2016, after the adoption of certain technical requirements by the Financial Intelligence Unit.