10 new things that Hungarian revolutionaries may receive in the near future

By: Trademagazin Date: 2025. 11. 07. 10:25

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There are reports in the press that Revolut has opened a branch in Hungary. But few people know that it has legally existed for years, so nothing will change from tomorrow. BiztosDöntés.hu has collected the news that Hungarian Revolut customers will receive in the near future, with the start of branch operations.

A foreign bank usually establishes a subsidiary in the target country, but Revolut consistently establishes branches everywhere. And so it is in Hungary.

The difference between a subsidiary and a branch primarily occurs in deposit insurance, and is crucial, since Hungarian customers under the Hungarian branch of the Lithuanian Revolut Bank UAB can still handle their affairs with the Lithuanian deposit insurer in the unexpected event that Revolut Bank’s deposits are frozen or the bank’s operating license is revoked.

So while a subsidiary bank operates as an independent bank registered in the given country, is supervised by the supervisory authority of the given country, and the deposit insurer of the given country is responsible for the deposits, the same can only be interpreted as an “extended arm” of the foreign bank in the case of a branch.

In other words, the branch operates under the license of the parent bank, is subject to the jurisdiction of the parent bank’s country, and deposit insurance is provided by the deposit insurer of the mother country.

The Hungarian National Bank has expressed its concerns about Revolut on several occasions in recent years, for example here.

Although the subsidiary bank is considered the general model for establishing a bank abroad, several banks operate as branches in Hungary. Examples include Bank of China, BNP PARIBAS, Citibank Europe, Cofidis, Deutsche Bank, HYPO-Bank, ING Bank, or Oberbank. However, these are banks with a small number of clients and established for special operations. Among them, the public may be more familiar with the names of Cofidis and Oberbank.

Revolut may soon be among them. According to the official domestic company register, the founding document of the Hungarian Branch of Revolut Bank UAB was drawn up on December 11, 2020, and the court of registration registered the branch in Hungary on January 14, 2021. However, the fintech bank has only now managed to migrate its Hungarian customers, which have swelled to more than 2 million, under its Hungarian branch.