On Thursday 13 November 2025, the Luxembourg House of Financial Technology (LHoFT) Foundation and the Luxembourg Bankers’ Association (ABBL) reported the completion of the first Catapult Program dedicated to Luxembourg’s depositary banking sector, marking a new milestone for the country’s financial industry.

Facing increasing complexity, market fragmentation and growing regulatory pressure, the depositary banking industry is at a decisive turning point. To support its members through this transformation, the ABBL’s Depositary and Custodian Banking Cluster (DBCL) and the LHoFT partnered to launch the first Catapult programme dedicated to the Luxembourg banking sector. According to the organisers, this collaborative initiative aims to accelerate innovation and digitalisation across the industry and culminated on 24 October with the selection of Depowise and Atillia as the programme’s two winning FinTechs.

The two organisations noted that Luxembourg holds a leading position in global fund servicing, with €7.54 trillion in assets under depositary (AuD) and €3.95 trillion in assets under custody (AuC), supported by more than forty banks active in depositary and custody services. These institutions play a central role in safeguarding investors’ assets, overseeing fund administration and ensuring regulatory compliance for UCITS, hedge funds and private equity structures.

They added that as the industry embraces sustainable investing, the growth of alternative funds and rapid technological innovation, depositary banking remains a pillar of security, transparency and operational excellence in an evolving financial landscape.

“Luxembourg’s success as the world’s second-largest fund hub simply wouldn’t be possible without its depositary banks. They are the quiet force that safeguards investor confidence and keeps the entire fund ecosystem running smoothly,” says Brenda Bol, Chair of the DBCL.

The Three Paths to a Smarter Depositary Banking Future

The depositary banking industry is entering a transformative phase, driven by the need to overcome long-standing inefficiencies resulting from fragmented systems and manual processes. Custodians, fund administrators and transfer agents often operate in silos, leading to slow communication, inconsistent data and increasingly complex regulatory requirements.

According to the programme partners, industry members have worked together to identify the strategic priorities that will guide the sector’s evolution.

“Through close collaboration with our members, we have identified three transformative levers that will shape the next chapter of depositary banking. By embracing digital standardization, AI-powered data intelligence, and automated risk-based oversight, the sector is positioning itself at the forefront of innovation and trust,” underlined Ananda Kautz, Member of ABBL’s Management Board.

The first lever focuses on integration and collaboration. A new AI-powered market platform is emerging to reduce inefficiencies by connecting all participants in the depositary ecosystem through a standardised digital infrastructure. By automating document reading and data extraction, the platform aims to ensure data consistency, accelerate workflows and improve accuracy across liquid and illiquid asset management.

The second lever harnesses artificial intelligence to address one of the industry’s most persistent challenges: managing large volumes of unstructured data from reports, contracts and emails. Automating these processes enhances efficiency, increases transparency and strengthens compliance across all types of funds.

According to the organisers, the third lever introduces an AI-driven, risk-based due diligence model that is transforming fund onboarding. By rapidly assessing risk profiles and adapting control mechanisms to a fund’s complexity, this approach reduces human error, streamlines operations and enables continuous monitoring - representing a significant step forward for investor protection and regulatory oversight.

Innovation Through Partnership: The First Catapult Programme for Luxembourg Banks

According to the organisers, building on these strategic priorities, the DBCL and the LHoFT have jointly launched the first Catapult Programme dedicated to the Luxembourg banking sector, marking a new step in collaboration-driven innovation.

The LHoFT’s Catapult Programmes are acceleration initiatives connecting FinTech and RegTech startups with financial institutions through mentoring, workshops and networking to address concrete industry challenges and support integration into Luxembourg’s financial ecosystem. By strengthening cooperation between startups and established stakeholders, the programme aims to further reinforce Luxembourg’s role as a hub for financial technology.

“Catapult: BankTech shows how effective collaboration between the LHoFT, ABBL, banks and FinTechs can deliver value-enhancing results. The programme addressed concrete industry challenges and showcased solutions that will help Luxembourg’s financial sector continue to evolve and remain competitive,” stated Nasir Zubairi, LHoFT CEO.

This first edition focused on the three strategic priorities identified by DBCL members and began in February 2025, followed by a workshop facilitated by EY Luxembourg in May to define custodian banks’ needs and collaboration sessions with the LHoFT in June. A call for applications launched in July, with pre-selection in August, preceded an intensive bootcamp and mentoring programme in October. The process concluded on 24 October 2025 with the selection of two winning FinTechs - Depowise, a RegTech company offering digital oversight and asset-servicing solutions, and Atillia, an AI company providing a no-code platform for automated data and document processing - presented at the Depositary & Banking Conference Luxembourg.

Melanie Moos, Managing Director of Depowise, commented: “We are thrilled to have been selected as a winner of the Catapult Program! This initiative allowed us to validate our product–market fit and ensure that our roadmap effectively addresses the core challenges faced by depositaries. It was also an excellent opportunity to connect with key industry stakeholders and peers across the sector.”

Massimo Ruffolo, Founder of Atillia, added: “Atillia is honored to have won the Catapult: BankTech - Depositary Banking Edition 2025 and extends its gratitude to the organizers and participating depositary banks, whose insights confirmed that its Agentic AI Platform effectively addresses the industry’s operational needs.”

“This programme highlights the desire of ABBL members to embrace a collaborative approach with FinTechs. In fact, nearly half of them already have established collaborations,” stated Hélène Lange, ABBL Head of Business Coordination.

The organisers noted that the project also illustrates the strength of Luxembourg’s financial innovation ecosystem, supported by the Ministry of Finance and reinforced by recent tax measures promoting investment in technological advancement.

“Congratulations to the winners of the new programme, as well as to the ABBL and the LHoFT for their initiative. Luxembourg’s strength lies in the links and cooperation between various institutions. This is a very good example of how everyone can contribute their strengths so this can give rise to innovative ideas for the future,” stated Gilles Roth, Luxembourg Minister of Finance.