Digital banking for non-resident customers in Luxembourg and the new generations


The banking sector faces an immense challenge in delivering tailor-made and integral services to customers through an unique digital experience. In a global and interconnected world, the complexity lies in the fact that those who drive this change are the new generations, which are highly demanding consumers in their decision making process. 

The directors of the Spanish banks established in Luxembourg share their vision on the new trends affecting the private banking sector from a cross-border approach.

Comillas SFF

“The health and economic crisis caused by COVID19 has not only brought changes in our habits and routines, but is also going to transform the way we develop certain business models and how we interact with our customers.  

Innovation is in Bankinter Group’s DNA. In these times it has been very useful to us, bearing in mind that the Spanish banking sector is ranked second of the world in digitalisation. Over the last few decades, Bankinter has set several milestones in this area – it was a pioneer of online banking, there was the launch of the first roboadvisor in the Spanish banking sector, and even the first 100% digital mortgage – to name but a few. 

In Luxembourg, the evolution of digitalisation has been different. In this regard, I believe that the Luxembourg Private Banking market has still a great deal to do, and Bankinter could contribute in this growth. In the last year, we have implemented many initiatives to get closer to our customers by dealing with the special circumstances of 2020. Alternatives such as the digital signature or the replacement of face-to-face meetings and travel with online meetings, have been very successful. At Bankinter Luxembourg, we have allocated a considerable part of our investment budget to reinforce technology. This way we have adapted to the current times, but have also gone even further. Our intention is to persevere in it, hybridizing the digital with the face-to-face contact, which is key to maintain customer relationships.    

There is no doubt that the pandemic has also been a catalyst of change in payment methods by boosting mobile payments and restricting the use of cash – a trend that is already unstoppable. In the payments industry, banks are facing competition from Fintech and Bigtech sectors. In my opinion, it should not be seen as a threat, but rather as an incentive to learn and expand in areas such as the best customer experience. As banking, and mainly the private banking industry, will always be able to provide specialized business and fully personalized financial solutions, this is an added value that is difficult to replace.”

Comillas SFF

”Due to the current situation, private banking customers have prioritized their wealth management diversification in different jurisdictions. In order to facilitate the transnationality for these customers, financial institutions have to adapt their customer on-boarding, operational and organisational processes.

For example, Swiss banks, the paradigm of private banking, seem to be relatively advanced in terms of services offered through digital banking compared to other European countries. Switzerland is a country known for the presence of major global wealth. This type of banking, which in principle is based on the close relationship between the customer and its financial adviser, seems to be aware of the added value of technological developments to our industry.

It could also be added the influence of the new generations, our customers of tomorrow. “The pandemic has shown that digital banking is essential for consumers of all ages to manage their finances” Allison Beer, Head of Digital – Chase. Millennials and Generation Z are the two age groups that use digital banking apps the most. A study shows that 99% of Generation Z and 98% of Millennials use these apps today. Generation X and Boomers use such apps slightly less, 86.5% and 69.5%, respectively. (Source CNBC)

How bankers in the future will interact and operate with new technologies, what current and future digital customers expect from their bankers, and how technology might strengthen client loyalty, are issues to consider now. These are our customers of tomorrow and on which all the industry’s digitalisation and innovation efforts should be focused.”

Comillas SFF

“CaixaBank Private Banking, in line with the bank’s Strategic Plan, has been developing its omnichannel customer service model called “Human Technology” for years, which combines the experience and know-how of Private Banking managers with the advantages offered by new technologies to offer the best customer experience. 

In Luxembourg, our customers benefit from a dedicated team of professionals working together with their local financial advisor, reinforced by a technological platform that allows them the interaction of both areas. 

For us, the need to maintain a personal relationship between customer and the financial institution to provide services will always be paramount. We have to understand that the new generations do not see technology as a tool to do their jobs better, but as something that is present in all aspects of their lives and is evident in the way they relate to people, companies and institutions. And they will expect banks to be able to respond to this style as well. The most successful banks will be those that better listen to their customers and anticipate their needs anywhere and at any time.”

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