The Luxembourg Bankers’ Association (ABBL) and the Luxembourg House of Financial Technology (Lhoft) have launched the first Catapult programme dedicated to the Luxembourg banking sector, selecting two financial technology firms, Depowise and Altilia, to support the modernisation of depositary and custody activities. The initiative is run through the ABBL’s Depositary and Custodian Banking Cluster (DBCL) and is intended to help banks respond to rising regulatory, operational and data-management pressures. The inaugural edition culminated on 24 October 2025 with the choice of the two winners at the Depositary & Banking Conference Luxembourg, organised by the DBCL.
Depositary banking
According to the ABBL, Luxembourg holds a leading position in global fund servicing with €7.54trn in assets under depositary and €3.95trn in assets under custody. More than 40 banks active in depositary and custody services underpin this segment, which plays a central role in safeguarding investors’ assets, overseeing fund administration and ensuring regulatory compliance for undertakings for collective investment in transferable securities, hedge funds and private equity structures.
As sustainable investing expands, alternative funds grow and technology advances, the ABBL says depositary banking remains a pillar of security, transparency and operational oversight in Luxembourg’s fund ecosystem. “Luxembourg’s success as the world’s second-largest fund hub simply wouldn’t be possible without its depositary banks. They are the quiet force that safeguards investor confidence and keeps the entire fund ecosystem running smoothly,” says 
Three levers for structural change
The DBCL argues that the industry is entering a transformative phase, driven by the need to tackle inefficiencies arising from fragmented systems and manual processes. Custodians, fund administrators and transfer agents often operate in silos, which DBCL members say leads to slow communication, inconsistent data and more complex compliance requirements.
In consultation with its members, the cluster has identified three strategic priorities. “Through close collaboration with our members, we have identified three transformative levers that will shape the next chapter of depositary banking. By embracing digital standardisation, AI-powered data intelligence, and automated risk-based oversight, the sector is positioning itself at the forefront of innovation and trust,” says 
The first lever focuses on integration and collaboration. According to the DBCL, an artificial intelligence-powered market platform is emerging to connect all participants in the depositary ecosystem through a standardised and unified digital infrastructure. By automating document reading and data extraction, this platform is intended to deliver more consistent data, faster workflows and greater accuracy across both liquid and illiquid asset management.
The second lever aims to use artificial intelligence to manage large volumes of unstructured data, such as reports, contracts and emails. The cluster says automating these processes can enhance efficiency, increase transparency and reinforce compliance across different fund types.
The third lever introduces an artificial intelligence-driven, risk-based due diligence model applied to fund onboarding. This approach is designed to assess risk profiles and calibrate control mechanisms to each fund’s complexity, while enabling continuous monitoring. According to the DBCL, this is expected to reduce human error, streamline operations and strengthen investor protection and supervisory oversight.
Industry priorities
On the basis of these priorities, the DBCL and the Lhoft jointly structured the first Catapult programme for the banking sector. The organisers say the initiative demonstrates a commitment to innovation and collaboration between established institutions and financial technology firms.
The programme, as outlined by the ABBL and Lhoft, started in February 2025. A workshop facilitated by EY Luxembourg in May 2025 was used to define the specific needs of custodian banks. Collaboration sessions with the Lhoft followed in June 2025. A call for applications to financial technology firms went out in July 2025, followed by a preselection phase in August 2025 and an intensive bootcamp and mentoring programme in October 2025.
Winners
Depowise was selected as one of the two winners for its regulatory technology tools providing digital oversight and asset-servicing solutions for depositaries and fund administrators. Altilia, the second winner, is an artificial intelligence company offering a no-code platform that automates data and document processing for financial institutions. The organisers say both firms align with the three transformation levers identified by DBCL members.
“We are thrilled to have been selected as a winner of the Catapult Program! This initiative allowed us to validate our product–market fit and ensure that our roadmap effectively addresses the core challenges faced by depositaries. It was also an excellent opportunity to connect with key industry stakeholders and peers across the sector,” said Melanie Moos, Managing Director Depowise.
“Altilia is honored to have won the Catapult: BankTech – Depositary Banking Edition 2025 and extends its gratitude to the organizers and participating depositary banks, whose insights confirmed that its Agentic AI Platform effectively addresses the industry’s operational needs,” said Massimo Ruffolo, Founder Altilia.
According to the Ministry of Finance, the project also reflects the strength of Luxembourg’s financial innovation ecosystem, which is supported by government policy and recent tax measures promoting investment in technological advancement. “Congratulations to the winners of the new programme, as well as to the ABBL and the Lhoft for their initiative. Luxembourg’s strength lies in the links and cooperation between various institutions,” said Minister of Finance 
