Almost unnoticed, online banking in Germany will celebrate its twentieth birthday in the next few days. It was in 1983 that the then Federal Minister for Post, Christian Schwarz-Schilling, pressed the start button for what was, at the time, a revolutionary technology at the Internationale Funkausstellung (IFA – a consumer electronics trade fair) in Berlin. Today, banking customers maintain over 30 million accounts online in Germany. Online banking has become a common habit. Postbank – there right from the start as a pioneer – has had considerable influence upon its development and has helped to set standards.

The beginnings
Everything started with interactive videotex (Bildschirmtext, Btx for short): in 1983 the “Viewdata” system developed in Great Britain was launched in Germany. Initially, data were transmitted to television screens by means of telephone cables. The first application available to customers at the time was Postbank online banking. This made it possible for customers to issue credit transfer orders and to retrieve account balances from their homes for the first time. The security system with the personal identification number (online PIN) and the unique transaction number (TAN) has stood the test of time until the present day. Stiftung Warentest tested the system and declared it secure as recently as August 2003.

The breakthrough on the internet
Online banking made its breakthrough with the population at large via the internet. Together with enthusiasm for the stock exchange, online banking and online brokerage boomed at the turn of the century. Trading in securities, portfolio management and checking current prices were now just as easy to do from the home as credit transfer orders. With Postbank Easytrade, customers could order securities at considerably more favourable conditions than those available in branches.

The key to success was the simple and yet secure access to the internet. This security is guaranteed by the 128-bit encryption provided by the browser (SSL 3.0). To this day, customers appreciate the simple and secure browser banking system that Postbank has used from the outset.

The developments of the last 20 years have led to online banking now being regarded as well established. More than 30 million current accounts are now maintained online. At Postbank alone over 1.5 million current accounts are maintained online.

Online products with a plus
Today, customers expect their bank to offer online products with “added value”, be it a better interest rate on an instalment credit or higher interest on cash investments. Postbank had already set a market standard in October 2001 with its online instalment credit. Thus, “Postbank Ratenkredit im Internet” (internet instalment credit) is regularly among the best-value offers available. And where cash investments are concerned, customers get more interest on their investments with “Postbank SparCard direct” or “Postbank Kapital plus direct”. Those banks still not offering their customers any online services today will lose their customers.

The future trend towards personalisation
According to a survey by Mummert Consulting, online customers will soon be advised just as personally as they are in branches. To realise this, banks are currently investing in the expansion of their internet services. As a multi-channel bank, Postbank made early moves to link its branches and the internet together closely. The necessary technology is currently being installed. The objective is to always allow the customer to choose the way most convenient for them. In future, customers will be able to conclude transactions they have started on the internet in branches.

Personal service will play an increasingly significant role in the success of a bank. Today, Postbank customers can already have their mobile phone display the location of the nearest Cash Group ATM. In order to speed up the information process, online customers receive an optional monthly newsletter. Postbank is expanding this mobile service. In future, Postbank customers will be able to choose to receive information about changes to their current or securities accounts via e-mail or SMS.