Finance & Technology Luxembourg

“Automation must not strip the soul out of asset management: artificial intelligence should support compliance, not replace human expertise,” said Luke Varley, general counsel at Park Square Capital LLP, during last week’s Alfi conference Synergies for Asset Management in London.

Disruptive technology is shaping nearly every aspect of the global asset management industry, from growth and competition to innovation and acquisitions, according to PWC’s Asset and Wealth Management Survey 2024.

New technologies have the potential to support the integration of capital markets, improve the provision of financial services and make them more efficient for the benefit of companies and citizens. Integrating them into existing business models also requires a cultural change among those who use them.

Investment services powerhouse State Street, leader in Luxembourg’s asset services market, is undergoing a transformation. The upcoming integration of Brown Brothers Harriman, data management, ESG requirements, digital asset management and the rollout of its upgraded Alpha business platform are on top of mind for country head Ricardo Lamanna. “We create an environment where we progressively shift from being an operational organisation in Luxembourg to being a client-facing organisation.”

A cross-industry working group in Luxembourg is seeking new ways to enable financial technology to thrive in Europe’s tough regulatory environment. Updating the country’s financial services outsourcing rules could help unlock the potential of open banking.