Deutsche Kreditbank has introduced a robot credit checker to approve online loan applications within minutes, according to a report in Finextra.

New applicants only need a smartphone or a computer with a webcam, an identity card and online access to their salary account. Approval happens within minutes and is sealed by a digital signature.

Developed in collaboration with FinTecSystems, DKB has already successfully tested the 120-month instant loan for existing customers and is now rolling the system out to the general public.

The algorithm-approved loan offers an effective annual interest rate of 3.19 percent for amounts between €2,500 (US $2900) and €30,000 (US $3500).

Tilo Hacke, DKB's private customer board member, said the pandemic acted as a catalyst in the development of the product.

"More and more consumers are currently switching from analog banking services to a digital banking experience," Hacke said in the release. "And they rightly expect uncomplicated, fast digital lending without a lot of paperwork."