The timing reason of the question is an  announced of British banks that being on a verge of account portability implementation. Connection with same day clearing as if Hungary is might up to slip the most important condition. This most important condition is the standardization of bank - client communication. Without the standardization it is inconceivable the fast and costless change of account manager financial institute. Jurisdiction support, supervisory audit as well as GIRO and Hungarian National Bank cooperation is completely needable for proper operation.

The operation of account portability is based on a database which links the concrete account number to a bank. This information key to credit transferred to the appropriate account. Furthermore account and financial institute linkage is needable to define the net position against each other. The clearing process among each other remains unchanged.

Furthermore Hungarian National Bank has to have access to that database to fulfil internal immediate transactions (VIBER). Having introduced to automated process, the transaction processing time does not increase significantly.

The task is at first sight does not seem much more complex, that mobile number portability, which have been working properly for years. But account portability needs much bigger cooperation considering the diversity of products about account management. Only in case of private person the portability of following some products worth to be considered:

• standing order
  
• direct debit mandates
  
• related debit and credit cards
  

 

Of course these products implementation can be phased. Namely the client can only carry account number and cash at the first phase of implementation. Debit card, and credit card have to be changed anyway to avoid leaving financial institute can together data for transaction authentication (card number, name of owner, CVC, PIN)

It is reasonable to wait for the next step of SEPA standard implementation to suit direct debit function to account portability because

• this is expected to take place in 2013-14
  
• handle of mandate will be the task of beneficiary
  

 

If bank - client standard will be implemented with same day clearing starts at July 2, 2012, there is a chance for account portability become real in Hungary within reasonable time.