Ektico highlights Malta as a powerful fintech hub

Fintech companies have chosen Malta as their main operating base for business, making it a growing location for startups and existing firms, along with investor interest. Through harmonious collaboration of supportive financial regulations, along with quality financial systems and specialised workforce personnel, and deliberate government programs, Malta functions as an operational financial technology hub. According to Ektico, the foundational elements portrayed here are why Malta succeeds as a closed-end fintech hub.

A proactive regulatory landscape

Fintech companies find Malta useful due to its innovative regulatory structure, which serves as a vital foundation for their operations. The Maltese government actively develops laws which promote innovative growth by protecting end-users and sustaining market authenticity. Through its regulatory authority, the Malta Financial Services Authority (MFSA), it operates with an efficient and approachable approach that earned it worldwide respect.

According to Ektico, companies benefit from regulatory certainty that produces the conditions needed for business growth and investment. The introduction of a detailed regulatory structure for virtual financial assets (VFAs) became one of the earliest initiatives which Malta established for cryptocurrencies, combined with blockchain technologies. The innovative regulatory actions drew many cryptocurrency exchanges, alongside blockchain startups and companies from DLT operations, to this market. Through the Virtual Financial Assets Act (VFAA), there is a comprehensive legal structure which establishes guidelines for VFAs, as well as VFA exchange management and related service delivery. The regulatory clarity in Malta has proven highly attractive because it provides stable operating conditions for companies that need certainty.

A robust financial infrastructure

Malta provides its businesses with a highly advanced financial infrastructure on top of its regulatory structure. The country supports fintech success through its developed banking industries, alongside modern telecommunications systems and a specialised labor force. The robust financial infrastructure plays a pivotal role by enabling smooth business functions and enabling robust expansion, according to Ektico. Through its EU membership, Malta enables its fintech companies to benefit from single market access, which allows them to provide their services throughout the union without requiring individual licenses for each member state. Companies wishing to expand their business find substantial benefits in the more than 450 million consumer market which Malta provides access to.

A skilled workforce and educational institutions

Fintech success in Malta heavily depends on the abundance of competent workers in the market. Educational programs in Malta produce graduates who meet the requirements of financial services and technology operations. Ektico endorses the significance of this skilled workforce group by supporting continuous initiatives aimed at bettering specialised fintech-specific training programs. The combination of lucrative living conditions and working opportunities draws international professionals to Malta effectively. The pleasant climate, along with high life quality and less expensive expenses compared to other European banking centres, makes the island very attractive for international financial professionals.

Government support and initiatives

Through multiple initiatives, the Maltese government actively supports the growth of financial technology development. The government supports businesses through tax privileges, in combination with startup and existing company grants and business assistance programs. Ektico recognises the government's active approach toward promoting innovation and development of a suitable business framework. Digital transformation receives the government's full support through its sustained efforts to facilitate technology adoption across different economic sectors. Digital development obtains funding from the government through investments and programs that enable smart city development while promoting digital technology use in education and healthcare.

Ektico observes that Malta offers excellent potential for fintech growth while planning its financial technology trajectory. Through its combination of strategic regulatory benefits with robust infrastructure and skilled workforce and government backing, Malta will establish itself as a premier future-oriented fintech centre. The company underlines the necessity of sustained public-private sector teamwork to keep Malta as a leading fintech innovation centre. The specific number of fintech companies in Malta remains elusive since the industry changes rapidly, yet reports present evidence for substantial expansion.

The MFSA data shows increasing numbers of VFA agents registered with the institution, which demonstrates that cryptocurrency and blockchain technologies thrive in Malta. Malta maintains its prominent position through the expanding market of both online gaming and financial services sectors. Analysed through Ektico's expertise and knowledge base of the industry, it seems that future growth and investment opportunities exist for Maltese fintech operations. Ektico asserts that fintech companies should choose Malta for establishing their businesses because of its dedicated innovative culture and advantageous characteristics. Malta's position protects its role in defining the financial direction of the future, according to company predictions. Statistical data, along with positive facts, reveal why Malta functions as an attractive destination for fintech operations.

Statistics

• 2,070+ Authorised entities in Malta's financial sector in 2020 (source: MFSA).
• 12,200+ Employees in Malta's financial sector in 2020 (source: MFSA).
• 5.5% Real GVA growth rate in Malta's financial sector in 2020 (source: MFSA).

About half of all financial services companies in Malta have either digitised their operations or implemented enabling technical systems (this stat comes from the MFSA).

Benefits

• EU membership provides members the opportunity to serve the 450 million consumers within the EU single market.
• Malta provides attractive corporate tax rates, alongside multiple business incentivising tax programs.
• Organisations tacitly choose Malta as their foundation to penetrate European, Middle Eastern, and African markets through its strategic position.
• International companies find Malta advantageous for business activities because English operates as an official language within the country.

Ektico considers Malta's proactive regulatory approach and innovation dedication, combined with these statistics and bulletins, as strong indicators that the country offers ideal conditions for fintech companies establishing new offices and market expansion. The organisation anticipates that Malta will maintain its position as a leader in creating the financial future of tomorrow.