In response to the challenges faced by industry participants and clients, the LHoFT is launching the Catapult: Future Foundation Program to accelerate the development and implementation of mutualised technology platforms within the Luxembourg Financial Services sector. The primary objective of this pioneering initiative is to establish shared utilities that yield collective benefits.
Operationalising the vision: Taking action
The Luxembourg Ministry of Finance has allocated additional funds to the LHoFT Foundation for the execution of the Catapult: Future Foundations program.
Finance Minister Yuriko Backes comments: “As a leading hub for financial services, ranging from international asset servicing to wealth management, listing and post-trade services to cross-border insurance and payment services, Luxembourg is uniquely positioned to leverage the strengths of its financial centre ecosystem to develop shared solutions to reduce costs and help drive efficiency for the entire industry. The Ministry of Finance is thus proud to support this pioneering initiative by the LHoFT to help catalyse mutualisation efforts in the financial centre.”
Finding innovative ways to solve the industry’s challenges. “AML & KYC, Data Transfer & Management, and ESG are the main concerns of industry leaders today”, says Hind El Gaidi, Chairperson of the Steering Committee of the Program. “In all these areas they are looking for solutions to bring about significant cost savings, enhanced efficiency, and bolster Luxembourg’s competitive position in Financial Services, benefiting all stakeholders. Mutualisation, the key to collective success.”
“Mutualized utilities offer a great opportunity for sharing resources and solutions leading towards greater efficiency and collaboration within the financial sector”, underlines Vice Chair Ananda Kautz. Spearheading the development and implementation of such innovative utilities tailored to user requirements, is the idea behind the launch of the Catapult: Future Foundation program.
A dedicated team, led by Senior Program Manager Anna Sobkow, will ensure alignment with the needs of the Luxembourg Finance Industry.
The program team will work closely with the Luxembourg financial services associations and a diverse array of financial services actors to gather detailed solution requirements. These requirements will serve as a guide for issuing a call to technology providers and FinTech firms. Selected participants will engage with stakeholders and dive deeper into industry’s needs during a one-week bootcamp. The ultimate goal is the development of a Proof of Concept (PoC) in collaboration with key Luxembourg institutions.
Four areas of focus
A cluster-based approach has been adopted to address critical challenges faced by the finance industry and its stakeholders. Within each cluster, targeted solution concepts have been identified. These concepts, designed as mutualised platforms or technologies, aim to deliver a wide range of benefits. “Instead of pursuing all-encompassing solutions, the focus is on specific operational aspects or processes, aiming to ensure broad acceptance and timely implementation”, stresses Ananda Kautz.
Cluster 1: AML & KYC
- Objective: Streamline and standardise KYC and AML processes across institutions.
- Scope: Address inefficiencies, inconsistencies, and potential data privacy and compliance breaches.
Cluster 2: Communication & Document Transfer
- Objective: Enhance communication and document transfer mechanisms.
- Scope: Resolve issues related to inefficient, insecure, and inconsistent transfer processes.
Cluster 3: IT Security & Cloud Services
- Objective: Strengthen IT security and optimise cloud management.
- Scope: Focus on data protection, vulnerability management, and setting cybersecurity standards.
Cluster 4: ESG
- Objective: Improve ESG data management and compliance.
- Scope: Address challenges in data sourcing, processing, quality, transparency, and compliance.
The program’s Steering Committee is in the process of assessing which priority to focus on in the program first edition and anticipates sharing the decision in the forthcoming weeks.
The Steering Committee: Guidance from Industry Leaders
The Steering Committee, composed of 13 representatives from the financial sector and led by Chair, Hind El Gaidi, a Board Member at the Luxembourg Private Equity & Venture Capital Association, and Vice Chair Ananda Kautz, Head of Innovation, Payments & Sustainability, Member of the Management Board of ABBL provides direction to the program.
The committee’s responsibilities include setting the vision, defining goals, supervising approval processes and monitoring the program’s progress.
The Representatives of the Catapult: Future Foundation Program steering committee are:
- ABBL, Luxembourg Bankers’ Association
- Ananda Kautz, Head of Innovation, Payments & Sustainability – Member of the Management Board
- Esther Bauer, Strategy & Corporate Development Team Leader chez Banque Internationale à Luxembourg (BIL)
- ACA, Luxembourg Insurance and Reinsurance Association
- Jean Elia, Chief Executive Officer, SOGELIFE S.A.
- Loic Le Foll, CEO La Mondiale Europartner – AG2R LA MONDIALE
- ALFI, Association of the Luxembourg Fund Industry
- Joseph Hendry, III, Principal and Country Head for BBH in Luxembourg
- LHoFT, Luxembourg House of Financial Technology
- Nasir Zubairi, CEO LHoFT
- LPEA, Luxembourg Private Equity & Venture Capital Association
- Hind El Gaidi, Head of Luxembourg, ICG
- Cara Browne, Head of Relationship Management, Conducting Officer UCI Administration, EQT Group
- LuxCMA, Luxembourg Capital Markets Association
- Frank Mausen, Partner, Allen & Overy
- Holger von Keutz, Partner, PwC
- LuxSE, Luxembourg Stock Exchange
- Pierre Schoonbroodt, Chief Financial Officer & Member of the Executive Committee, Luxembourg Stock Exchange
- L3A, Luxembourg Alternative Administrators Association
- Sinan Sar, Managing Director United International Management S.A.
- Alan Dundon, President L3A; Relationship Manager & Executive Sponsor at Alter Domus
The Steering Committee welcomes representatives of the CSSF The Commission de Surveillance du Secteur Financier – Natasha Deloge and the Ministry of Finance – and Pierre Oberlée, as observers.
“Through this initiative, we aim to ignite a transformative spark within Luxembourg’s financial sector. By addressing specific challenges head-on and fostering collaboration, we’re building a stronger, more resilient industry for all. Together, we will set new standards and propel Luxembourg’s financial services into a future of innovation and collective success,” stresses Hind El Gaidi.
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For more information, please contact – Anna Sobkow, Senior Program Manager, at : [email protected]
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