Is Revolut leaving Hungary?

Citing the strengthening of the constitutional right to use cash, a new burden was imposed on the banking sector: the players would be obliged to install two thousand new ATMs nationwide, while they must also reduce the costs passed on to customers. The measure, which will result in a loss of revenue of several billion forints, raised the question: should fintech companies also participate in this campaign?

Legally unclear, commercially unprofitable

According to the Economx article, Levente Kovács, Secretary General of the Hungarian Banking Association, reminded that according to the Banknote Ordinance of the Hungarian National Bank, the obligation may also apply to fintech companies. However, as Balázs Horváth, head of RowanHill Digital, highlighted, neobanks such as Revolut or Wise are typically companies registered in other EU member states, and therefore provide services in Hungary based on an EU license. On this basis, they cannot be clearly included in the Hungarian obligations.

The expert emphasized that these players fundamentally think in a digital ecosystem, which does not fit the construction of a physical ATM network. However, he added, if business interests so require, they will adapt: ​​for example, Revolut has already entered the space of physical presence in several other EU countries.

They want good relations with central banks

It is crucial for fintech companies to maintain good relations with national banks, as a possible consumer protection action or communication confrontation can carry significant risks. However, their decisions are ultimately made along the cost-benefit principle – if a measure threatens their price position and thus their competitive advantage, withdrawal can also be an option.

“If fintech players are forced to bear costs that lead to an increase in the prices of their services, they may even withdraw due to the loss of their competitive advantage,”

said Balázs Horváth.