BMW Bank, Ford Credit, Orrick, Herrington & Sutcliffe LLP and MOBI are among mobility leaders working to solve the problems faced by customers, manufacturers, dealers and lenders through more efficient financing solutions.
LOS ANGELES, June 8, 2021 / PRNewswire / – Vehicle purchases are the second most important transactions in many people’s lives and are the main drivers of the global economy, with nearly 80 million vehicles sold each year. MOBI’s Finance, Securitization and Smart Contracts (FSSC) Working Group today released blockchain-based standards to make the vehicle financing process easier and more transparent for lenders, manufacturers, dealers and consumers.
The implementation of blockchain in the vehicle financing lifecycle will increase confidence in the process, reduce fraud, enable future innovations and improve data privacy by providing a secure and decentralized alternative to traditional databases, which are centralized and therefore more vulnerable to tampering and errors.
“There is a growing interest in blockchain industry federations and standards,” said Tram Vo, co-director and founder of MOBI. “Blockchains enable transactional record that can be shared securely across corporate networks, accelerating the digital transformation of network economies. Consumers and businesses alike will benefit from these shared data assets and processes. ”
The FSSC WG is co-chaired by Orrick, Herrington & Sutcliffe LLP and RouteOne, with the support of Accenture, Altaventure, BMW Bank, CEVT, Connections Insights, CO-OP Financial Services, ConsenSys, DE Consulting, Ford Credit, Global Debt Registry, IOTA, KAR Global, On the Road Lending, Quant Network, Quantstamp, Reply, Tezos Foundation and USAA.
In search of ways to improve transparency and efficiency within the auto finance ecosystem using blockchain, MOBI’s FSSC working group examined B2B (business-to-business) use cases. -business) and B2C (business-to-consumer) to generate value for consumers and financial institutions. in eleven distinct areas:
- Know your customer’s requirements (KYC)
- Financing the dealership floor plan
- Audit of the dealer’s floor plan
- A Blockchain foundation for securitization
- Verifiable credentials in the loan application process
- Digitization of manual processes with smart contracts
- Non-risk credit
- Loan service
- V2X and Securitization
- Green Bond Issuance and Investor Impact Reports
- Fractional ownership of mobility assets
“Blockchain technology will have a huge impact on the auto finance industry,” said Phil masi, chairman of BMW Bank of North America. “Blockchains and distributed ledgers will improve the accuracy, transparency and efficiency of processes by enabling financial institutions to trust the data they have, to mitigate risk, to have more confidence in their decisions and ultimately help the industry achieve digital transformation faster. “
In addition to blockchain, related digital technologies such as smart contracts and verifiable credentials will play a key role in the future of vehicle finance by tracking guarantees and payments, thereby reducing risk, reducing costs. ‘borrowing and improving customer privacy. These applications will enable more transparent and reliable vehicle finance solutions, resulting in a better customer experience and lower cost of ownership.
“Financing the automotive and dealer floor plan through securitization is critical to the economy of the automotive industry, and there are countless blockchain applications that can make securitizations safer and more secure. effective ”, declared Howard Altarescu of Orrick, Herrington & Sutcliffe, LLP. “There are even more exciting V2X opportunities to tap into vehicle data market data and to provide financing, including through securitization, for roads and mobility infrastructure. “
FSSC standards rely on the blockchain to provide a layer of trust in which all parties are able to validate the identity of the other and ensure the authenticity of data, resulting in a shared platform for the deployment of vehicle financing applications. Manufacturers, resellers, lenders and consumers will benefit from the smooth and frictionless operation of multistakeholder applications and reliable shared data.
MOBI and its members expect the FSSC standards, along with other MOBI standards for blockchain applications in mobility, to promote data privacy, reduce frictional inefficiencies, improve mobility services, and enable new business models. You can read the MOBI FSSC standards at dlt.mobi/standards.
MOBI is a non-profit alliance of several of the world’s largest automakers, as well as startups, NGOs, transit agencies, insurers, toll road providers, smart city leaders and tech companies striving to accelerate adoption and promote standards in blockchain, distributed ledgers, and other technologies.
MOBI creates simple blockchain-based standards to identify vehicles, people, and businesses to securely exchange and share data, and pay for mobility services, with the goal of making transportation more efficient , affordable, greener, safer and less congested. MOBI itself is technology and ledger independent. For more information on MOBI membership, please contact Griffin Haskins ([email protected]) or visit www.dlt.mobi.
Media contact: Kelly clark,
MOBI communication manager
E-mail: [email protected]