FundBank (Europe) SA has received the necessary authorisation from the European Central Bank to operate as a credit institution in Luxembourg, the bank on 29 January 2025. The ECB issued the authorisation on 16 December 2024, allowing FundBank (Europe) SA to conduct banking business under Luxembourg’s financial sector laws. The newly established bank will be directly supervised by the Financial Sector Supervisory Commission (CSSF), Luxembourg’s financial regulatory body.
Headquartered in Luxembourg, FundBank (Europe) is set to begin operations later this year and aims to provide banking solutions to clients across Europe, complementing Luxembourg’s alternative investment funds ecosystem. FundBank said that it plans to cooperate with key stakeholders in the investment funds sector, focusing on the need for streamlined, tech-driven banking solutions, particularly in bank account openings, bespoke custody services and other banking needs specific to the AIF market.
In its announcement, FundBank outlined its specialisation in delivering innovative banking services within the alternative investment funds space. The institution will offer services such as deposit-taking, credit solutions and fiduciary management, ensuring that client funds are both secured and accessible even during market volatility. The bank intends to use advanced technologies, including artificial intelligence tools, to streamline client onboarding and offer a seamless, regulatory-compliant experience.
FundBank (Europe) will be staffed entirely in Luxembourg, with employees drawn from the local banking and investment funds industries. Colm O’Driscoll, vice chairman of FundBank (Europe), commented on the evolving nature of asset management and its increasing need for specialised banking solutions. He explained that the demand for a robust, dedicated banking partner was clear and that expanding into the Luxembourg market was a response to requests from clients. He further indicated that the company looks forward to making additional announcements regarding its technology, products, services and future expansion.
Steve David, chief executive officer of FundBank (Europe), noted the demand for seamless banking solutions tailored to the needs of European fund managers and administrators. He stated that the new authorisation positions FundBank (Europe) to support the development of Luxembourg’s AIF sector, offering innovative banking solutions and pioneering techniques suited to the unique demands of asset managers.
In addition to Luxembourg, FundBank Group, the parent organisation, has a presence in the United States and the Cayman Islands. The group offers institutional banking services to the global asset management industry.