Revolut, Wise may leave Hungary after the Hungarian government’s decision
The Hungarian government said that each Hungarian village should have an ATM to increase the population retention capacity of rural areas in Hungary. Furthermore, they would secure the citizens’ constitutional right to use cash.
According to Economx, the previous weeks were not the heydays of the banking sector in Hungary. Banks in Hungary will have to set up 2,000 ATMs in rural settlements to secure the constitutional right of the citizens to use cash and must freeze account fees or reduce them to last year’s level. As a result, they will “lose” billions of forints in profit.
Hungarian Banking Association wants fintech sector to share ATM costs
Levente Kovács, the Secretary General of the Hungarian Banking Association, said even fintech companies should participate in the ATM campaign. Balázs Horváth, the chairman of the RowanHill Digital, said that neobanks like Revolut and Wise provide service in Hungary according to EU license. As a result, taking part in such actions cannot be made compulsory for them. Since they provide digital services, establishing ATMs is not part of their normal business procedures. However, if the business requires it, they do so like they did in multiple EU member states.
Both fintech companies try to develop a mutually beneficial relationship with the national banks of the home countries to avoid communication or legal clashes. However, they will do a cost-benefit calculation if needed.
The founder of RowanHill Digital said Hungarians received developments that proved useful in other markets. Revolut, for example, pays the so-called transaction fee introduced by the Hungarian government. However, they pass that on to their customers.
Revolut, Wise may leave Hungary
However, if countries make fintech companies implement developments that decrease their competitiveness, they can even leave the state.
Fintech companies have a beneficial effect on the digital competitiveness of the Hungarian banking sector by being the motor of development, as seen on mobile banking apps.
The question is whether the government and the new leadership of the national bank would make Wise and Revolut establish ATMs in small Hungarian villages. In that case, both may leave the Hungarian market.
Read also:
- In 2024, Revolut elevated its presence in Hungary – read more HERE
- Revolut ATMs in Hungary? Foreign fintechs called on to share ATM costs