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Vilmos Levente Kovacs

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Vilmos Levente Kovacs - Simplexion Informatikai Kft.

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Will be bank account portability in Hungary?

23 June 2011  |  4410 views  |  1
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.


TagsPaymentsPost-trade & ops

Comments: (2)

A Finextra member
A Finextra member | 26 June, 2011, 18:21

I have a remark on this portability subject . 

Would be interesting to pay to a CITI account switched from RBS, using the account no carried from RBS, something as  GBnn RBOSxxx...  !!!

And let's compare the intial mess of updating  the payment details after the account switching with the daily overhead when someone need to remember that his RBS IBAN is actually representing his new CITI account. 

Anyway a business case should prove that this is such a valuable service to deserve all the efforts& costs ...

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Vilmos Levente Kovacs
Vilmos Levente Kovacs - Simplexion Informatikai Kft. - Budapest | 27 June, 2011, 14:35

Dear Christina,

Thank you for your comment. International and SEPA transfer the BIC code has to be specified. Therefore the transaction can arrive to the designated financial institute.

But you have right, the best issue about account portability is that the bank change no need any closure of account. That's why authority regulation is needable, because the leaved financial institute have to redirect the transaction to the account manager institute.

Best regards,

Vilmos Kovacs

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Vilmos Levente's profile

job title Managing Director
location Budapest
member since 2011
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I'm the owner of Simplexion, the Hungarian SWIFT Ready service provider. At Hungary same day clearing for domestic payment is under implementation. To become a well known specialist about payment mess...

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