ENTREPRISES & STRATÉGIES — Finance & Légal

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“High Expectations for Open Finance”


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In a constantly evolving environment, the path to Open Finance is often challenging. Innovation and collaboration have become key components of all efforts to satisfy enhanced customer expectations. The time is now to prove that Open Finance can accelerate towards its full potential.

Built on compliance

LUXHUB emerged from the shared vision of 4 leading Luxembourgish banks to become a key driver of the European financial industry’s evolution towards Open Banking.

Our first core activity was to support banks throughout their PSD2 compliance process, but rapidly we adapted to keep pace with the evolution of the new financial ecosystem and began developing products to pave the way towards Open Finance.

LUXHUB has brought together a vast range of Open Banking expertise, and our progress has been driven by a dedicated team boasting both the skill and desire to ensure that our products provide easy and intuitive integration alongside real value.

From PSD2 compliance right through to enhanced Open Finance, the road is paved with both challenge and opportunity. And it is at this conjuncture where LUXHUB finds its overall mission – to develop best-in-class Open Finance products and provide a platform for others to do the same.

Launching the next phase

In early May 2020, LUXHUB announced an additional €7.4 million investment from our 4 founder banks, cementing our position as one of Europe’s leading Open Banking FinTechs.

This capital boost was catalyzed both by the successful development and delivery of our initial PSD2 compliance product and as a result of the high levels of confidence our 4 founder banks have in LUXHUB’s overall vision.

And it’s this vision that we are now able to see coming to fruition, with the additional €7.4 million investment further accelerating our growth and enabling us to be leaders, as well as drivers, of innovation within European Open Finance.

A new creative environment

Open Finance will have a much broader impact on the financial services industry than Open Banking, bringing greater opportunity but also greater challenges. A new creative environment will be established in order to keep up with the rapid pace of digital innovation.

Whereas Open Banking applies to payment accounts, Open Finance could mean that savings banks, insurers, investment managers, consumer credit companies, business lenders, mortgage lenders, and others would all have to implement similar interfaces and procedures.

With this in mind, LUXHUB is developing an Open Finance API Marketplace to bring products and their creators together – alongside the banks and financial institutions. This will help to catalyze greater collaboration within Luxembourg’s Open Finance ecosystem and beyond, providing an easy and secure way to both promote and consume new products and services.

By providing a secure playground where finance API service providers can publish and consume their respective APIs in a standardized way, the integration journey is simplified and thus consumers are able to offer value added services to their customers quicker. At the same time, the API providers are able to generate API-derived revenue without having to overly commercialize the products themselves.

User experience: the cornerstone of Open Finance

Open Finance provides aggregation services that automate the gathering of data from numerous sources in a wide variety of formats and delivers that data in a single consolidated way.

The user experience is the cornerstone of Open Finance. Consumer financial health will be improved as a result of increased innovation in the finance sector, the broader range of products and services on offer as a result, and the increasingly tailored nature of these products and services.

Following this trend, LUXHUB have developed LUXHUB One - a state-of-the-art product for account aggregation and payment initiation via a simple, unified API.

LUXHUB One is a solution for financial institutions and third-party providers to leverage Open Finance without the laborious task of implementing fragmented APIs.

LUXHUB One is destined to improve the final customers’ financial life by enabling them to access a comprehensive view of their financial information in one place and providing them with the ability to make payments and money transfers direct from a bank account.

Impressive and innovative solutions can be built using our service, with a wide variety of potential use cases across multiple industries.

It’s all about partnerships

As true innovation waits in the wings, key partnerships are being built and banks are being redefined.

The creation of a clear vision for the role of open data and the delivery of enhanced customer experience through tech innovation will become a crucial factor in attracting new customers and retaining existing ones.

LUXHUB is the technical service provider that empowers all financial institutions with the foundations required to thrive within the new Open Finance ecosystem. Our products and services not only provide all the necessary tools to comply and connect, but they act as the key catalyst for future collaboration and innovation within this burgeoning sector.