How a Baltic PSP became the second fastest-growing player in the region, tripling their revenue

Context

With an EMI license in Lithuania, this Lithuanian fintech operates across Europe, serves a variety of financial institutions and corporate customers with a range of financial services activities including issuance of e-money, real-time unit and batch multi-currency payment execution (domestic and cross-border), the opening of IBAN accounts, SEPA payments, SWIFT payments etc. With an API friendly approach, the company enables online businesses to accept payments and easily access SEPA rails. 

Challenge

The Lithuanian fintech was struggling with a legacy IT solution. Based on old java versions and Internet explorer, rigid, monolithic and neither scalable or secure enough, the software was obsolete. 

This legacy technology started to have numerous business impacts : inability to launch new products in multiple countries (such as a B2B API product, SWIFT, instant payment), difficulty to easily control AML processes, insufficient customer experience, impediment to transactions growth, lack of configurability and product flexibility (to change pricing fees / grids for instance). 

The challenge was to transition from legacy to modernity without impacting business continuity and with controlled risks. 

The Solutions

Moving out of a monolithic legacy solution, the Baltic fintech and Skaleet designed a hybrid solution. This model combines best-in-class SaaS vendors (Skaleet for the core banking and API-based orchestrator, Salv for the Anti-Money-Laundering checks and Inventi for the Centrolink SEPA connector) with assets built in house on top of Skaleet’s platform and API by client’s tech team (front-end and connectors between the different assets and banking partners). 

Both teams built this ecosystem hand-in-hand. Then they executed a big bang migration smoothly, without data loss or service interruption.

The success

The EMI safely migrated from a monolithic legacy software that was blocking its growth to a modern modular solution that combines best-in-class SaaS vendors assets with inhouse custom built developments. Quickly after the migration, the PSP was able to launch new products quickly (API product and Instant Payment for instance). 6 months after the migration, the payment provider had multiplied its monthly transactions by 8. More recently, the company became the second fastest PSP and the region and tripling their revenus.