Published: November 15 2023
Revolut, the cross-border electronic financial services provider, is being encouraged by the Hungarian National Bank (MNB) to establish a local subsidiary in Hungary. This move would improve the customer experience for Revolut's one million Hungarian clients and help resolve disputes more efficiently.
The Importance of a Hungarian Subsidiary
Hungary is the second-largest market for Revolut, with one million clients. Budapest, in particular, ranks third among regional cities with 365,000 clients. The MNB believes that having a local subsidiary would benefit both Revolut and its Hungarian customers, making it easier to address issues such as fraud and provide better support.
Simplifying Dispute Resolution
One of the main reasons the MNB is encouraging Revolut to establish a local subsidiary is to simplify the settlement of disputes for Hungarian clients. Currently, customers can only submit complaints in writing in Lithuanian or English, which makes the process cumbersome. By having a Hungarian subsidiary, Revolut would be able to handle disputes more effectively and provide localized support.
Balancing Innovation and Consumer Protection
While the MNB is supportive of innovative financial solutions like Revolut, they also emphasize the importance of protecting consumers. By establishing a local subsidiary, Revolut would be able to better comply with Hungarian regulations and ensure that the needs and interests of Hungarian customers are properly safeguarded.
Conclusion
The Hungarian National Bank is urging Revolut to establish a local subsidiary in Hungary to improve the customer experience and protect consumers. This move would simplify dispute resolution for Hungarian clients and allow Revolut to provide better support. By balancing innovation and consumer protection, Revolut can continue to thrive in the Hungarian market.
Questions & Answers
Why is Revolut being encouraged to establish a Hungarian subsidiary? Revolut is being encouraged to establish a Hungarian subsidiary in order to better serve their customers in Budapest. The establishment of a local unit would help resolve disputes for Hungarian clients more efficiently, as the current process is cumbersome and requires complaints to be submitted in writing in Lithuanian or English.
Which country is Revolut currently based in? Revolut is currently based in Lithuania.
Why is Hungary an important market for Revolut? Hungary is an important market for Revolut, as it is the second-largest market for the company after Lithuania. Revolut has one million clients in Hungary, with 365,000 of them based in Budapest. Budapest ranks third among regional cities in terms of Revolut's customer base.
How many clients does Revolut have in the region? Revolut has a total of 10 million clients in the region.
What does the MNB emphasize in relation to Revolut's operations in Hungary? The MNB (Magyar Nemzeti Bank) emphasizes the need to protect consumers while welcoming innovative financial solutions. They have urged Revolut to establish a local unit in Hungary to ensure a smoother process for resolving disputes and safeguarding the interests of Hungarian clients.
