Drawing on a long history of innovation, Luxembourg is committed to fostering new ideas and companies. By providing a rich, supportive environment for today’s FinTech pioneers it is leading the way for tomorrow’s financial services industry.
Luxembourg has a dedicated national FinTech platform: the Luxembourg House of Financial Technology (The LHoFT). Charged with building and fostering Luxembourg’s burgeoning FinTech ecosystem, the LHoFT brings together financial institutions, FinTech innovators, research, academia and public authorities, to help drive forward the development of products which meet specific industry needs.
The LHoFT also makes connections with other FinTech nodes around the world, encouraging domestic and international collaborations, working groups and initiatives.
When FinTechs from out of town arrive in Luxembourg, looking for a tech-friendly base from which to explore the European Single Market, the LHoFT is there to help them settle in, grow and make the right connections.
Luxembourg has many sources of private and public funding available to boost the development of FinTech companies, not just as start-ups but throughout their life.
Commitment from the industry in engaging with the FinTech community is also demonstrated by the dedicated working groups ran by industry associations such as the Association of the Luxembourg fund industry (ALFI) and The Luxembourg Bankers’ Association (ABBL).
A considerable number of FinTech companies, including leading industry players in e-commerce and e-payments, such as PayPal, Amazon, and Rakuten, have chosen Luxembourg as their European hub.
Global FinTech pioneer Paypal has been operating out of Luxembourg since 2007 with a full banking license, allowing it to offer a broad range of services to its customers across the EU with a single license, as does Rakuten.
Main activities in FinTech:
FinTech companies looking to develop and commercialise their activities in Europe can leverage Luxembourg’s highly developed financial ecosystem.
Uniquely specialised in international and pan-European business, the fund administrators and custodians, wealth managers and bankers, insurers, law firms and tax advisors of the Grand Duchy speak many languages.
Luxembourg’s tech friendly regulatory environment helps Fintech projects to flourish.
Unmatched in their long-standing experience of authorising and regulating financial institutions, Luxembourg’s regulators provide FinTechs a strong environment from which to develop their products and services on a cross-border basis, throughout the EU.
"The openness to innovation in Luxembourg and the proximity of the banks, who are our main business partners, makes it an ideal testing ground for us to quickly learn what works and what doesn’t.”
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