Published: July 25 2023
The FinTech sector in Budapest is rapidly growing, with digital banking becoming increasingly popular in Hungary. The Hungarian National Bank's annual FinTech and Digitalization Report provides insight into the advancements and developments in financial innovation and digitalization within the country's financial markets.
Advancements in Digital Banking
According to Anikó Szombati, Managing Director of the Hungarian National Bank, there has been a significant improvement in the digital maturity of banks. The range of banking products available digitally has increased, and banks are continuously working towards improving their digital services. The average maturity level of the banking system has also seen steady improvement, reflecting the commitment of institutions to digitalization.
Improvements in Customer-Facing and Internal Processes
Banks in Hungary have prioritized digitization improvements in customer-facing and internal processes. This has led to the availability of digital personal loans, in addition to current accounts, at all credit institutions offering such products. The digitization of payment solutions has also seen significant progress, with mobile and internet banking payment solutions leading the way. Virtual cards, touch payments, and the integration of bank cards into mobile wallets are rapidly growing trends in Hungary.
Enhancements in Digital Notifications and Credit Scores
The availability of digital notifications, particularly in the area of credit scores, has increased in 2022. Consumers can now stay more up-to-date with the current status of their credit debts through digital delivery. This improvement allows for more informed financial decisions.
Continued Focus on Face-to-Face Customer Services
Despite the advancements in digital banking, Anikó Szombati emphasizes the importance of maintaining face-to-face customer services. While online administration is becoming more prevalent, banks need to ensure that they are prepared to offer personalized services to customers.
Questions & Answers
What is the purpose of the FinTech and Digitalization Report of the Hungarian National Bank? The FinTech and Digitalization Report of the Hungarian National Bank aims to provide insight into recent domestic and international developments in financial innovation, digitalization, and their underlying technologies in the Hungarian financial markets.
What does the report say about the digital maturity of banks in Hungary? According to Anikó Szombati, Managing Director of the Hungarian National Bank, the digital maturity of banks in Hungary is continuously improving. The banking system's average maturity level was 62 in 2022, reflecting a steady improvement from 60 in the previous year.
What is the level of digitization of insurance companies in Hungary? The report states that the level of digitization of insurance companies in Hungary remains at a medium level, although there is continuous improvement.
What improvements have banks prioritized in terms of digitization in 2022? In 2022, banks in Hungary have prioritized digitization improvements in customer-facing and internal processes. They have made significant improvements in customer-facing processes, such as making personal loans available digitally, and internal processes to enhance efficiency and convenience.
What digital payment solutions are growing rapidly in Hungary? In Hungary, thanks to mobile and internet banking payment solutions, virtual cards have become predominantly available. Touch payments and the integration of bank cards into mobile wallets are also rapidly growing.
What improvements have been made in digital notifications for credit scores in 2022? The availability of digital notifications for credit scores has continued to increase in 2022, especially in the retail segment for overdrafts on current accounts. This allows consumers to be more up-to-date with the current status of their credit debts and make more informed financial decisions.
What did Anikó Szombati say about maintaining face-to-face customer services in banks? Anikó Szombati mentioned that banks need to be prepared to maintain their face-to-face customer services alongside online administration.
What are the areas covered by the seven pillars surveyed by the Hungarian National Bank? The seven pillars surveyed by the Hungarian National Bank cover the typical areas of overall banking operations, including management, process, and customer pillars.
Which pillar performed the best among the seven surveyed by the Hungarian National Bank? The management pillar performed the best among the seven surveyed by the Hungarian National Bank. This reflects the commitment to digitalization by the institutions' management and the quality of their digitalization strategies.
What was the combined turnover of the FinTech sector in Hungary in 2021? The FinTech sector in Hungary had a combined turnover of over HUF 220 billion (EUR 582 M) in 2021.
