Commerzbank’s new loan model adjusts repayment based on capital usage
IoT is set to enhance efficiency in all areas
Commerzbank has developed a data-based loan solution to optimise efficiency, with a “pay-per-use loan” model at its core.
Through this model, the loan repayment is subjected to the proportional use of the machine.
Developed by big data and analytics experts at Commerzbank, a new group founded in the beginning of the year led by Kerem Tomak, the solution aims perform focused analytics of big and complex data and its business usage.
The prototype for this new digital loan model was put together by Commerzbank with machine tool manufacturer EMAG GmbH & Co. KG in Salach (Baden-Württemberg).
The networking of the machine tools at EMAG allow for a detailed look at their utilisation patterns, which in turn dictates the calculation of the loan repayment rate.
KMB Technologie für rationelle Fertigung mbH uses these types of machines for parts production in the automotive sector.
“The pay-per-use loan from Commerzbank allows us to invest in a new generation of machines from EMAG,” says Sven Hartwich, commercial manager at KMB Technologie Gesellschaft für rationelle Fertigung mbh.
Hartwich says: “With the flexible repayment rates we can adjust our liquidity for production and turnover. This in turn allows us to lower our break-even point further in order to achieve better overall financial stability.”
Jan-Philipp Gillmann, divisional board member, segment development and digitalisation in the corporate clients business segment at Commerzbank, adds: “With our new pay-per-use loan we are taking another major step towards Industry 4.0.”
By Industry 4.0, the bank is referring to the internet of things (IoT) level of connectivity that it believes defines the new generation of services.
