Cecabank, a leading independent depositary bank in Spain, has received banking and depositary licences from the Luxembourg Financial Sector Supervisory Commission (CSSF) and officially commenced operations in Luxembourg on 1 March 2025. In an exclusive interview with Paperjam, , managing director and country head in Luxembourg, discussed the bank’s entry into the Luxembourg market, outlining key opportunities and challenges, its objectives for 2025 and the unique services it offers to differentiate itself from competitors.
Smooth licensing process
Bol described how the process of obtaining the necessary licences from both the Bank of Spain and the CSSF went smoothly, despite its complexity. The firm began its application process in April 2024, aiming to launch a branch in Luxembourg. Cecabank first secured its banking licence from the Bank of Spain in July 2024, which was subsequently sent to the CSSF for approval. After the CSSF granted the banking licence, Cecabank proceeded with its second application for the depository licence, which is required to operate in Luxembourg.
The depository licence was granted in January 2025 after several discussions with the CSSF. Bol noted that that the process was overall smooth and without any major issues. “We had several back-and-forth meetings with the CSSF and were able to explain our operating model,” she explained. Cecabank’s operations in Luxembourg are mainly focused on providing depositary, custody and securities settlement services, with the primary goal of serving Luxembourg-based funds.
Setting up the Luxembourg branch
Bol outlined the initial steps Cecabank took in setting up its Luxembourg branch. She explained that one of the key requirements for obtaining both the banking and depository licences was to have a physical office and staff in Luxembourg prior to receiving approval. This meant that, during the filing process, Cecabank had to hire five employees to fulfil the CSSF’s requirements. These included the country head, a risk and compliance officer and three individuals responsible for overseeing the operations in Madrid office.
The staffing process began in June 2024 with the hiring of Bol and the compliance and risk officer, followed by the addition of three depository services professionals. Bol highlighted that this combination of local expertise and staff from the Madrid office was appreciated by the CSSF, which wanted to ensure that Cecabank’s Luxembourg branch had both local knowledge and operational support from the headquarters.
Cecabank’s goals for 2025
Bol revealed that Cecabank’s first goal for 2025 is to establish its brand in Luxembourg. Whilst the firm is well-known in Spain as a leader in depository and custody services, it is relatively unknown in Luxembourg. The firm aims to change this by building awareness and positioning itself as a top-tier provider of depository and custodial services. “We want to make ourselves known as best-in-class in depository and custodial services,” she stated.
Additionally, Cecabank plans to begin migrating its existing Spanish clients, who have Luxembourg-based funds, to the new Luxembourg platform. The firm has already aligned several clients who are eager to benefit from the same high-quality services they receive in Spain, but tailored to the Luxembourg market.
Tailored services
Bol also highlighted the firm’s commitment to offering services specifically suited to the Luxembourg market. Unlike many larger players, Cecabank plans to focus on small to medium-sized clients, particularly in the alternative investment space. “We’re here to handhold clients and help them grow in Luxembourg,” Bol explained. She noted that traditional depository and custodial services in Luxembourg often cater only to large clients, leaving smaller businesses underserved.
By focussing on this segment, Cecabank believes it can provide a much-needed differentiator. “We are bringing the same client excellence and quality that we provide in Spain to the Luxembourg market, focusing on clients that have not traditionally been well catered for,” Bol concluded.
Unique opportunities and challenges
Bol identified Cecabank’s deep expertise in depository services as its key opportunity in Luxembourg. Whilst there are several Spanish banks in Luxembourg, few specialise in depository services, making Cecabank’s offering particularly unique. “We are the number one depository in Spain, and we aim to bring that expertise to Luxembourg,” she remarked. Bol noted that many banks in Luxembourg are not focused on depository services, which provides an opportunity for Cecabank to capitalise on the growing demand for such services.
However, Cecabank also faces challenges, particularly the perception that it is simply a Spanish bank seeking Spanish mandates. Bol emphasised that Cecabank’s focus is on European funds, not just Spanish clients. Overcoming this perception and establishing its brand as a provider of services to a broader European client base will be a key challenge in the coming years.
Expansion plans and future prospects
Cecabank plans to expand its operations in Luxembourg over the next three years, with a target of migrating at least nine existing clients to its Luxembourg platform. Bol added that the firm also aims to attract clients outside of Spain, although she did not provide specific numbers. “We are targeting new clients and expanding our services beyond Spain,” she said.
The firm’s approach to growth will be cautious, with a focus on ensuring that it provides quality services to its clients while gradually increasing its presence in Luxembourg. Bol concluded that Cecabank’s operations in Luxembourg are poised for steady growth, with an emphasis on providing high-quality services tailored to the needs of small and medium-sized clients in both the traditional and alternative investment sectors.