Deutsche Bank has teamed up with Allianz and used car marketplace Auto1 to set up a new firm offering financing and insurance to vehicle dealerships.
Having built up a successful online marketplace where dealers can buy used cars, Auto1 is looking to move into the fintech arena to make it easier for buyers to purchase on its site.
The firm, along with Deutsche Bank and Allianz, has created Auto1 Fintech, which will offer a digital platform where these dealers can get financing, as well as insurance, for the cars they buy through Auto1.
Stefan Hoops, head, global markets, Germany, Deutsche Bank, says: "By providing automobile dealerships with financing via a digital platform, we free up capital that would otherwise be tied up in equity.
"This means that the dealerships have a lot more flexibility when new opportunities present themselves on the market."