MNB cautions Revolut clients in Hungary

MNB

The National Bank of Hungary (MNB) on Tuesday repeated a warning concerning the lack of local deposit insurance and legal recourse available to retail clients of fintech company Revolut, according to a report by state news wire MTI.

The central bank and financial market watchdog again pressed Revolut, which offers cross-border banking services in Hungary as a licensed entity in Lithuania, to provide its services to Hungarians through a local subsidiary.

The central bank said it expects "no change in the status of Revolut Bank until at least the middle of next year", adding that Revolut has taken no steps to launch the establishment of a local unit.

It pointed out that Hungarian Revolut clients are covered only by Lithuania's deposit insurance regime and may only seek legal recourse regarding their accounts in Lithuania.

"The MNB...supports simple, cheap financial services made possible through fintech innovations, but only if they ensure financial stability and the security of clients," the central bank said.

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