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Fintech

“Major milestone” for Luxhub to expand open banking solutions



Claude Meurisse ( COO, L uxhub),   Claude Marx (d irector  g eneral, CSSF ),   Jacques Pütz ( CEO, L uxhub), Jean Hilger (c hairman, L uxhub) Photo: Luxhub

Claude Meurisse ( COO, L uxhub), Claude Marx (d irector g eneral, CSSF ), Jacques Pütz ( CEO, L uxhub), Jean Hilger (c hairman, L uxhub) Photo: Luxhub

Luxembourg’s financial sector regulator CSSF has granted account information and payment provider licences to fintech Luxhub, allowing the company to move forward in developing its open banking solutions.

Four Luxembourg banks--BGL BNP Paribas, Banque Raiffeisen, Post and Spuerkeess--in 2018 teamed up to create Luxhub to provide banks with a compliance solution for the EU’s second payment services directive (PSD2). The additional licences allow the company to widen the scope of services and clients.

“These new licenses represent a major milestone for Luxhub, as we become Luxembourg’s first and only full-scope open banking enabler,” said CEO Jacques Pütz about the AISP and PISP licences granted.

Luxhub provides client banks with access to customer account data from multiple financial institutions via its application programming interface (API), a software intermediary that allows two applications to communicate.

“Our new status, as an AISP and PISP, will ensure that we are able to open up our already trusted solutions to a much wider European audience--fintechs, international corporations, SMEs and many others,” Pütz said in a statement.

On the account information side businesses will be able to request permission to access bank account data and leverage this information to provide value-added services, Luxhub said. And the company will be able to develop new solutions for private and public players outside the financial service industry, such as payments, moving towards embedded finance.

For example, a client receiving a bill by email would be able to pay by simply clicking a link, speeding up payment but without sensitive data being exchanged between vendor and customer.

Together with Thursday’s announcement, Luxhub also unveiled a new logo and visual identify.

“Through our new services, and thanks to our modern brand identity, we will be able to reach a much broader audience: the path to Open Finance becomes clearer, as together, we shape the future of finance,” said Pütz.

Luxhub employed the equivalent of 28 full-time staff on average during the 2020 financial year, company filings show. It posted net turnover of €4.2m, up from €2.3m in 2019.