Published in 2024 • EDITOR-IN-CHIEF: Robin Marshall • CONTRIBUTORS: Annamária Bálint, Bence Gaál, Gergely Herpai, Levente Hörömpöli-Tóth, Mihály Kovács, Csilla Lengyel, Erika Törsök • LISTS: BBJ Research (research@bbj.hu) • NEWS AND PRESS RELEASES: Should be submitted in English to news@bbj.hu • LAYOUT: Zsolt Pataki • COVER IMAGE: FLUKESMITH / S hutterstock.com • PUBLISHER: Tamás Botka, Business Publishing Services Kft. • Address: Madách Trade Center, 1075 Budapest, Madách Imre út 13-14. • Telephone: +36 (1) 398-0344 • ADVERTISING: AMS Services Kft. • CEO: Balázs Román • SALES: sales@bbj.hu • CIRCULATION AND SUBSCRIPTIONS: circulation@bbj.hu • www.budapestbusinessjournal.com •
Foreword
Welcome to the Top 50 Financial Executives in Hungary 2024-2025. This is the second time we have produced a publication dedicated to this specific field; this edition very clearly reflects the trends shaping the sector as we find ourselves a quarter of the way into the 21st century.
As ever, we include carefully curated reporting, detailed biographies of many of the leading financial executives (one of the essential elements of this series was always to introduce the person behind the professional to a broader audience), and helpful listings of the most significant companies at play in the market.
Running through the first two elements, at least, are three common themes, reflecting the conversations we have had with many of the executives involved over the past couple of years. These are artificial intelligence and digitalization, environment, and HR issues. I’ve listed them alphabetically rather than in any form of numerical order because each is as important as the next, and all are interconnected.
Green finance is becoming a critical element of how we do business, and it is an area where the National Bank of Hungary seems to have carved out a pioneering niche. Look at the respected global speakers who contributed to the MNB’s International Green Finance Conference at the start of November and the central role played by the former President of Hungary, János Áder, a long-time ecological champion and co-founder of the Blue Planet Foundation. The rise
in importance of ESG and the EU Taxonomy only makes Green Financing an even more crucial area going forward.
All things “Green” also play into brand identity when it comes to HR, where one executive after another told us finding suitable candidates and retaining them was equally challenging. The upcoming generations, Z especially but increasingly also Alpha, are no longer interested in safe, life-long careers. They want to be challenged and excited, to have an impact and work for a business that understands the importance of sustainability and environmental commitment. Finance has come a long way from bean counting, as the proliferation of fintech companies underlines. But if AI and digitalization can do anything, it is to remove the most mundane tasks from the workplace, leaving more time for creative thinking. It is, as I said, all interconnected. One final thought. If the new industrial revolution delivers all it promises, it will lead us back to one of the underlying principles that has always been at the core of finance as a business field, although it may not always have been as visible. Ultimately, it is a people business. Automate the routine, and you create more space for understanding the human needs at the center of the service you provide, whether that human is an employee, an existing customer, or a potential client.
Robin Marshall Editor-in-chief, Budapest Business Journal
Biodiversity Takes Center Stage at MNB’s Green Finance Conference
Former President of Hungary János Áder, who now spends much of his time as chairman of the Blue Planet Foundation he launched in December 2017, delivered a keynote address at the International Green Finance Conference of the National Bank of Hungary (MNB), underscoring the significance of biodiversity.
By Gergely Herpai
The event also featured insights from representatives of the European Commission and the European Central Bank, among others. This year, the MNB Green Finance Awards were presented to Allianz Hungária Biztosító Zrt., Raiffeisen Bank Zrt., and Amundi Befektetési Alapkezelő Zrt. The MNB’s sixth Green Finance Conference aimed to highlight biodiversity risks in line with other pressing sustainability challenges, such as reducing energy dependence.
After five years of highly attended events, the MNB staged the latest iteration of its professional conference on Nov. 6, 2024, continuing the discourse on the financial impacts of environmental sustainability. This year’s event, which can be viewed with simultaneous English-language translation on the MNB’s YouTube channel, focused on biodiversity conservation and emphasized its importance within economic processes,
businesses, and institutional operations. The conference provided an opportunity to consider biodiversity deeply, broadening participants’ knowledge and fostering the development of professional connections among attendees.
János Áder, the country’s president from 2012-2022, welcomed participants as the guest of honor. Before delving into environmental issues, Áder shared political reflections, commenting on the U.S. presidential election.
“Donald Trump’s victory is a historic moment, and the Republicans’ control of the Senate and House grants the new president considerable leeway for the next two years,” he said. Áder praised Trump’s victory as a “significant political achievement,” overcoming “a media landscape that largely opposed him. The new president won despite facing an array of celebrities and an eight-year-long smear campaign,” Áder remarked.
Finally turning to the topic of biodiversity, Áder delivered opening remarks emphasizing its vital role as a natural resource. Addressing the audience, he noted that “biodiversity is our most valuable yet least appreciated resource,” echoing sentiments shared by American biologist Edward O. Wilson. He emphasized the need to look beyond iconic animals and scenic landscapes and consider the intricate ecological networks that sustain life, including the vital fungi and microorganisms in forest soils. Áder noted that while many view biodiversity as synonymous with elephants, polar bears, and rainforests, an equally crucial ecosystem exists underground.
