GM Financial Collaborates With Blockchain Startup to Solve Identity Fraud

Article by · February 12, 2019 ·

The financing arm of the automaking giant, General Motors Financial notified on Monday that it is collaborating with Spring Labs, a blockchain startup on solutions for identity verification.

The startup in which the former Trump economic advisor Gary Cohn is among its board of advisors stated that GM is researching the acquisition of ownership together with other use cases. A GM Financial spokesperson refused to make any statement on the possibility of GM or its subsidiary becoming a shareholder of Spring Labs.

“We are actively exploring the development of auto finance and GM specific use cases, in addition to the identity verification products being developed,” co-founder and CEO Adam Jiwan commented through a spokesperson. He further stated that the blockchain network Spring Labs is presently working on will be all set in private beta for the partners in the third quarter of the year, and by early 2020, the live network is scheduled to be launched.

The chief strategy officer for GM Financial, Mike Kanarios stated  in a press statement that “today’s 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 program.”

The Spring Founding Industry Partners (“SFIP”) Program is determined at establishing a regulatory compliant solution for ID verification and the prevention of identity fraud. The signing up of several fintech companies to the program, such as SoFi, OnDeck Capital, Avant, GreenSky, Funding Circle, BlueVine, Fundation, Upgrade, Fundbox, and Better Mortgage was announced recently by Spring Labs.

“Ultimately, this network is designed to transform how information and data are shared globally,” according to GM’s press release.

Spring Labs which was established in 2017 by the team and board of the lending platform Avant, is presently developing a blockchain-based network which will allow the exchange of information by lenders, banks, and data providers without sharing underlying source information, the startup notes, with an interesting concern on identity information.

Spring Labs was able to raise $14.75 million in a seed funding round which was led by August Capital in last March.

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