DIGITAL INNOVATIONS IN THE BANKING SECTOR
Over a decade ago, branchless digital banking seemed unthinkable. The legal environment, the lack of technology and innovative solutions did not allow 100% online banking, however the first digital bank still managed to appear in Hungary.
Today, the vision of digital banking has become a reality and the possibility to request and use (almost) the entire range of financial services online has come within reach.
In this publication, we review digital innovations in the domestic banking sector, which have played a key role in enhancing customer experience and in the implementation of branchless digital banking.
Éva Hegedüs Gránit Bank Chairperson - CEO
PRESIDENT’S PREFACE
Dear Reader,
Fourteen years ago, when 100% branchless banking seemed unthinkable, Gránit Bank was the first bank in Hungary to adopt a digital business model, and time has proven us right.
Today, it is clear that the mobile phone in your hand can be your "bank," allowing you to manage your everyday finances quickly, easily, cost-effectively and with a great customer experience, while still retaining the personal touch of being able to reach your bank advisor from anywhere via video bank. Our goal is to always be responsive to our customers’ needs and to introduce them to the banking experience.
We are pleased to present to our readers this publication, which showcases the digital banking innovations of the last decade and the cutting-edge solutions of Gránit Bank. I would like to thank my colleagues for their joint, value-creating work that led us to achieve these results, and our increasing number of customers for choosing Gránit Bank as their banking partner.
KEY DRIVERS OF DIGITAL BANKING INNOVATION
1Technological environment
The emergence of new technologies in the financial sector has both contributed significantly to the digital transformation of banks and paved the way for the emergence of cost-effective digital banks that respond rapidly to customer needs and offer great customer experience.
The more digitalization permeates the economy and society, the more the role of financial technologies in banking operations and strategies will develop.
2 3 Regulatory environment Market environment
The regulatory environment determines the way banks operate, the speed of digital transformation of the banking sector, and the possibility to use new technologies and introduce new business models.
The regulator ensures the stability of the financial intermediary system and protects consumer interests, while also providing digitalization guidelines to facilitate the development of the banking sector.
Competition between market players is boosted not only by the digital developments of competitors, but also by the actions of neobanks and fintech companies, where digital innovation based on user needs can provide a competitive advantage. Innovative banks not only respond to the challenges of the market environment, but also shape it through their digital approach and innovations.
+1
Management approach
Management's options are limited by the level of authority, degree of freedom, and resources available to accelerate a digital transformation and the implementations of innovations ahead of the market. However, it is not the size of the bank and the amount of resources devoted to development that will determine which banks become the flagships of digitalization and digital banking innovations. The key is the management approach that includes intuition, agility and confidence in the organization's ability to deliver. Key
The decision by the banks’ management to use digitalization and innovation in a marketfollowing or market-shaping way to meet the challenges posed by changes in the technological, regulatory, and market environment plays a key role in the digital transformation of the entire banking sector. If the management is committed to make banking and the operation of the bank more efficient with innovative, cutting-edge digital banking solutions year after year, this will be reflected in the bank's profitability and the value it creates for customers.
OVERVIEW OF DIGITAL INNOVATIONS
“Digital first”, “mobile first”, “AI first”. A decade or more ago, in the early 2010s, we were typically talking about what percentage of customers were using the internet banking services. By the end of the decade, the research was about how many more people were using mobile banking apps than internet banking.
With the advent of ChatGPT and generative AI, we will soon reach a new inflection point, and the transaction-based approach is expected to evolve into interactive conversational banking. In just over a decade, we have moved from a web environment to a world of mobile-based, AI-enabled finance.
In just over 10 years, not only has the strategic approach to digital changed, but the digital divide between banks and neobanks has narrowed dramatically - mostly due to fintech partnerships. Banks are building more and more fintech solutions into their applications and adding more services beyond traditional banking to their service portfolio.
Today the boundaries between challenger banks (neobanks) and traditional banks have become blurred thanks to the widespread use of digital financial technologies.
In this publication, we present the domestic innovations that have played a key role in the digital transformation of the banking sector.
