GM joins Spring Labs' ID verification blockchain
General Motors Financial has joined Spring Labs’ blockchain-based network, which allows lenders to share consumer information with one another and helps them verify loan applicants' identities.
“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,” Mike Kanarios, chief strategy officer at GM Financial, said in a press release.
Last month, Spring announced it was working with 16 fintech companies to test the network, known as the Spring Protocol, which is scheduled to go live in the second half of this year.
Avant, OnDeck Capital and SoFi are among the first companies involved with the network.
Part of the idea behind Spring Labs’ system is to have a central database lenders can access without replicating critical consumer information on multiple systems, John Sun, president and chief product officer for Spring Labs, told American Banker at the time of the announcement.
Sun said Spring Labs eventually would target more traditional financial institutions to help test the protocol. The firm also intends to work with companies from other consumer-facing businesses such as health care, he said.
“We are excited to partner with GM Financial to create solutions on our developing network to address vexing economic problems such as identity fraud,” Adam Jiwan, Spring Labs' CEO, said in the press release. “We look forward to announcing additional significant partnerships in due course."