Blockchain Car Financing Platform Created By Auto1, Allianz And Deutsche Bankbr>
Auto1 operates an online trading platform for used cars. It purchases vehicles from individuals and sells exclusively to car dealers in Europe. The company offers cabriolet, coupe, cabriolet/coupe, kombi, limousine, SUV, van, and roadster body type vehicles. It also arranges credit for vehicle purchasers, and provides logistics and transportation support. In January of this year, Auto1 received a 460 million euro ($561M USD) financial infusion from SoftBank, a Japanese multinational conglomerate holding company.
Auto1, Deutsche Bank and Allianz has set up a new company called Auto1 FinTech, of which they together own more than 50 percent. The new company is offering re-financing loans and insurance products to car dealerships buying “SoftBank-backed Auto1 vehicles.”
Auto1 co-CEO Hakan Koc said that Auto1 FinTech will use blockchain technology to record loan payment and re-financing confirmations. The technology will allow dealerships to immediately re-finance their purchases, rather than using a paper-based process which can tie up their equity for two to three weeks.
Koc added that the move is part of the company’s push to diversify its offerings and encourage customer loyalty as it seeks to become the dominant Internet platform for used cars. He said Auto1 FinTech is already active in Germany and and will expand to Poland and France later this year.
Other automotive companies around the world are also testing blockchain applications to enhance the efficiency of their operations. Last month, automobile giants including BMW, Ford, General Motors, Groupe Renault, and others formed a consortium to explore blockchain technology’s applicability in the industry. Called Mobility Open Blockchain Initiative (MOBI), the consortium’s mission is to explore blockchain for “use in a new digital mobility ecosystem that could make transportation safer, more affordable, and more widely accessible.”