1 2 3 2
1 CONTACTLESS MOBILE PAYMENT REMOTE CUSTOMER IDENTIFICATION AND CONTRACTING INSTANT TRANSFER BRANCHLESS BANKING ELECTRONIC PAYMENTS
VIDEO BANK INSTALLMENT PAYMENTS 2.0 1 ONLINE MORTGAGE LOAN APPLICATION 100% ONLINE FINANCIAL PRODUCTS 2 3 4
3
Key areas of innovation between 2012 and 2024 determining the digital transformation of the domestic banking sector tangible (visible and perceptible) for end users (retail and business customers alike).
4
5 EVERYDAY FINANCES ON MOBILE AUTOMATED CLIENT COMMUNICATION CUSTOMIZED FINANCES
EXPENSE TRACKING CARD MANAGEMENT PUSH MESSAGES MOBILE WALLET SOLUTIONS FOR CHILDREN FINANCIAL PLANNER CUSTOMIZED OFFERS MULTIBANKING GREEN FINANCES MICRO SAVINGS 1 2 3 4 5 1 2 3 1 2 3 4
CHATBOTS VIRTUAL FINANCIAL ASSISTANT
BRANCHLESS BANKING 1
VIDEO BANK
REMOTE CUSTOMER IDENTIFICATION AND CONTRACTING
3 MORTGAGE LOAN APPLICATION ONLINE
100% ONLINE FINANCIAL PRODUCTS (for new customers, with online contracting) 1 2 4
1. BRANCHLESS BANKING
Video bank: from personal contact to contracting
Development of cases that can be managed via video bank:
Opening an account via “video chat”
VIDEO BANK
Video banking is a remote banking tool that offers the experience of personal contact. Clients can use their device capable of video calling (e.g. computer, tablet, smartphone) to contact a bank administrator, with whom they can handle their affairs in the same way as they would in person at a branch.
Gránit Bank pioneered video banking in Hungary - and was among the first in Europe - in 2012. Since then, Gránit Bank has been one of the banks, who offer the widest range of banking services that can be handled via video bank.
Opening an account via “video chat”
1 was the first to implement
Opening an account with “selfie”
Full-scale “selfie” account
1 was the first to implement
Gránit Bank
ONLINE ACCOUNT OPENING WITH SELFIE
Remote banking received a significant boost from new regulations introduced in the summer of 2017, which created the possibility to open accounts 100% online.
Not only customer identification and screening, but also the conclusion of the contract can be done through a single video call of about 10 minutes. Gránit Bank is the first bank in Hungary to offer this option to its customers.
With the development of the regulation, customers can open an account not only via video call, but also by taking a selfie photo and taking a photo of their ID card.
If the customer possesses an ID card with a biometric identifier, they can open a full-scale account with no limitations online by capturing a single selfie photo.
Gránit Bank was also the first to introduce this service, and in 2024, by automating the process, it enabled customers to open a full-scale account in as little as 5 minutes.
2021
Consultation via Video Bank
Online calculation and preliminary credit assessment
1 was the first to implement
Digital customer account
1 was the first to implement
Online application for CSOK Plusz Home Loan combined with a marketrate home loan
1 2024 was the first to implement
Gránit Bank
ONLINE MORTGAGE LOAN
Due to regulations, mortgage loan applications cannot be made 100% online, but digital self-service solutions can help customers shorten the process. Thanks to these digital innovations, a single visit to the branch is enough to sign the contract.
With the "Online calculation and preliminary credit assessment," customers can find out in minutes the amount of loan they are eligible for.
With the "Digital Customer Account" solution, customers can start the loan application and upload the necessary documents for it on the internet. After a successful credit assessment, all they have to do is visit the branch at the end of the process.
100% ONLINE APPLICATION FOR LOANS, CREDIT CARDS, INVESTMENT PRODUCTS
New customers can not only open a bank account online, but can also take out loans, apply for a digital debit card, buy government bonds or open a securities account in the mobile banking app. This was made available for the first time in Hungary by Gránit Bank.
Today, the regulator has made it possible for most financial products to be managed from home, from application to the signing of the contract, without visiting a branch.
