The number of ATMs has increased dramatically, but this is barely reflected in traffic

The number of ATMs operating in Hungary increased by more than three hundred in the course of a single year, reaching a new high by the end of September, so that in the ninth month there were already 5,437 devices operating nationwide – according to data recently published by the Hungarian National Bank.

According to Mihály Barát, financial journalist at BiztosDöntés.hu, the spectacular expansion of the domestic ATM network can clearly be traced back to regulatory reasons. At the beginning of 2023, the Hungarian National Bank obliged financial service providers to increase the number of devices, and then a government resolution published in March of this year already stipulated that – in order to ensure access to cash – an ATM should operate in every Hungarian settlement: in the meantime, the use of cash and the possibility of paying in cash have also become a constitutional right.

By the end of the network development covering all settlements, the number of devices operating in Hungary may exceed six thousand. According to the central bank’s national bank branch and ATM search application, more than 5,500 banknote dispensing machines were already operating in Hungary in mid-December. “However, their market is very concentrated: OTP Bank currently operates nearly 1,900, MBH Bank approximately 1,250, K&H nearly 630, and Erste almost 500 machines nationwide, which means that more than three-quarters of the machines are tied to four market players,” points out the financial journalist of BiztosDöntés.hu.

According to the MNB’s data, the impact of the rapid expansion of the ATM network on cash withdrawal turnover is not yet visible: the 20.3 million domestic cash withdrawal transactions carried out in the third quarter were 4.5 percent (almost one million) lower than a year earlier. On the other hand, turnover was milder, after an annual increase of 2.6 percent, at 2346.4 billion forints. As a result of all this, the average amount per cash withdrawal increased noticeably, by 7.5 percent, and by the third quarter it was around 115.3 thousand forints.

“The rate of increase in domestic cash withdrawal turnover – similar to the trend observed in the recent period – was far exceeded by that of deposits: in the third quarter, 4.37 million such transactions were recorded, worth nearly 1065 billion forints: the former reflects an increase of eight percent and the latter of almost 12 percent compared to the third quarter of 2024,” pointed out Mihály Barát.

According to the financial journalist of BiztosDöntés.hu, however, raising the limit of free cash withdrawals to 300 thousand forints could bring a noticeable increase in cash withdrawals with bank cards. “According to the experience of financial institutions, although the majority of the population does not use the current monthly limit of 150 thousand forints – or does so only occasionally – a customer group can be identified that has so far only paid attention to the free limit and has not withdrawn more cash per month, meaning that it is likely that they will also use the 300 thousand limit frequently,” Mihály Barát pointed out.