Deutsche Bank And Allianz Partner With Auto1 And Offer Financing Through Blockchain
The German recognized insurance group and Deutsche Bank are working together so as to offer auto financing using blockchain technology. In order to do so, the two companies joined forces with the Berlin-based car exchange known as Auto 1.
The information reported by Cointelegraph auf Deutsch, shows that the companies have created a new company called ‘Auto1 Fintech’ owning more than 50% of it. The main intention is to offer insurance products and loan refinancing for those who buy Auto1’s vehicles.
During an interview with Bloomberg, Hakan Koc explained that the the loan payment and refinancing confirmations will be registered on a blockchain. This will allow dealerships to refinance purchases instead of using a paper-based process that can take up to two weeks.
“We are freeing capital and our customers are more liquid as a result. It’s a win-win,” commented Koc.
Auto1 wants to become an important internet platform for used cars. At the moment they are operating in Germany but they are planning to expand to France and Poland as well.
There have been several automotive companies working with blockchain technology. For example, BMW, GM, Ford and Renault have decided to invest in distributed ledger technology so as to explore different use cases. The initiative is known as MOBI (Mobility Open Blockchain Initiative), and includes over 30 important members such as Bosch, IBM, Hyperledger, IOTA and many others.