LUXHUB, the Open Banking pioneer from Luxembourg - which is “built on compliance and driven by innovation” - has been featured in the world renowned RegTech100 2022. This accolade rewards the Fintech’s efforts – and products – designed to support financial institutions in their compliance efforts related to PSD2, AML5 and a range of other areas. 

As 2021 ends and the financial services industry continues its deep digital transformation – notably by leveraging the flexible, easy-to-integrate solutions developed by Regtechs and Fintechs – LUXHUB has once again been included in the RegTech100 rankings.

“Regulation and compliance costs will keep on increasing in the years to come, impacting all financial institutions,” highlights Jacques Pütz, CEO, LUXHUB.

“On the other hand, tech – and especially automation, AI/Machine Learning and of course APIs – is influencing the RegTech market, with advancements enabling developments in solutions for better identification, fraud, process optimization, and other areas,"  he continues. “In other words, innovation is expected to continue to reduce the cost of compliance."

A first appearance in the RegTech100 list back in 2020 

LUXHUB, which was created by four major banks, first aimed at mutualizing PSD2 compliance efforts, while offering its market-leading solution and secure infrastructure to the entire banking sector.

The XS2A API provides the banking community with the necessary PSD2 compliancerelated services, secure communication and APIs-as-a-gateway for receiving and granting access to payment accounts for third-party providers.

The successful API, used by more than 40 European financial institutions and Payment institutions, was rewarded as early as late 2019 with LUXHUB’s inclusion in the RegTech100 2020 list.

At the time, LUXHUB’s management explained that the nomination in the list was “further proof of LUXHUB’s growing international recognition as an industry-leading provider in the API economy”

Additional compliance solutions, combined with deeper Open Banking expertise

In 2020, LUXHUB developed a compliance product in relation to AML5 and specific to the Luxembourgish market, after the CSSF - the local regulation authority - imposed an API approach for the creation of a Central Electronic Data Retrieval System (CEDRS).

LUXHUB’s overall aim is to facilitate the adoption and expansion of Open Banking throughout the EU and beyond, by removing technical barriers and providing added-value solutions on top of it. This ultimately enables financial institutions, start-ups, TPPs, SMEs and many others to create innovative services.

The Fintech was also recently granted AISP and PISP status in Luxembourg, ensuring that all European companies have the opportunity to access account information and payment initiation services. From XS2A and CEDR to AIS and PIS, LUXHUB is now uniquely positioned at the intersection of legacy and digital finance.

Jacques Pütz concludes: “Our journey started with PSD2 compliance, which we see as the cornerstone and key enabler of Open Banking. We now provide a range of innovative solutions that enable financial institutions to accelerate their digital transformation, but also catalyze the creation of added values services through the recent acquisition of both AISP and PISP licenses. From compliance to innovation, our solutions can be integrated at any stage of the client’s value chain, with the overall mission to enable all companies to leverage the opportunities offered by Open Banking”.

Highlighting the tech companies transforming regulatory processes in financial services

Now in its fifth edition, the RegTech100 list recognizes the world’s most innovative technology solution providers that offer products and services in the areas of compliance, risk management, information security and financial crime.

RegTech Analyst director of research Mariyan Dimitrov said, “the RegTech100 list helps banks and financial institutions filter through all the vendors in the market by highlighting the leading companies in sectors such as identity verification, risk management, communications monitoring, information security and financial crime prevention.”

As explained, this year’s process to identify the 100 RegTech innovation leaders was more competitive than ever. A panel of analysts and industry experts voted from a longlist of nearly 1,200 companies produced by RegTech Analyst, a specialist research firm. Sixty new companies entered the RegTech100 for 2022 and the finalists were recognized for their innovative use of technology to solve a significant industry problem, or to generate efficiency improvements across the compliance function.