New gigabank to enter Hungary, Revolut to get more expensive

Hungary’s financial sector could soon see one of its biggest competitive shake-ups in years, as Poland’s largest bank, PKO Bank Polski, is accelerating plans to enter the Hungarian market following the country’s historic political transition.

The move would place a heavyweight new rival alongside Hungary’s dominant lenders, including OTP Bank and MBH Bank, intensifying competition in both corporate and retail banking.

According to Világgazdaság, PKO’s leadership believes Hungary may now offer a more predictable regulatory environment after the election, a factor that could make expansion significantly more attractive. The state-backed Polish lender is already present in Germany, the Czech Republic, Slovakia and Romania, but Hungary had not previously been among its core expansion targets.

The lender’s strategy is to double its European branch network, primarily to follow major Polish corporate clients expanding abroad. Several of those clients — including fashion retailers, software developers and food producers — already have a presence in Hungary, making Budapest a logical next step.

OTP and MBH may face rising pressure

The timing is particularly important because OTP shares recently hit fresh record highs despite the looming arrival of stronger competition.

A PKO entry could increase pressure on margins in the corporate lending segment first, where cross-border relationships and multinational clients matter most. Over time, however, the Polish lender may also challenge established players in premium retail and SME banking.

For Hungary’s consumers and businesses, the arrival of another large regional bank could ultimately translate into better loan pricing, more competitive deposits and improved digital services.

Revolut’s Hungarian expansion brings local IBANs — and painful new fees

At the same time, another major change is reshaping the banking landscape: Revolut’s Hungarian branch launch.

The fintech’s localisation means Hungarian users will soon receive domestic Hungarian IBAN account numbers, removing one of the biggest obstacles to using the app as a primary current account. Salary payments and domestic transfers will no longer count as cross-border transactions.

However, the local move also brings new costs, Pénzcentrum reports.

Because Revolut’s Hungarian branch must now comply with local tax and regulatory burdens — including Hungary’s transaction levy — the company is introducing a 0.45% fee on the portion of transfers above HUF 50,000, capped at HUF 20,000 per transaction. The changes take effect from 18 May 2026.

Premium and Metal users will enjoy a HUF 1 million monthly allowance before the fee applies, while Ultra subscribers remain fully exempt. Weekend FX fees are also being reduced for paid plans, slightly softening the blow.

Could traditional banks become cheaper again?

The biggest consequence may be psychological: Revolut’s localisation finally makes it realistic as a true salary account in Hungary, but for customers who regularly make domestic transfers or withdraw cash, traditional banks may once again become the cheaper option.

For users relying mainly on card payments, foreign exchange, investing or travel, Revolut remains highly cost-effective. But once frequent local transfers enter the picture, some Hungarian banks’ fee-free packages could now offer better value.

Taken together, PKO’s potential arrival and Revolut’s localisation mark a new era of competition in Hungarian banking: one driven by both international expansion and regulatory convergence.

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Featured image: illustration, depositphotos.com