PBGL strategic priorities for 2018-2020

ABBL Published 23.02.2018

The newly elected PBGL executive board sets up the strategic priorities that will continue to shape the future of the Luxembourg private banking industry in the coming months.

The below pentagon illustrates in a snapshot the so called Luxembourg private banker’s D.R.E.A.M. a summary of the most urgent themes on top of their agendas:

Digital Private Banking

Each bank needs to understand its own fundamental ways in which digital capabilities can be used to create value. We identified few of them, being:
  • Robo Advisors
  • E-onboarding (Identification, Profiling)
  • Electronic Signature
  • Secure Communication with Clients
  • Improve the digital Client experience

Regulatory Framework

Regulatory changes in financial services have come with complexity and massive implications for business models and competitive strategies. From the long list, we selected the two potential game changers in private banking:
  • MiFID II – Post effective date: an effective applicable regulatory framework, which provides for and takes into account operational and practical solutions adopted by market participants, thereby facilitating compliance with the MiFID II framework
  • AML: the organization has to be able to see their individual relationship (the tree) as well as the interconnectedness of relationships (the forest) to identify the UBO. It is a significant challenge for organizations as they assess business risk and complex issues around ultimate beneficial ownership (i.e. setting up adequate internal rules to ensure that information is always up-to-date). In addition, the information on the UBO will have to be held in a central register.

Education

Several actors in Luxembourg (ABBL and its members, HoT, University, etc.) are working closely to establish an internationally recognized qualification programme for client-facing employees of local Wealth Management financial institutions allowing to demonstrate the highest possible professional competency and skills relevant to increasingly demanding needs of WM clients. The programme should represent a quality label to further bolster Luxembourg’s expertise and reputation as a prime Private Banking center in the European Union.

Appropriate Lux toolbox

In order to keep an efficient toolbox in cross-border finance, which is in our DNA, we need to constantly:
  • Monitor international competition (i.e. Country-by-country gap analysis)
  • Adapting and improving the regulatory framework and, where necessary, expand the toolbox available to international investors
  • Sustainable finance: this is an opportunity for the banking sector and private bankers should begin earnestly exploring the priorities of their own clients and develop sustainable finance products when demand is identified

Media Promotion and more

The ABBL and its members will continue to promote the business ensuring:

  • Promotional videos realized at the occasion of the PBGL 10th anniversary will be broadcasted using the appropriate channels (i.e. LinkedIn, YouTube) to reach targeted audience
  • Local/foreign press coverage
  • PBGL experts will support LFF missions abroad (i.e. wealth management panel)
  • Make the Private Banker’s job attractive again
 “Each dream you leave behind is a part of your future that will no longer exist”  (Steve Jobs)

By Fabio Mandorino, Adviser – Commercial Banking I Private Banking I Sustainable Finance

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