From Corvinus to Oxford to Mastercard: an alumni fascinated by innovation

Gergely Márkus is motivated by the fact that he can experience the results of his work – increasingly convenient and faster payment services in any shop on a daily basis, such as the possibility to pay contactlessly, even with a smartwatch – on a daily basis. However, he also sees the dangers of digitalisation, and the company is also doing its part in the fight against cybercrime, because he believes that fraud can be combated through financial education and meaningful cooperation to fight fraud.  

You were appointed to your new position in April this year, congratulations. But how did it start?   

I studied applied economics at Corvinus, and immediately afterwards I started working at McKinsey. I did an MBA at Oxford and then returned to the firm. I also gained experience abroad, living in the US but also working in McKinsey’s Kenya office. In 2019, I was approached by Mastercard to build a European consultancy centre in Budapest. The work was similar to what I had done at McKinsey, where we were working on payment technologies and the digitalisation of financial institutions. And of course I was also influenced by the good name Mastercard has. This spring, I applied for the country manager position, and I got it. This means that I’m leading the company here at home and I’m also in charge of the small team in Slovenia. It’s a very exciting job. 

What is attractive about this job?  

I’ve always been fascinated by the extremely fast development of payment technologies, the innovation, the fact that people can pay using more and more convenient and faster technology. It’s a great feeling to be able to see the results of this for myself every day in a shop. Take the SZÉP card: there are now digital versions available, so you don’t even need to carry the card with you, just your phone. But it’s also great that the 100E express bus from the airport or the M1, the small subway, now have card-based ticketing, so you don’t need a paper ticket, you can pay your fare with a credit card – I’ve been a tourist myself, I know it’s a great relief.   

Every year the Mastercard Digital Payment Index is produced and this year’s figures show that Hungary has a very well developed digital payment ecosystem, even by European standards. True, the Scandinavian countries and the UK are ahead of us in this respect, but countries such as Austria and Germany are behind us. So I feel that this is also worth working on.   

What do you think about whether the Hungarian National Bank’s (MNB) target of 60 percent of transactions being electronic by 2030 is realistic? Currently, this indicator is 38 percent.  

Yes, I think the MNB’s target is absolutely realistic. The share of digital payments is increasing year on year, the trend is very clear. Besides, using cash is very expensive: it has to be produced, transported and stored. Not to mention the fact that digital payments are transparent, convenient and help to whiten the economy, which is also a big advantage. Online purchases are also growing strongly, understandably boosted by the epidemic situation, Covid.   

There has been a huge development in that now not only the card but also the phone can be used as a means of payment, and the future is the car, the glasses, or even the digital assistant. Where there is still room for improvement is in the further expansion of the acceptance network: according to current figures, 50% of Hungarian merchants – mainly micro-segments and sole traders – do not yet accept digital payments, and this needs to change. But it’s also a big achievement that now, instead of using a POS terminal, merchants can download an app to their own device – say their phone – to accept card payments from customers. It is also important that the instant transfer system is already in place, so the seller can accept the customer’s payment.  

The willingness to pay in a modern way is determined by many factors, perhaps especially age. In a survey I saw that people under 30 years of age consider credit transfers to be just as safe as cash payments, while the situation is quite different for people over 50.  

We work with banks, so it is clear to us that, in addition to age, social status and education play an important role. I think education is a key issue. Mastercard tries to do its part: we have volunteer days, which means that the company gives 5 days off a year to an employee who spends them doing work that is important for social purposes. We also pick up litter, but we try to do our bit for financial education.   

For example, we go to secondary schools to give lectures to students, and we work with the Financial Compass Foundation, which has been active since 2008. Of course, I am aware that this is a social problem, that there are many reasons for it and that it cannot be solved by voluntary work. I am convinced that financial education should be included in the official curriculum, it would be good if it became part of education.  

Crime has moved online  

I do understand people who are afraid to shop online because of the many online scams, who are afraid to click on a link because there are so many cyber-frauds.  

That is unfortunately true. This year, the global damage caused by cyber fraudsters reached USD 9.5 trillion. More and more new scams are being spread, and the “progress” in this area is also rapid, making it difficult for users to keep up. It is also true that a significant part of crime has moved online, and Covid has had a big impact on this.   

Methods are also being innovated in fraud techniques, perhaps the most significant challenge is social engineering, where criminals put enormous psychological pressure on the prospective victim who calls them on the phone to make a decision quickly because their money is at risk. Criminals contact people with fake links, in the name of their own bank, on behalf of parcel delivery companies, steal card details and cheat victims out of their data. It is common for unsuspecting people to have malicious programs installed on their own computers to “protect their money”. Mastercard is taking significant steps to address this.   

We work with industry players, we have our own campaign on the issue and this year we joined the CyberShield project, which has been running since 2022. We are coordinating communication with industry players, and we have done a lot of research on the subject. By the way, you should all visit the CyberShield website, where you can read regularly about the latest tricks and what to do if you do fall victim to a scammer. Many organisations – including the police, the media authority, the National Defence Service, the MNB – are already members of KiberShield.   

Moreover, now that Hungary holds the EU presidency, there are serious discussions on regulation, as rapid technological progress not only benefits customers but also, unfortunately, helps fraudsters. For example, the revised PSR (Payment Services Regulation) will tighten up the EU’s customer authentication rules, better protecting users who have been victims of fraud and increasing their chances of getting their money back.  

Finally, what is the most important thing that Corvinus has given you for your successful career?  

Professionally, the opportunity to spend a semester in Amsterdam on the Erasmus programme was a decisive factor for me. Even more important, however, was the vibrant life on campus, with its many professional colleges and student organisations. I was a member of the FAKT College for Advanced Studies, where there was a lot of discussion, debate, professional work and a good social life. We also invited many guests who, in this small circle, talked to us openly and frankly. So, it was a lot of work for us to put into it ourselves, but it also gave us a lot – perhaps that was the biggest impact for me.  

Katalin Török