Digital Banking and FinTech Innovation Cluster (DBFI) of the ABBL was created in January 2016. It unites 50 members and 8 FinTech firms interested in exchanging knowledge and ideas on disruptive technologies but also on how digitalisation and the rise of FinTech may impact the banking sector and the financial services being offered to more and more demanding customers.
The Cluster focuses on the following goals and the respective tasks:
To disseminate the knowledge on Digital Banking and FinTech
- DBFI Cluster organises matchmaking events to facilitate co-operation between ABBL members and selected domestic and foreign FinTech firms. Each event is usually devoted to a specific topic, for instance: KYC, AML, Digital Onboarding, Payments, Blockchain, Robo-Advisors, Digital Investments, PSD2 and Open Banking. The ABBL invites representatives of regulators and supervisors to these events to exchange views on specific digital banking and FinTech subjects.
- The ABBL is explaining to its members why Luxembourg is a good location for the establishment of innovation facilities in Luxembourg. On 19 April 2018, DBFI Cluster organised the event “National and European Funding for Digital Transformation in Financial Services” bringing together Luxembourg Ministry of Economy, Luxinnovation and the European Investment Bank to inform bankers and FinTech firms about different supporting mechanisms available in Luxembourg for innovation.
- DBFI Cluster is monitoring national and international FinTech landscapes. The Cluster gets in touch with those FinTech firms that could become relevant to its members. During these exchanges the ABBL collects essential information feeding the FinTech Map of Luxembourg (www.fintechmap.lu) and to organize workshops.
- The Cluster organises workshops on specific digital banking and FinTech topics aimed at bringing tangible outcomes. By the moment, 26 Workshops on GDPR & Technology, KYC, AML, Digital Onboarding, FinTech Partnerships, PSD2 and API were successfully conducted. The first set of workshops on GDPR resulted in the development of respective FAQs made available online.
- New edition of vocational training courses “Banking in Transition: Embracing Technological Disruption” covering such areas as Blockchain, Data Analytics, Marketing Automation, Robo Advice, Digital Finance, Customer Lifecycle Management, GDPR, PSD2, Cloud Computing, and Digital Future of Retail, Wealth Management, Private Banking and Fund Industry is developed and scheduled for Autumn 2018 in cooperation with the House of Training.
- An interactive FinTech Map of Luxembourg – www.fintechmap.lu – was developed providing a non-exhaustive overview of the vibrant and growing FinTech Ecosystem of Luxembourg including the list of FinTech firms and software vendors, funding sources, incubators, facilitators, educators, mass media, policy makers and other stakeholders.
- A database of legislative acts and opinion papers on Digital Banking and FinTech as well as a database of foreign and domestic innovative solution providers are available for DBFI members.
To influence, explain and cooperate with the regulators in Luxembourg and at the European Union level on the subjects that matter to the member community
- DBFI Working group “Big Data / Data Analytics” in cooperation with Commission Nationale pour la Protection des Données (CNPD) developed the discussion paper “The impact of the GDPR Regulation on Big Data and Data Analytics Projects at Financial Institutions” and shared it with all ABBL members on 7 May 2018.
- DBFI Working Group “Distributed Ledger Technology” (DLT) works at the moment on a discussion paper to be presented to the CSSF.
- Task Force “Cloud Computing” was set up to cooperate with the CSSF on this important subject in the context of CSSF circular 17/654 “IT outsourcing relying on a cloud computing infrastructure”.
- DBFI Cluster in cooperation with the CSSF conducted a study on Outsourcing KYC/AML tasks to specialised third party providers. The results of the survey were shared with the CSSF and ABBL members.
- DBFI Cluster launched a discussion on the establishment of a regulatory reporting hub in Luxembourg. Respective conference with the participation of Austrian National Bank, Banque Centrale du Luxembourg, CSSF and Luxembourg Stock Exchange was conducted in 2017 and triggered further reflections on this topic.
- ABBL DBFI Cluster is also present at the European level by contributing to three taskforces at the European Banking Federation: Blockchain Technologies, Cloud and Outsourcing. Members of the DBFI Cluster were invited to provide their inputs to a number of EBF’s position papers and also to demonstrate their DLT proof of concepts to the representatives of the European Central Bank.
To be an impactful actor in the Digital Banking and FinTech ecosystem of Luxembourg
- The ABBL, Fondation ABBL pour l’Éducation Financière and the University of Luxembourg signed an agreement and launched a 4-year research project on Distributed Ledger Prototype and Data Analytics for KYC Processes. ABBL members volunteered to pilot the proof of concept including Banque et Caisse d’Epargne de l’Etat and BNY Mellon Luxembourg. The software is under ongoing development, guided by regular meetings with the ABBL pilot members. The first phase of prototype development has been completed and the second stage is under way.
- The ABBL introduced its FinTech Service Pack for FinTech startups allowing them to get connected with ABBL members and to contribute to shaping of the future banking and financial services in Luxembourg. By the moment, 8 firms joined ABBL’s FinTech Service Pack.
- DBFI Cluster regularly updates and disseminates the list of banks interested in working with foreign and domestic FinTech firms wishing to open a bank account in Luxembourg.
- Currently, DBFI Cluster is developing a set of actions that would help ABBL members to attract highly qualified IT talents.