Online banking services
FinTechs belonging to this area offer traditional banking services in a modern way, usually through online services or mobile applications as well as ancillary services – e.g. enabling customers to manage their giro- or custody-accounts online and in real time or offering e-wallet services. Keywords in this context are also API-Banking or Banking as a Service (BaaS)/ Bank as a Platform (BaaP).
API stands for application programming interface and is offered to access data banks and to extract and insert information. API-Banking consequently means the access to data banks of banks to offer new and innovative banking applications.
Through these services FinTechs offer services with new functions, e.g. enabling customers to manage their accounts online and in real time.
BaaS – Bank as a Service/BaaP – Bank as a Platform:
The API-based Bank as a Service platform has a full banking licence, but merely serves as the back end for standalone independent FinTechs, which “use” the licence and the back end of the bank to offer new financial services, launch additional financial products or expand into additional markets.
Attitude of the country towards online-banking services
The social and political climate towards Online Banking Services is neutral.
Obligations and requirements to provide online-banking services described above
Both API and BaaS/BaaP involve the provision of account information services and payment initiation services, which are different types of payment services, which is a licensable financial service, if provided in a business-like manner in the territory of Hungary: credit institutions (incl. banks) and payment service providers can be licensed to provide such services.
For payment service providers, see our answer to question ii. in part a. (Payment services); for credit institutions, see our answer to question ii. in part g. (g. Loan services/factoring/loan broking/finetrading).
Additional comments regarding the legal situation for online-banking services or what FinTech’s must be aware of in this business area
Market size for online-banking services and biggest companies in this business area
Almost all of the bigger Hungarian banks (OTP, UniCredit, MKB etc.) offer online banking services which can be used to: access account information, review and pay bills, transfer funds, apply for credit, recharge prepaid services – e.g.: mobile phones and foreign exchange transfers. The service fee is lower than the traditional paper-based service fee and you can use these services 24 hours a day. From a practical perspective, almost all payment transactions are handled by traditional market players and their – either traditional or online/FinTech – platforms.
Additional comments regarding the economic situation for online-banking services or what FinTech’s must be aware of in this business area