Retail Banking
Luxembourg’s retail banks: balancing digital progress and personal connection
Published on 26 October 2025
As online banking continues to grow, Luxembourg’s retail banks are striving to maintain a balanced approach, combining the convenience of digital tools with the trust and proximity of human interaction. In an interview with Radio 100,7 on 27 October 2025, Claude Hirtzig, Chair of the ABBL Retail Banking Cluster (RBCL), shared his insights on the ongoing evolution of retail banking in Luxembourg and the importance of ensuring no customer is left behind.
Summary
A sector evolving without leaving anyone behind
Retail banking, which serves individual customers through current accounts, savings, and loans, employs around 7,000 people in Luxembourg — nearly one quarter of all banking staff — and serves approximately 500,000 clients.
According to Hirtzig, the market remains solid and stable: “Most customers have several accounts, and even with one bank exiting the market, the overall figures have remained steady.”
Digitalisation, he explained, is now part of everyday banking behaviour: “Around 96% of customers are comfortable using digital banking. Only a small portion — about 4% — still struggle with certain aspects such as online payments. But we’re not leaving that 4% behind.”
Around 96% of customers are comfortable using digital banking. Only a small portion, about 4%, still struggle with certain aspects such as online payments. But we’re not leaving that 4% behind.
Claude Hirtzig
Chair of the ABBL Retail Banking Cluster (RBCL)
Digitalisation and human contact go hand in hand
Hirtzig emphasised that digital and physical channels are not mutually exclusive but rather complementary: “The paper transfer still exists. For many people, it’s an alternative to visiting a branch — and perhaps a first step towards digitalisation.”
He also highlighted the importance of reliability and trust across all channels: “If a branch closes for one day, it’s not a problem. But if online banking is unavailable for ten minutes, we receive hundreds of calls. This shows how much customers now rely on digital systems.”
Branches remain part of the customer experience
While banks continue to innovate digitally, branches still play a key role in offering personalised advice — particularly for complex needs such as mortgages or financial planning.
“Branches are still needed. Some services require direct human interaction, especially when it comes to major life decisions,” said Hirtzig.
This approach reflects a broader trend across the Luxembourg banking sector: ensuring interoperability and continuity between channels so that every customer, digital or not, can access banking services with confidence and convenience.
Original interview (in Luxembourgish): Radio 100,7 – Claude Hirtzig: Bankagencë wäerten net ofgeschaaft ginn
Broadcast date: 27 October 2025
Simone Kayser
Senior Adviser – Retail Banking
Published on 26 October 2025