How LUXHUB mutualizes compliance for banks
Founded by four Luxembourgish banks when the Second Payment Services Directive first came out, the platform continues to develop new offers to facilitate the entry into the world of Open Finance.
Mutualized compliance. This is the concept that gave birth to LUXHUB back in 2018. This technology platform was founded by four Luxembourg banks: Spuerkeess, BGL BNP Paribas, Banque Raiffeisen, and POST Luxembourg. Its goal: to develop an API (application programming interface) platform dedicated to open banking, in compliance with PSD2.
Choice of Berlin Group standards
Pooling their resources has allowed the member institutions to move faster and, above all, to be harmonized from the start, notably by choosing the Berlin Group’s API standards. As a reminder, French banks carried out their developments separately and used the common standards of the STET standard-setting body, but without real harmonization in implementation. Fintechs wishing to connect to the PSD2 APIs of French banks thus had to adapt to each one of them.
“We have developed a technology platform, which we have been operating since, and we handle regulatory monitoring to update our services as needed,” explains Raoul Neu, Lead Architect and Head of Product Factory at LUXHUB. “We guide banks through the entire compliance chain, except for strong customer authentication, which is the responsibility of each individual bank.” LUXHUB has around forty employees and concentrates the queries from third-party payment providers (fintechs) that access bank customers’ accounts for consultation or to initiate payments, always with their consent.