GM Financial, the finance subsidiary of General Motors and provider of auto finance solutions, has announced a partnership with blockchain startup, Spring Labs, in order to use blockchain technology to enhance ID verification capabilities and prevent fraud in the automotive finance industry. They have allied as part of the Spring Founding Industry Partners Program (SFIP) and GM Financial is one of many other fintech companies who have joined the SFIP.
The SFIP brings financial institutions, data furnishers and technology partners together to collaborate on research, development and implementation of the Protocol.
Spring Labs have been working on their Spring Protocol, a network designed to transform how information and data are shared on a global scale. For financial institutions, data breaches can come from data replication, the Protocol aims to reduce this risk by stamping out this replication.
“As the captive finance arm for General Motors and one of the world’s largest auto finance providers, we are continually innovating and evolving our fraud prevention and detection capabilities to better serve and protect our customers and dealers,” said Mike Kanarios, CSO at GM Financial. “The announcement underscores our commitment and investment to advance these efforts, and we are pleased to collaborate with Spring Labs as a member of the SFIP”.
Exchanging Information Securely And Anonymously
A press release from January describes the Protocol.
“The Spring Protocol differs from existing data exchange solutions in that it enables network participants to exchange information without sharing underlying data, effectively decoupling data ownership from data value. This unprecedented approach to information sharing leverages advanced cryptography and blockchain technology. The Spring Protocol mitigates the need for data aggregators and allows network participants to exchange information securely and anonymously in a peer-to-peer fashion”.
“We came together with the view that we could develop a series of use cases that would match some of GM Financial’s core business priorities as a lender, or potentially those of GM as a parent company,” said Spring Labs CEO, Adam Jiwan.