Forefront Communications

Automotive Digest: How Blockchain Can Help to Avoid a Repeat of the Subprime Mortgage Crisis in the Auto Industry

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Sam Belden

Sam Belden

By John Liu, Chief Product Officer, Fusion Foundation

The Problem and a Possible Solution for Used Car Finance:

The used car industry has long been plagued by widespread data discrepancies and operational inefficiencies. Following Fusion Foundation’s February announcement that it was selected by the Automotive eXchange Platform (AXP) to serve as AXP’s blockchain backbone, the Fusion/AXP partnership continues to make inroads bringing the benefits of blockchain to help reduce fraud and
improve data processing in the U.S. second-hand car industry.

Information Sharing and Transaction Processing of Automotive Funding:

AXP is an automotive blockchain ecosystem that plans to address information sharing and transaction processing needs throughout the automotive industry, including private and government run organizations. Working with Fusion, AXP digitizes automobiles, drivers and key pieces of information in the used car ecosystem, such as automating the auto loan process and enabling a seamless system to register and transfer vehicle registration and titles.

How the AXP/Fusion Partnership Works:

Using this data, AXP/Fusion provides independent dealerships an alternative and cost-effective way to gain access to financing for their customers, with projected underwriting times reduced to a matter of minutes. Government agencies and lenders can leverage this data across multiple organizations to help decrease cost and increase transparency, which in turn improves the buying and selling experience of both consumers and dealers.

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