Amidst global uncertainties and heightened competition, the Luxembourg Bankers’ Association (ABBL) embarks on a journey to secure the future of the nation’s banking sector through a new collective agreement.
The ABBL, Luxembourg’s largest professional association in the financial sector, representing the majority of financial institutions, regulated financial intermediaries, law firms, consultancies, auditors, market infrastructures, e-money and payment institutions, is embarking on a mission.
It aims to redefine its collective agreement with its social partners and address numerous adversities hindering the growth of the country’s banking sector. The current collective agreement, which expired on December 31, 2023, is undergoing a transformation to emerge in support and benefit of the entire community.
“Our banking sector probably contributes to this deceptive sense of comfort and security. After all, our services continue to operate reliably, day after day. We provide direct and indirect employment for tens of thousands of professionals, and we make a significant contribution to funding public interest projects, thanks to the taxes we pay. But will what seems to be a certainty today still be a certainty in the future?”
Jerry Grbic, CEO of the ABBL.
International Competition
Luxembourg’s financial centre, renowned for its international openness, faces intensified competition from its global counterparts. With the majority of banks affiliated with foreign groups, directors tirelessly strive to bolster the allure of Luxembourg’s financial hub.
However, amidst heightened competition, European banks, including those in Luxembourg, grapple with diminished competitiveness compared to American and Asian counterparts.
“The productivity of the banking sector, although down in recent years, can be revitalised through strategic initiatives and targeted investment. We now need to create a framework that allows banks to move forward again.”
Jerry Grbic, CEO of the ABBL.
Nurturing Talent
The banking sector hinges primarily on its employees. Whether it’s driving customer innovation, facilitating digital transformation, fostering sustainable growth, or ensuring robust security measures, it all comes down to the strength of their workforce.
In its pursuit to support households and businesses in their sustainable and digital transition endeavours, or contribute to bolstering the European Union’s competitiveness and strategic autonomy – the Luxembourg banking sector needs exposure and access to premium talent.
“The banking sector is one of the most exposed to the impact of climate change and the rise of Artificial Intelligence. Banks need to position themselves strategically to maintain their competitiveness while preparing their workforce for the emergence of new realities”, notes the
Jerry Grbic, CEO of the ABBL.
As negotiations for a new collective agreement progress, the ABBL envisions a future where the banking sector thrives amidst challenges, equipped with a workforce prepared for emerging realities. They are working to revise certain aspects of the agreement, intended to foster an environment that supports the continued growth.
The new agreement seeks to enhance the appeal of banking for future generations while equipping institutions with the necessary resources to train their employees and keep pace with industry changes. Additionally, it aims to enable banks to reward employees based on their development and contributions to collective success.
By adapting to changing dynamics and embracing a forward-looking approach, Luxembourg’s banking sector aims to sustain its legacy of excellence and resilience in the face of evolving global landscapes.
