Erste Bank Hungary launches home savings bank
Erste Bank Hungary has launched its own home savings bank, deputy head of the retail division Imre Sztanó said on Monday.
Erste aims to take 10-12% of Hungary's home savings market in the next few years, Sztanó said. Erste Home Savings Bank is expected to become profitable within five years, he added.
Erste is the third bank to enter the home savings bank market in Hungary after OTP Bank and Fundamenta-Lakáskassza.
Erste Bank Hungary has had a "good and fruitful" partnership with Fundamenta-Lakáskassza until now, but the balance of the cooperation has been upset recently, Sztanó said.
He said Erste Bank Hungary has 900,000 clients, the second-highest number on the country's banking market, and its parent is market leader on the home savings bank market in Austria.
Between 30% and 40% of Erste Bank Hungary's clients have said they want to join a home savings bank in the near future, he added.
Data from Hungary's Competition Office (GVH) show penetration of home savings banks in Hungary could rise to 20% in just a few years.
ADVERTISEMENT
MNB Keeps 0.5% Capital Buffer Activation Date
Ukraine Suspends OTP Status on 'Sponsors of War' List
Labor Unions Welcome Collective Contracts Court Decision
Pálinka Added to EU-Japan Geographical Indication Deal
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.
