Banking in Luxembourg: Trends & Figures 2019

Located in the heart of Europe and home to 135 banking institutions from all over the world with a range of varied business models, Luxembourg has truly become an international financial centre. Whereas the majority of the banking institutions are from other European countries, Luxembourg has also proven to be a viable gateway for American banks and, more recently, for Chinese banks that want to operate in the European market.

Our annual report takes an analytical view at this diversified banking landscape, aiming to identify the major trends within the Luxembourg and European banking industry and analysing the factors that make Luxembourg unique in Europe.

Luxembourg Banking Survey 2019

New this year! To capture the major trends within the Luxembourg banking industry, we’ve gathered the opinions of the main representatives of banks located in Luxembourg. The result is a survey on the state of the current and future banking business until 2021. It illustrates the priorities for Luxembourg bankers in the short term and the trends that will impact their business the most in the coming 3 years.

Our survey covers the 5 following dimensions: 

  • The development of the banking sector in Luxembourg

  • People

  • Transformation

  • Customers

  • Current and future trends

Key takeaways

Banking competitiveness fueled by upskilling

One of the most relevant takeaways of the survey is linked to the human element. 

Because of fierce competition for talent, Luxembourg banks are expanding their geographical focus for skills search.

Moreover, respondents report that specific skills shortage is influencing their organisation’s growth prospects. Factors such as quality standards and/or customer experience are impacted, for instance, because the time to market of certain products increases. In addition to this, banks reported surging people costs and an impact on the organisation’s capacity to innovate.

Luxembourg within Europe

Luxembourg is a major financial centre, located strategically in the heart of Europe.
It comes as no surprise that the country has strong links not just with its neighbouring countries - France, Belgium and Germany - but also with the rest of Europe and far beyond.

Factors shaping the Luxembourg's banking Industry

How Luxembourg differs from other financial centres and what are its unique advantages within Europe? Know more by reading our publication.

Luxembourg banking sector's evolution

Number of banks

With 135 authorised banks at year-end 2018, the number of banks has slightly decreased by four.
132 of the 135 authorised banks have a universal banking licence, whereas three banks (all of them belonging to the German segment) solely have a mortgage-bond banking licence.

Countries of origin of banks established in Luxembourg

89 banks are under Luxembourg law, 32 are branches of banks from EU Member States or a country considered on equal terms and 14 are branches of banks from non-EU Member States.

Contact us

Roxane Haas

Banking Industry Leader, PwC Luxembourg

Tel: +352 49 48 48 2451

Olivier Carré

Markets and Strategy Financial Services Leader, PwC Luxembourg

Tel: +352 49 48 48 4174

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