Banking

The Luxembourg banking industry is undergoing significant changes, driven by structural shifts in the global economy, rising regulatory demands and heightened competition that challenge traditional business models. Digitalization – powered by technologies like blockchain and artificial intelligence – is further accelerating this transformation.

KPMG helps banks and wealth managers navigate these challenges and seize opportunities to strengthen their market positions. With deep industry knowledge and a cross-disciplinary network of specialists, KPMG delivers tailored solutions that address current needs and future challenges. From strategy and operations to technology, risk, regulatory and compliance, we help clients optimize existing structures so financial institutions can proactively shape their futures and emerge stronger.

Contact us

Daniel Rech

Partner, Banking Market Leader

KPMG in Luxembourg

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Market highlights

Luxembourg banks hit record EUR 9.8 billion pre-tax profits in 2024, driven by strong interest rates and commission growth.

Luxembourg private banking remains globally attractive, with rising efficiency and EUR 628 billion AuM.

Luxembourg’s banks advance in digital maturity, but 52% still lack in-house skills.

Industry insights

How does your bank perform compared to others in Luxembourg's banking sector? Explore KPMG’s annual analysis of the banking market.

A blueprint for creating value through AI-driven transformation

“A more diversified and international financial center by 2035”

Insights from the 4th edition of our survey that dives into the evolution of Luxembourg’s custody sector.

Key services

Technology consulting

Digital transformation is reshaping banking, demanding new business models, processes and skills. Advanced technologies enable efficiency, agility and personalized customer experiences, but success requires more than tools – it requires strategic change, robust governance and a thorough review of operations. KPMG helps banks navigate this transformation with tailored solutions that streamline operations, strengthen compliance and unlock opportunities for innovation and growth.

Profitability and growth

Profitability and growth in banking depend on strategic innovation, operational efficiency, and customer-focused services. Leveraging technology, data analytics, and digital offerings enables banks to optimize performance, diversify revenue, and manage risk. KPMG helps drive growth with tailored strategies and advanced analytics that enhance efficiency and foster innovation.

Sustainability

Sustainability in banking goes beyond compliance – it is a strategic imperative that embeds ESG principles into every facet of operations and decision-making. By investing in green technologies, sustainable projects, and responsible lending, banks can mitigate climate risks, create societal value, and gain competitive advantage. KPMG supports this journey, translating ESG commitments into measurable business outcomes and long-term growth.

Risk and regulatory compliance

Risk and regulatory compliance are critical for maintaining stability, transparency and consumer protection within the financial system. Navigating complex regulations – such as capital requirements and anti-money laundering rules – helps mitigate risks and ensure accountable operations. KPMG supports banks with expert guidance and tailored solutions that ensure compliance, strengthen resilience and adapt to evolving regulatory landscapes.

Technology consulting Profitability and growth Sustainability Risk and regulatory compliance

Technology consulting

Digital transformation is reshaping banking, demanding new business models, processes and skills. Advanced technologies enable efficiency, agility and personalized customer experiences, but success requires more than tools – it requires strategic change, robust governance and a thorough review of operations. KPMG helps banks navigate this transformation with tailored solutions that streamline operations, strengthen compliance and unlock opportunities for innovation and growth.

Profitability and growth

Profitability and growth in banking depend on strategic innovation, operational efficiency, and customer-focused services. Leveraging technology, data analytics, and digital offerings enables banks to optimize performance, diversify revenue, and manage risk. KPMG helps drive growth with tailored strategies and advanced analytics that enhance efficiency and foster innovation.

Sustainability

Sustainability in banking goes beyond compliance – it is a strategic imperative that embeds ESG principles into every facet of operations and decision-making. By investing in green technologies, sustainable projects, and responsible lending, banks can mitigate climate risks, create societal value, and gain competitive advantage. KPMG supports this journey, translating ESG commitments into measurable business outcomes and long-term growth.

Risk and regulatory compliance

Risk and regulatory compliance are critical for maintaining stability, transparency and consumer protection within the financial system. Navigating complex regulations – such as capital requirements and anti-money laundering rules – helps mitigate risks and ensure accountable operations. KPMG supports banks with expert guidance and tailored solutions that ensure compliance, strengthen resilience and adapt to evolving regulatory landscapes.

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Helping achieve the highest levels of business integrity through prevention, detection and investigation of fraud and misconduct.

Our experts

Stanislas Chambourdon

Partner, Growth and Strategy

KPMG in Luxembourg

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Daniel Rech

Partner, Banking Market Leader

KPMG in Luxembourg

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Gianfranco Mei

Partner, Advisory

KPMG in Luxembourg

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Contact us

KPMG combines our multi-disciplinary approach with deep, practical industry knowledge to help clients meet challenges and respond to opportunities. Connect with our team to start the conversation.

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