Video verification allows customers to open a bank account in 5 minutes

Austrian bank is the first to offer video identification process to customers opening a bank account.

In 2014 we wrote about the launch of a new video identification process from IDnow. Now, Austria’s Erste Bank und Sparkassen have partnered with the company to provide its customers with the option to open a current or student account using its video-based online identification.

The service can be used through either a mobile device or desktop computer. The process takes no more than 5 minutes, saving customers valuable time and the effort involved in visiting a branch office. Erste Bank und Sparkassen is Austria’s first large bank to offer this innovative option to new customers. It works like this: pictures are taken of the front and back of a government-issued photo ID document, such as a passport or national identity card, and a photo of the customer is taken and compared to that shown on the ID. According to Thomas Schaufler from Erste Bank, “Our introduction of online video identification eliminates what had previously been a significant competitive advantage for fintech companies.”

According to the bank itself, the number of online-based current account openings grew by 40% last year. In the future, will we see more financial products begin to integrate this process of identification?