Stefan Lucas, CEO and founder of industry platform FinTech Armenia, has urged the UK to capitalise on Armenia’s emerging role as a digital finance hub, describing the country as an “open goal” for British firms seeking sustainable growth and new trade partnerships.
In a guest editorial for The Fintech Times, Lucas argues that while the UK searches for new economic allies, it often overlooks high-potential markets on the fringes of Europe. He positions Armenia not just as a former Soviet republic, but as a rapidly developing “Eurasian transit hub” for trade and technology.
A shifting geopolitical landscape
The call to action comes amid significant diplomatic developments. Lucas points to the strategic partnership signed between the UK and Armenia in August, alongside the nearing completion of an Armenia–Azerbaijan peace framework.
“When implemented, this agreement will end decades of geopolitical stasis in the region by unlocking borders, creating additional transport links, and revitalising trade,” Lucas writes.
Closing the gap
According to Lucas, Armenia is already leading the South Caucasus in digital finance and human capital. In 2024, cashless card transactions in the country reached 3.6 trillion drams (approx. $9.1bn), accounting for just over half of total transaction value.
He attributes this momentum partly to a massive influx of talent. “This advantage expanded significantly in 2022–23, when thousands of developers, data scientists, fintech and AI professionals relocated from Russia, Belarus, Ukraine and Israel,” he notes. “Many stayed. Banks hired them, startups absorbed them, and new fintech and AI companies were founded as a result.”
Lucas also highlighted the proactive stance of the Central Bank of Armenia (CBA), which has adopted a sandbox-style approach to regulation. The country is currently running pilot projects exploring open banking, digital identity, and blockchain, with plans to test central bank digital currencies (CBDCs) in the next 12 to 24 months.
Three priorities for the UK
Lucas outlines three key steps for British firms and policymakers:
- Establish a presence now: Investors should enter while the ecosystem is young enough for capital and expertise to have “shaping power”.
- Embed fintech in diplomacy: Fintech and AI should be central to the UK–Armenia Strategic Partnership to deepen cooperation on regulation and AML compliance.
- Early engagement: Practical trade missions and pilot projects are essential to build trust and identify credible partners.
“For the UK, Armenia offers something increasingly rare: a well-regulated test market with regional scale-up potential which is opening to the world just as geopolitical barriers are falling away,” Lucas concludes. “Those who engage early will help shape the market, and those who wait will simply compete in it.”
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