MNB HIGHLIGHTS BANKING SECTOR RESILIENCE
AMID GEOPOLITICAL, INFLATIONARY
PRESSURES
Mounting international uncertainties had negatively impacted the economic environment in Europe as well as global growth prospects, said Mihály Varga, speaking at the annual conference of the Bank for International Settlements (BIS) in Basel.
By Bence Gaál
The MNB Governor underlined that the primary objectives of the National Bank of Hungary continued to be achieving and maintaining price stability, and that international monetary policy cooperation was crucial in this regard in the current turbulent period.
GEOPOLITICAL UNCERTAINTIES IMPACTING ECONOMIC OUTLOOK
Varga pointed out that escalation of the conflict in the Middle East, and the United States administration’s tariffs and the countermeasures applied worldwide were generating considerable uncertainty in the macroeconomic outlook. The global economic effects also impacted Hungary, and the
country’s growth prospects remained uncertain due to trade and geopolitical tensions, which could give rise to renewed inflationary pressures.
He noted that the Central Bank expected the Hungarian economy’s performance to pick up gradually in the second half of the year, and accordingly Hungarian GDP may expand by 0.8% in 2025. The Hungarian economy was then expected to return to more dynamic growth from next year, with the central bank projecting GDP growth of 2.8% in 2026 and 3.2% in 2027.
Commenting on inflation expectations, the governor said that the central bank anticipated that inflation would
Photo by Varga Jozsef Zoltan / Shutterstock.com
HUNGARY’S 2026 BUDGET STRATEGY BALANCES GROWTH, FAMILIES, AND FISCAL DISCIPLINE
As global pressures rise, Hungary prepares for elections in 2026, and the Ministry of National Economy has laid out an ambitious fiscal strategy aimed at balancing growth, social support, and financial discipline. At the same time, analysts have raised concerns over budget sustainability, questioning the feasibility of some of the targets. According to the ministry, Hungary’s public finances are in order, and maintaining strict fiscal discipline remains a top priority for the government.
Minister of National Economy Márton Nagy delivers a speech at the Productivity Conference, a joint event organized by the Ministry and the Hungarian Chamber of Commerce and Industry (MKIK) in Budapest on May 26, 2025.
Photo by Róbert Hegedüs / MTI
HUNGARY’S ECONOMIC OUTLOOK: SLOW REBOUND AHEAD, FORECASTS SHOW
Hungary is poised for a modest economic recovery in 2025, according to new projections released by major institutions including the OECD, the European Commission, and the Hungarian National Bank (MNB). While private consumption is expected to be the key growth engine across the board, sluggish investment, persistent inflation, and international risks continue to weigh heavily on the outlook.
Building of the Hungarian National Bank (MNB) in Budapest.
Photo
HUNGARIAN BANK LEADERS
SEE REBOUND IN RETAIL LENDING, CAUTION IN CORPORATE SECTOR
As Hungary’s banking sector navigates a year marked by macroeconomic uncertainty and shifting loan dynamics, top executives including Giacomo Volpi, deputy CEO of UniCredit Bank Hungary; Krisztina Bogdán, country manager of ING Bank; Pál Simák, CEO and chairman of CIB Bank; Peter Roebben, CEO of K&H Group; and Éva Hegedüs, chairwoman-CEO of Gránit Bank, report strong growth in household lending but continued stagnation in the corporate segment. While optimism returns on the retail side, industry leaders emphasize the challenges posed by geopolitical tensions, cautious investment behavior, and evolving ESG and digital requirements.
BEYOND THE HYPE: IS HUNGARY’S FINTECH SECTOR BUILT TO SCALE?
Fintech giants like Revolut and Wise are increasingly growing their presence in Hungary, with millions of users registered. Some may think that they are crowding out traditional banks and domestic fintech startups alike. Nonetheless, as shown by the latest Fintech report published by the Hungarian National Bank (MNB), the number of fintech companies operating in Hungary has doubled in the past six years, surpassing 200 already in 2022.
By Claudia Patricolo
The same goes for the number of people employed in this sector, which exceeded 9000. Also, sector-wide sales revenue exceeded HUF 310 billion, an increase of more than HUF 90 bln compared to the previous year.