The path from video bank to 100% online financial products
Overview of digital innovations
2017
Regulatory environment
Decree No. 19/2017 of the National Bank of Hungary
This decree was a milestone in the history of digital banking in Hungary. It created the possibility to carry out customer identification and screening as the conclusion of a contract on the internet, by video call, with the assistance of a live bank administrator. This was the key step towards making financial products 100% available online.
2018
2020
Decree No. 45/2018 of the National Bank of Hungary
This decree made it possible to open a so-called limited-use account online by taking a selfie photo, without the assistance of a bank administrator.
Decree No. 26/2020 of the National Bank of Hungary
This decree paved the way for opening a full-scale account online by taking a selfie photo and scanning the chip of the ID card with NFC.
Innovative banks have been waiting for a long time for the legal conditions to be in place for the online opening of an account. As soon as the respective regulation came into force, innovative banks immediately introduced online account opening via video call. Gránit Bank was the first to do so.
Opening a limited-use account with a selfie
The simple and quick process involves entering a few details, taking photos of the identification documents, and electronic signing of the contract, so an application can be initiated in just a few minutes.
Opening a full-scale account asynchronously
Gránit Bank also pioneered in this area and made it possible to open a full-scale account by taking a selfie photo and scanning ID card details via NFC.
Digital banking innovations of Gránit Bank
Full-scale selfie account opening (2020)
Through Gránit Bank’s eBank application, customers can open a fullscale, unrestricted bank account without customer identification via video bank or branch through making selfie video, photocopying of ID cards and NFC technology-based scanning of ID card’s chip.
Baby Loan in 30 minutes (2023)
Since 2021, Gránit Bank has been offering online application for the Baby Loan and the loan agreement can be signed via video bank without having to visit the bank in person.
In 2023, the bank launched a new version of the loan application, which allows customers to apply from their mobile phone in 30 minutes. The bank has made the end-to-end digital process easier and more convenient with photocopying of IDs, automatic data uploading, personalised documents and making statements via selfie video. The fast and seamless process, designed by coordinating seven different systems, was named “Easy and Convenient Banking experience of the Year” in Mastercard’s Bank of the Year 2023 competition.
ACHIEVEMENTS OF GRÁNIT BANK
Key indicators:
91% of retail clients opened account with selfie.
97% of Baby Loan applicants managed the entire process online.
77% of government bonds purchases and sales were made online without visiting a branch.
96% of mortgage loan applicants managed the mortgage loan application via Digital Client Account.
Digital
banking innovations of Gránit Bank
INSTANT CARD APPLICATION TO GRÁNIT eBANK APP (2023)
Existing customers of Gránit Bank can apply for instantly available and usable HUF or foreign currency card in the eBank mobile banking application with just a few clicks. If the customer's account is funded to issue the card, it can be activated immediately and the same details and PIN as the physical card will be available in the app.
The digital card can be used immediately for mobile payments, online shopping within the EEA countries and to take advantage of the discounts the card offers.
Since 2020, the bank's new customers can apply for the Gránit Digital Card service when opening an account, which allows them to receive a virtual card for online and contactless mobile payments, even on the next day of account opening, that can be used for 60 days or until the physical card is activated.
As part of further developments, this service will soon be replaced by an instant in-app card application for new customers.
1
2
CONTACTLESS MOBILE PAYMENT INSTANT TRANSFER
3 INSTALMENT PAYMENTS 2.0
CONTACTLESS MOBILE PAYMENT IN HUNGARY
In September 2016, contactless mobile bank payments, without the need to change SIM cards, were introduced in Hungary, enabling users to make payments with their smartphone in the same way as with their contactless bank card.
In addition to the banks' customdeveloped Android Pay solution, Apple Pay was also introduced in
Hungary from 2019, followed by Google Pay from 2021. These solutions have now become the dominant mobile payment methods in Hungary.
Just over seven years later, by the end of March 2024, more than 2.4 million payment cards had been registered in a mobile wallet for contactless payments.
Overview of digital innovations
The path from bank card to contactless mobile payment
Technological environment
Tokenization 2014
In 2014, card companies (payment technology companies, e.g. Mastercard, Visa) introduced tokenization technology to securely link payment cards to mobile wallets (e.g. Apple Pay, Google Pay).
Tokenization protects the cardholder's data by replacing the physical card number with a unique, alternative identifier, known as a token.
