The wealth of the richest people may explode in a way that is hard to grasp with common sense

The fundamentals of the domestic private banking market will change over the next five years: the amount of assets entrusted to financial service providers serving the Hungarian elite will more than double in the next half decade, and after 9,000 billion forints at the beginning of 2024, it will exceed the dream limit of 20,000 billion forints by 2028. According to István Karagich, managing director of the private banking consulting firm Blochamps Capital, which organized the conference, the growth will clearly be due to the fact that with the transformation of the entrepreneurial structure of the Hungarian economy, which can be established based on more and more signs, any increase in wealth caused by economic recovery or investment revitalization will be concentrated even more strongly than before on the to the most affluent clientele, who have already expanded their wealth and influence on the functioning of the Hungarian economy far above the average over the past decade. According to the expert, there is no longer any need to envision questionable assignments from quasi-oligarchs: the companies and services of the top rich Hungarians have become unavoidable in almost every business sector, which industries benefit the fastest from the boom in the event of an expansion of economic investment.

Greedily growing fortunes, with an ever smaller elite

According to Blochamps, it is also important to emphasize that the hoped-for recovery and, for example, the government’s declared focus on small and medium-sized enterprises in the coming years – in addition to starting the necessary consolidation in the overpopulated entrepreneurial market, which experts believe – still offers potential success to many SMEs and rapid growth. But the fault is not only the insecurity of the capital situation of the social middle and upper middle class, but also the shift of the entrepreneurial layer in the economy. Because while statistically many SMEs operate, due to ownership concentrations, only a narrow segment of the entrepreneurial circles will have the real opportunity to join the real elite clubs. According to the forecast, due to asset management yield generation and the inflow of entrepreneurial capital, the average assets per private bank account will quadruple compared to HUF 109 million in 2018, and in 5 years, customers will manage at least HUF 450 million in 1 private bank account – it is true that the entry limits will also increase by at least 50 percent, to HUF 150 million. Overall, the number of private bank customers and accounts will therefore stagnate in the coming years.