The banking and investment fund sectors are emblematic of the strength and success of Luxembourg as a financial centre. However, these sectors are also facing current market challenges: competitiveness, attracting talent, integrating AI... Challenges that are also opportunities, and to which continuing vocational training provides solid answers.
Interview with Jerry Grbic, CEO of ABBL and Serge Weyland, CEO of ALFI.
In your opinion, what are the main strengths of your respective sectors in terms of the competitiveness and attractiveness of Luxembourg as a financial centre?
Jerry Grbic: I would say it’s first and foremost the wide range of services we offer on a daily basis: retail banking, private banking and corporate banking, then the funds-related activities and finally the more recent payments activities with FinTech. I would add that the international perspective, which has been a defining future for over 50 years, is also a key factor in understanding its impact. Luxembourg stands as a recognised label of quality and trust worldwide.
Serge Weyland: I agree with Jerry that our strength in the investment fund sector lies in the diversity of fund types available. Luxembourg offers a broad range of structures and asset classes to meet the needs of all investor profiles — supporting diversification, and with it, stability. Our funds are distributed in 80 countries, making Luxembourg the world leader in domiciliation and distribution — a unique ecosystem!
How would you describe the cooperation between the banking and fund industry in the financial centre?
JG: It’s a constant and fruitful collaboration, which mainly covers three dimensions: custody services and the associated compliance and risk management; financing activities, the provision and management of liquidity; and finally the retail distribution business for funds, private banking or institutional clients. Since 2006, we have jointly operated a representative office for European affairs in Brussels.
SW: ALFI and ABBL collaborate closely on interdisciplinary issues like regulation and digitalisation, which affect both our sectors. We regularly exchange ideas and explore synergies. As the market is constantly evolving, this regular consultation between our two sectors is essential to anticipate future developments and respond to new needs.
What are the challenges and opportunities facing your respective businesses now and in the coming years?
JG: The sharp increase in regulation over the last fifteen years has been challenging. Let us be clear, the ABBL is very much in favour of smart regulation that improves confidence in our industry. Rather, it is the rapid and constant pace at which these new regulations are being introduced that has made banks «suffer». Cybersecurity will be another challenge, especially as digital and AI continue to develop. Luxembourg will not be spared from fraud, even if we are proactive and prepared to implement the necessary measures.
But, as your question suggests, these challenges are also opportunities, if we are prepared. And preparation means training. Indeed, having new skills means being ready to meet these challenges, whether they are regulatory or technical. It’s a real competitive advantage, a real competitive edge.
SW: I would echo Jerry’s point about regulatory pressure. I would also highlight the shift toward passive management in recent years as a real challenge — and one that is likely to persist. That said, we can be optimistic: Luxembourg has strong expertise in passive strategies and ETFs.
As we have seen during the recent period of inflation, the challenge for Luxembourg will be to keep delivering products and services at a reasonable cost. In this respect, new technologies will be an essential ally, as will the sharing of best practices that already exists between the local players we represent. As Jerry said, and he is absolutely right, updating our skills and training in these new technologies is vital and can tip the balance in our favour. Our ability to progress, innovate and deliver depends on it.
How can the banking and financial sector join forces to address the talent shortage and make Luxembourg more attractive?
SW: The answer is clear: training is key to addressing both major challenges. The interactions between the ABBL, the ALFI and the House of Training are numerous and productive. The sectors we represent – including insurance – are also present in universities across the Greater Region to showcase the full spectrum of our professions and to build bridges between education and the job market.
JG: In Luxembourg, we’re fortunate in that one in two of our employees comes from abroad, from universities and schools with which we want to establish contacts. They open doors for us and show students where their studies can lead, but above all they spark interest in our industries. Because, let us face it, by the time young people enter the job market, they are not that young anymore. They want to work for GAFAM. It is up to us to change the narrative and show them the added value of a career in banking or investment funds. In this respect, training is also a strong argument for attracting and retaining talent in our country. Guaranteeing the continuous development of skills - in other words, a dynamic and fulfilling career - is the key to attractiveness and competitiveness.
How do you see roles in your sectors evolving over the next 10 years?
JG: From a technological point of view, it’s clear that all recurring administrative functions, such as the back office, will have to be reinvented. More generally, all professionals will have to accept the need to develop new skills and new perspectives. Their profession will change, and that’s often a good thing. AI will not make their expertise disappear, but it will allow them to focus on high value-added activities.
SW: Tomorrow, technology will change the way investment products are distributed and «consumed». This shift will also transform how our professions are organised. Automation will accelerate, and talent will need to be trained in digital tools, especially with AI in mind. We need to create levers that encourage the adoption of these new technologies.
What message would you like to send to all players in the Luxembourg market on this topic?
JG: We really need to focus on training. In the latest collective labour agreement, signed in July 2024, we increased the budget allocated to training by 10% and emphasised employability. This concept has been reviewed, and we wanted to create coresponsibility between employer and employee. The employer allocates a minimum of 16 hours of training to the employee, but the employee must also take the initiative for his or her own training and thus employability.
SW: I would like to encourage everyone in the asset management industry to have a look at the House of Training’s training catalogue. We are fortunate to be able to offer such a wide and evolving range of courses, which respond precisely to the needs of our businesses and enable us to overcome challenges and turn them into opportunities. Finally, I will add the need for all concerned to remain vigilant, attentive and curious about the changes in the world.
