However, for a few years now, the global financial industry has been facing drastic changes and Luxembourg has definitely not been spared by this revolution. New technologies leading to evolving and fast changing customer behaviours as well as the arrival of new market entrants attracted by this favourable environment have turned the Luxembourg banking landscape upside down. Traditional banks are forced to rethink the way they interact with their customers, which is leading to a new generation of service offerings.
The need to keep control over costs and compliance matters has never been so crucial. Defining new target operating models, adapting to a new operating environment or revamping existing procedures or processes, as well as reconsidering IT infrastructure, systems and applications are permanent challenges for banks operating in Luxembourg. The questions and issues encountered during such exercises are multidimensional and wide ranging.
Throughout this publication, we will explain how FinTech, Blockchain and Cryptocurrencies, as well as Robotics and Artificial Intelligence are reshaping the banking industry. Regulatory pressure - partially - linked to these new players or tools is higher than ever before; GDPR and PSD2 among others will have a tremendous impact on banks in Luxembourg. Data and security are definitively as well at the heart of all current concerns.
This dynamic environment is profitable for all players within financial services. On the one hand, FinTechs represent a real pool of disruption; they put pressure on banks to deploy better and faster products and services and then accelerate the pace of innovation but also provide a source of inspiration and capabilities through partnerships and acquisitions. On the other hand, the deployment of externalisation of some services represents an opportunity for banks to better invest in their product offerings and develop new activities.
At the same time, in a world shaped by technology and digitisation there is a crucial need to find the right people armed with the relevant skills to address all these topics. Today, Banks need to recruit profiles who did not even exist a few years ago and simultaneously consider a requalification in new areas of expertise for part of their workforce in order to support their own digital transformation.
Time has come now to embrace all these new challenges in order to transform them into business opportunities. At PwC, we are looking forward to supporting you through your transformation.