Embracing digital transformation while reinforcing trust

Customers expect more, and better

The digitalisation of society has profoundly changed how clients interact with their bank. Today, autonomy, personalisation and immediacy are the new standard.

Clients now expect:

• seamless access across multiple channels,
• customised services and investment proposals,
• real-time responsiveness.

This shift requires banks to rethink their tools and models, but also to reinforce the resilience and security of the systems that enable this autonomy.

A regulatory push towards innovation

Digital transformation is not only driven by customer needs: it is also accelerated by regulation.

New European frameworks, such as DORA or the future digital identity wallet, impose new standards for operational resilience, data governance and user experience.

“Regulation is a key driver of change. Instant payments, digital ID, and harmonised data access are transforming the way institutions operate — and speeding up key processes like onboarding.”
— Ananda Kautz

For banks, these changes open the door to:

• simplified customer journeys,
• greater interoperability between actors,
• opportunities for collaboration with fintechs.

The ABBL is supporting these transitions through dedicated forums and working groups that bring together traditional institutions and innovators.

Data and AI: unlocking new value

At the core of the digital transformation lies a critical asset: data.

To remain competitive, financial institutions must be able to:

• collect and process real-time information,
• implement intelligent decision-making tools,
• deliver truly personalised services.

According to a joint study by the BCL and the CSSF, 43% of financial institutions in Luxembourg already have AI applications in production.

“Technology enables personalised and fluid interactions, but it must rely on secure, reliable, and integrated infrastructures.”
— Ananda Kautz

The ABBL helps its members navigate these developments by identifying use cases, best practices and strategic frameworks for the responsible use of emerging technologies.

Cybersecurity: trust as a foundation

With digitalisation comes increased exposure to cyber threats. The ABBL places cyber resilience at the heart of its priorities.

Recent months have seen a sharp rise in online fraud, prompting action at every level of the sector.

To address this challenge, the ABBL and the Luxembourg House of Cybersecurity launched the national awareness campaign “Don’t click!”, in cooperation with over 15 partners.

“Cybersecurity and resilience are now central concerns for bank executives. Institutions must be prepared to detect, respond and recover from cyber incidents — and protect client trust at all times.”
— Ananda Kautz

To further support users:

• a 24/7 national hotline has been set up: (+352) 49 10 10,
• users can block their LuxTrust certificates in case of suspected fraud,
• practical advice and prevention tools are available at cyberfraud.lu.

This article is based on the interview with Ananda Kautz, published in the Luxemburger Wort’s banking ranking supplement on 8 July 2025.