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Why Revolut US Being Urged to Set Up Local Unit in Hungary by National Bank

• 18 Oct 2024 8:27 AM
• Hungary Around the Clock

The MNB has again urged fintech company Revolut to establish a subsidiary in Hungary, which would allow its clients’ savings to be covered by the National Deposit Insurance Fund (OBA).

Revolut, which had 1.5 million customers in Hungary by late summer, has announced plans to open a branch here next year.

However, the opening of a local branch will not dispel concerns, the MNB said, as the MNB, as the financial supervisory, can only address consumer protection complaints about Revolut through the Lithuanian supervisory authority or the European Banking Authority.

The “reassuring solution” the MNB added, would be for Revolut to operate with a sufficiently capitalized Hungarian subsidiary that offers a deposit guarantee through the OBA.

However, Revolut has not yet applied for the necessary local licenses.

The MNB noted that Revolut is a member of the Lithuanian deposit insurance system, which is an order of magnitude smaller than the OBA.

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