Hungary’s banking sector comprises domestic and foreign financial institutions. Of all the banks operating here, several large ones dominate the market and provide a range of services, from essential banking products such as deposit account maintenance to investment banking and asset management services. Here we present an overview of Hungary’s biggest banks and their key features.
Hungary’s five central banks include:
5. Budapest Bank
Budapest Bank is a universal bank based in Hungary that provides an extensive range of financial services for individuals, SMEs and large corporations. Established as a commercial bank in 1987 and later converted to universal status in 1994.
Budapest Bank provides various products and services, spanning retail banking, corporate banking, SME banking, investment banking, asset management and insurance. Their retail services encompass personal loans, mortgages, credit cards, savings accounts and various insurance products for personal use. At the same time, their corporate and SME banking solutions cater specifically to businesses of various sizes across different industries.
Budapest Bank operates through an expansive network of over 100 branches and 500 ATMs throughout Hungary, serving over one million individual, SME, and corporate customers – many of whom live abroad. Recognized for its innovative products and services and its commitment to corporate social responsibility, Budapest Bank is one of Hungary’s premier banks.
In 2021, the Hungarian government completed its acquisition of Budapest Bank from General Electric. They intend to use the bank as part of their economic growth and development plan for Hungary.
4. Erste Bank Hungary
Erste Bank Hungary is part of the Austrian banking group Erste Group and was established in Hungary in 1997. Since then, it has provided retail and corporate banking products and services, investment banking products and asset management solutions, and insurance policies to clients throughout Hungary.
Erste Bank Hungary is one of Hungary’s premier banks, boasting over 130 branches and employing more than 4,000 professionals. Their products and services meet the needs of more than 1.5 million retail and corporate customers across Hungary, catering specifically to each one.
Erste Bank Hungary stands out as an innovative and reliable financial solutions provider that prioritizes sustainability and corporate social responsibility and has been widely acknowledged for this work by industry experts and organizations.
Erste Bank Hungary has long supported Hungary’s economy, offering financing and other services to assist businesses as they grow and prosper. The bank actively fosters entrepreneurialism and innovation within Hungary’s financial industry and remains an influential player today.
3. Raiffeisen Bank
Raiffeisen Bank is one of Hungary’s premier commercial banks, providing banking products and services to retail, corporate and institutional clients across Hungary since 1986—a subsidiary of Raiffeisen Bank International, which ranks among Central & Eastern Europe’s premier banking groups.
Raiffeisen Bank offers retail banking services, including various accounts, debit and credit cards, personal loans, mortgages and investment products. Furthermore, SME accounts, loans and credit facilities can also be found here. For corporate and institutional clients alike, Raiffeisen Bank also offers project financing, structured financing, syndicated loans, and treasury services.
Raiffeisen Bank is committed to social responsibility and sustainability. The bank actively supports community development projects and environmental protection initiatives, while its business practices adhere to ethical principles of integrity, fairness, and transparency.
Raiffeisen Bank has earned numerous accolades over recent years for its products and services, such as being recognized by Global Finance magazine with the Best Digital Bank award in 2020.
2. K&H Bank
Established in Hungary in 1967, K&H Bank offers a full suite of financial services to retail, SME (small and medium-sized enterprise), corporate and institutional customers – part of Belgium’s KBC Group, which ranks among one of the largest banking and insurance groups worldwide.
K&H Bank provides various banking products and services, such as deposit accounts, loans, credit cards, insurance policies, investment management and asset management services, and online banking. K&H has placed great importance on digital innovation; their mobile applications allow customers to manage their finances conveniently and easily.
K&H Bank is committed to sustainability beyond traditional banking activities and has taken numerous environmental and social initiatives. K&H is an official signatory of the United Nations Global Compact, pledged to advance sustainable business practices within its operations and among stakeholders while supporting various social causes related to education, health, culture and the environment through its corporate social responsibility program.
1. OTP Bank
OTP Bank is Hungary’s oldest commercial bank, dating back to 1949 when it started as a state-owned savings bank before transitioning into a publicly traded company in 1995. Today, OTP Bank provides universal financial products and services, such as retail banking services for individual consumers and corporate clients, asset management, insurance policies, leasing arrangements and investment banking products and services to meet various market needs.
OTP Bank operates a network of over 1,200 branches and boasts an expansive presence across Central and Eastern Europe with subsidiaries located in Bulgaria, Croatia, Romania, Serbia, Slovakia, Ukraine, Montenegro, as well as further afield, including Russia Turkey
OTP Bank has long been recognized for its cutting-edge products and services, such as its mobile payment platform and digital banking platform, allowing customers to open accounts and complete online transactions. Furthermore, over recent years, OTP Bank has made considerable investments in fintech startups while collaborating with Google and IBM on new technologies to develop cutting-edge products and services.
OTP Bank is listed on the Budapest Stock Exchange and is part of its benchmark BUX index, which tracks performance among major companies listed there.
Frequently asked questions:
1. Which bank in Hungary holds the most assets?
Ans: OTP Bank holds the most significant total asset position.
2. What is Hungary’s oldest bank?
Ans: The Hungarian National Bank was established in 1924.
3. Are Hungarian banks profitable?
Ans: Yes, many Hungarian banks are profitable, though their profitability will depend on their business strategy and economic conditions.
4. What services do Hungarian banks provide?
Ans: Hungarian banks offer various financial services, including deposit accounts, loans, credit cards, investment products and other forms of financial products and services.
5. Are Hungarian Banks Safe?
Ans: Hungarian banks are generally considered secure and reliable. The Hungarian government offers guarantees up to certain limits, and Hungary boasts a robust banking system. Still, as with any financial institution, it’s wise to conduct your research before placing your money with any institution.
