GM Financials, an arm of General Motors which provides auto loan financing through auto dealers in the U.S. and Canada, has joined forces with Spring Labs, a distributed ledger technology (DLT) startup, to enable the latter to develop blockchain solutions aimed at enhancing the processes of GM Financials, including verification of sensitive customer information, reports Forbes on February 11, 2019.
An Overhaul for GM Financial Operations
Per sources close to the matter, in a bid to eliminate the challenges faced while trying to verify vital customer’s information such as credit history and significantly curb the activities of bad actors, GM Financials, an arm of General Motors Company, has entered into partnership with Spring Labs, a blockchain startup that claims to be focused on building a more transparent and secure credit and identity sharing ecosystem.
With the strategic partnership, GM Financials will now join the Spring Founding Industry Partners Program to collaborate with the blockchain firm as it develops highly functional DLT-powered solutions that would revolutionise the operations of GM Financials.
Commenting on the development, CEO of Spring Labs, Adam Jiwan reiterated that the primary objective of the partnership is to develop a series of blockchain solutions that would enhance the activities of both GM Financials as well as those of its parent company, General Motors.
Combating Fraud via Blockchain Technology
Despite the nascent nature of blockchain technology, it’s worth noting that General Motors Company joined the DLT bandwagon in 2017 when it became a member of the Linux Hyperledger project which was launched in December 2015 and it’s dedicated to developing open source enterprise blockchains.
Importantly, Mike Kanarios, Chief Strategy Officer at GM Financial has reportedly declared that the firm remains determined to keep exploring the best use cases for blockchain technology and it firmly believes Spring Labs “has the most momentum in the space.”
The official also noted that the blockchain solution being developed by Spring Labs would help GM Financials to eliminate the menace of synthetic identity fraud, a problem that amounts to huge losses for the firm annually.
If all goes as planned, Jiwan has made it clear that the blockchain solution under development by Spring Labs could serve several other purposes, including blockchain-based registries, payments systems for shared automobile contracts and more.
Interestingly, David Treat, MD and global blockchain lead at Accenture have reportedly said that DLT has a considerable role to play in the automobile ecosystem in general, from vehicle insurance to self-driving cars, traffic control and more.
As reported by BTCManager in December 2018, State Farm https://www.statefarm.com/ announced it had started trialling blockchain technology for auto claims subrogation.