Executive summary
In today’s mobile-first financial sector, it is imperative that banks offer a fully digital onboarding and KYC flow to their customers. Although the standard in Europe has moved towards unattended, AI-based KYC processes, Germany is the exception with Video-Ident long being the dominant means of KYC.
In 2024, three developments forced a shift in the German approach. First, the German Ministry of Finance publicly stated that it considers Video-Ident a bridge technology (Source). Secondly, Europe’s regulatory framework changed thanks to the introduction of the AML Regulation and eIDAS2, which will come into force in the coming years. Finally, alternatives to Video-Ident saw mass adoption in the German market, with millions of customers using them in 2024 alone.
These developments have led to claims that Video-Ident is a thing of the past. While this may not yet be true, it cannot be doubted that the sector is moving quickly. It’s time for German financial institutions to assess if their current processes are future proof.
