Digital change in the 21st century: hardly anything we cannot do online today. Watch the latest news Online, go shopping, travel and book flights spontaneously from the computer at home-everything is possible without any problems. Only a computer with a reasonably powerful Internet connection is required. Digital change seems to have been largely completed – isn’t it? Not quite, because in one sector the “digital” development seems to lag behind a bit. We are talking about the banking sector. What do you want? There are numerous App’s, Online Banking and online credit – Yes, that’s right. And yet the numerous FinTech’s in the banking industry are accused of overseeing digital change. As proof of this, the FinTech’s lead, which they ultimately only exist because it was simply sleeping by the traditional financial industry in the development of new digital processes. But what about this statement? A lot, because the FinTech industry in particular is working with high pressure on new digitisation possibilities, which ultimately lead to fully digital processes. The result of this work is shown in the so-called” fully digital ” credit. What is this credit?
The full digital credit means enormous time savings for the consumer.
In the normal case, borrowers who want to complete their credit online / digitally have to go through the standard process of online borrowing. This includes printing out the credit agreement as well as documents required by the Bank, sending them to the issuing institution and verifying the identification. Individual parts of this process, thanks to the appropriate technologies, can already handle borrowers online today. But which technologies in particular ultimately enable full digital credit?
Read out online bank statements-Digital Account Check.
An enormous time savings when processing a loan application is the automatic transmission of bank statements to the Bank. For this purpose, the lender statements required for the loan are read out from the online banking of the borrower and forwarded to the lending institution. As a consumer, it is no longer necessary to search for the right bank statements. This also eliminates the need for printing and sending documents by post. A process that in the past slowed down the process of processing a loan application considerably.
Personal identification using Video Chat.
In the meantime, the current and legally required identification procedure by means of Post-Ident can also be implemented completely online. The so-called video identification procedure can be used to borrowers of all credit, the credit Issuer is offering at the end of Bank this Service. If you want to use the digital Alternative to the postident method, starts with his / her Computer or a mobile device, a chat with an employee of the video ID provider. During the chat, the borrower keeps his identity card or passport in the camera. As a result, the interlocutor checks authenticity of documents and conformity of a face. After successful verification, the Bank shall transmit the required data to the Bank. The legitimacy of using a video identification procedure usually takes less than five minutes.
Digital signature and automated payout.
The next logical step in the development of a fully digital credit is the subject “legally binding signature” and “automated payment” of the credit amount. Here, too, it is now possible to implement these two process steps fully automatically or online. In the case of the digital signature, which is approved as a legally binding signature, you only have to enter a signature password transmitted by the lending institution and transaction numbers (TAN) as an applicant for a loan. That’s what it was. Once this is done, the first banks work with a System, which with the registration of the digitally signed credit agreement also automates the transfer of the credit amount.
The effect of a full digital credit for consumers.
If a Bank, which offers all these new technologies in summary, is found when a corresponding loan offer is made, this means for consumers, which the desired loan purely technically available on weekdays within 24 hours, ie on their own account. Thus, the history includes running, dependencies on opening hours, the gathering of required documents, etc. As long as you can be a consumer with these new technologies-but then is a different story…