In the future, consumers will be able to borrow much faster, less complicated and thus more cheaply via the Internet. The new ID card eliminates the hitherto necessary transition to the post office and saves two days.

The consulting firm Stella Nuy Consulting and the Frenchers Institute have developed a process for accelerated yet secure lending. The new identity card in chip card format enables secure and paperless identification of borrowers by banks or intermediaries. Borrowers, in turn, can sign documents electronically.

Loans can be paid out faster

Loans can be paid out faster

Applications, processing and disbursement of credits could in future be processed within one day. So far, the Postident procedure still relatively much time is lost. Borrowers must identify themselves with Deutsche Post and send the signed loan documents to the bank by post. The latter, in turn, has to forward the documents to the editing department after the entry. Creditors could receive immediate feedback from banks or intermediaries on the chances of obtaining a loan.

The acceptance of the new ID card has been limited. Consumers avoid the use of contracting for fear of possible risks. In addition, so far only a fraction of the population has a card in smart card format. However, interest is beginning to grow, at least on the part of the financial sector: individual banks are already making it possible to open accounts with the new card.

Banks are said to have an interest in smooth application procedures without a “media break”, ie the need to go to the post office. Industry studies conclude that a significant proportion of potential customers discontinue applications due to the expense involved. This applies, above all, to financial products such as overnight money or checking accounts and less to loans.

Credit the same day

Credit the same day

The evolution of the technology depends on the development of the new e-mail standards, which replace long-term classic letters one-to-one and enable the legally binding conclusion of contracts. Despite several existing technical solutions, this approach has not yet been fully implemented.

That loans could be paid out faster in the future is already evident in other developments. For example, individual providers pay out small loans (up to a few hundred euros) in real time via credit card systems. Borrowers must then be in possession of a specific credit card.