Last updated: 15.01.2024, 04:54 a.m.
By: Victoria Krumbeck
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The federal government has cancelled an important online service for the current account for consumers. The banks complain about the discontinuation.
Kassel – Anyone who wants to open an account online with the help of 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, since December 30, 2023, this has come to an end. The reason for this is savings in the 2024 federal budget. Above all, banks that want to expand their business digitally criticize the regression. This is because they actually want to offer the use of the online ID card when opening an account on the Internet more in the future.
Online ID card: Setting the PIN reset letter has consequences
It's easy to forget a pin – especially if you rarely use it. This will probably apply to the usage behaviour of many consumers' online ID cards. The online ID card can be used for administrative procedures and business matters and is intended to make processes secure. But if you have not yet activated the online ID function or have lost the letter with the pin and can no longer remember the sequence of numbers, you now have to go to the responsible authority.
Banks criticize the deletion of the online function to apply for the PIN reset letter. © Julian Stratenschulte/Mauritz Antin/dpa
The electronic identity function, also known as the eID function, is basically stored in every German identity card and may still have to be activated. The end will primarily affect banks that want to dare to make digital progress with the help of the eID. As recently as the beginning of December, the German Savings Banks and Giro Association (DSGV) drew attention to the fact that broad support for the eID in politics was necessary in order to expand digital applications.
Traffic light budget: Austerity measures require "reassessment" – step backwards for online ID card
According to the Federal Ministry of the Interior (BMI), the reason for the cancellation of the online function is the 2024 austerity budget. This requires "a reassessment of all projects and services in the field of digital identities," as the BMI explained in response to an inquiry from heise online. After almost two years, the online function has come to an end. Since its introduction in February 2022, 1,941,227 reset and activation letters have been sent, according to the BMI, but only 60 percent have been used. The BMI is trying 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".
As the Handelsblatt reported, around 80 percent of the 350 savings banks in Germany want to offer the digital ID function when opening an account. The fact that the traffic light has removed the possibility of requesting an online PIN is strongly criticised by DSGV board member Joachim Schmalzl.
The end of PIN reset service: Banks speak of a "setback"
"The discontinuation of the PIN reset service by letter is a setback for the digital transformation in Germany," Schmalzl said, as reported by Handelsblatt. According to him, half of the customers would have failed to authenticate their online ID because they did not know the PIN. Nevertheless, the cancellation of the service has no influence on the expansion of the eID function at the savings bank. "We will, of course, continue to adhere to our new account opening process as it is instrumental in digitizing and improving the customer experience," the board added.
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The use of the online ID function varies. Around 80 to 90 percent of new savings bank customers identify themselves when opening an account in a branch. Approximately 25,000 have their identity checked every month via video legitimation procedure. According to Schmalzl, this is labour-intensive and customers drop out during the process. As the Handelsblatt writes, according to ING Germany, about 20 percent of new customers would open their account via the online ID function. About 50 percent use video identification and 30 percent use the Postident procedure. The effects of the deletion remain to be seen. (UK)