Best banks for startups in Luxembourg

Luxembourg is actively creating a favourable ecosystem for start-ups, combining financial incentives and institutional support. The country has an active startup community, a network of incubators and accelerators (many supported by the state), tax breaks – such as a favourable regime for intellectual property and the lowest VAT rate in the EU – as well as grants and subsidies through agencies such as Luxinnovation. However, even with all these external advantages, young businesses need to find a financial partner that meets their needs.

Large international banks with a presence in Luxembourg (BNP Paribas, ING, BIL, etc.) traditionally offer a full range of services and a global network, but are less flexible in their approach to small clients. In turn, smaller banks and local players often specialise in niche areas, providing personalised service and sometimes more favourable rates for small businesses.

When choosing a bank, start-ups should compare service costs, branch accessibility, the quality of online banking, and the bank's willingness to support projects in the early stages of development.

State Bank and Savings Bank (BCEE, "Spuerkeess")

BCEE (Spuerkeess) is the oldest and largest bank in the country and a key institution in the national financial system. It is a public bank owned by the state, which gives it unconditional trust and the highest reliability ratings. BCEE serves a wide range of clients, including individuals, businesses and the public sector. For start-ups, the bank is particularly attractive due to its reliability and well-developed infrastructure.

Logo from the site Spuerkeess

The bank's main advantage remains its reliability and stability, as mentioned earlier. Another convenient feature is that the bank has the largest network of branches and divisions, which is not surprising for a state-owned organisation. In addition, thanks to its deep integration into the economy, the bank is well acquainted with current economic processes, business support programmes and other useful options for companies. Therefore, the likelihood of receiving professional advice that is specifically tailored to your start-up is higher here than anywhere else.

However, there are also disadvantages. The main one is again that the bank is state-owned. Because of this, and also because of its size, the entire system is extremely slow and bureaucratic. This is exactly the kind of bank that will very meticulously evaluate your documents, the smallest forms and statements. So be prepared for this. The second drawback is that the bank is not flexible enough. Yes, there are tariffs and offers for businesses, but for businesses in general. BCEE does not offer separate programmes for start-ups.

Banque Internationale à Luxembourg (BIL)

BIL – Banque Internationale à Luxembourg, founded in 1856. It is the second largest local bank and also the oldest in the country, with the status of Luxembourg's "financial benchmark". BIL is known for its combination of rich traditions and focus on new technologies – the bank actively implements digital innovations in its services. BIL is attractive to start-ups due to its active position in the innovation ecosystem: it is one of the leaders in supporting start-up companies.

Logo from site BIL

BIL is directly involved in the country's start-up ecosystem. It is the only local bank participating in the state-owned Digital Tech Fund, which provides capital for the growth of technology start-ups. This is perhaps its main advantage. BIL has also created a specialised team of fintech experts and partners with key incubators (Technoport, Paul Wurth InCub, InnoHub, etc.), supporting the residents of these platforms. Thus, BIL's start-up clients receive not just a current account, but a whole ready-made network, which can greatly contribute to rapid growth.

Another important advantage is that BIL actively finances SMEs: together with the European Investment Fund, the bank has launched a programme of preferential lending to innovative companies (with a total volume of €111 million), where 50% of the loan risks are covered by the EIF. This gives start-ups access to relatively cheap loans for development.

The bank's disadvantages include extremely strict requirements for customers and compliance. For foreign start-ups, the KYC (know your customer) procedure can be detailed, and opening an account can take more time. Although the bank strives to be closer to start-ups, formal criteria (e.g., having a business plan, being registered in Luxembourg, confirming sources of funds) remain important.

However, BIL's fees may be slightly higher than those of some smaller banks or fintech platforms. Reliability and premium service come at a price: BIL's monthly account maintenance fees, commissions for transactions outside the EU, and fees for additional services are roughly on par with those of major international banks.

BGL BNP Paribas

BGL BNP Paribas is the Luxembourg division of BNP Paribas, one of Europe's largest banks. BGL is a strong international player with a long-standing presence in Luxembourg. For start-ups, this bank is notable for its combination of access to the group's global resources and targeted initiatives for the local innovation environment. BGL has inherited from BNP Paribas a reputation as a reliable multinational bank that meets strict international standards (including working with multi-currency accounts).

Logo from the BGL BNP Paribas website

BGL has created an Innovation Division within the bank – a specialised unit that provides start-ups with a single point of contact with the bank. The team of experts has a deep understanding of the needs of young companies and helps them select products: from opening an account and organising acquiring to preparing for an investment round.

Start-ups at BGL benefit not only from banking services, but also from BNP Paribas's connections. The bank is proud of its extensive partner network: it was one of the founders of the LHoFT (Luxembourg House of Financial Technology) fintech hub, supports start-up events and previously ran its own incubator, Lux Future Lab, which has produced well-known companies (such as fintechs Mangopay and CrossLend). Although Lux Future Lab ceased operations in 2021, BGL continues to act as a mentor and financial partner: innovative clients can count on leasing, factoring, cash management and other complex products that are not easily available to young companies at a traditional bank.

However, as part of a large international bank, BGL sometimes treats start-ups almost like corporate clients. The procedures for opening an account and reviewing a loan are regulated here, which can slow down the process for small companies without a financial history.

