Digital Credit: in minutes to the credit

Instant loan - this promise of direct banking is all too often disappointed. That should change now. The magic formula is: Digital Credit. All that is needed is a computer with a camera, preferably a smartphone.

New technologies allow the borrower to sign and close a loan online, without any paperwork.

 The lenders, on the other hand, can digitally retrieve all the data required for credit check.

With the digital signature, the main obstacle to a really fast lending is eliminated : the back and forth sending of documents with the help of the PostIdentverfahrens.

This cumbersome process means that lending in a bank branch was often faster than online.

Especially if, as with the purchase of a motor vehicle or in the Internet trade, an immediate lending is required, the time delay proves to be a disadvantage in the Internet loan.

Direct banks are, of course, aware of this disadvantage and are endeavoring to automate and accelerate the lending process.

The introduction of an optional videoidentification process instead of the PostIdent was a first step. This was followed by the file upload with the possibility of a digital banking information. With the introduction of the digital signature, the offer is now complete.

However, digital bank lending is far from being common to all banks. He is often only for relatively small amounts of credit. Which banks play a pioneering role, using well-known loan portals like


be determined.

At Finanzcheck you will find a digital loan with immediate payment under the brand Ofina.

Creditplus Bank calls its digital credit Creditplus4Now.

The digital SolarisBank credit is HeyCash.

SolarisBank now also offers its credit products under the name Kredit2Day.

Credit comparison calculators such as Finanzcheck or Check 24 also cooperate with specialized providers for digital loans with immediate payment or very fast payout.

Before credit customers apply for a digital loan and load any necessary apps onto their smartphone, information can not hurt how digital loan accounts work.

It is possible a different handling in the different banks in individual points, but the principle is always the same.

Video identification according to Bafin rules

During the loan application process, you will be asked as a customer if you want to participate in the videoident. For digital identity verification you need:

A computer (smartphone, tablet, laptop and other).
A camera.
A stable internet connection.
An Internet browser up to date.

The best are Google Chrome, Mozilla Firefox or Opera. The most recent versions should allow encrypted video communication. A special video telephony program is not required on a regular basis.

The identity check is basically not carried out by the financial service provider. Rather, a third-party company is commissioned, such as WebID Solutions or ID-now.

You must agree to the transfer of data to this third party company and their terms and conditions.

Then the video call can be started. The third-party employee will guide you through the process.

A valid identity card or passport is required on a regular basis. Front and back must be held in the camera so that the employee can verify your identity.

The result of the identity verification is transferred to the financial service provider. The legitimization process will be completed with a TAN which will be sent to you either by e-mail or SMS.

The security of data transmission is ensured by the latest technology. The videoidentification procedure is carried out according to the specifications of the responsible supervisory authority. The video call must be fully encrypted.

In addition, the ID card must be thoroughly checked during the call. This happens on the basis of certain security features.

In general, the exam is completed in minutes.

Some vendors differ in videoident whether a smartphone / tablet or another computer is used.
Document upload speeds up application process

In the context of a loan application, document upload means that documents can be uploaded from the applicant's computer to the bank's computer or to a certified third-party contractor.

The upload always happens via secure SSL encryption.

During the online loan request you will receive a link to a page where you can upload the necessary documents. The site regularly contains a list of required documents.

These include, for example, proof of income, a statement of regular expenditure, copies of proof of identity and the statement of existing liabilities.

The first step is to create the documents and save them to your computer. The easiest way to do this is with a scanner.

The bank will inform you which file formats are accepted. Common file formats are JPG or PDF. Sometimes the formats PNG, BMP, GIF or TIFF are accepted.

The process looks simple at first glance, but can be quite tedious if the bank requires a lot of documents and these must also be uploaded separately.

However, the procedure is much faster than the processing via the post office. Previously, documents had to be printed out and sent by post-ID procedure.

Digital credit check: "Kontoblick"

The digital credit check can replace the time-consuming sending or uploading of documents. However, as an applicant, you must be willing to allow the lender to access your account online.

The digital credit check requires that you have an account that can be managed online.

First, you will be asked to log into your account using the online banking access credentials while connected to the credit bank.

Beforehand, you must agree to the retrieval of certain account transactions. As a rule, the account movements of the last twelve months are analyzed.

After logging into your bank with the usual credentials, you will be connected to the house bank and the data retrieval you have previously authorized will be performed.

For this purpose, credit banks regularly use third-party companies, so-called Fintechs, which provide the secure technology for data retrieval and evaluation of the data. A frequently used system is that of FinTechSystems.

The digital credit check is a prerequisite for granting online loans in real time.
Credit with digital signature

Without an electronic signature the paperless instant loan is not possible. The easiest way to make the digital signature is with a smartphone.

You will receive a code, set your own password and enter the code into a specific mask. Then the signature contract must be confirmed by a few clicks.

Now you will be prompted to re-enter the mobile phone number and password used during the application process.

You will receive a TAN. Once you have entered this TAN, the loan is signed online.
Digital credit agreement: the expiration

Here is a summary of how a digital real-time credit can be applied for:

First, you have to opt for the digital loan. The credit provider you select must also provide real-time financial statements for the loan you want.

The digital credit check (account view) checks their creditworthiness for the real-time credit. At the same time, a query is started and evaluated at the specified credit reference agencies (SCHUFA).
The video identification procedure follows. During the video call, your ID card will be checked. You complete the examination procedure by entering a transaction number sent to you in the space provided.

Now you receive the credit agreement on your smartphone. You will be asked to read the contract and then accept it by clicking on "confirm".

The creation of a certificate is used to prepare the electronic signature. You define a signature password and receive the activation code after entering your telephone number again. Then confirm the signature contract.

The electronic signature is carried out by mobile phone. To do this, enter the phone number and signature password. You will then receive a transaction number, which you enter in the default mask. The loan agreement is signed and completed.

The payment of the loan amount to the account specified by you will be arranged in real time.
Evaluation of digital loan applications

The digital loan may seem complicated if it is described theoretically. In practice, however, it is relatively simple, assuming a smartphone is used.

Of course, credit providers attach importance to an easy-to-understand process and also provide the necessary step-by-step instructions.

One topic is the security of data transmission. Banking transactions are supervised by Bafin.

Customers can expect the Bafin to work with state-of-the-art technologies to ensure the security of data transmissions.

Of course, not every risk can be excluded. But the digital loan is at least as secure as any other banking business.

Some credit customers may be bothered by the fact that their account at the house bank over a relatively long period of time is evaluated. With conventional online applications, only the statements of the last months often have to be transferred.

The granting of a "bill of sight" is the price that the customer must pay for a real-time loan. Incidentally, such an account view is also carried out by some branch banks, as long as the loan is to be paid out quickly.

In a way, digital credit is still in its infancy. Only relatively few direct banks make such an instant loan possible. Credit lines, and often maturities, are limited and there are likely to be strict requirements on the creditworthiness of applicants.

The fast payout sometimes leaves something to be desired. Relatively rare, there is an immediate payment. Often, the payout takes one to two days - despite a digital loan.