Latvia is making a push for EU fintech hub status in a battle with fellow Baltic states Lithuania and Estonia.
Latvia is making a push for EU fintech hub status in a battle with fellow Baltic states Lithuania and Estonia.
In context
- Topic: Banca y Fintech — Banca digital, pagos, open banking y regulación financiera.
- Source: Finextra
- Published: 13/10/2026
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Why it matters
Financial services has one characteristic that makes it unlike every other sector: it can fail on experience and survive, but it cannot fail on trust. That is why moves that look slow from the outside are usually prudent from the inside.
I read these stories with two questions on top: what happens to cost per transaction and what happens to risk. If cost drops but risk rises without anybody measuring it, the saving is borrowed and gets repaid with interest on the day of the first incident.
What usually goes wrong
What I see fail most is underestimated compliance load. The product gets designed around the customer and legal comes in late, once it is already built. That is when requirements appear that force whole flows to be redone, and what was going to ship in one quarter ships in three.
What to watch
- What happens to cost per transaction at real volume, which is where the business is decided.
- How daily reconciliation is left, which is where the cases nobody modelled show up.
- What the local regulator requires and by when, because the deadline is usually the real constraint.
How I read this entry
If this came into an institution, I would look at reconciliation first. Everything new in payments looks fine until the day has to balance, and that is when the cases nobody modelled appear: reversals, duplicates, half-completed transactions. That boring work decides whether the product is sustainable.
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Living through this in your own team?
Open the chat and tell me how you're handling it. I'm interested in comparing notes.
