One of the largest German insurance groups, Allianz, has decided to join efforts with Deutsche Bank – partnering with the Berlin-based car exchange Auto1 with the mission to offer auto financing using blockchain technology.
The news came from Cointelegraph auf Deutsch yesterday, June 7th, and says that the three partners have created a new company that is called ‘Auto1 Fintech’ of which they together own more than 50%.
The main focus of the new venture will be insurance products and loan refinancing for car dealerships that buy the Auto1’s vehicles, according to the CEO of Auto1 Hakan Koc.
As Koc told Bloomberg, Auto1 is currently backed by SoftBank Group Cor. and is an online exchange for used cars – buying cars from individuals and then re-selling them to dealerships. Everything regarding these processes will be recorded on a blockchain – and the new process will ostensibly allow dealerships to immediately refinance their purchases rather than using a paper-based process which ties up their equity for over two weeks.
Currently, Auto1 hopes that this new blockchain platform will help the business diversify its offerings and focus on customer loyalty. As Koc noted, “We are feeling capital and our customers are more liquid as a result of that. So it is practically a win-win situation.”
Auto1’s mission is to become the one-and-only internet platform for used cars. They are also looking to expand into France and Poland.
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