The social and political climate regarding FinTechs in the business area of Loan Services, Factoring, Loan Broking and Finetrading is still in the process of development.
An approval is required by the Ministry of Finance to be used.
According to the 5 April 1993 Law, no legal person governed by Luxembourg law may carry on the business of a credit institution without a written authorization from the Minister with responsibility for the CSSF Commission de Surveillance du Secteur Financier – Financial Sector Supervisory Commission).
Requirement of a Credit Institution:
Minimum capital requirement: EUR 8,700,000
Costs for getting a license: EUR 15,000 to be paid to the CSSF
Annual license: from EUR 85,000 to EUR 350,000 to be paid to the CSSF, based on the total assets of the credit institution.
There are other financial Luxembourg players offering lending with or without a legal authorization as e-money institutions (binding authorization from Minister with responsibility of the CSSF), consumer credit companies or Fintechs (without authorization).
No key player based in Luxembourg to the best of our knowledge. The FinTechs active in the lending (consumer credit with limited amounts) are Mash, MyBucks, C Finance, Crosslend and Numen Europe.