When users use their mobile phones to pay, the token, not the real card number, is used in the transaction.
Thanks to the dynamically changing component (tokens) in each payment, tokenization makes transactions more secure, thereby reducing fraud in digital payments.
Market environment
Contactless mobile payment with mobile bank application
After many years of market experimentation, tokenization technology laid the foundations for the widespread use of contactless mobile payments in Hungary in 2016.
Apple Pay in Hungary
In May 2019, Apple Pay was launched at the first domestic bank. Since then, in just under three years, 11 domestic banks have made the service available.
Google Pay in Hungary
In April 2021, Google Pay was launched at the first domestic bank. Since then, in just under two years, 6 domestic banks have made the service available.
Digital banking innovations of Gránit Bank
Gránit Pay (2016)
The first contactless mobile payment solution for Android users - not requiring SIM card replacement. After the domestic launch of Apple Pay and Google Pay, the bank rolled out Gránit Pay in 2024.
Apple Pay at Gránit Bank (2019)
In July 2019, Gránit Bank was one of the first (second in a tie) to introduce Apple Pay in Hungary.
Google Pay at Gránit Bank (2021)
A few months after the launch of Google Pay in Hungary, Gránit Bank also made the service available. Just behind the podium, Gránit Bank was also in the lead.
ACHIEVEMENTS OF GRÁNIT BANK
95%
of retail clients having contactless mobile payment solution use their mobile phones for payment
8,5 times a month on average.
Key indicators:
Proportion of cards digitized into mobile phones within the total active card portfolio at Gránit Bank
46,3%
Apple Pay
Google Pay
Distribution of mobile payments by Gránit Bank clients using contactless mobile payments
Instant transfer
Launch of Instant Payment System
Sending and receiving of payment requests
Instant transfer initiated by scanning a QR code
Account-based payment solutions
Gránit Bank
INSTANT PAYMENT IN HUNGARY
On 2 March 2020, the National Bank of Hungary launched the Instant Payment System (AFR) in Hungary, thanks to which domestic HUF transfers typically reach the beneficiary within 1-2 seconds.
This is a dimensional change that will provide the basis for the spread of innovative account-based payment solutions.
Overview of digital innovations
Development of instant payment in Hungary
Regulatory environment
Launch of Instant Payment System 2020
All banks and payment institutions with payment accounts in Hungary have joined the instant payment system, so all retail and business clients with payment accounts can enjoy the benefits of instant transfers in Hungary.
The spread of account-based payment solutions are facilitated by the new package of measures of the National Bank of Hungary, entered into force on 1 January 2023, and require all banks to ensure the acceptance of payment requests from 1 April 2024, and payment options initiated by various data entry solutions (e.g. QR code, NFC technology or deep link) from 1 September.
These measures will make a significant contribution to the spread of new, innovative account-based payment solutions.
Market environment
Sending and receiving of payment requests
As of 2 March 2020, it has become possible to send and receive payment requests. A payment request is a standardized message sent to the payer's current account containing the data necessary to set up an immediate transfer order.
Instant transfer initiated by scanning a QR code
From the day of the launch of the Instant Payment System, an instant transfer order can also be issued by scanning a QR code, which has opened the way for the introduction of new types of account-based payment solutions.
Account-based payment solutions
In 2022, the first bank accountbased payment solutions tailored to business needs were launched as an alternative to card payments.
Digital banking innovations of Gránit Bank
Payment request and QR code payment at Gránit Bank (2020)
From April 2020, Gránit Bank's customers are able to send and receive payment requests to and from both internal and external customers.
And from October 2020, customers are also able to generate and scan a QR code - meeting the standard of the National Bank of Hungary - in the Gránit eBank mobile application to initiate an instant transfer.
Gránit FairPay (2022)
The innovative FairPay technology developed by Gránit Bank, an electronic payment solution based on the payment request introduced in the Instant Payment System, is simpler, cheaper and faster than credit card payments for online payments. The new payment service is already used by a number of universities and commercial enterprises.
Selecting the installment facility at the card terminal at the time of purchase
At the time of payment at the card terminal, the customer can choose to pay for the goods either in full or in monthly installments. The customer can take the goods right away and the bank will only deduct the full amount periodically in equal monthly installments later.
