Lydia Linna

The global race to dominate artificial intelligence may feel a world away from Luxembourg, yet the Grand Duchy’s private banks and asset managers are watching the frenzy with growing interest.

European equities are getting more interesting, say asset management and private banking experts at Quintet, Pictet and Artemis Investment Management.

Indosuez Wealth Management is addressing changing demographics in wealth by developing more sustainable offerings and management solutions based on exchange-traded funds (ETFs), all while ensuring that they gain and maintain the trust of younger clients.

Despite tough times for private markets in recent years, family offices are seeing increased interest in private equity and venture capital, especially among the younger generation.

Claude Marx, head of Luxembourg’s financial regulator CSSF, has sent a stark warning to the financial sector: Europe’s banks and asset managers are already falling behind in the race to adopt artificial intelligence. “We are facing an economic revolution and we should embrace it,” he said.

Artificial intelligence has become the dividing line between progress and obsolescence in Luxembourg’s financial industry.

The great wealth transfer isn’t just a handover of assets. It’s a clash of priorities between generations. At HSBC Luxembourg, Emanuele Vignoli is helping families bridge that gap with a blend of technology and trust.

Lucienne Andring of Banque de Luxembourg champions a new era in private banking, where wealth transfer becomes a family dialogue, not a transaction.

Despite growing awareness, nature remains a hard sell for investors.

Luxembourg’s private debt market has been flourishing. But products that can pose systemic risks, difficulties with valuation, and potential misunderstandings of the risks involved in the market are issues lurking in the shadows.