FOREIGN GIANTS GAIN GROUND AS CONSUMERS DEMAND MORE
Wise, in particular, has seen strong growth in Hungary, as consumers demand more transparent and costeffective financial services. Gergő Horányi, Wise product director, noticed that in the current economic environment, there is a heightened value sensitivity among Hungarian customers.
“They are actively seeking ways to make their money go further,” he said. “For instance, our investment product Wise Interest, which allows them to earn returns on balances in EUR, USD, and GBP, is proving exceptionally useful. This is largely because Hungarian banks traditionally offer low deposit rates.”
However, as Wise and Revolut keep growing, the number of Hungarianowned companies declines in line with the increase in size. While 86% of micro enterprises are Hungarian-owned, only 60% of small and medium-sized enterprises (SMEs) are. The largest firms, which typically have fintech as an additional activity or are Hungarian branches of international firms, are almost all foreign-owned at present. Also, the main trends within the industry are shifting, with data analytics and business intelligence increasing and pushing payments services into third place, thus highlighting a risk for domestic fintechs to be forced out of consumer-facing segments.
“Hungary is a small market, so it is really hard for any fintech company to build a huge client base domestically,” Zoltán Ács,
FROM CHATBOTS TO VIRTUAL BANKERS: HOW AI IS RESHAPING HUNGARIAN FINANCE
Did you know that you can now apply for a mortgage in Hungary without even speaking to a real person? It’s Gránit Bank’s new normal thanks to Gránit Guru, a virtual assistant built on agentic AI that can answer open-ended questions about various loan products, 24/7. Currently built around mortgage requests, Gránit Guru is set to evolve into a fully personalized digital banker.
By Claudia Patricolo
From the very beginning, Gránit Bank has embraced digital innovation and cutting-edge technologies, being named, for the third consecutive year, “Fastest Growing Digital Bank in Hungary”.
“Gránit Bank remains at the forefront of digital banking innovation,” said Éva Hegedüs, president and CEO of Gránit Bank.
Hegedüs represented Hungary as a finalist at the prestigious “EY World Entrepreneur Of The Year 2025”
awards in Monaco earlier this summer. Recognized for her pioneering role in building one of Hungary’s most digitally advanced banks, Hegedüs stood among global business leaders who have driven innovation, resilience, and sustainable growth in their industries.
VISA ON THE FUTURE OF PAYMENTS IN HUNGARY: AI,
INCLUSION, AND INNOVATION
Hungary’s payment ecosystem is undergoing a revolution. Mobile wallets are gaining ground, contactless has become the norm, and biometric and AI-powered tools are an emerging reality. As consumer expectations evolve and e-commerce booms, financial institutions are under pressure to deliver faster, safer, and more intuitive payment experiences.
By Claudia Patricolo
“While plastic cards remain widely used, the method by which we pay by card is evolving: contactless and mobile payments are growing rapidly thanks to tokenization, a security process that replaces sensitive
card information (like the card number) with a unique, randomly generated code called a token. Consumers are increasingly using smartphones and wearables to pay, and e-commerce is booming,” noted Bence Sármay, Hungary country manager at Visa.
“This shift is driven by convenience, speed, and trust in digital payment methods. Visa is supporting this evolution with innovations like Click to Pay, which simplifies online checkout, and agentic AI, which is beginning to shape personalized payment experiences.
Photo by Jose Calsina / Shutterstock.com
HUNGARY’S SÁNDOR DEMJÁN PROGRAM
IN FULL SWING AS SME SUPPORT MEASURES ACCELERATE
The Sándor Demján Program, Hungary’s flagship initiative to support small and medium-sized enterprises, is now fully underway, with thousands of businesses applying for grants, loans and development aid. As disbursements begin and new funding rounds are launched, the government’s multipronged strategy is beginning to reshape the country’s SME landscape with a focus on competitiveness, digitalization and growth.
