FinTech company Auto1 is launching the first car financing on a blockchain across Europe. This is a significant step towards the complete mapping of vehicles, as smart contracts on the Ethereum network replace paper and manual processes.
The company is abolishing any manual input and paper processes in its core business – car financing – with immediate effect: all documents, files and processes related to the financed cars are now based on smart contracts – and this throughout the entire lifecycle of the vehicles. Auto1 FT is thus the first car financier in Europe to convert its entire ecosystem to this. Every vehicle financed by the company now receives a smart contract based on the Ethereum blockchain.
Maximum data security and efficiency through smart contracts
The use of smart contracts reduces the overall effort of car financing and its documentation to a minimum. It increases data security, is faster, cheaper and thus highly efficient. Errors or mix-ups are virtually impossible thanks to the blockchain. Smart contracts operate in the background, containing the central information and data points over the entire lifecycle of the vehicle: Payment methods, calculations, fees, and central credit scoring. The effect: more service and security for car dealers with the same user interface and unchanged process.
“Smart contracts are based on the superior properties of the blockchain: they are tamper-proof, immutable, transparent, and verified by the community. This is what makes them so valuable for our purposes.” – Nuno Vaz, Head of Information Technology Auto1 FT
Smart contracts automatically generate legally binding contracts – without any human intervention. In the case of Auto1 FT, they run on Ethereum, the only blockchain technology that currently allows and enables such functions at this professional scale.
Path to complete digitization
With Smart Contracts, FinTech maps all vehicle-related contract details into one contract. These Smart Contracts contain all information and processes related to the vehicle, such as the chequebook, the holistic vehicle history including payments and previous owners. The introduction of smart contracts is just the beginning and will enable the company to expand its digital value chain.
“Our digital solution brings huge efficiency benefits to car dealers and sets new standards in the mobility industry.” – Taimur André Rashid, Managing Director Auto1 FT