Growing Client Numbers Would Warrant Local Revolut Unit - MNB
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The National Bank of Hungary (MNB) said the growing number of Hungarian clients of fintech company Revolut, along with more reports of scams, underscored the importance of Revolut Bank operating with a local subsidiary in a statement issued on Monday, according to a report by state news wire MTI.
The central bank and financial market watchdog noted that Revolut offered cross-border banking services in Hungary as a licensed entity in Lithuania, making it harder for Hungarian clients to make complaints and offering them no local deposit insurance coverage.
"The [MNB] welcomes innovative financial solutions, but only if they take into account consumer protection factors without fail," MNB said. Those financial services "may not in any form reduce Hungarian clients' financial security," it added.
Revolut Bank has over 10 million clients in Central and Eastern Europe, including 1 million in Hungary and 365,000 in Budapest, according to press reports.
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