Revolut opens Hungarian branch, services likely to expand

Revolut has officially opened a bank branch in Hungary, according to the records of MNB, the Hungarian National Bank, as reported by Revb.

Revolut Bank UAB has been listed in the Hungarian National Bank's institution finder as a cross-border credit provider entity since February 14, 2022 (after receiving an EU banking license in Lithuania). Now, however, Revolut Bank UAB's Hungarian branch has also appeared with the identification number 28989691, and is listed as a bank (branch).

The opening of the branch is important because:

• Revolut will now offer customer service and the handling of complaints in Hungarian.
• Customers will receive a Hungarian bank account number, making it easier to use Revolut as their primary banking provider.
• If there are more significant payments made through Revolut, the service provider will be able to see their customers' incomes, making it easier to launch a credit service.
• As a result of opening a branch, the company may be able to offer local features such as instant payment or payment requests in line with Hungarian standards, as well as QR code payments.

However, there may also be disadvantages for the company due to stricter local control, as Hungarian regulations prescribe a wide range of strict requirements for local financial service providers, and there are also some levies and taxes that Revolut will now be required to pay. The official supervision and monitoring of these may also present a difficulty for the company.

From the perspective of the MNB and Revolut's Hungarian customers, it is a disadvantage (at least compared to a Hungarian subsidiary bank) that the existence of the branch still does not mean that the Hungarian deposit guarantee will cover Hungarian customers' funds deposited in Revolut accounts. Should a problem arise, Hungarians will still have to contact the Lithuanian supervisory authority.

According to Revolut's website, the new branch will be able to carry out the following activities:

• Issuing e-money
• Collecting deposits and other repayable funds
• Services enabling cash withdrawals from payment accounts, as well as all activities necessary for managing payment accounts
• Execution of payment transactions, including transfers to payment accounts
• Execution of payment transactions funded by credit facilities
• Issuance of instruments of payment in lieu of cash and/or acceptance of payment transactions
• Online payment initiation services
• 4h Account information services