The financial sector is also increasingly dominated by Internet offerings, as evidenced, for example, by the increase in the number of online loans that consumers receive. Thus, the trend continued last year that more and more Germans use the opportunity to apply for a loan over the Internet. However, borrowing via the bank’s website in this country is not yet fully possible, since the laws provide that the conclusion of a loan agreement must at least be made in writing by the banks. However, at least the legitimization procedures are increasingly designed so that the customer can legitimize directly on the PC and therefore he no longer has to perform the somewhat time-consuming post ident procedure.

There is now about 20 percent of all borrowers who have applied for their consumer credit online. This emerges from a survey of the banking association for the past year (2015). Last year, the volume of consumer credit concluded on the Internet increased to 5.8 billion euros and thus by about 20 percent compared to the same period of the previous year. Thus, the online loan is the business area in the entire financial system, which has increased in terms of volume the most significant. It is also interesting to note that most online loans are still being used to meet many consumer needs with the cash available, with auto financing being the most common use of online credit. But also furniture, a new kitchen or various slightly more expensive electronics are relatively often financed via an internet loan.

Online application for loans with bad credit

One reason for the popularity of online loans with bad credit by is the often more favorable conditions when compared with bank loans. However, favorable conditions are not the only reason why the trend towards online credit continues. In addition, the comfort that the loan seeker can use when applying for a loan over the Internet is certainly also in the foreground. He does not have to go to the bank branch, where he can conduct a 30- to 60-minute credit discussion and can definitely save time and effort when applying via the internet. In addition, the application is now relatively uniform and transparent, so it often takes only 10-15 minutes to complete the entire application process.

Legitimation procedures will be further modernized

One of the few criticisms of online credit is from the perspective of some customers, that although the application can take place online, the legitimacy but still only manually by post -the ident procedure is carried out. For this purpose, the borrower must go to a post office, present his ID there and thus have the necessary legitimacy. However, there are more and more banks that use more modern methods, such as the WebIdent procedure. As a rule, an online connection to an employee of the bank is set up here, and in simple terms, the customer simply keeps his ID in the webcam so that the employee can carry out the necessary legitimation. In this process, the customer has practically no longer out of the house, only the signed loan agreements, he must send by mail to the respective bank.