Photos by Shutterstock.com
REGULATORY FLUX KEEPS
HUNGARY’S
FINANCIAL SECTOR ON ITS TOES
Frequent and layered regulatory changes—both at the EU level and domestically— are reshaping Hungary’s financial sector, prompting banks and fintechs to seek more strategic advisory support. At the center of this transformation are new requirements in taxation, capital adequacy, anti-money laundering, and sustainability, all of which are stretching institutions’ IT capacity and compliance resources. While reforms such as the Consumer Credit Directive and the EU’s Retail Investment Strategy promise long-term stability and stronger consumer protection, experts warn that the operational and cultural shifts needed to meet these expectations may be just as significant as the regulations themselves. We talked with Péter Molnár (partner, financial services risk management, EY), Rezső Rózsai (country managing partner, KPMG), and Enikő Könczöl (partner leading the assurance practice at PwC Hungary) regarding these developments.
HUNGARY ADVANCES ESG RULES AND GREEN FINANCE FRAMEWORK
In March 2025, the Hungarian government amended the 2023 ESG Act to make companies more transparent about how they handle environmental, social, and governance (ESG) issues. The rules are now clearer, including what kind of information companies must share, how to assess risks, and how to publish their reports. The Supervisory Authority has gained an extended power to oversee this process and set detailed requirements for ESG advisors, certifiers, and software tools, which must follow strict standards.
By Claudia Patricolo
The only exemption is for Small and Medium-sized Enterprises (SMEs), which, until mid-2027, won’t be asked to share ESG data unless they already have an official ESG rating from the state.
This move reflects a global surge in all green, social, sustainability, and sustainability-linked (GSSS) bonds, which is highlighting the crucial role of green finance in the energy transition. And despite lagging in some areas, such as, for example, waste management, legal experts are indicating that Hungary is up to date with its ESG implementation, maybe even ahead of many other European countries. For example, the National Bank of Hungary (MNB) has been actively promoting ESG principles in the financial sector. Or, in 2023, MBH Bank introduced its “Sustainable Future Bank” ESG framework, which focused on decarbonization, biodiversity support, and promotion of green lending.
ESG RATINGS AND THEIR GROWING ROLE IN CAPITAL ALLOCATION
Earlier in June, Fitch Ratings gave Hungary strong ESG scores for political stability, rule of law, and institutional quality, positively influencing the country’s credit profile. ESG ratings are crucial tools for investors, helping them identify long-term risks and opportunities. They also support companies in improving the efficiency of their operations, cutting costs, getting easier access to capital, and better risk management. These ratings also
Bálint Szaniszló
LEGAL EXPERTS ON THE FRONTLINES OF HUNGARY’S FINANCIAL SECTOR
TRANSFORMATION
As Hungary’s financial sector adjusts to heightened regulatory complexity and evolving market trends, top legal minds are helping institutions stay ahead. We spoke with Péter Horvai-Hillenbrand, partner at Oppenheim; Gergely Szécsényi, associate at Oppenheim; András Orbán, counsel and head of equity capital markets at DLA Piper Hungary; Gergely Szalóki, co-head of banking and finance at Wolf Theiss; Erika Papp, managing partner at CMS; and Pál Rahóty, financial services M&A counsel at Lakatos, Köves és Társai Law Firm. The experts shared their perspectives on how legal services are adapting to meet the demands of compliance, digitalization, ESG expectations, and more.
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FINANCING HUNGARY’S SMES: THE SUSTAINABILITY OF THE SZÉCHENYI CARD PROGRAM
Launched in 2002, the Széchenyi Card Program has become Hungary’s most widely used state-supported financing instrument for family-run businesses and small and medium-sized enterprises (SMEs). It was originally designed to provide fast and affordable working capital to small companies, while today it is operating under the expanded framework of the Sándor Demján Program.
By Claudia Patricolo
BUILDING
MOMENTUM
On paper, recent figures suggest clear momentum. In 2024, more than 37,000 loan agreements were signed, for a total of HUF 1.3 tln disbursed, as announced by KAVOSZ, the program’s
coordinator. An improvement compared to 2023, which was described as a turbulent year in which responding immediately to crises was the main objective. On the contrary, 2024 has been described as a year of sustainable operations and targeted development. As the first component of the Sándor
Demján Program is being introduced, huge steps forward have been made in the investment loans of the Széchenyi Card Program: interest rates have dropped from 5% to just 3%; 43% of all loan applications are now investmentrelated; and 70% of transactions are coming from businesses in rural areas.
