The outlook and future of a sector adapting to the change


2021 - The outlook and future of a sector adapting to the change

Professionals of the Financial Sector (PSF) in Luxembourg

Each year, the Luxembourg financial center reasserts its leading position in the global financial sector. The country’s reputation among clients coming to Luxembourg for its quality services is built on the expertise, innovation and know-how of its Professionals of the Financial Sector (PSF).

Competitiveness is inherent in all markets. In a regulatory and technological environment that is constantly adapting to changes, it is important that PSF focus on their core business and adapt to tomorrow’s needs and changes. We are observing an ongoing remodeling of some organizations’ licenses, reflecting a better understanding of licensing requirements regarding the services provided and, in some areas, a quest for synergy that results in a concentration of players.

In 2020, PSF, no different from any other financial market actor, experienced turbulence from the unprecedented COVID-19 pandemic. However, as of today, PSF has shown amazing resilience, having successfully implemented measures recommended by the CSSF.

Despite a temporary decrease of the number of employees in 2020 compared to 2019, a post COVID-19 trend is clearly appearing, with an increase of employees almost back to the pre COVID-19 levels (more than 16,500 professionals employed by 265 entities as of October 2021).The reduction of net results in 2020 were ultimately driven by the decrease in the dividend income of a major player, which was mainly kept in reserve during the crisis. However, things are looking brighter here also.

This resilience is further illustrated by the bounce back in 2021 of the number of employees and the total net result of the industry. If the crisis did bring additional challenges, many opportunities have also risen, ranging from internal reorganization perspectives tackling historical talent management questions, to external opportunities arising from the private equity sector as well as sustainability-related matters.

Through our detailed analysis of the PSF market, we hereby present the key trends and changes in this industry in an ever-changing environment.

Integrating the latest PSF figures with detailed commentary, our report analyzes changes in the PSF market and demonstrates its dynamic nature. It features interviews with key people from the financial center and articles on topical issues, written by industry-dedicated professionals. The report provides an overview of PSF and illustrates the existing types and developments. It confirms the industry’s importance in the Luxembourg economy.

We kindly thank Christophe Dermine, Christophe Gaul, Manuel Ghidini, Sébastien Respaut, and Michaël Zianveni for their valuable contributions to this report. Their complementary experience in this industry has provided us with an enlightened opinion of the latest PSF news and the sector’s prospects.

If you missed the yearly PSF Conference on 8 February 2022, check out the topics discussed here .

Click here to see the previous editions - Professionals of the Financial Sector (PSF) in Luxembourg

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