Selecting payment by installments option in the netbank, mobile bank after a card payment
In the bank's mobile app or web interface, installment facility can be applied for after card payments.
DIGITAL
INSTALLMENT PAYMENT SOLUTIONS
Nowadays, deferred payments, or installment payments, are enjoying a renaissance. Thanks to digitalization, users can now, at the time of card purchase, choose at the card terminal or within a few days of the purchase in the netbank, mobile banking application, whether they want to pay the full amount of the goods immediately or even in an interest-free installment plan.
FINANCES ON MOBILE
“
Based on the expectations towards financial services of generations Alpha and Z growing up with smartphones in hand, we are convinced that mobile devices will become almost the exclusive tool in banking and credit card management.
Péter Jendrolovics Gránit Bank Deputy CEO, Retail Division
Overview of digital innovations
Everyday finances on mobile
MOBILE WALLET (2014)
Mobile wallets are typically applications that run on the mobile phone, where one can securely store payment card details to make payments more convenient, faster, and safer in many situations.
There are mobile wallets where it is possible to store tickets, public transport passes, loyalty cards, or even boarding passes.
Some mobile wallets also act as digital wallets, which means that one can pay with saved card details in a web environment, so that the mobile wallet can be used not only for mobile payment, but also for payments in web shops and mobile apps.
CARD MANAGEMENT (2015)
Nowadays, most domestic banks already provide the possibility to change card limits, suspend or block cards in the mobile banking application quickly and easily with just a few clicks.
MULTIBANKING (2019)
Open banking allows users to track their account history with different banks in a single interface - even in a smartly processed, automatically categorized format.
Digital banking innovations of Gránit Bank
Gránit Card Lock and card details in the eBank app (2015, 2023)
Since 2015, Gránit Bank's customers have been the first in the market to be able to block their bank card with a single touch in the eBank mobile banking application and unblock it in the same way.
Since 2023, the Gránit eBank app allows you to view all your bank card details and PIN code with just a few clicks of a button after identification.
Everyday finances on mobile
WHAT IS GREEN FINANCE?
At an international level, a number of companies and financial institutions have implemented sustainable operations and, in addition to reducing their own ecological footprint, provide services that are designed to promote sustainability.*
These services include, for example, video banking, online banking, digital credit management, or an ecological footprint calculated on the basis of bank card spending.
*Source: National Bank of Hungary
Digital banking innovations of Gránit Bank
Eco Calculator (2021)
Gránit Bank is one of the first banks worldwide to introduce Mastercard’s Carbon Calculator, which allows cardholders to see the impact of their purchases on the environment in their mobile bank.
Gránit Bank provides its clients the opportunity to use the calculator for tracking, based on their card purchases, their personal CO2 emissions that accompany their daily lives.
They can easily offset their emissions by planting CO2absorbing trees with a few clicks in the app, with the help of a domestic foundation, and monitor the CO2 offsetting effect of their own trees on a daily basis.
Everyday finances on mobile
SOLUTIONS FOR CHILDREN
Financial education cannot start early enough. It is quintessential to teach children what it means to earn money and what it means to manage and save the income they have.
In childhood, as with many other issues, it is helpful to introduce children gradually to the world of money in a fun and playful way.*
*Source: Pénziránytű (Financial Compass)
Digital banking innovations of Gránit Bank
Gránit Family app (2022)
Parents can introduce their children to the world of finance from a very young age with the Gránit Family mobile app, which offers better services than other children's financial apps available on the market in many ways.
One of its notable features is that it can be used from the age of 6 and is linked to a full-scale Family Junior bank account that the child can open online with the parent from home, without having to visit a bank branch.
Children can use the app to save money for a purpose of their choice, and parents can set different tasks in exchange for more pocket-money.
ACHIEVEMENTS OF GRÁNIT BANK
84% of retail clients have active mobile bank registration.
Retail clients using the Eco Calculator sent a donation to plant more than
4000 trees to reduce their ecological footprint tracked in the calculator.
