Financial inclusion is now a priority on many political and economic agendas. Access to a bank account has become an ordeal for certain segments of the population, mainly because of the fight against money laundering and the financing of terrorism. These regulations have imposed strict new standards which, while essential, make it very difficult for many people to open an account. This reality is fuelling an intense debate between banking players and public regulators, illustrating the tension between security and accessibility.
But limiting the criterion for financial inclusion to the opening of an account is a restrictive view. Financial inclusion must also ensure that every customer understands and masters how to use their account, and it has to be said that many customers have difficulty navigating this increasingly complex banking environment.
The first difficulty lies in the complexity of contractual conditions and charges. The charges associated with banking services, which are often detailed in long, technical documents, make it difficult for non-specialist customers to gain the transparency they need. This lack of transparency can discourage some users from familiarising themselves with their account, or even risking making large transactions.
Added to this first barrier is the rapid digitalisation of services. With the decline of physical branches, banks are pushing customers towards digital solutions that may be suitable for a connected population, but which exclude some citizens who are less familiar with new technologies. Digitalisation makes it possible to offer fast, efficient solutions, but it also tends to neglect those who need human contact to feel secure and make informed decisions. This digital divide is further accentuated by language issues: in a multilingual country like Luxembourg, the dominant use of English or French in banking applications can be a barrier to many residents who are more comfortable with Luxembourgish, German or Portuguese.
In addition, some customers remain particularly vulnerable to online scams. Phishing attempts, in which fraudsters pose as financial institutions to extract sensitive information, are on the increase. These attacks are increasingly sophisticated and often target senior citizens or those lacking technological expertise, revealing a weakness in the prevention and support system for these customer profiles.
Who are the first victims of this situation in Luxembourg? Several groups stand out: entrepreneurs, startups and very small businesses (VSEs) are subject to stringent controls and long account opening times, hampering their ability to start up their businesses. People with little or no income, who are already on the margins of the formal economy, also face obstacles to entering the banking system. Customers with atypical geographical connections or links to non-traditional activities are subject to exacerbated scepticism. Senior citizens, who are often less at ease with digital technology, and people with disabilities are also among the groups struggling to find a place in a financial system that has become inaccessible.
Given these facts, technology and artificial intelligence are emerging as potential solutions for promoting genuine financial inclusion. Chatbots, for example, can provide immediate multilingual assistance to customers by answering frequently asked questions and simplifying the user experience. AI tools can also better identify profiles at risk of fraud by enhancing security around online transactions, without making the user experience more cumbersome for other customers.
However, technology cannot be the only answer. Full financial inclusion requires a commitment from banking institutions to clarity and transparency. It's not just about opening accounts: it's about ensuring that every customer has access to financial services that are appropriate, understandable and usable on a day-to-day basis. It also means educating and raising awareness of banking tools, so that everyone can understand and use their account fully and with confidence.
Ultimately, financial inclusion is a social project. It calls for active cooperation between regulators, financial institutions and the technology community to build a banking system where everyone can not only access an account but, more fundamentally, use it fully in an informed and secure manner.
Read the original French-language version of ’s guest contribution /