Auto1 FT deploys automotive financing on the blockchain
European auto finance company Auto1 FT is shifting all manual processes to smart contracts on the Ethereum blockchain, the first company in Europe to do so, according to a press release released on Thursday (October 7th).
The move to blockchain encompasses all documents, files and processes related to vehicle financing and will cover the entire life cycle of cars. It is also intended to increase safety and effectiveness.
“Our digital solution brings huge efficiency benefits to car dealerships and sets new standards in the mobility industry,” said Auto1 FT General Manager Taimur André Rashid. “In addition to new areas of activity that we can more easily open with our digital processes, through their use we plan to work in collaboration with innovative platforms that have established themselves, such as in Frankfurt for example. “
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Smart contracts reduce auto finance overhead costs by reducing reliance on paperwork and minimizing overall documentation. According to the statement, working on the blockchain reduces the risk of errors and increases data security.
Important data points across a vehicle’s entire lifecycle are also part of smart contracts, including previous ownership, payment methods, calculations, fees, and credit scores. The new process offers auto dealers increased security while maintaining the same user interface. Legally binding agreements are automatically executed with smart contracts, without human intervention.
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“Smart contracts are based on the exceptional properties of the blockchain: they are tamper-proof, tamper-proof and transparent, and are verified by the community. This is what makes them so valuable for our purposes,” said Nuno Vaz, head of Auto1 FT information. Technology.
Launched in 2017 and based in Berlin and Amsterdam, Auto1 FT offers digital financing solutions for the used car market. The startup operates in Germany and France and plans to expand globally.