FinTechs
In Luxembourg, FinTech and banking go hand in hand. Rather than disrupt, FinTechs act as strategic enablers, helping banks modernize, digitize, and navigate today’s fast-evolving regulatory and technological landscape.
The country’s FinTech ecosystem is deeply connected to its well-established banking sector, creating a collaborative model that blends innovation with financial stability.
FinTechs Powering Luxembourg’s Banks
A wide range of FinTechs are actively supporting the transformation of Luxembourg’s financial institutions across several key areas:
RegTech: Streamlining Compliance
Luxembourg’s status as a highly regulated financial centre has driven the rise of Regulatory Technology firms, offering banks efficient, digital solutions to meet compliance requirements:
- Automate AML/KYC processes.
- Comply with MiFID II, AIFMD, SFDR, and ESG reporting frameworks.
- Enhance risk assessment and fraud detection.
Common solutions include: digital ID verification, e-signatures, transaction monitoring, and automated regulatory reporting.
PayTech: Powering Digital Payments
As digital and contactless payments become the norm, FinTechs play a central role in building Luxembourg’s modern payments infrastructure. Banks collaborate with:
- Mobile wallet providers.
- Payment gateway integrators.
- Cross-border and real-time settlement platforms.
This collaboration supports seamless customer experiences and efficient back-end processing for both retail and corporate banking.
WealthTech: Enhancing Private Banking
With Luxembourg’s strong private banking and asset management foundations, FinTechs bring tailored digital tools to support:
- Onboarding of high-net-worth individuals (HNWIs).
- Portfolio visualization and robo-advisory platforms.
- ESG scoring, sustainability insights, and personalised reporting.
These technologies are increasingly embedded within private banks’ digital offerings, enhancing both client experience and advisory capabilities.
Open Banking: Enabling Next-Gen Finance
Following the introduction of PSD2, banks in Luxembourg have embraced open banking by integrating with Third-Party Providers (TPPs) and developing API-enabled services:
- Account aggregation tools.
- Embedded finance solutions.
- Consent management dashboards and secure API gateways.
This shift is paving the way for more client-centric, modular, and interoperable banking ecosystems.
Supporting Innovation: Collaboration Platforms & Labs
FinTech–bank collaboration is nurtured by Luxembourg’s thriving innovation infrastructure:
- The LHoFT (Luxembourg House of Financial Technology): A national hub for FinTech development, partnerships, and proof-of-concept initiatives.
- ABBL’s FinTech & Innovation Forum: A leading platform uniting banks, FinTechs, and regulators for collaboration and thought leadership.
- Bank-led innovation labs and accelerators: Financial institutions are launching in-house initiatives and joining industry sandboxes to co-develop solutions with startups and scale-ups.
Interested in joining the ABBL FinTech Circle?
If you are interested in getting connected with ABBL members such as banks, payment institutions, electronic money institutions, consultants, law firms and financial sector professionals and eager to contribute to the shaping of the future banking and financial services, just fill in the form and one of our advisers will contact you shortly.