UNSEEN IS NOT UNIMPORTANT
“What we don’t see is just as important,” he explained, stressing the role of mycorrhizal fungi in delivering nutrients to plants and sustaining ecosystem health. He pointed out that biodiversity loss in aquatic habitats has reached alarming
Former President of Hungary János Áder, co-founder and chairman of the Blue Planet Foundation.
Photo by Péter Lakatos / MTI
Wise Aims to Continue Raising the Bar in Moving and Managing Money Internationally
Wise says it aims to become “the” network for the world’s money for cross-border transfers and the market leader in providing customers with a truly international account. And it turns out that Hungary is among the pioneering markets facilitating this ambition, thanks to granting direct access to the payments infrastructure.
How Leaders can Shape the Future of Taxation With Confidence
With the world undergoing rapid changes, the Hungarian tax system is not immune to the winds of transformation. Trends evident across Europe are also putting significant pressure on Hungarian companies. These firms must simultaneously introduce disruptive technologies such as AI, avoid the effects of economic slowdown, maintain growth trajectories, deal with talent shortages and meet the challenges of the green transition, all while facing increasingly stringent tax audits. How can leaders successfully navigate these complex challenges?
By Tamás Vékási
HOW GENERATIVE AI IS DRIVING TAX AND FINANCE TRANSFORMATION
The digital era has begun. AI is already transforming businesses in Hungary, leading to increased efficiency, innovation in services and products, and the creation of new opportunities in various sectors such as finance. An excellent example for practitioners in the field is the Hungarian National Tax and Customs Administration (NAV). NAV has been at the forefront of embracing digital solutions to improve efficiency, combat tax fraud and eventually reduce the administrative burden on taxpayers.
Their increased efficiency is also leading to an unprecedented increase in the number of tax audits. Targeted inspections enable NAV to more accurately select which companies to audit, leading to faster investigations and allowing the office to conduct more audits without overburdening auditors.
With NAV leading the way, it’s also forcing companies to rethink their operations and implement innovative technological solutions that can support various business functions relevant to tax, such as procurement, billing, accounting and logistics. Proper alignment of these functions with tax can lead to better reporting, more efficient control points, and reduced risk.
But it’s not the only outside pressure that urges improvement. The shrinking workforce is also putting stress on tax and finance functions, highlighting the need for a new
breed of professionals who understand data and technology in addition to tax and finance rules. Employers need to respond to the challenge of aligning their expectations with those of their employees. I believe in a comprehensive total reward methodology that considers remuneration, tax, wellbeing, HR, performance review and financial aspects together.
TAX FUNCTIONS AND THE NEED
TO GROW
Budgetary pressures are also having a significant impact on company growth plans. As a CESA Central Cluster Tax Leader at EY, I have seen this happening across several countries in the region. Due to recent crises, firms have often had to switch to crisis management mode, in which they have had to solve issues surrounding digital transformation, changes in work schedules, or the review of supply chains.
The most recent challenges that have reached the business sector are higher financing costs, new global trade rules and changes in tax incentives. This means that companies have had to rethink their investment decisions.
This new situation necessitates the active involvement of the finance and the tax functions in planning. It is now essential that decision-makers consider issues surrounding tax because it is critical to monitor the tax position year after year to evaluate the development of the various taxes paid, transfer prices applied and to determine areas to improve.
Start Garancia Zrt. ’s surety portfolio has surged by 37% since the end of last year, reaching HUF 425 billion by September 2024. This growth has enabled the realization of nearly HUF 630 bln in financing, CEO Attila Limbach highlighted during the company’s annual partner event.
By Gergely Herpai
Driven by this dynamic expansion, the state-owned entity facilitated HUF 158 bln in financing through its surety obligations. Projections indicate that, by the end of 2024, the portfolio size will surpass HUF 500 bln, positioning Start Garancia, founded in May 2006, as a critical player in Hungary’s financial ecosystem. Patrick Bauer, the company’s deputy CEO, emphasized the broad spectrum of industries benefiting from the sureties provided by the firm.
“From energy projects to healthcare companies and real estate participants, the company has supported a variety of businesses,” Bauer explained. According to him, 57% of the total value of the transactions was linked to bond issues, 39% to loans, and the remaining 4% to bank guarantees. In terms of currency, 60% of the transactions were denominated in Hungarian forints, while 40% involved foreign currencies.
“The company’s role in supporting large-scale financing, exceeding HUF 1 bln in size, is further reinforced by its state-backed counter-guarantee,” Bauer noted, adding that the average transaction size reached HUF 8.2 bln by the end of September 2024.
Deputy State Secretary for National Development Financing Márton Bókay of the Ministry of National Economy addressed the importance of such institutions during a panel discussion at the event. He emphasized that to achieve the targeted economic growth of 3-6% for next year, investments and capital inflows must be bolstered, with domestic guarantee institutions playing a significant role in this process. Bókay’s comments highlighted the essential role of guarantee institutions such as Start Garancia in fostering investment.
