Mobile banking in Germany: Complete Guide for Expats

Mobile Banking in Germany

German banks have been quick to embrace the technological boom in financial services. Established big brand names and newer start-up financial providers offer a range of financial services. However, the German public have been slightly slower than many other European countries in their uptake of mobile banking. Around 59% of Germans use internet banking, which is above the EU average; however, that's well below many other nations such as France, Belgium, UK, and the Netherlands.

German residents have a wealth of mobile banking options including:

• National German banks such as Deutsche Bank, Commerzbank, and Volkswagen bank
• Newer online-only banks include bunq, N26, the service, Revolut, and DKB. Many offer several language options, including English
• Online banking alternatives, including all-in-one business accounts like Finom
• International banks such as HSBC, which offer expat-dedicated customer support and products tailored for internationals
• Multinational companies such as Apple, Google, and PayPal, offering mobile payment services and digital wallets

For expats and international residents, services like the multi-currency service are particularly valuable as they specialize in cross-border banking needs. These services offer accounts that can be managed entirely through their mobile app, with the ability to hold and convert multiple currencies at the mid-market exchange rate.

Features of Mobile Banking in Germany

It's easy to set yourself up with mobile banking in Germany. You just download the banking app onto your mobile device and set an account up in minutes. Documentation can be submitted online and ID verification can be done with a video check. Features typically include:

• Payment options for bills, shopping and P2P payments to other mobile users
• Quick and easy money transferring services
• Financial management tools to help you keep track of what's coming in and out
• Instant notifications so that you know when transactions have occurred
• Links to social media channels such as Facebook and Twitter
• Lower banking fees - as online banking reduces overheads, service costs can be cut. Many mobile banks offer basic account services for free

International Transfers and Currency Management

For expats and international professionals in Germany, managing money across borders is a common challenge. Banks often charge high fees and add markups to the exchange rate when sending money internationally.

These services offer a compelling alternative for international transfers, providing the mid-market exchange rate without markups and transparent, upfront fees. The the multi-currency service Multi-Currency Account allows users to hold over 40 currencies and convert between them at competitive rates whenever needed.

There are some limitations as not all banking services are available via apps at the moment. Most don't have the capability to transfer money into foreign currency accounts, and lending options are also limited. You will also be reliant on good Wi-Fi, which might be a problem in more rural areas.

Mobile Payments in Germany

While mobile banks have been at the forefront of innovation, mobile payments in Germany have been slow to take off. Germans have traditionally shown a strong attachment to cash For regular shopping; over half of payments made in cash and only 7.4% made by credit card. The two market leaders in mobile payments, Google Pay and Apple Pay, only launched in 2018.

Mobile payments are contactless payments made using a smartphone instead of cash or a credit card. They are carried out using Near Field Communication (NFC) or QR matrix barcode technology, enabling users to pay by simply waving their mobile device over a payment terminal or barcode. Google Pay is the leading service provider, as around 75% of German smartphone users have Android phones. Some German banks operate their own payment apps, such as Deutsche Bank and Volksbanken credit unions.

Mobile Banking Security in Germany

German residents, similarly to those in many other European countries, have their reservations about the safety and security of mobile banking. However, providers have been taking steps to ensure that digital banking is the most secure way to bank. Security features include high-strength ID protection (fingerprint or voice/face recognition), high encryption, and instant blocking on lost or stolen cards.

To keep your personal data safe when mobile banking in Germany, make sure you:

• Keep everything password protected - if you are not protected by biometric ID recognition, choose a high-strength password
• Avoid using public networks with free WiFi when logging into your account
• Always log out of your account immediately after using it

Opening a Bank Account in Germany

Most German banks require you to go to a branch and open up the account, although some now offer online sign-ups. German banks are typically only available to residents and you may need to provide proof of registration if you are from outside the EU. You will need to provide ID (e.g., passport) and proof of registration (Meldebescheinigung), plus possibly evidence that you work or study in Germany. Some banks also have minimum income requirements.

You can choose between private German banks, savings banks (Sparkassen), or cooperatives (Volksbanken). Expats who want the flexibility of being able to open and operate their account remotely can also choose an online or mobile bank that they can access from their smartphone.