One in three banks will be a fourth in Hungary, by 2025 they would be the best

As already announced on Monday

  • On March 31, the two member banks of the banking group, Budapest Bank and MKB Bank, will merge, thus creating the basis for the uniform operation of the future superbank. The merged banks will temporarily continue to operate under the name MKB Bank Plc.
  • The Savings Group It will join the united bank in the second quarter of 2023, meanwhile Magyar Bankholding manages the continuous operational harmonization of the three banks.
  • In parallel, the Bankholding’s complete management takes over the responsibilities of the top management of the member banks, so the operation and management of the Magyar Bankholding Group will be unified, thus simpler and more efficient.
  • To implement the plan to establish a superbank in two stages the approval of the owners of the banking group is also required, for which on 15 December will take place.
  • The united bank, which will be established on March 31 temporarily under the name MKB Bank Plc It will work. The single financial institution its final brand name and image are scheduled to be introduced in early 2023; their development started as part of a professional branding process.
  • The goal is to build an attractive brand for customers that transforms the traditional image of financial institutions, unifies them and looks to the future.

András Puskás, Deputy CEO of Magyar Bankholding, also responsible for communications, said at the beginning of today’s press event:

  • it already stands out in terms of its many activities bankholding from the field of banks, including micro-, agricultural- and leasing-financing, can be mentioned here, but their private banking activity is also very strong,
  • they want to be able to Enter the international market in the strategic period starting in 2025,
  • the period from 31 March 2022 to the second quarter of 2023 shall be deemed to be a transitional period, the final legal merger will take place in the second quarter of 2023, a transitional brand will be used during the transition period (MKB Bank Plc.). The their new brand will be different from the previous three,
  • I want you The brand of Budapest Bank would not disappear completely by 31 March, customers will temporarily retain certain brand elements to keep them recognizable, but in 2023 there will be a complete change of image.

Deputy CEO Ádám Egerszegi described:

  • the 5-year strategy was adopted in March this year, which sets out the main directions for the coming years, followed by intensive scheduling and implementation with the help of external consultants, which has recently been completed,
  • so the decision was made to there will be a two-stage merger, Budapest Bank will merge with MKB Bank on March 31, 2022, Takarékbank will be disappointed by the end of the second quarter of 2023, until then the MKB brand will remain,
  • From 1 April, the merged bank will be preparing a single value proposition, so they would act as a single bank, but a leasing activity from January 1, through MKB Euroleasing will be uniform
  • their new technology platform will open up completely new perspectives on the Hungarian banking market, supporting the business growth outlined in the strategy,
  • to the Portfolio question, they are currently below the banking sector average in terms of efficiency, but

By the end of 2025, the group wants to be the most efficient player in the Hungarian market in terms of financial efficiency, and to achieve a return on equity of approximately 15% by 2025.

Zsolt Barna, Chairman of the Board, said:

  • By the second quarter of 2023, a unified, modern, universal large bank will be built, which holds its own in both the regional and Hungarian banking markets, this deadline has been very firmly met,
  • have outstanding expertise and a corporate culture that prepares them not only for stock market presence but also for international expansion, and he quickly embraced the new strategy,
  • skip the problems stemming from the IT legacy by building flexible new architectures and building on existing systems instead of old ones,
  • the owners undertook to they do not intend to take out the profits generated by the institution, but would be put back into operation, providing adequate capital for growth,
  • They want to go public with an IPO, relying on MKB’s existing stock market presence, which will be a reality in 2025 (the exact technical implementation is yet to be developed), as it will take a full year to complete in 2024, international expansion could follow,
  • in terms of labor they are built primarily from within, but for example Csaba Szomolai came to the field of risk management and Balázs Vinnai came to the field of information technology from outside,
  • aimed at the most efficient branch presence in terms of customer service, unified technology operation and business, however, believe that despite the rise of online banking, there is a significant force in the physical and personal presence (Zsolt Barna did not provide a forecast for the accounts to be closed), branch network rationalization plan will be completed by the second quarter of 2023, the headquarters issue is now being investigated.
  • a staffing plans are currently being developed, they want to keep the best,
  • their banks under construction very good economic performance provide
  • although legally the three banks will still be separate, they will be governed by a unified leadership from 15 December,
  • the strongest consulting team internationally helped with their work, four of them large, the McKinsey, a Rotschild, a BCG és a Deloitte was mentioned
  • the explanation of the two-stage merger is that Takarékbank has the largest and the most diversified customer base, the merger can be implemented most efficiently
  • answering a press question, he said: the Hungarian compared to the size of the banking market, there are so many players, they are also pushing for acquisition opportunities domestically.

Balázs Vinnai, the leader of the IT renewal, said:

  • one in three banks are born but do not rely on existing IT systems: management has very boldly decided to new construction is being implemented, perform digital frog or leapfrog,
  • they arrived at a historic moment: the technology of the three banks is being put on a new footing, which does not mean not using the best of previous systems, but the technological approach is changing,
  • while 20 years ago a central, core system was the middle of the IT system, today it is no longer the case, the focus is on digital banking consists of
  • digitization is basically about business: how to harness the potential of the digital space with these technologies to generate business flexibly, quickly and cost-effectively,
  • by the beginning of next year, the bank will already be using the new systems and they can get there very quickly they will be by far the market leaders in terms of customer experience,
  • they want to prepare the superbank for the more difficult times, the age of the lower margins must be cost-effective operation conditions.

Cover image: Portfolio


Source: Portfolio.hu – Bank by www.portfolio.hu.

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