Banking protocols compared: EBICS or HBCI/FinTS?

EBICS vs. HBCI/FinTS: Which method is right for your banking transactions?

EBICS and HBCI (also: FinTS) are two standardized procedures for the electronic processing of banking transactions between customers and banks.

Both methods enable companies and private customers to carry out banking transactions such as transfers, direct debits, or account information electronically. They offer secure and reliable ways to handle banking transactions. The choice of method ultimately depends on your individual requirements.

What is EBICS?

EBICS stands for “Electronic Banking Internet Communication Standard” and is a standardized procedure for the electronic processing of financial transactions between companies and banks.

EBICS was developed by the German banking industry as an alternative to older procedures such as HBCI (now FinTS). It enables secure data exchange and the processing of payments and other banking transactions over the internet. EBICS offers various security mechanisms, such as end-to-end encryption of data, strong authentication of participants, and audit-proof logging of transactions.

The EBICS procedure is now widespread in many European countries and is supported by many banks. It enables companies to process banking transactions efficiently and securely over the internet and thus simplifies payments and accounting.

What is the advantage if I use EBICS for banking transactions as a company?

A key advantage of EBICS for companies is the support of advanced functions that can be important for business operations. For example, EBICS offers the possibility to send and receive structured messages, integrate electronic invoices, and automate data exchange between companies and banks. These advanced functions can help companies make their business processes even more efficient and save time and resources.

Another advantage of EBICS is increased security. EBICS uses modern encryption and authentication procedures to ensure the confidentiality and integrity of transaction data and minimize the risk of fraud and data misuse. Companies that work with particularly sensitive or confidential data can benefit from EBICS’s higher security standards.

Finally, EBICS also offers greater flexibility and scalability compared to HBCI/FinTS. Companies can adapt EBICS to their individual business processes and expand it as their requirements change. In the long term, this can help increase the efficiency and profitability of companies and secure competitive advantages.

What is HBCI and what can the procedure do?

HBCI stands for “Homebanking Computer Interface” and is a standardized procedure for the electronic processing of banking transactions between customers and banks. HBCI was developed by German banks in the 1980s and still plays a significant role in the German online banking market today. In the meantime, HBCI has been further developed and is known as FinTS, which is why the spelling HBCI/FinTS is often encountered.

HBCI/FinTS enables bank customers to communicate with their bank via special software on their computer or smartphone and to carry out various financial transactions, such as transfers, direct debits, standing orders, and retrieving account information. The data is transmitted via an encrypted connection between the customer and the bank.

HBCI/FinTS offers various security mechanisms to ensure the protection of data and transactions, such as strong authentication using a chip card reader and/or TAN.

In Germany, HBCI/FinTS is increasingly being replaced by the more modern EBICS procedure, which offers similar functions but was specifically developed for communication between companies and banks.

X

Can I also use HBCI for my banking transactions as a company?

HBCI/FinTS is primarily geared towards the needs of private customers, but can also be used by smaller companies without any problems.

One advantage of HBCI/FinTS is that it is a proven and established procedure offered by many banks. HBCI systems are often very easy to use and do not require complex technical prerequisites, which can be particularly advantageous for smaller companies without their own IT department.

Another advantage of HBCI/FinTS is that it can often be cheaper compared to EBICS, as it offers less complex functionality. So if your company only needs to carry out basic banking transactions such as transfers or standing orders, HBCI/FinTS could be a cost-effective and practical option.

What are the main differences between the two procedures?

EBICS and HBCI/FinTS are both standardized procedures for the electronic processing of banking transactions between customers and banks. Although they offer similar functions, there are some key differences:

• Target group: HBCI/FinTS is mainly aimed at private customers, while EBICS was specifically developed for communication between companies and banks.
• Technology: HBCI/FinTS usually uses a chip card with PIN and TAN for user authentication. EBICS, on the other hand, is based on digital certificates for the authentication of companies and banks. EBICS thus offers a somewhat higher security standard than HBCI/FinTS through personalization.
• Data transmission: HBCI/FinTS transmits the data via a special connection between the customer and the bank, while EBICS enables data transmission over the internet. EBICS uses various security mechanisms to ensure the confidentiality and integrity of the data.
• Functionality: Compared to HBCI/FinTS, EBICS offers extended functionality and is more flexible in adapting to individual business processes. For example, EBICS enables the exchange of structured messages or the integration of electronic invoices.

Overall, however, both procedures offer absolutely secure and reliable ways to handle banking transactions. The choice of procedure ultimately depends on your internal company requirements and needs.

All functions of HBCI/FinTS and EBICS at a glance

Function	HBCI/FINTS	EBICS
Transfers	Yes	Yes
Standing order	Yes	Yes
Direct debits	Yes	Yes
Schedule transfers	Yes	Yes
Bulk payments (more than 500 orders per transmission)	No	Yes
Query transactions up to date for the day	Yes	Yes
Retrieve securities account statements	Yes	Nein
Trade stocks, funds, and securities	Yes	Yes
SEPA transfers	Yes	Yes
Multibanking	Yes	Yes
Electronic signature	No	Yes
Electronic account statement	No	Yes
Structured messages	No	Yes

Please note that this table only provides a rough overview of the functions of the procedures and that there are also different variants within HBCI and EBICS that may support different functions. Your bank can also provide more detailed information.

Conclusion

Which procedure you ultimately use to handle your corporate banking transactions depends on many factors, such as your company size, your individual requirements, and the functionality you need. But the availability at your bank is of course also decisive.