Get your loan faster: use online ID verification for digital completion
11/07/2025
5
Minutes
Katrin Straub
Managing Director at nextsure
Long waiting times for loan applications are a thing of the past. Modern online identification procedures make it possible to complete a loan entirely digitally and securely in just a few minutes.
The topic in brief and concise terms
Online identification procedures such as VideoIdent and eID shorten the loan application process from several days to just a few minutes.
The procedures are regulated by the Money Laundering Act (GwG) and BaFin and offer the highest security standards.
For a smooth process, a valid ID, a stable internet connection and a suitable device are essential.
Boost efficiency: from days to minutes in loan closing
The classic PostIdent process often takes three to five working days and significantly slows down the lending process. A modern online identification process reduces this time to under ten minutes and enables almost immediate processing. Banks report an efficiency increase of over 80 per cent since the introduction of digital identification methods. This development is part of a broader trend, as already nine per cent of Germans have an account with a pure smartphone bank. Digital transformation not only makes everyday life easier, but also significantly speeds up the online loan with instant approval. This shortens and simplifies the route to financing, optimising the entire process for the consumer.
Two ways to achieve the goal: VideoIdent and eID in detail
For digital identification, two main methods have become established, both meeting high security standards. The VideoIdent process connects you via video chat with a trained member of staff who checks your identity documents in real time. The eID function uses the chip in your ID card and an app to confirm your identity securely and cryptographically in under a minute. Both procedures are regulated by the Federal Financial Supervisory Authority (BaFin) and, through end-to-end encryption, ensure maximum protection. The success rate for eID use among prepared users is over 95 per cent. A digital loan enquiry without paperwork is therefore easier than ever before. The choice between the procedures often depends on personal preference and the technical equipment available.
VideoIdent: Personal interaction via video, usually completed in five to ten minutes.
eID process: Fully automated process, often completed in under a minute, requires an NFC-capable smartphone.
Security: Both methods comply with the German Money Laundering Act (GwG) and are considered just as secure as in-person identification.
Availability: Most digital loan providers offer at least one of these two options.
These technological advances form the basis for fast and secure access to financial services.
Ensuring legal certainty: The role of the GwG and BaFin
The legal basis for all identification procedures in Germany is the Anti-Money Laundering Act (GwG). It requires financial institutions to establish the identity of their customers without doubt in order to prevent illegal activities. The Federal Financial Supervisory Authority (BaFin) has detailed the specific requirements for video identification procedures in Circular 3/2017. These regulations ensure that online procedures offer the same level of security as a physical verification. Since April 2024, this practice has been placed on an even more robust legal footing by a new regulation, which also includes semi-automated procedures. With a loan comparison with TÜV seal, you can also rely on vetted providers. Strict regulation creates the trust needed for the digital financial market.
Practical guide: Four steps to a successful online ID verification
A smooth online identification process can be completed in just a few minutes with the right preparation. For example: a customer needs an instant loan for invoices of €2,500 and completes the entire process, including identification, in less than 15 minutes. Only a few things are required. Have these four items ready to avoid delays:
Valid ID document: Have your identity card or passport ready. Make sure the document has not expired.
Stable internet connection: An uninterrupted connection is crucial for the video chat or data transfer.
Suitable device: Use a smartphone, tablet or computer with a working camera and microphone.
Quiet and bright environment: Ensure good lighting and avoid background noise to make the check easier.
With this simple checklist, the technical hurdle for digital identification is quickly overcome.
Use expert knowledge: tips for a smooth process
Small details can make the difference between a quick completion and an unnecessary delay. Our expert tip: check in advance whether the online ID function on your identity card is activated and whether you know your six-digit PIN. You can do this directly in the AusweisApp or at your local citizens’ office. For the VideoIdent process, it is crucial to hold and tilt the ID document correctly in front of the camera so that the holographic security features are visible to the employee. A correct household calculation for the loan application is just as important as the identification. Most drop-offs in the process are caused by a poor internet connection or invalid documents. Good preparation is therefore the key to success.
Future outlook: The evolution of digital identity
The development of digital identification methods is progressing continuously. The EU is driving the introduction of a digital wallet (EUDI Wallet) forward with the eIDAS Regulation, which is set to be available to all citizens by 2026. This wallet will make it possible to securely store not only the identity card, but also other credentials such as the driving licence in digital form. Fully automated processes that use artificial intelligence are already being tested under the supervision of the BSI, to further increase efficiency. These innovations will further simplify the process of how you apply for an instant loan online. The future of lending will be even more seamless and secure.
After successful identification, the final step follows: the digital signature. With the Qualified Electronic Signature (QES), you sign your loan agreement online in a legally valid way, entirely without pen and paper. This process often takes just a minute and is usually completed by entering a TAN received by SMS. The combination of online identification and QES makes it possible to arrange a instant loan with disbursement within 24 hours. The QES is legally fully equivalent to the handwritten original. This clears the way for fast and straightforward financing. Request an individual risk analysis now: Have your insurance situation checked free of charge and receive specific optimisation suggestions.
More useful links
Federal Ministry of Finance offers information on the topic of digitalisation.
FAQ
Can I complete the loan application entirely online?
Yes, by combining online identification procedures and the Qualified Electronic Signature (QES), you can carry out the entire loan process completely digitally and without paperwork, from the initial enquiry to the signing of the contract.
What forms of ID are accepted?
As a rule, the German identity card and passport are accepted. For the eID function, an identity card with the online function activated, an electronic residence permit, or an eID card for EU citizens is required.
What happens if identification fails?
If online identification fails, you can usually repeat the process. Check your internet connection, the lighting conditions and the validity of your ID. Alternatively, most banks offer the classic PostIdent procedure as a fallback.
Is the online identification process free?
Yes, for you as a customer, the online identification procedure is usually free of charge. The costs are covered by the respective provider, for example the bank.
Do I have to install software to use the eID?
Yes, to use the eID function, you need the free AusweisApp from the Federal Government on your smartphone or computer. This app establishes the secure connection between your ID card and the service provider.
Is my data safe during online identification?
Yes, data transmission is always end-to-end encrypted. Providers are bound by strict data protection requirements (GDPR) and BaFin regulations, which ensures a very high level of data protection.
