Three German companies have agreed to team up in a new company named Auto1 Fintech, which would offer car financing with the use of blockchain technology. These are the insurance group Allianz, the financial institution Deutsche Bank, and car exchange corporation Auto1.
The collaboration will provide insurance products as well as refinance loans for car dealerships purchased from Auto1, the car company’s co-CEO as Hakan Koc explained. Supported by SoftBank Group Corp., Auto1 is an online exchange platform for buying used cars from individuals, then resells them to dealerships.
The upcoming update will make transfer the records of loan payments and refinancing confirmations on the blockchain. In the new process, dealerships would be able to refinance their purchases instantly, compared to the rigorous paper-based process which could take up to two weeks. With this, the car company hopes to achieve better customer loyalty and satisfaction, as well as to be able to present more offerings.
Koc said that the innovation would be beneficial to both their company and the users:
“We are freeing capital and our customers are more liquid as a result. It’s a win-win.”
This is in line with Auto1’s goal of becoming a topnotch internet platform for used cars. Originally based in Germany, the company aims to join the French and Polish market before this year ends, as Koc explained.