Magazine BEAST #12 2018

6 #Business | FinTech
As the prime gateway to the EU market, Luxembourg helps these
companies to serve the whole European market. In return, their
presence in Luxembourg helps to push innovation in the EU by
bringing new ideas and talents. They help enriching the already
highly competitive and innovative local Fintech ecosystem.
Since the vote in favor of Brexit, several finance and insurance
companies have decided to set up their European headquarters
in Luxembourg. According to you, why did these companies
decide to join Luxembourg over other European leading financial
cities?
What the Brexit has shown first and foremost, is that Luxembourg
is one of the most competitive financial centers in the EU.
By that I mean, unlike other European financial centers,
Luxembourg did not actively try to attract companies, based
in the UK, in the wake of the referendum. Due solely to the
attractiveness of the financial center and its ecosystem,
Luxembourg has managed to attract more financial players than
other European financial centers. Luxembourg is the natural
choice for companies that prepare for a hard Brexit. Furthermore,
the fact that Luxembourg’s and the UK’s industries have been
complementary for a long time, makes our financial center even
more attractive.
Do you think that this trend will lead to other companies moving
to Luxembourg and benefiting from its advantages?
For companies from outside the EU that want to operate inside
the EU, Luxembourg is and has always been a natural choice.
I think for example of Swiss banks and insurers. Let me also
remind you that over the last 30 years, Luxembourg has been
the first choice for Chinese banks in Europe.
Only in the last 5 years, 4 additional Chinese banks have chosen
Luxembourg as their European HQ. Today, 7 Chinese banks
have their European HQ here in Luxembourg. This reality has
thus existed for many years, and in a way the Brexit has been
an accelerator. I am thus very confident that companies will
continue to join over the next years.
PSD2 is also changing the way banks and tech companies are
collaborating, and aim at benefiting the end-user with smoother
and easy-to-use secure solutions to process payments. How can
Luxembourg be a leader/pioneer in this topic?
By establishing an innovation friendly regulatory framework,
the EU is preparing the industry to adapt to change. The PSD2
gives a good idea of where the global industry is headed, and
the effects will be felt across the globe. The regulation will
force financial service providers to develop an open banking
strategy. In this context, Fintech startups are enablers – and not
disruptors. Once again, collaboration is key to success.
I welcome the LuxHub initiative, which has been launched
recently by four major Luxembourg banks. This initiative will
help the local industry to develop new innovative solutions and
standards in the age of open banking. Today, the LHoFT hosts a
critical mass of startups active in payments that will help prepare
the industry for open banking. Hence, I’m very optimistic for the
future development of the Luxembourg financial center.
BEAST MAGAZINE #12
© Photographie - Dominique Gaul