60% of currency exchanges are made in the Gránit eBank app
Digital banking innovations of Gránit Bank
Innovative foreign exchange service in Gránit eBank (2023)
As of 2023, the Gránit eBank mobile application allows the customers to exchange foreign currency at the highly favourable mid-market exchange rate during the day (between 9 a.m. and 5 p.m. on bank working days) in EUR, USD, CHF and GBP without any fees or other charges. Outside this period the Bank executes immediate foreign currency exchange orders at the Account Conversion Rate, free of charge.
The exchange is accompanied by visual charts showing daily and historical exchange rate movements, providing a high customer experience, and an in-app calculator that shows the amount customer need to pay after the exchange.
In the eBank app, existing customers can open a foreign currency account with just a few clicks and apply for an instantly available and digitally usable foreign currency card related to the EUR and USD accounts.
Gránit Bank
Thanks to the development of technology, the spread of broadband internet and smartphones, and the digitalization of the financial sector, digital communication with clients have become more cost-effective and efficient.
The dawn of real-time mass customization is here, and today one-way communication has turned into a digital dialogue.
DIGITAL DIALOGUE WITH THE BANK
Overview of digital innovations
The path from push messages to virtual assistants
PUSH MESSAGES
For many years, banks notified their clients about bank transactions by text messages, at a cost for both banks and the clients.
As mobile banking applications began to spread, so did push messages, which offered a free alternative to costly text messaging.
CHATBOTS
Chatbots have opened up new horizons in client communication and in meeting the information needs of clients.
A chatbot is a pre-programmed chat application that sends a response to a specific question. With the development of technology, such as artificial intelligence, more advanced and intelligent chatbots have emerged, which are able to recognize the free text of user questions.
VIRTUAL ASSISTANTS
Virtual assistants are computer programs that can understand and simulate human conversation, make suggestions, predictions, and even initiate conversations.
It is easy to confuse digital assistants with chatbots, as the former are actually a more advanced type of the latter, capable of more complex interactions.
Digital assistants must be taught to recognize and predict patterns of behavior. And they need a lot of data, data sources, so that the algorithms and data models running in the background can provide the best response to the user's preferences.
Digital banking innovations of Gránit Bank
iSMS and Gránit Digital Assistant (2015, 2024)
Gránit Bank was the first bank to introduce iSMS, the free online messages sent to the mobile banking application.
The bank's customers are notified by iSMS message of credits and debits to their bank account, successful and unsuccessful card transactions, and also receive verification codes for NetBank management via iSMS.
In 2024, Gránit Bank is preparing to introduce an artificial intelligence-based chatbot to support customer information.
CUSTOMIZED FINANCES
MICRO SAVINGS
EXPENSE TRACKING (Personal financial) management) FINANCIAL PLANNER CUSTOMIZED OFFERS 1 2 3
Gránit Bank
PERSONAL FINANCES
In 2012, the first personal financial management application was launched in Hungary, enabling users to track their spending more effectively. As technology developed, account history quickly became valuable, leading to a better understanding of finances for users and the introduction of new types of discount plans for banks.
How to personalize finances?
MICRO SAVINGS
There are some exemplary digital banking innovations also in Hungary. These are taking a new approach to helping bank customers achieve their savings goals by harnessing the potential of digital financial technologies.
Clients of a certain domestic bank can round up the value of their debit card purchases to HUF 10, 100 or 1,000. Once a personal savings target has been set, the solution automatically saves the rounding difference for each card payment, which is compounded daily.
The bank rewards the achievement of the target with an interest premium.
EXPENSE TRACKING
(PFM = Personal Finance Management)
Innovative banks have recognized that intelligent processing of account history, automatic categorization and visualization of expenses can all help clients track their spending and increase financial awareness.
Users can customize the statements on an intuitive graphical interface to better understand which areas of their spending to focus on.
They can also set up separate notifications for each spending category to keep more control over their spending.
FINANCIAL PLANNER CUSTOMIZED DISCOUNTS
A banking application is also available in Hungary, allowing users to review the long-term development of their assets. They can also see how their financial situation may evolve if they spend their money resourcefully or not.
The financial planner can also help them assess the short-, medium-, and long-term investment options available to help them achieve their financial goals.
