The European private banking world is in the midst of a high-stakes battle for efficiency, talent and the future of ultra-high-net-worth capital.
In 2024, Luxembourg private banks delivered a defiant victory, achieving an unprecedented annual assets under management (AuM) surge of EUR 94 billion, the sector’s largest expansion in over a decade.
However, even as the sector delivers spectacular growth, it faces an industry-wide challenge: a fierce profitability squeeze. Rising costs, driven by non-negotiable investments in regulatory compliance, artificial intelligence and top-tier talent, are pushing cost pressures to critical levels. The window to act is closing, forcing institutions to leverage their structural advantages to maintain their competitive edge.
