The Luxembourg internationalized banking sector offers an unparalleled range of services and world-class financial infrastructure. As a global financial hub, Luxembourg has remained resilient and competitive, even in an increasingly complex regulatory environment.
But with new compliance challenges stemming from PSD2, Luxembourg’s banks need to reflect on their banking software, business strategy, and how they will operate in a world of open banking. A combination of changing consumer preferences and competition from fintech startups creates market pressure on Luxembourg banks to develop their digital capabilities.
According to Deloitte, Luxembourg is behind other countries in Europe in terms of digital banking maturity. Classified as a digital adopter, Luxembourg’s banks are still focused on transferring their existing services to digital while their competitors are creating financial and service ecosystems around their banking platforms and capturing market share.
Luxembourg is a digital adopter. Source: Deloitte
Digital latecomers in Luxembourg will need to move beyond their status quo and build their banking platforms or risk falling behind more digitally mature incumbents and fintechs. Given the investment necessary to develop a digital banking platform from scratch, many players decide to adapt existing solutions to their needs. You can find out more about what it takes to build a digital bank like Revolut in our previous article.
Companies like Sopra banking have been providing custom or ready-to-use banking platforms to help accelerate digital transformation for many clients worldwide. Many more worthy next-generation companies are helping banks develop modern digital banking software in Luxembourg. SDK.finance and their core banking platform has been particularly successful at leveraging advanced tools to help financial institutions modernize their services quickly and easily.
As entrants with stronger digital competencies begin to enter new markets, incumbents could be set for a shake-up as customer preferences evolve, and competition increases. Collaboration between incumbents and specialized fintechs can address these digitalization pressures and lead the way to the future of banking.
Global core banking software providers like SDK.finance can help banks in Luxembourg reach a broader market with modern solutions faster, cheaper, and more efficiently. The digital retail banking software is available in all popular formats: web, iOS, and Android applications that help to reach the new generation of mobile customers quicker.
SDK.finance provides technology and supports banks of all kinds at every stage of the digital transformation from market research to product launch and scaling. Banking customers can benefit from a modern and secure experience guaranteed by two-factor authentication, biometric checks, security notifications, and Strong Customer Authorization for payments.
The Platform consists of 5 main components: a back-end wrapped in 400+ API endpoints, 3 front-end frameworks, and a web for system management with capabilities in iOS and Android for our clients.
Advantages of software that is built on API-first architecture:
- The speed of releasing new features and functionality is much faster
- The cost of ownership is more economical
- Fewer bugs and more stable products exist
- Better flexibility, scalability, and features are just some of the advantages of the SDK.finance core banking software ready for Luxembourg banking.
Click here to find out more about the Luxembourg banking software solution and how it can help your business unlock new opportunities.