Challenger banks not providing enough security with their remote identification?

The likely issue, when something new comes into our lives, some skeptics insist that conservative, old-fashioned ways are better.

German weekly magazine Wirtschaftswoche published an article that questioned N26’s identification processes. According to Wirtschaftswoche, it’s quite easy to create an account with a fake ID document.

“One or two people got through with a fake ID document. We detected that afterward. Unfortunately, we didn’t detect it in real time.”
co-founder and CEO Valentin Stalf
Does it mean that challenger banks are not secure?

🔒 First of all, there is single legislation for all banks, N26 is developing their security on the same legal base as all other. N26 have different identification depending on the country and works with a third-party company called SafeNed for some of the verification procedures. And not all of them are so secure, as the example in Germany you can also print a document, go to the post office with an ID document and get identity verification from the postal employee.

🆔 Secondly, traditional bank managers in branches can recognize fake documents? I’m not sure. N26 has noticed that there’s a higher fraud rate for customers who go to the post office to check their ID document.

The issue here is not about N26; there’s need to look deeper and understand the need to implement new technologies in our ID and face recognition and person identification on the government level. Old fashioned signatures, paper contracts are not usable today.

Moreover, today Fintech is showing as the issue that we will need to deal with soon to make our step to digitalization without compromises.