CIB Bank absorbs factoring arm for better services
CIB Bank Hungary is planning to further strengthen its factoring activity in Hungary this year through merging CIB Faktor Zrt. into the bank, according to a press statement sent to the Budapest Business Journal this morning.
CIB Bank expects the fusion to enable its SME and corporate clients to apply for factoring options in a faster and more efficient way than before, according to the press release.
According to the bank, the Hungarian factoring market has room for improvement. Citing a recent survey the bank commissioned from market researcher TNS Hoffmann, CIB notes that while 76% of surveyed Hungarians were familiar with the possibilities of factoring, only 7% had taken advantage of such options in the past five years, while just 8% do so currently, with only 3% claiming to be considering the option in future.
CIB Bank, which describes itself as one of the most significant players on the market, says that the ratio of clients applying for factoring is high at 10%, primarily among SMEs. The forint dominates factoring, as 87% of the factoring CIB Bank has measured is carried out in the Hungarian currency.
The popularity of factoring is set to rise among Hungarian firms, says Géza Deme, chief of CIB’s factoring operations. If the Hungarian economy keeps developing and turnover in trade increases, in line with the growing revenues of manufacturers, the importance of factoring could increase as well, he added.
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