Luxembourg’s fintech ecosystem has grown significantly over the past decade, creating a new industry for the Grand Duchy.

Today, the sector is largely B2B, with regtech, fundtech and tokenisation companies providing innovative solutions to financial institutions in areas such as back-office processes, regulatory compliance, onboarding and anti-money laundering and know-your-client (AML/KYC) requirements. A survey by EY and the Luxembourg Bankers’ Association (ABBL) found that regulatory investment costs account for 41% of total investment expenditures in Luxembourg’s banking sector, highlighting the growing importance of regtech.

Luxembourg is also a leading player in the EU payments sector and continues to attract international companies in digital assets.

What makes Luxembourg attractive is the proximity of its fintech ecosystem and access to decision-makers in traditional finance, fluency in English across the financial services value chain, and a strong culture of cooperation. The Luxembourg House of Financial Technology (LHoFT) helps fintech companies connect with customers, investors and international networks, while the Financial Sector Supervisory Commission (CSSF) encourages dialogue with market participants while maintaining high standards.

These strengths continue to support the development of Luxembourg’s fintech ecosystem.

Read the interview with Nasir Zubairi, CEO of the LHoFT, in “Small but mighty: The secret to Luxembourg’s fintech success” by Lydia Linna - https://luxembourgtradeandinvest.relayto.com/e/crossroads-innovation-research-and-investment-in-luxembourg-6a04b55bb5ccb/GKd1ugvN24