Anne-Sophie Morvan, Chief Commercial Officer at LUXHUB; Credit: LUXHUB

LUXHUB, a Luxembourg-based Open Finance pioneering company, celebrated its fifth anniversary on Wednesday 5 July 2023 at Mama Shelter in Luxembourg-Kirchberg.

The fintech’s guests (clients and partners) gathered at Mama Shelter to network and discuss the latest digital finance trends, but also to discover the newest services that are now provided by LUXHUB.

The LUXHUB journey started with a focus on PSD2 compliance, first to accommodate the pressing needs of the banking industry, including its shareholders – namely Banque Raiffeisen, BGL BNP Paribas, POST and Spuerkeess – but it rapidly shifted to a wider general purpose: “To enable ALL companies to leverage the power of Open Banking”.

“The financial services industry is leveraging more data than ever to provide clients with the most suited offers and products. Non-financial companies, on the other hand, thanks to European regulation, can also efficiently take advantage of data with the permission of the end-user. The room for innovation in the embedded finance space is enormous. And LUXHUB aims to become a recognised player in it,” highlighted Claude Meurisse, CEO of LUXHUB.

Besides moving from Open Banking to Open Finance (as the Open Finance Framework proposal – now officially called “Financial Data Access” or FIDA) was just published by the European Commission, LUXHUB is taking into account several upcoming regulations around payments (see below) that are expected to transform the way financial institutions operate.

CESOP (Central Electronic System of Payment Information) will come into force on 1 January 2024. PSPs (Payment Services Providers - Credit institutions, EMIs, Payment Institutions and Post office giro institutions) will be required to report certain cross-border transactions to their local national tax administration (NTA).

LUXHUB reported that it supports PSPs by providing them with a tax reporting solution, that includes the following functionalities: checking and pre-processing input data, filtering and converting the data file into the requested XML document, providing a web interface to edit and/or correct the file, managing of CESOP feedback file(s) and correcting the reported data. Moreover, and when possible, LUXHUB will automate the transfer of the CESOP reporting file to the NTA. As highlighted by Claude Meurisse, “LUXHUB is well equipped to support PSPs in this upcoming regulatory/compliance challenge. Our goal is to enable the efficient preparation of the requested file, between you, a PSP, and your NTA.”

The fintech also anticipates the upcoming regulation on instant payments (IPs) as well as the Payment Services Regulation, with an IBAN-name check solution, entitled Account Verification Platform. Through an API, or any type of secure connectivity, the solution enables the immediate “match” or “not-match”, between IBAN and beneficiary name, while processing a credit transfer. “A single centralised solution for banks in Luxembourg means reduced implementation costs, lower usage fees, and more importantly, a higher value for clients,” highlighted Ramzi Dziri, Head of Product.

As digitalisation continues to transform the world, with more and more data being produced and shared, LUXHUB reported it continues to invest in the development of financial data-powered solutions. “We are determined to provide additional mutualised solutions and top-notch services that leverage quality data, for the benefits of financial institutions, private and public companies, as well as end customers: LUXHUB is to enter a new 'innovation phase’, which as always, will combine data, payments and compliance. Stay tuned,” concluded the CEO of LUXHUB.