Users can use the planner to develop their conscious investment and self-care strategies.
Users can also benefit from a cash-back rebate plan based on their purchasing and card usage habits.
The idea behind new generation plans is that bank clients receive automatic cashback on their purchases from the merchants that are relevant to them, without the use of coupons, discount codes, or loyalty cards.
These programmes are different from simple loyalty programmes in that the discounts are personalized, tailored to the client’s shopping habits.
ACHIEVEMENTS OF GRÁNIT BANK
88%
of the bank’s retail clients use the My Finances function on a daily basis to keep track of their income and expenses.
Digital banking innovations of Gránit Bank
My Finances (2018)
Gránit Bank is the first bank to make a financial manager functionality available in a mobile banking application, which allows the bank's clients to assess their expenditure and income structure at a glance.
DIGITAL BANKING INNOVATIONS FOR BUSINESSES
Over the past ten years or more, digital banking innovations have typically targeted retail clients, but in recent years, exemplary initiatives have also been launched for the business sector.
Digital banking solutions for retail clients are slowly becoming available for businesses, and digital banking solutions focused on business needs are emerging.
Online account opening and management through video bank
Mobile wallet, digital wallet for business card
Online loan application
Online billing and finances in a single point
Payment solutions
DIGITAL BANKING INNOVATIONS
FOR BUSINESSES
ONLINE ACCOUNT OPENING AND MANAGEMENT THROUGH VIDEO BANK
In addition to the retail segment, the possibility of managing the account through video bank became available also for the micro and small business segments, and exemplary solutions are already visible.
New clients - sole traders, partnerships - can now also open a bank account remotely via video without visiting a branch.
And existing business customers can use the video bank to change data, change account packages, open sub-accounts, apply for a card acceptance terminal, or to request a netbank password.
MOBILE WALLET, DIGITAL WALLET FOR BUSINESS CARD
Business cards issued by large and medium-sized domestic banks can typically be added to a mobile wallet for contactless payments, such as Apple Pay, Google Pay, or a wallet issued by the bank.
Some mobile wallets (e.g. Apple Pay, Google Pay) also act as digital wallets, so businesses can use digital wallets without having to enter their card details in online shops that accept wallet(s).
Digital banking innovations of Gránit Bank
ONLINE LOAN APPLICATION
There is still no example of 100% online administration of loans for sole traders, micro and small businesses, especially for new clients, but promising digital initiatives are already present in Hungary.
A few banks already have access to a credit calculator to help businesses assess in advance the amount of the loan they may be eligible to receive.
In this area, the launch of Gránit Bank’s NHP Hajrá online loan application was a dimensional change, which has been an exemplary solution ever since.
NHP Hajrá with online application (2020)
Gránit Bank wanted to provide a game-changing solution with its innovation for the SME sector.
The bank was the first in Hungary to offer the NHP Hajrá loan with instant online pre-screening, data entry, digital document upload, and fast online application.
Online account opening for businesses via VideoBank (2023)
In 2023, Gránit Bank became the first bank in Hungary to offer full-scale account opening and account management - online and via VideoBank - to businesses without any restrictions.
Account opening is available regardless of the size of the company, its organisational form and the number of signatories or bank signatories, in contrast to the highly restrictive conditions imposed by similar services that have been available on the market until now.
DIGITAL BANKING INNOVATIONS
FOR BUSINESSES
ONLINE BILLING AND FINANCES
IN A SINGLE POINT
In recent years, a number of outstanding banking initiatives appeared that typically provide billing and financial management in an integrated way for sole traders, micro- and small businesses, helping them reduce administrative burdens related to finances.
Businesses can manage online billing, review their expenditure and income and keep track of the settlement of their invoices issued on a single interface.
NEW PAYMENT SOLUTIONS
There are banks that offer innovative new payment solutions beyond the traditional POS terminal-based card acceptance, even specifically tailored to the needs of smaller businesses.
Card acceptance no longer requires a POS terminal since a mobile phone can be converted into a card acceptance terminal - a solution that is becoming more and more available at domestic banks.
And in addition to card acceptance, new payment solutions based on the instant payment system (e.g. payment request) offer a competitive way for businesses to replace cash transactions.
