Exploring the Future of Financial Transactions and Artificial Intelligence in Hungary

Published: November 21 2023

This blog post explores the future of financial transactions and artificial intelligence (AI) in Hungary. It discusses the potential impacts of AI on financial transactions and highlights the innovations that may be of interest to those interested in the current and future financial technologies. The blog post also looks into the role of data as a valuable resource in the 21st century and how the Hungarian National Bank (MNB) utilizes AI to enhance its work in the field of financial transactions.

Over the past decade, the financial sector has seen significant changes and innovations that have brought opportunities for users, service providers, and regulatory bodies. New technologies and industry players have emerged, challenging traditional banks. Mobile phones, for example, have transitioned from simple communication devices to multifunctional tools for digital lending, online insurance, and online banking services.

Data has become the most valuable resource of the 21st century, surpassing the significance of traditional resources like oil. Major international players, such as Google and Apple, possess vast amounts of data that they leverage to operate more effectively and personalize their services. In Hungary, the MNB stands out in terms of data collection, with billions of records gathered annually from various financial transactions and banking activities. The MNB utilizes this data for strategic decision-making, customer support, analysis, forecasting, and risk assessment.

The effectiveness of AI heavily relies on accurate and structured data. The MNB utilizes AI to develop its financial strategies, identify potential risks, and set measurable goals. Numerous international surveys indicate that the more digitalized a country's financial transactions are, the more efficiently they function. In line with this, the MNB aims to ensure that two-thirds of payments in Hungary are conducted electronically by 2030, with only one-third relying on cash. While the focus of the past decade was on developing financial infrastructure, the new emphasis is on promoting digital usage.

Although AI in financial services is still in its early stages, several market players are exploring its potential applications. The goal is to make AI an effective and reliable partner in data collection, analysis, and development. As AI continues to evolve, it is expected to play a significant role in shaping the future of financial transactions in Hungary, improving efficiency, security, and customer experiences.

Overall, the future of financial transactions in Hungary is closely tied to the integration of AI and the effective utilization of data. As technology advances and new innovations emerge, the financial services sector in Hungary is poised to undergo further transformation, creating exciting opportunities for businesses and individuals alike.

What was the focus of the Pénziránytű autumn workshop in Hungary? The focus of the Pénziránytű autumn workshop in Hungary was on digital educational solutions and the opportunities provided by artificial intelligence.

Who was the speaker on the last day of the workshop? On the last day of the workshop, the speaker was Bartha Lajos, the Executive Director of Financial Infrastructure and Banking Operations at the Hungarian National Bank.

What were the questions addressed by Bartha Lajos during his presentation? Bartha Lajos addressed the following questions:

What is the biggest resource of the 21st century? The biggest resource of the 21st century is data. It is used for strategic decision-making, customer support, analysis and forecasting in the financial sector.

How does the Hungarian National Bank (MNB) utilize Artificial Intelligence in their work? Artificial Intelligence supports the development of the MNB's payment strategy by providing accurate and structured data. It helps in identifying risks, setting measurable goals, and shaping development directions.

What is the goal of the Hungarian National Bank for the efficiency of payment transactions by 2030? The goal set by the Hungarian National Bank for the efficiency of payment transactions by 2030 is for two-thirds of payments to be made electronically and only one-third in cash.

What was the main focus of the payment strategy in the past 10 years in Hungary? The main focus of the payment strategy in the past 10 years in Hungary was the development of payment infrastructure, particularly in the areas of card and instant payments.

What role does Artificial Intelligence play in the use of data in the financial sector? Artificial Intelligence is expected to play a role in data collection, analysis, and development in the financial sector, making it an efficient and reliable partner.

What stage is Artificial Intelligence in on most fronts? Artificial Intelligence is still in its early stages in most areas, where market players are exploring the possibilities for its use. However, several financial market participants have already started implementing AI solutions.