German insurance group Allianz and Deutsche Bank have announced a partnership with Berlin based car exchange Auto1. The new partnership will aim to offer auto financing using blockchain technology. According to the source, the three major companies have founded a new mutual company which is called “Auto1 Fintech”. All the three partners reportedly together own more than 50% of the new created company offering block-chain based solutions.
According to the co-CEO of the company, Hakan Koc, the new venture will be offering insurance products and loan refinancing for car dealerships that buy Auto1’s vehicles.
The offered solutions in the name of loan payment and refinancing confirmations will reportedly be recorded on a blockchain. Due to the new process, dealerships will have the opportunity to immediately refinance their purchases instead of using a paper-based process, which can delay their equity for over two weeks period.
Koc also expressed Auto1’s hope in the new blockchain platform to help the company diversify its offered solutions as well as promote customer loyalty. “We are freeing capital and our customers are more liquid as a result. It’s a win-win”, concluded Koc.
Auto1 which is created by SoftBank Group Corp, is an online exchange with the main focus on used cars. The company buys the used cars from individuals and then resells them to dealerships. Auto1 is currently operating in Germany while the company is seeking to become the dominant internet platform for used cars with future objectives to enter French and Polish market as well.
SoftBank’s Vision Fund invested $540 million in Auto1earlier this year, valuing the company at about $3.4 billion. Meanwhile other major automotive companies around the world, including Mercedes-Benz and Ford Motors have also been testing blockchain technology applications ranging from simple financial transactions to autonomous driving support.