Digital banking innovations of Gránit Bank
Gránit FairPay at universities (2023)
The FairPay payment technology based on payment request, which is cheaper, simpler and faster than card payments, was launched by Gránit Bank firstly for universities, integrating it into the NEPTUN system used by them. Since the beginning of 2024, students at 6 universities are already using FairPay instant payment to pay - among other things - for exams.
GRÁNIT BANK: THE FLAGSHIP OF DIGITAL BANKING INNOVATIONS
When Gránit Bank was founded in 2010, its "born digital” business model was based on digital channels. Year after year, it has been a market leader with innovative financial solutions that offer its clients outstanding UX and convenienceeven from home, without queuing in a branchto manage their everyday finances.
In 2012, the bank was the first in Hungary to introduce administration of matters via video bank and then, a few years later, the possibility of opening a bank account through video chat. Also unique in the domestic market today is the bank's 30-minute Baby Loan application process.
Gránit Bank was also the first in Europe to make Android-based mobile payments available, developed in partnership with Mastercard, and it was the first commercial bank worldwide to integrate an Eco Calculator in its mobile bank app for presenting the ecological footprint of card purchases.
The past 10 years or more were full of exciting technological innovations in the banking sector, which this publication summarizes and presents to the reader, together with the digital innovations of Gránit Bank.
Payment request and payment with QR code
Issuing instant virtual card
opening a fullscale account with selfie
NHP HAJRÁ online application
loan administration through personal digital client account
online pre-screening
Paying cheques digitally
Instant HUF and foreign currency debit card application + PIN code disclosure in eBank
Currency exchange at midmarket rates
Open foreign currency account instantly from the app
Digital Baby Loan application 2.0 - with 30minute application
Opening securities account + buying and selling government bond in eBank
Integration of investment services into eBank*
Home insurance calculator in eBank
ACHIEVEMENTS OF GRÁNIT
BANK
DYNAMIC GROWTH FOR 14 YEARS ALREADY
Profit before taxes in 2023: STABLE PROFIT
22,0 billion HUF
Continuously profitable operation for DYNAMIC GROWTH
10 years
HIGH PROFITABILITY
Return on equity
Non-performing loan ratio
Balance sheet total on 31.12.2023:
1274 billion HUF
Average annual growth
EFFICIENT OPERATION
The share of costs of operation in the balance sheet total Close to
Gránit Bank has excellent liquidity and credit quality, as well as a high Capital Adequacy Ratio.
Gránit Bank’s cost of operation / balance sheet total indicator is significantly lower than the bank sector average.*
bank tax and extra-profit tax
AWARDS AND RECOGNITIONS OF GRÁNIT BANK
Gránit Bank’s performance has been rewarded with 65 awards in the 14 years since its establishment.
First places in the "Bank of the Year" competition in 2023: Bank of the Year
Between 2012 and 2023, Gránit Bank received a total of
in Mastercard’s
Key international awards and prizes:
| Bank of the Year in Hungary
The European
Fastest Growing Digital Bank Hungary
Global Banking and Finance Review
Best Mobile Banking App (Hungary)
Best Mobile Banking Adaptive Site (Hungary)
Best Social Media Marketing and Services (Hungary and CEE)
Global Finance
IMPRINT
Issued by: Gránit Bank
Publisher in charge: FinTech Group Kft.
Senior editor: Gábor Lemák
Professional proofreader: Szilvia Egri
The publication was produced the participation of:
László Hankiss, Deputy CEO
Andrea Csicsáky, General Manager
Emília Papp, Head of Communication and PR Department
Contact:
Emília Papp
Head of Communication and PR
Email: papp.emilia@granitbank.hu
Web: granitbank.hu
The publication is printed on recycled paper.
2024 Gránit Bank. All rights reserved!
This publication is to be read as a whole.
The illustrations used in this publication are used under licence from Adobe Systems Software Ltd. pursuant to the terms of a license agreement between FinTech Group Ltd. and Adobe Systems Software Ireland Ltd.
The illustrations, photos and logos used in this publication are protected by copyright. Use of illustrations, photos and logos is prohibited. The use of the content in whole or in part is subject to the prior written consent of Gránit Bank.
