Key Points at a Glance
- With the Retirement Savings Depot (AVD), a new competitive market will emerge from 2027, where insurers, banks, and neobrokers will compete for the same customers.
- The digital identification and KYC process will become a decisive success factor, as fast, media-break-free legitimation significantly increases conversion while simultaneously fulfilling regulatory requirements.
- Providers should integrate their KYC and signature processes early to be able to offer a scalable, compliance-compliant, and user-friendly application process by market launch.
Table of Contents
What is the Retirement Savings Depot?
Insurers, Banks, and Neobrokers Are in Direct Competition
KYC and the digital application process can quickly become business-critical for the Retirement Savings Depot. For years, identification and legitimation have been among the biggest hurdles in the digitalization of financial and pension products. With the Retirement Savings Depot, this topic is moving even more into focus. Every additional step, every media break, and every waiting period worsens conversion for providers. Because: those who have to legitimize themselves, submit documents, or wait for manual checks during onboarding are significantly more likely to abandon the process. Every minute of delay is a minute in which interested parties can decide against completing the application. The Retirement Savings Depot now brings providers from different worlds into direct competition for the first time. Insurers no longer compete only with other insurers, but increasingly also with neobrokers, direct banks, and digital investment platforms. As a result, digital onboarding processes, which were often considered an operational issue until now, suddenly become a strategic competitive factor. Higher conversion rates directly mean more contract conclusions, lower acquisition costs, and better scalability of the business model. The AVD will launch in a market where many users are already accustomed to digital financial apps. Neobrokers and direct banks often offer account opening, securities trading, and identification fully digitally and within a few minutes. This level will become the new benchmark.
This creates particular pressure for insurers. They must meet regulatory requirements, advisory obligations, and more complex product models while simultaneously delivering a user experience comparable to modern apps. A good tariff or a strong product promise is not enough if the application process falters at the decisive moment.
At the same time, regulatory requirements are increasing with the introduction of AMLR and eIDAS 2.0. The real question for providers is therefore not only how attractive their Retirement Savings Depot is, but whether they can combine regulatory requirements with a seamless customer experience. This is precisely why the technical design of identification, signature, and KYC processes is becoming a decisive competitive factor for banks, insurers, and neobrokers in the AVD market. It could determine whether market shares will shift in favor of digital pioneers who enable a fully digital and almost frictionless application process.
A Look at Technical Integration
Various phases intertwine in the digital application for a Retirement Savings Depot. It begins with transparency and clarification through product information and the subsidy logic. This is followed by the legally required consultation and the suitability assessment. Once this hurdle is cleared, the identification of the new customer and the digital signature follow. The process concludes with the depot setup and subsequent customer communication. While most stages are well manageable, identification represents the biggest hurdle for conversion and compliance.
Who is the solution relevant for?
- Insurers who want to digitally distribute subsidized retirement provision products from 2027.
- Banks and savings banks that integrate AVD products into existing digital account or depot processes.
- Custody banks and online brokers that need to combine high transaction volumes with a regulatorily robust KYC infrastructure.
- Fund companies that are building more direct end-customer processes for subsidized retirement provision for the first time.
- Platform providers developing AVD-as-a-Service offerings for financial service providers.
How Nect Solves the KYC Part of the Retirement Savings Depot
Nect provides the digital identification and signature infrastructure that providers need for AVD applications. The solution can be integrated into existing application processes or combined as part of a larger AVD setup with partners.
| Nect Module | Benefit for the AVD Use Case |
|---|---|
| eID / NFC | Digital identification with the online ID card for particularly high trust levels and future-proof eID processes. |
| Auto Video-Ident | Supplementary procedure for user groups or situations where an assisted ident process is beneficial. |
| Qualified Electronic Signature | Legally secure digital signature directly in the application process without paper, postal delivery, or media breaks. |
| PEP and Sanctions List Screenings | Compliance-related checks can be integrated into the digital KYC process. |
| Auditable Documentation | Traceable process and audit documentation for compliance, auditing, and regulatory evidence. |
