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Article


THE FUTURE OF THE LUXEMBOURG FINANCIAL INDUSTRY


HOW TACKLING FOUR CRITICAL DIMENSIONS WILL STRENGTHEN LUXEMBOURG’S POSITION AS A
UNIQUE FINANCIAL MARKETPLACE


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During this year’s 10th edition of the Horizon Conference—Deloitte Luxembourg’s
annual flagship event on 28 September—Nicolas Mackel, CEO of Luxembourg for
Finance, previewed the eagerly awaited study on the Luxembourg financial
sector’s future, conducted in collaboration with Deloitte Luxembourg.

The study aims to give players and customers an in-depth understanding of the
Luxembourg financial sector by providing a snapshot of Luxembourg’s economic
trends, the forces driving the market, and the positioning of Luxembourg as a
financial hub going forward.

While the Luxembourg ecosystem has evolved over the years, the economy remains
stable and resilient. Its GDP growth outpaces the European Union average, buoyed
by a more than 30% contribution from its financial services industry (FSI). For
this reason, maintaining and nurturing the competitive strengths of the FSI is
critical for the economy.

To understand how to sustain and grow business activities, Luxembourg for
Finance in collaboration with Deloitte conducted a survey titled “The future of
the Luxembourg Financial Service Industry”. This involved open-ended remote
interviews with players active in Luxembourg, sessions with senior industry
experts, and robust analysis of the market. The study’s results were unanimous:
the Luxembourg FSI needs an enhanced, customer-focused perspective to strengthen
its competitive positioning as a unique financial marketplace.


PDF - 4mb Download the report


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THE FUTURE OF THE LUXEMBOURG FINANCIAL INDUSTRY



Four dimensions emerged as critical to continue creating a valuable proposition
for the financial ecosystem:

 * Internationalization: the Luxembourg FSI must continue to emerge as a
   cross-border center of excellence to differentiate itself from competitors
   and attract international investors thanks to its plug-and-play model;
 * Innovation: technology must drive the innovation of products, services and
   models, to become a core pillar of the FSI’s strategy and not just an
   enabler;
 * Sustainability: the Luxembourg FSI must strengthen its position as the global
   hub for sustainable and impact investing by integrating purpose-driven
   models; and
 * Talent: Luxembourg must boost its attractiveness for specialized skills and
   cross-border expertise by focusing on the human dimension.




Click the image to enlarge


Considering these four critical dimensions and how the financial ecosystem may
react towards them, the Luxembourg FSI could evolve into one of these four
potential scenarios:

Click the image to enlarge


Most of the study’s respondents believe that Luxembourg’s ambitions will push
the financial ecosystem in one clear direction. This is the rewired value model,
where FSI players will focus on providing long-term added value for society by
addressing these four dimensions and emphasizing the customer-centric approach.

This outlook foresees Luxembourg as one of the major global financial hubs for
sustainability and innovation investments, therefore attracting international
investors with increasingly sophisticated needs. FSI actors will lead the
transition to 100% sustainable activities, discover new market potentials, and
harness technology to enable fully efficient and end-to-end digital processes.
In this scenario, Luxembourg will continue to attract the most talented minds
from around the world and be able to retain a skilled and experienced workforce
more than ever before.

To discover the recommended and concrete calls for action that FSI players
should heed today, as well as the implications of this future scenario for both
players and customers, we strongly suggest you consult the full report, now
available here.




CONTACTS

PASCAL MARTINO

PARTNER | BANKING AND HUMAN CAPITAL LEADER

pamartino@deloitte.lu

+352 45145 2119

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Pascal Martino has 18 years of experience in Business Consulting and Advisory
services and developed a wide expertise in Private and Retail Banking. Pascal is
leading the Banking industry transversall... More

FRANCESCA MESSINI

PARTNER | FINTECH AND SUSTAINABILITY LEADER

fmessini@deloitte.lu

+352 45145 2791

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Francesca is a Partner within Deloitte Advisory & Consulting and specialized
over the last fifteen years in strategy and regulatory advisory. As part of her
role, Francesca is leading the sustainabili... More

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