In the last month, we have spotted another interesting useful case for Blockchain technology in business: Spanish bank BBVA negotiated and closed a €150 mln acquisition finance loan with Porsche.
Porsche and Blockchain Development
Porsche needs the loan to back strategic acquisitions in their retail distribution network. Blockchain comes in handy, speeding up the process and helping them to achieve success.
But the company has leveraged this technology in a few different ways, not only in its financial aspect. They experiment with distributed ledger and using it to lock and unlock their cars, log data and authorize users.
How a bank can leverage Blockchain in loans?
The blockchain loans are not an entirely new thing. They are actually the new trademark of the bank. BBVA closed multiple deals based on distributed ledger technology with ACS, Repsol and Red Eléctrica Corporación. However, prior to this particular loan, they focused on the local spanish market. With Porsche the BBVA’s platform goes global.
Why Blockchain?
BBVA utilizes a mix of private and public blockchain. The most iconic feature of the technology is its safety and the mutual trust it ensures. In this appliance, there’s one more advantage: the speed of execution, crucial in the new acquisition finance transactions planned by Porsche.
The cherry on the top is the immutable ledger, that gives proven documentation of the transactions, simplifies the whole process and gives exact data on all the activities.
The technology can help in the negotiation process and with closing the deals, increasing transparency and efficiency.
Porsche and BBVA deal is an interesting example of how blockchain benefits influence the business – as Frank Hoefnagels, the head of BBVA CIB in Germany, says: their aim is “to improve clients’ experience by simplifying processes and enhancing the speed of execution”. As the story goes on, those promises seem to be fulfilled.
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