Furthermore, BGL can hardly be called a budget bank. Settlement and cash services, international payments, and business card issuance can all be more expensive than at local cooperative organisations. Start-ups should request an individual offer from BGL in advance: the bank is often willing to accommodate promising clients (for example, by offering a grace period for services), but BNP Paribas's base rates are geared towards clients who are willing to pay for premium quality.

The Luxembourg

ING Luxembourg is a subsidiary bank of the Dutch ING Group. It combines modern digital services with experience working across Europe. ING traditionally focuses on technology and efficiency, which is also reflected in its Luxembourg branch: the bank is one of the first to introduce new online banking features and offers convenient solutions for small businesses. ING is attractive to start-ups because of its comprehensive approach: the bank not only manages accounts, but also tries to integrate itself into the start-up community (especially in the fintech sector).

The Luxembourg

ING is known as the "orange bank" with a focus on digital channels. ING Luxembourg's internet bank and mobile app have earned a good reputation: start-ups can open additional accounts remotely, manage limits, and receive statements — all online, without visiting a branch. This digital-first approach saves entrepreneurs time. In addition, the bank offers a convenient multilingual interface (including English).

Thanks to its connection with the international ING Group, it offers the advantages of a global bank: for example, it is easy to send transactions within the ING network, access market analytics, attract co-financing through the Dutch office, etc. For start-ups planning to scale beyond Luxembourg, ING's European network is a significant advantage.

ING also participates in start-up support programmes: together with BIL, the bank has provided €111 million in credit tranches for innovative SMEs under the so-called "Juncker Plan" (EIF guarantee programme). At the group level, ING also runs initiatives such as FinTech Village, an accelerator for fintech start-ups (previously, startups from Luxembourg could also participate in it). ING Luxembourg does not have its own incubator, but the bank willingly cooperates with investment funds and the venture capital division of ING Ventures, which is capable of investing in promising projects.

The main disadvantage of the bank remains its low representation in the country. The number of offices and branches is significantly lower than that of major competitors such as BCEE or BIL. In addition, the bank's services are fairly standardised. In other words, it mostly offers typical service packages, and a highly specialised start-up (say, in biotech or the space industry) may feel that the bank lacks the relevant expertise.

Raiffeisen Bank

Banque Raiffeisen is Luxembourg's largest cooperative bank, founded on the principles of mutual benefit for its customer-shareholders. Unlike the previous entries on the list, Raiffeisen does not belong to an international conglomerate – it is a truly local bank, known for its proximity to customers and excellent service.

Raiffeisen Bank

For start-ups, it is valuable for its focus on small businesses and SMEs: Raiffeisen traditionally works with farms, artisans and small businesses, which means it understands the needs of entrepreneurs from the very beginning. This is what sets it apart: the bank is renowned for its individual approach to each client. Unlike bureaucratic corporations, a cooperative bank can offer more flexible terms based on a personal history of relationships. Raiffeisen bankers strive to build long-term partnerships. It is no coincidence that the bank's strengths are said to be accessibility, trust and local roots.

Despite its common name, Banque Raiffeisen in Luxembourg is not part of the Austrian RBI Group – it is an independent cooperative. Therefore, the bank has a smaller network of partners abroad. For a start-up focused purely on the local market, this is not a problem, but for active foreign economic activity, a second bank may be required for convenience (for example, a large international bank for working with distant countries).

You don't have to be a shareholder to use Raiffeisen's services; the bank is open to everyone. However, to get the full set of benefits (like Scan Card programme bonuses or cashback on purchases), you need to join the cooperative. This requires a small fee and some time to set up. For many entrepreneurs, this model is unfamiliar. But it is worth noting that becoming a member of the cooperative is not difficult, and almost 40,000 people in Luxembourg have already made this choice in favour of Raiffeisen – largely because of the dividends and privileges.

What's more, the bank is significantly smaller than the giants mentioned above, which means that it lags behind its competitors in some areas. This applies primarily to the IT sector: although the mobile app and online banking platform are functional, they are not updated as frequently as they could be. Nevertheless, the bank is trying to keep up: Raiffeisen has recently modernised its lending system by introducing the nCino digital platform.

When choosing a bank in Luxembourg, it is important for a start-up to consider its priorities and the specific features of the project. If stability and protection of funds are the top priorities, then the state-owned Spuerkeess offers unrivalled reliability. If international connections, scalability and special programmes for innovative firms are critical, it is worth looking at large banks such as BIL or BGL BNP Paribas, which are actively integrated into the start-up movement. ING Luxembourg is suitable for those who value digital convenience and efficiency, especially when working across Europe. Raiffeisen will appeal to start-ups looking for a human face, personal attention and an understanding of local business.

Each of these banks is present in Luxembourg and works with start-ups, but with different focuses – so the best solution may even be to work with two banks at the same time (to diversify risks and services). In any case, before opening an account, it is useful to compare the terms and conditions (rates, fees, minimum balance requirements) and, if possible, meet with bank representatives to assess how willing they are to support your particular venture. Luxembourg's legislation and financial system are favourable to new businesses, and the right banking partner will be an additional guarantee of successful growth for your start-up in the heart of Europe.