In recent years, most Latvian residents and businesses have been served by a few large banks, while some credit institutions offer a narrower range of services to fewer customers. The government and regulatory authorities have long been complaining that the current situation has left industry players feeling very comfortable, while there is no competition in the market that would help change interest rates on loans and deposits, or improve the quality of other services. Perhaps this will change now. Indexo was founded in 2017 by more than 30 well-known Latvian entrepreneurs and executives. Initially, the company offered a second-pillar pension plan management service, and in 2022, it announced an IPO and plans to establish a bank. However, the process of establishing the bank was long and complicated, with Indexo repeatedly raising additional capital and reporting other difficulties. In mid-May, the European Central Bank (ECB) decided to issue the company a banking license.
