LGT Adopts Finastra’s Technology for Instant Payment Services

LGT, the private banking and asset management group owned by the Princely House of Liechtenstein, has chosen Finastra’s payment hub to launch instant payment services in Austria and Liechtenstein, with plans to expand to other markets.

The adoption of Finastra’s technology aims to ensure LGT meets the new European Union regulations requiring euro transfers to be completed within ten seconds. This regulatory push, announced by the European Parliament in February, mandates faster and more reliable payment processing across the EU.

By integrating Finastra’s payment hub, LGT seeks to decouple its payment processing from its existing core banking system. This move is designed to enhance regulatory compliance, improve response times to future changes, and offer personalised services to customers.

The implementation, based on a model bank approach, will allow LGT to easily integrate additional payment schemes such as the Swiss interbank clearing system for instant payments (SIC5 IP), Verification of Payee, and real-time sanctions screening.

Bernhard Strauch, head of securities and payments services at LGT Financial Services, emphasised the solution’s flexibility and its capability to support multiple payment types within a standalone system. This setup will also facilitate the seamless integration of new services as needed.

LGT already utilises Finastra’s Kondor treasury management system and Total Messaging platform, further strengthening its technological infrastructure for efficient financial services delivery.