Online personal loan market expansion ahead: EY

Competition

Thanks to a change in regulations, the online personal loan market in Hungary is set to expand considerably in the future, according to Big Four company EY.

Péter Csonga

The company says that services that allow clients to request loans through smartphones and laptops even outside working hours could become widespread quickly, after the change in regulations comes into effect on March 31.

Due to the changes in the contracting process, clients may receive the requested loan in a short time after submitting a request. The process will be further hastened by the planned introduction of immediate transfers, which is expected to start this July.

"The way to the simplified market introduction of innovative products will be opened within weeks for the sectorʼs players," says EY advisor Péter Csonga.

"Institutions will have to create a service which is both client- and user-friendly, while providing the appropriate IT infrastructure in practice, risk-management systems, and data handling and security protocols in order to gain a competitive edge. For a fast, efficient, and integrated implementation, the internal resources of financial institutions are often not enough, hence it is worth involving an external expert in the process," he adds.

A further facilitation of the process is that laws do not always demand a real-time video connection during client identification since the beginning of 2019. This may result in an improvement in client experience and support the spread of services outside bank opening hours.

ADVERTISEMENT

Purchasing Managers' Index rises Analysis

Purchasing Managers' Index rises

Lawmakers approve residency permit for digital nomads Parliament

Lawmakers approve residency permit for digital nomads

The strongest move - Morgan Stanley Hungary head and Chess F... Podcasts

The strongest move - Morgan Stanley Hungary head and Chess F...

New Jewish cultural hub opens in Budapest City

New Jewish cultural hub opens in Budapest

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.