FinTech
Sectors

The financial centre represents a significant potential client base for FinTech companies setting up in Luxembourg. There are nearly 150 banks, 332 insurance and reinsurance companies, financial infrastructure companies such as the stock exchange and central securities depositories, as well as a world leading funds industry. Digital payment services and virtual currency firms are also active.

The majority of FinTech companies are established firms of foreign origin that have set up in Luxembourg.

They have come to benefit from the close proximity to clients and from the available talent pools (both in finance and technology) they need to develop their businesses.

At present, there are around 150 FinTech companies in Luxembourg, with roughly half of them providing IT infrastructure or IT services. The other half are software- or technology-based business service providers. 

Outsourcing is actively supported by the Government, with specific legislation applying to the relationship between service providers and financial institutions. This ensures that service providers are regulated to the same extent as financial institutions themselves, particularly regarding operational risks and confidentiality breaches. This enables financial institutions to concentrate on their core business as they entrust auxiliary, yet business-critical, activities to specialised service providers.

The “Professional of the Financial Sector (PFS)” status is granted to service providers that deliver operational services to financial institutions. To receive this from the regulator, they must ensure data protection and the high level of confidentiality required by the financial sector, plus they must guarantee the physical and digital separation of all data originating from customers from the financial sector.

All major IT companies located in Luxembourg carry this label, including international groups such as Atos Origin, CSC, Dimension Data, Fujitsu, Hewlett-Packard, IBM, Tata Consulting, Verizon, to name just a few.

As Luxembourg’s expertise in finance has grown, an extraordinary pool of data handling resources and skills has developed. This ensures the high quality of services and professional confidentiality required in this sector, and guarantees secure and confidential client information processing.

Testimonial

Denis Kiselev

CEO
SnapSwap
What is interesting about SnapSwap?
As a licensed payment institution, SnapSwap is entitled to hold payment accounts and provide services to individuals, companies and financial institutions within the European Union and worldwide. The company can also issue and process payment instruments on distributed payment networks, allowing faster, less expensive and more accessible payments. Our focus is to develop consumer applications for peer-to-peer and customer-to-merchant payments and other financial transactions utilising modern cryptographic technologies and Internet protocols, such as blockchain and open ledger consensus.
What prompted you to choose Luxembourg?
We discovered Luxembourg as a great European hub for financial innovation. The business environment is open, international and cooperative. Financial regulators are open to meaningful discussions with regard to the most complicated innovative financial technologies.
How will you be growing Snap Swap in Luxembourg?
We are building SnapSwap international headquarters in Luxembourg, and we are planning to concentrate our R&D efforts and resources in Luxembourg.
What do you think Luxembourg could improve upon?
It is to early for me to say, I am still waiting for immigration formalities to be completed to allow me relocate to Luxembourg with my family.
What is your favourite thing about Luxembourg – personally?
Personally - I love being in a central location in Europe in close proximity to major European financial and cultural centres, at the same time living in a city of a human scale. And I love local restaurants.
Any extra thoughts?
I’m looking forward to refresh my French and to learn some Luxembourgish.

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