The Luxembourg House of Financial Technology (LHoFT) has announced the launch of the CATAPULT: Future Foundation Programme, aimed at accelerating the development and implementation of mutualised technology platforms within Luxembourg's financial services sector.
Luxembourg's Ministry of Finance has allocated additional funds to the LHoFT Foundation for the execution of the Catapult: Future Foundation programme, the main objective of which is to establish shared utilities that yield collective benefits.
Yuriko Backes, Luxembourg's Minister of Finance, commented: "As a leading hub for financial services, ranging from international asset servicing to wealth management, listing and post-trade services to cross-border insurance and payment services, Luxembourg is uniquely positioned to leverage the strengths of its financial centre ecosystem to develop shared solutions to reduce costs and help drive efficiency for the entire industry. The Ministry of Finance is thus proud to support this pioneering initiative by the LHoFT to help catalyse mutualisation efforts in the financial centre."
Hind El Gaidi, Chairperson of the programme's Steering Committee, cited anti-money laundering (AML), Know Your Customer (KYC), data transfer and management, and environmental, social and governance (ESG) as "the main concerns of industry leaders today". She elaborated: "In all these areas, they are looking for solutions to bring about significant cost savings, enhanced efficiency and bolster Luxembourg's competitive position in financial services, benefiting all stakeholders."
"Mutualised utilities offer a great opportunity for sharing resources and solutions leading towards greater efficiency and collaboration within the financial sector," added Vice Chair Ananda Kautz. The idea behind the launch of the Catapult: Future Foundation Programme is thus spearheading the development and implementation of such innovative utilities tailored to user requirements.
Led by Senior Programme Manager Anna Sobkow, the project team will work closely with Luxembourg financial services associations and an array of financial services actors to gather detailed solution requirements. These requirements will serve as a guide for issuing a call to technology providers and fintech companies. Selected participants will engage with stakeholders and dive deeper into industry needs during a one-week boot camp. The ultimate goal is the development of a proof of concept, in collaboration with key Luxembourg institutions.
There are four main areas of focus, or "clusters", within which targeted solution concepts have been identified. These concepts, designed as mutualised platforms or technologies, aim to deliver a range of benefits. "Instead of pursuing all-encompassing solutions, the focus is on specific operational aspects or processes, aiming to ensure broad acceptance and timely implementation," stressed Ananda Kautz
Cluster 1 is dedicated to streamlining and standardising AML and KYC processes across institutions. Cluster 2 is aimed at enhancing communication and document transfer mechanisms. Cluster 3 is focused on strengthening IT security and optimising cloud management. Cluster 4 is looking at improving ESG data management and compliance.
The programme's Steering Committee is in the process of assessing on which priority to focus in the first edition and will announce this decision in the coming weeks.
The Steering Committee is composed of thirteen representatives from the financial sector and led by Chair Hind El Gaidi, Board Member at the Luxembourg Private Equity & Venture Capital Association (LPEA), and Vice Chair Ananda Kautz, Head of Innovation, Payments & Sustainability and Management Board Member at the Luxembourg Bankers' Association (ABBL).
The committee's responsibilities include setting the vision, defining goals, supervising approval processes and monitoring the programme's progress. It includes representatives of ABBL, the Luxembourg Insurance and Reinsurance Association (ACA), the Association of the Luxembourg Fund Industry (ALFI), LHoFT, LPEA, the Luxembourg Capital Markets Association (LuxCMA), the Luxembourg Stock Exchange (LuxSE) and the Luxembourg Alternative Administrators Association (L3A).
"Through this initiative, we aim to ignite a transformative spark within Luxembourg's financial sector. By addressing specific challenges head-on and fostering collaboration, we're building a stronger, more resilient industry for all. Together, we will set new standards and propel Luxembourg's financial services into a future of innovation and collective success," concluded Hind El Gaidi.
