EY Luxembourg Pools Financial Services for Fintech, Banking Sectors

EY Luxembourg has announced that it is bringing together its financial services for the banking and fintech sectors.

EY has described itself as a pioneer in Luxembourg in the field of financial services for companies specialising in financial technology, with the creation of a team dedicated to fintech within the Technology, Media & Telecommunications (TMT) sector as early as 2011. Since then, the sector has undergone significant developments, particularly around payment, financing and blockchain technologies. 

Nineteen payment institutions and twelve electronic money institutions are currently established in the country. These players, which are entering a new phase of expansion, have business models and regulatory requirements that are increasingly converging with the banking sector, bringing the two industries closer together. 

With 125 well-established banks in Luxembourg, traditional banks provide the stability and market knowledge that fintechs need to sustain their business, according to EY. Conversely, fintechs are expected to be a key partner in accelerating the digital transformation of banks through the adoption and implementation of new technologies such as blockchain.

EY Luxembourg is a key partner for Luxembourg’s banks and fintechs. With significant market shares in Audit, Advisory and Tax, EY has decided to evolve its services to better respond to client needs and market developments, including future regulatory changes. Consequently, the firm will merge its teams internally to create a pool of around 100 multi-disciplinary talents with a unique skill set in the market.

Bernard Lhoest, Partner and Banking and Capital Markets Leader at EY Luxembourg, commented: "Fintech is seen as a challenger, sometimes even a rival to the traditional banking sector. The two worlds are in fact complementary, with the requirement for quality of customer - and / or user - service as well as regulatory and governance requirements in common. EY Luxembourg intends to use its expertise to anticipate the trends of a market that is leaning more towards convergence than rivalry - convinced by the added value that these two worlds can bring to each other".

Gaël Denis, Partner and TMT Leader at EY Luxembourg, added: "This rapprochement does not deny the cultural specificities of these two worlds. On the contrary, EY's ambition is to nurture them by enabling its talents to get the best out of both worlds. Beyond the synergies to be generated, it is a question of capturing the energy of a market to recycle it and enrich the dynamics of the market".