Luxembourg is taking slow yet steady open banking steps. The major challenge in the adoption of OB is PSD2. A country that has historically been a centre of excellence in payments, Luxembourg has struggled with certain regulatory technical standards introduced in 2018 such as the so-called 90-day rule, which has since been scrapped.
For most banks in Luxembourg, there is great reluctance to embrace the initiative. PSD2 regulation represents nothing but a time-consuming headache that offers little to no tangible benefit. In saying that, there are players that see things differently.
In collaboration with BGL BNP Paribas, Banque Raiffeisen and Post, Spuerkeess created Luxhub in 2019, an open banking fintech delivering PSD2 compliance to institutions in Luxembourg.
Through their S-Net app, Spuerkeess allows customers to manage accounts with six Luxembourg banks as well as neobanks of the likes of N26 and Revolut in one place. “APIs could help people pay their doctor through the Luxembourg health insurance system, the Caisse Nationale de santé, in a smoother way,” Spuerkeess’ Head of Digitalisation, Fred Giuliani, explained to Delano in an interview.
Excellence in the payment’s sector is something that’s synonymous with Luxembourg. To get there once again, the regulator, The Commission de Surveillance du Secteur Financier (CSSF) needs to make the process of granting e-money licenses smoother and quicker. Part regulatory stickiness and part banking reluctance are what’s keeping Luxembourg from becoming one of the leading powers in Open Banking.