MNB Publishes Report on Fintech and Digitization in Hungary
MNB published a the fintech and digitization report that offers an insight into the domestic and international trends in financial innovation, digitization, and the development of technologies supporting them. The report summarizes the international fintech and digitization processes and trends and provides an analysis of the domestic fintech sector. The report also offers a comprehensive picture of the level of digital readiness of the domestic banking system and the insurance sector based on a detailed, individual institutional-level survey of MNB.
The report highlights that Hungarian fintech sector has continued to expand and more than 130 active companies are engaged in fintech activities in Hungary. Domestic fintech companies are typically still active in financial software development and systems integration, data analysis and business intelligence, and payment services. The MNB Innovation Hub, which was Launched in March 2018, serves as a platform for direct and flexible contact with financial innovators. Based on the MNB's second comprehensive banking system digitization survey, significant catching-up was observed in several participants in the past year, with the digitization of the domestic banking system showing significant development. Over the past year, growth has been observed primarily in previously less developed areas such as digital product access and digital customer engagement.
Due to the epidemic situation, developments supporting external relations came to the fore, less resources were allocated to the development of the digitization of internal operations. In view of this, the domestic banking sector should pay more attention in the future to developments affecting internal systems and processes to exploit the potential of digital transformation and strengthen the competitiveness of the sector. To implement the digital banking transformation covering all sub-areas, an MNB recommendation issued in March 2021, which is also a novelty at the international level, provides guidelines for the actors of the banking sector. The recommendation expects credit institutions to develop a comprehensive digital transformation strategy and timetable and to send it to the central bank.
Keywords: Europe, Hungary, Banking, Insurance, Fintech, Regtech, Digital Transformation Strategy, Innovation Hub, MNB
Previous Article
EBA Examines Application of Early Intervention Measures Under BRRDRelated Articles
OSFI Discusses Benchmark Rate Transition, Sets Out Work Priorities
The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.
EBA Proposes Standards to Support Secondary NPL Markets
The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.
EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution
The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).
EBA Issues Standards for Crowdfunding Service Providers Under ECSPR
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.
EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution
The European Securities and Markets Authority (ESMA) published a paper that examines the systemic risk posed by increasing use of cloud services, along with the potential policy options to mitigate this risk.
EC Consults on PSD2 and Open Finance; EU Reaches Agreement on DORA
The European Commission (EC) published a public consultation on the review of revised payment services directive (PSD2) and open finance.
EC Mandates ESAs to Propose Amendments to SFDR Technical Standards
The European Commission (EC) has issued two letters mandating the European Supervisory Authorities (ESAs) to jointly propose amendments to the regulatory technical standards under Sustainable Finance Disclosure Regulation or SFDR.
EBA Examines Supervisory Practices, Issues Deposits Reporting Template
The European Banking Authority (EBA) published its annual report on convergence of supervisory practices for 2021. Additionally, following a request from the European Commission (EC),
SNB Updates NSFR Forms and FINMA Consults on Operational Risk Circular
The Swiss National Bank (SNB) published Version 1.2 of the reporting forms (NSFR_G and NSFR_P) on the net stable funding ratio (NSFR) of banks, along with the associated documentation.
US Agency Publications Address Basel, Reporting, and CECL Developments
The Farm Credit Administration published, in the Federal Register, the final rule on implementation of the Current Expected Credit Losses (CECL) methodology for allowances