Luxembourg-based Open Banking firm LuxHub has secured €7.4 million from its founder banking institutions, which include Banque Raiffeisen, BGL BNP Paribas, Post Luxembourg, and Spuerkeess.
Established a few years back by these four banks, LuxHub claims it has assisted around 40 financial service providers with meeting PSD2 regulatory requirements.
LuxHub’s management said that the capital raised will be used to further develop the company’s Open Banking and Open Finance products and services. LuxHab plans to continue to expand its operations across Europe.
Jacques Pütz, CEO at LuxHub, stated:
“LuxHub has [become a key player] within Luxembourg’s new Open Banking ecosystem. But our ambitions have always been to have a strong Europe-wide presence, and it’s our progress in this respect that has been most impressive.”
Pütz added that we’re currently in “a period of uniquely accelerated digital transformation,” (due mainly to the COVID-19 outbreak) and LuxHub aims to “play a key role in this regard when it comes to financial institutions.”
LuxHub began as a team of four employees, but has now grown to a diverse team of 30 professionals.
The Open Banking ecosystem began to take off toward the end of 2015. Organizations working with open banking systems have adopted the updated directive on payment services (PSD2), which has been established by the European Union.
PSD2 aims to provide end users with greater control over their financial data. It also attempts to create a more competitive and secure environment for supporting technological innovation in financial services.
LuxHub’s main products include a Mutualized managed PSD2-RTS Solution, which is a technical solution helping ASPSP (Account Servicing Payment Service Providers) with complying with the Regulatory Technical Standards of PSD2.
The company also offers the LuxHub Marketplace, which supports innovation and collaboration between traditional financial industry participants and Fintech firms that form a key part of the “API Economy” (in the context of PSD2).
Additionally, the Fintech firm offers LUXHUB One, which serves as an integration layer providing access to financial institutions through a single API and lets users develop customized services.