[Talent Focus] Investing in people to shape the future of banking

A competitive market with limited local supply

Luxembourg’s banking sector is dynamic but faces growing talent shortages, especially in areas such as digital transformation, regulatory compliance, ESG and banking.

“The local talent pool cannot keep up with the level of specialisation required,” explains Myriam Sibenaler. “To maintain competitiveness, we must look both inwards and outwards, by investing in the reskilling of employees and by enhancing international recruitment efforts, including beyond the EU.”

Housing affordability is a further challenge, particularly for young professionals. While not specific to Luxembourg, this issue requires a collective response.

“Urban development initiatives are under way, and ABBL supports all efforts aimed at making living and working in Luxembourg more accessible for future talent.”

Promoting Luxembourg with a broader narrative

“Luxembourg is often perceived as a technical and stable financial centre, which is accurate, but not sufficient,” notes Hélène Lange. “We must communicate a more comprehensive and compelling narrative.”

She highlights the country’s key advantages: a multicultural and agile ecosystem, high quality of life, proximity between institutions and businesses, and a competitive tax environment.

“These are strong selling points, especially for younger generations. If we wish to attract talent from outside traditional European capitals, we must promote them more actively on the global stage.”

Balancing global openness with local development

“The European talent pool may no longer be sufficient to meet the sector’s evolving needs,” says Myriam Sibenaler. “It is essential that we facilitate access to skilled professionals from other regions, including Asia, Africa, Latin America and the Middle East. At the same time, we must not lose sight of the local dimension: upskilling residents, engaging with universities, and inspiring young people to see a future for themselves in the financial sector are equally critical. Combining global openness with local engagement is the only sustainable way forward.”

According to her, many employers are ready to diversify their recruitment efforts but lack the operational tools and regulatory flexibility to do so effectively.

Making reskilling a strategic priority

“While not yet fully embedded in all organisations, reskilling is clearly gaining momentum,” Myriam adds.

By enabling employees to transition into new or evolving roles, reskilling is a powerful tool for enhancing retention, engagement and organisational agility.

“We must move beyond the reflex of recruiting to fill gaps. Instead, we should build internal capabilities through structured training and a corporate culture that values continuous learning.”

She also stresses the potential role of higher education:

“Developing new, targeted short academic programmes for the next generation of students to respond to labour market needs is also to be investigated.”

Luxembourg’s collective labour agreement for the banking sector supports this ambition. It has recently been updated to enhance employability, with a 10% increase in the training budget and a guaranteed individual annual training allowance of 16 hours per employee, in addition to mandatory and reorientation training.

“At the heart of this approach lies a strong belief in collaboration between employers and employees,” she concludes. “Sharing knowledge and resources is key to keeping pace with industry change.”

Aligning with new expectations

“Luxembourg has everything it takes to succeed,” confirms Hélène Lange. “But we must also respond to the expectations of the next generation: more autonomy, an entrepreneurial mindset, and a strong sense of purpose.”

This requires an alignment between HR strategies and business goals, but also between organisational values and societal aspirations.

“Many stakeholders have understood the urgency of this transition. Now is the time to act decisively and together.”