FundBank (Europe) S.A. Receives ECB Approval to Operate as a Luxembourg Bank

FundBank Achieves ECB Approval to Operate in Luxembourg

In a significant milestone for the banking sector, FundBank (Europe) S.A. has received official approval from the European Central Bank (ECB) to operate as a credit institution under Luxembourg law, as of December 16, 2024. This development, announced on January 30, 2025, marks a transformative step for the FundBank Group in its mission to deliver seamless banking services tailored to the investment fund industry.

FundBank's headquarters will be based in Luxembourg, with plans to commence operations in 2025. The institution aims to provide an array of banking solutions that address the specific needs of clients within Europe, enhancing the alternative investment fund ecosystem. The organization plans to collaborate closely with key players in the investment management sector, offering swift, tech-driven account opening procedures and bespoke custody services.

This newly established bank will not just take deposits but also extend credit solutions while acting in a fiduciary capacity. Such measures ensure that client funds remain secure and accessible despite potential market fluctuations. By leveraging cutting-edge technology, including AI tools, FundBank seeks to offer a streamlined onboarding experience that is both non-invasive and compliant with regulations.

All personnel at FundBank (Europe) S.A. will be based in Luxembourg and will consist of highly qualified professionals drawn from the local banking and investment fund landscape. Colm O'Driscoll, Vice Chairman, highlighted the necessity for financial solutions that keep pace with the evolving asset management landscape. He stated, "We have recognized that asset managers require a solid, dedicated banking partner to provide solutions tailored to their unique needs. The expansion into the Luxembourg market has been a consistent request from our clientele, and we are elated to bring this to fruition."

CEO Steve David noted a growing demand among European fund managers for seamless onboarding and banking solutions. He asserted that the successful acquisition of this banking license enables FundBank to facilitate the development of the alternative investment fund sector in Luxembourg. By actively contributing creative banking solutions and advanced methodologies, the bank intends to meet the specialized demands of this client base.

The FundBank Group, established as an institutional banking entity, has a presence in the United States, the Cayman Islands, and Luxembourg. With a commitment to innovative technology and dedicated financial expertise, the bank provides professional banking solutions designed to bolster the success and growth of wealth management firms.

As a reminder, until the formal commencement of its banking operations, FundBank (Europe) S.A. will temporarily operate under the name “FB Tech S.A.” This strategic move positions FundBank to become a pivotal player in the European financial services landscape.

The approval from the ECB is a crucial endorsement underscoring the bank's commitment to regulatory compliance and innovative financial services.