Luxembourg is a relatively small EU country that has long been home to a good number of financial services firms. In fact, with a population of just 615,000, it is one of the smallest countries in Europe but it also claims one of the highest levels of GDP per capita.
Regarding economic activity, financial services generate the most output and Luxembourg is home to one of the largest investment fund centers and many private banks (140). The dominance of financial services compels the country to be attuned to the vicissitudes of innovation in financial services and thus Fintech holds strategic importance if the country wants to maintain its outsized competitive position in the world of finance.
So how is Luxembourg doing in the fast-paced realm of Fintech?
The LHoFT (Luxembourg House of Financial Technology), a public-private partnership that targets technology innovation in the financial services industry, recently published a nice visual display of Fintech participants based in Luxembourg.
According to LHoFT, there are 175 companies that are in the Fintech sector. From payments to Insurtech, lending, blockchain to investment management and more, Luxembourg appears to have fostered a highly robust, entrepreneurial Fintech ecosystem. Crowdfund Insider recently covered Luxembourg-based Tokeny, a digital asset issuance and management platform that received the backing of Euronext.
If there is a takeway here, it is the fact that a business friendly, supportive government paired with a skilled, risk taking-entrepreneurial populace is the way to go – if you want an innovation driven economy. LHoFT helps to explain why Luxembourg rocks Fintech here.
Check out the Luxembourg Fintech map below.
Luxembourg #Fintech Map – January 2020 🇱🇺
— Luxembourg House of Financial Technology (@The_LHoFT) January 8, 2020