“Spuerkeess is still undoubtedly the best app in the country, but we can see that BGL BNP Paribas is catching up,” said Anthony Wolf, partner at Sia Partners Luxembourg, while announcing the results of the 2024 mobile banking benchmark report, published on 24 October 2024. Library picture: Matic Zorman/Maison Moderne

“Spuerkeess is still undoubtedly the best app in the country, but we can see that BGL BNP Paribas is catching up,” said Anthony Wolf, partner at Sia Partners Luxembourg, while announcing the results of the 2024 mobile banking benchmark report, published on 24 October 2024. Library picture: Matic Zorman/Maison Moderne

Luxembourg’s banking sector is gradually improving its digital capabilities, with Spuerkeess leading the market, but it still lags behind its neighbours in key areas, revealed the 2024 mobile banking benchmark by Sia Partners.

While Spuerkeess maintained its top position in Luxembourg’s mobile banking rankings and BGL BNP Paribas made significant strides, Sia Partners, a management consulting firm, stated on Thursday 24 October 2024, that the overall performance at the national level necessitated broader innovation across the sector. Nonetheless, the grand duchy is gradually catching up to global standards for digital banking best practices, noted Sia partners in the report, released on Thursday, amid an accelerating worldwide push for digital transformation.

Rankings

The from the 2024 benchmark highlighted a significant reshuffling at the top of the European rankings, with KBC, based in Brussels, taking the lead, followed by the French digital bank BoursoBank in second place and Revolut Metal in third.

While there were improvements in functionalities (FX) for two of the three Luxembourg banks previously assessed--Spuerkeess, BGL BNP Paribas and Bil--their user experience (UX) scores remained unchanged. As a result, only Spuerkeess was able to maintain its position in the global top 50 for the second consecutive year. This year’s benchmark also introduced two new entrants, Post and Raiffeisen, both of which ranked near the bottom.

Compared to neighbouring countries like the Netherlands, France and Belgium, Luxembourg fell behind, with three out of five banks scoring below average in FX and four out of five in UX. “Spuerkeess remains the best app in the country, but BGL BNP Paribas is closing the gap,” Anthony Wolf, partner at Sia Partners Luxembourg, stated in the report. Wolf pointed out that “Luxembourg needs to continue investing in its digital capabilities to keep pace.”

Competition and innovation

Currently, the Luxembourg banking market falls short in several areas, including personal finance management, AI, insurance, and open and beyond banking, said the Sia Partners report. However, substantial improvements from local players, particularly BGL BNP Paribas, have begun to foster competition and drive innovation in the sector. “Ongoing efforts to improve the end-to-end customer journey are essential, as competition remains fierce and innovation continues to advance,” said Wolf.

According to Sia, the banking sector faces a rapidly evolving landscape shaped by new regulations, changing customer expectations, and an imperative to innovate. The 2024 mobile banking benchmark assessed 140 banking apps across 22 countries, evaluating them on over 95 criteria, including functionalities, user experience, and app store ratings. As competition intensifies, “to succeed in this digital-first landscape, banks must offer seamless, fully integrated digital customer journeys across a wide range of products and services,” concluded Wolf.

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