The federal government has canceled an important online checking account service for consumers. The banks complain about the attitude.
Kassel – Anyone who wants to open an account online using their ID card in the future could encounter a hurdle. Until now, consumers could simply reset their PIN by receiving a new number by letter. However, this has ended since December 30, 2023. The reason for this is savings in the 2024 federal budget. Banks in particular that want to expand their business digitally are criticizing the step backwards. Because they actually want to increasingly offer the use of the online ID when opening an account on the Internet in the future.
Online ID: Setting the PIN reset letter has consequences
A pin can quickly be forgotten – especially if you rarely use it. This will probably apply to the online ID usage behavior of many consumers. The online ID can be used for official procedures and business matters and should make the processes safe. But anyone who has not yet activated the online ID function or has lost the letter with the pin and can no longer remember the sequence of numbers must now go to the responsible authority.
The electronic identity function, also known as the eID function, is generally stored in every German identity card and may still need to be activated. The end particularly affects the banks that want to make digital progress with the help of the eID. The German Savings Banks and Giro Association (DSGV) pointed out in a statement at the beginning of December that broad political support for the eID was necessary in order to expand digital applications.
Traffic light budget: austerity measures require “reassessment” – a step backwards for online ID cards
According to the Federal Ministry of the Interior (BMI), the reason for the deletion of the online function is the austerity budget for 2024. This requires “a reassessment of all projects and services in the area of digital identities,” as the BMI responded to a request from heise online explained. After almost two years, the online function is over. According to the BMI, 1,941,227 reset and activation letters have been sent since its introduction in February 2022, but only 60 percent have been used. The BMI is trying “if possible to create an alternative solution in 2024 that, like the previous PIN reset letter, complies with the provisions of the eIDAS regulation and thus continues to guarantee a high level of trust for the online ID card.”
Like that Handelsblatt reported that around 80 percent of the 350 savings banks in Germany want to offer the digital ID function when opening an account. DSGV board member Joachim Schmalzl strongly criticized the fact that the traffic light has removed the option of requesting an online pin.
PIN reset service is over: banks speak of a “setback”
“The discontinuation of the PIN reset service by letter is a setback for the digital transformation in Germany,” said Schmalzl Handelsblatt reported. According to him, half of the customers failed to authenticate their ID card online because they didn’t know the PIN. Nevertheless, the cancellation of the service has no impact on the expansion of the eID function at the Sparkasse. “We will of course continue to stick to our new account opening process as it contributes significantly to digitalization and improving the customer experience,” the board added.
The use the online ID function varies. Around 80 to 90 percent of new savings bank customers authenticate themselves when opening an account in a branch. Around 25,000 people have their identities checked via video authentication every month. According to Schmalzl, this is personnel-intensive and customers would drop out during the process. Like that Handelsblatt writes, according to ING Germany, around 20 percent of new customers would open their account using the online ID function. Around 50 percent use video identification and 30 percent use the Postident procedure. The effects of the deletion remain to be seen. (vk)