Changes in Hungary: Tellerless Operations in a Cash-Centric Society

Why It Matters

The model shows how banks can modernize operations and preserve cash access simultaneously, cutting branch costs while improving service by automating routine transactions. It offers a replicable playbook for banks in cash-centric markets considering digitization and branch transformation.

Summary

K&H Bank has spent a decade transitioning most of its Hungarian branch network to a tellerless model using advanced ATMs that handle both withdrawals and cash deposits. The bank reports automation rates of roughly 95–96% for withdrawals and 92–93% for deposits, and says it converted about 80% of branches without losing customers by phasing changes customer-by-customer and providing hands-on support. Norbert Kovatz framed the shift as a practical cashless revolution within a still cash-heavy economy, enabling branches to reallocate staff time to higher-value customer interactions. He noted the approach is spreading across Central Europe, though regulatory protections for cash use can complicate replication.

Original Description

Speaking to FinextraTV at the Diebold Nixdorf Intersect Cannes event, Norbert Kovats, General Managing, Daily Banking and Operations, K&H Bank discussed their focus on a 'cashless revolution' in hungary. Kovats addressed a still cash-centric society in Hungary, but described a step-by-step, customer-by-customer approach to removing teller services from cash operations, focusing more on digital and modernised ATM innovations. Kovats explained that while K&H is in a niche position in this area, Europe, as a whole, is beginning to innovate its ATM operations towards the reduction of teller operations.

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