Auto1 FT, the leading financial partner of the automotive industry, has become the first European company to use Ethereum blockchain in car financing.
In a press release on 7th October 2021, the Germany-based firm pointed out that it aims to replace all manual input and paper processes in its core business with Ethereum smart contracts.
According to the firm, henceforth, all documents, files, and processes relating to the entire life cycle of financed cars are to be based on smart contracts.
This method is expected to give the company maximum data security and efficiency through Ethereum smart contracts.
It’s also worth noting that the latest development now makes Auto1 FT the first car financer in Europe to fully adopt the new method of processing data. So, every vehicle financed by Auto1 FT will now receive a smart contract powered by the Ethereum blockchain.
Reacting to the new development, Auto1 FT Managing Director Taimur André Rashid, said:
“Our digital solution brings enormous efficiency benefits for car dealers and is setting new standards in the mobility industry…
“In addition to new business areas that we can open up more easily with our digital processes, we’re planning through their use to work together with innovative platforms that have established themselves, such as in Frankfurt, for example.”
Describing the utility embedded in the Ethereum blockchain, the report says, “Using smart contracts reduces the total expenditure and documentation involved in financing a car to a minimum. The increased data security alongside faster and cheaper applications ensures high efficiency. Errors or confusion are virtually impossible thanks to the blockchain.”
Ethereum blockchain will be broadly used in payment modalities, calculations, fees, and all-important credit scoring. The report added that the method promises more service and security for car dealers while retaining the same user interface and general procedure.
Nuno Vaz, Head of Information Technology at Auto1 FT, also said:
“Smart contracts are based on the outstanding properties of blockchain: they are tamper-proof, unalterable and transparent, and are verified by the community. This is what makes them so valuable for our purposes.”
In a single agreement, Auto1 FT aims to provide all vehicle-related contractual details, thanks to Ethereum smart contracts.