News JPMorgan Eyes Blockchain For Vehicle Tracking

JPMorgan Eyes Blockchain For Vehicle Tracking

-

- Advertisment -JPMorgan Eyes Blockchain For Vehicle Tracking

JPMorgan’s wholesale car financing arm has filed a patent application to use blockchain to track the automobile inventory it finances for car dealers.

The application describes a distributed ledger-based version of floorplan lending, a revolving line of credit that allows car dealers to borrow against their retail inventory. The bank wants to tie each car’s individual vehicle identity number (VIN) to a blockchain that can get rid of any inefficiencies when it comes to auditing a dealer’s inventory.

“The floorplan lending process involves periodically doing a physical inspection or audit of all the inventory on the dealership’s lot,” Kevin Point, head of research and development at Chase Auto, said, according to CoinDesk. “That means that a human being actually travels to the dealership, identifies the vehicles and then reconciles that inventory, if the loan’s outstanding, on both the dealer’s and the bank’s accounting system.”

There are millions of cars — new and used — sitting on floorplan lines of credit. Using blockchain to track them on a distributed ledger “will achieve cost savings over time. We believe these could be significant on an industry-wide basis,” said Point.

Christine Moy, blockchain lead at JPMorgan, revealed that a pilot is already being tested with dealership partners, and that the bank is speaking to automakers about the system, although she declined to name which ones.

“Not only is JPMorgan and Chase Auto seeking to solve its own problem, basically it will benefit the vehicular and equipment industry at large,” Moy said. “The Network of Assets is the foundation for this particular application and use case, but can also be the foundational piece for many other value-added applications and services for auto manufacturers, other banks and finance companies, and dealerships, related to devices with telematics connectivity.”

She added that the DLT system will also prevent “double flooring.”

“This is when accidentally (or fraudulently) a dealership may pledge one vehicle as collateral for one floorplan contract to one bank, but also pledge the same collateral for another floorplan contract with another bank,” Moy explained.



Source

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest news

Math-Based Approaches To Win Slot Games

If the 17th Century was the era of Blackjack, and 19th Century was the undisputed reign of...

Reasons To Prefer Slot Games Even When You Are Losing

Oh what a wonderful world the slot machine industry is, full of technological evolution and the all-important...

Advice for Responsible Slot Gambling From an ex Addict

Thanks to a combination of improved gameplay and their availability on remote devices, the slots you can...

When You Should Stop Playing Bingo

Since its inception in the late 1800s, Bingo has enjoyed a remarkable rise to popularity, being a...
- Advertisement -JPMorgan Eyes Blockchain For Vehicle TrackingJPMorgan Eyes Blockchain For Vehicle Tracking

Why Bitcoin Will Succeed?

If Bitcoin will succeed or not is an interesting question. For the time being, Bitcoin holds a...

Elon Musk Tweets That “Bitcoin” Is Not His Safe Word

By now, you probably know that Elon Musk appears to have knocked up his girlfriend, Grimes. And just when you...

Must read

Math-Based Approaches To Win Slot Games

If the 17th Century was the era...

Reasons To Prefer Slot Games Even When You Are Losing

Oh what a wonderful world the slot...
- Advertisement -JPMorgan Eyes Blockchain For Vehicle TrackingJPMorgan Eyes Blockchain For Vehicle Tracking

You might also likeRELATED
Recommended to you