What will change for bank customers from September.

Digitization is advancing, not least in the banking sector. This means that there will also be far-reaching changes for German bank customers in the fall. The closed system “bank account” will no longer exist in its current form.
Knowing how conservative Germans in particular are when it comes to their accounts, cash and modern payment systems, we can already look forward to the general outcry from customers“.

New payment policy

As is fitting, the innovations come with an extremely unwieldy term: regulations of the second European Payment Services Directive PSD2.

But what is hidden behind this word monster?

Three innovations in particular are important for Bann customers:

• In the future, third-party providers will also be able to access accounts
• Bank customers must always identify themselves with a two-factor method when banking online
• Card payments on the Internet also always have to be approved with two factors

So everything will be a little more complicated. In return, however, online banking is to become more secure. But although this has been promised so often, hackers and fraudsters have always found ways and means to enrich themselves so far. And this will certainly be the case even after the innovations in the fall. In case of doubt, the customer will continue to be the fool, as you can already see*.

But let’s take a look at the three innovations in detail.

What are third-party providers?

Third-party providers are companies or service providers that use banks’ infrastructures without operating them themselves. In the future, such providers will be able to trigger payments, issue payment cards and collect and bundle account information. This is expected to make many online retail businesses and transactions faster and easier.

If the customers allow it – every bank account holder must explicitly agree to this – service providers will be able to access the bank account directly in future if a customer wants to buy something. Amazon, for example, would no longer have to wait for a bank transfer or go the roundabout way via Paypal, but can instead get the money for the online purchase directly from the customer’s account. This will save time and costs.

But it will also make the work of other service providers easier if, for example, they want to offer an app that displays all of a customer’s account balances at various banks in real time in an overview. The opportunities presented by direct access to the bank account are huge. In addition there will be many new ideas in the next months guaranteed.

However, it is important to note that nothing will work without the consent of the bank account holder. The customer’s permission is always the mandatory prerequisite for third-party access to the account. This is quite similar to the mandate reference in the IBAN system. Insofar all-clear. Those who do not want access by third parties can also object to this or. do not allow this.

What’s new in online banking?

Anyone who still uses an iTAN list for their online banking today is likely to receive mail from their bank very soon. The iTAN is to be used at the latest from 14. September 2023 History. Then, according to the banking association, the legal obligation for so-called strong customer authentication will apply. The iTAN list can then be safely shredded.

In the future, a password will no longer be sufficient to log in to online banking. Everyone must then always identify themselves with two of three possible factors. Such factors can be biometric characteristics, such as the fingerprint (factor “Being”), a PIN (factor “Knowledge”) or a smartphone (factor “Ownership”).

In the future, this registration procedure will also be mandatory for every transaction. This also applies to card payments on the net, which must always be approved with at least two factors.

Conclusion

Most bank customers will receive mail from their bank in the next weeks and months. This once again provides thorough information about the new payment policy and the resulting changes in the normal handling of online banking and online shopping.

However, it can already be assumed that there will be some difficulties, especially in the first few months. Because in addition to the bank customers, the banks themselves are not exactly known for their innovative spirit. And this is exactly what will become a problem for some old banks, when third party providers suddenly have direct access to bank accounts and can offer faster and better services. The old banks are only needed to operate the infrastructure; the business with bank customers is then done by others.