As the global financial technology landscape moves toward deeper integration, Luxembourg is recalibrating its industry narrative. At its 2025 annual conference, Finance & Technology Luxembourg (FTL)outlined a clear strategy: strengthen digital resilience, build AI capabilities, and leverage the support PSF (Professionals of the Financial Sector) framework to reinforce Luxembourg's role as a European hub for financial and technology services.

From Identity Refresh to a Mapped Service Ecosystem

FTL recently upgraded its brand identity, but the real transformation lies in the systematic mapping of its members'service offerings. The new “Member Services Map” categorizes capabilities across IT, risk, compliance, operations, client support, and financial solutions—essentially forming a comprehensive directory of trusted service providersfor institutions operating in Luxembourg.

Integrated into FTL's redesigned website, the tool helps firms navigate common challenges posed by cross-border operations, regulatory changes, and digital transformation:
“Where can institutions find reliable partners?”the map answers.

AI Skills and Regulatory Pressure: The Next Frontier

FTL President Jean-François Terminauxemphasized that developing AI skill setsand enhancing digital resilience are no longer optional—they are essential.

With Europe tightening requirements on cloud services, outsourcing, and ICT risk management (e.g., DORA regulation), Luxembourg's financial technology providers face dual pressures: comply with regulatory expectations while simultaneously adopting more automated and intelligent workflows.

FTL's message is clear: technological capability is now a prerequisite for compliance, not just a competitive edge.Supporting the entire ecosystem in meeting this standard will be a central focus over the next two years.

PSF Reference Guide: A Strategic Compass for International Firms

Another major highlight of the conference was the release of a reference guide detailing support PSF status.

Support PSFs (such as IT or operations PSFs) hold a unique position in Luxembourg's financial ecosystem:

They meet stringent standards in cybersecurity, compliance, governance, and data protection

They provide outsourced services to banks, funds, insurers, and related institutions

They are directly supervised by Luxembourg's financial regulator, CSSF

FTL frames this status as a strategic advantage for international firms: in a European market increasingly sensitive to third-party risk, PSF-certified providers are seen as more reliable and trusted partners. Essentially, PSF status functions as a formal credential of international credibility, rather than just a regulatory classification.

Signals from Industry and Government

The reform has received backing from Luxembourg's Ministry of Finance and key financial institutions, underscoring the government's continued commitment to the FinTech ecosystem. Participation from Banque Raiffeisenreflects traditional banking support for the evolving ecosystem.

While the event was relatively modest in scale, the strategic direction is clear: Luxembourg aims to maintain a European edge in regulatory reliability + technology-enabled services, with AI and the PSF framework as the new drivers of growth.