A wholly-owned subsidiary of General Motors, the giant automaker, GM Financial, has turned to blockchain to prevent fraud and identity theft in the financial sector.
In a press release, GM Financial has announced a partnership with a blockchain startup, Spring Labs, which is working on a protocol that utilizes the power of the distributed ledger technology to facilitate secure sharing of financial information and other related data.
The partnership signaled that GM Financial is now a member of the Spring Foundation Industry Partners (SFIP) program. The program is meant to help technology partners, financial institutions, and data furnishers, to harness the power of blockchain to prevent fraud.
In order to comprehensively use blockchain to prevent fraud among other vices in the financial sector, all members of the SFIP program will be actively involved in the Spring Protocol up to its implementation.
While announcing the partnership, GM Financial’s Chief Strategy Officer, Mike Kanarios, said:
As the captive finance arm for the General Motors and one of the world’s largest auto finance providers, we are continually innovating and evolving out fraud prevention and detection capabilities to better serve and protect our customers and dealers. 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.
Adam Jiwan, Spring Lab’s CEO noted that they are focusing on a protocol that would eliminate the “vexing economic problems such as identity theft.” Jiwan added that they are also exploring solutions that are specifically tailored to fit in the auto finance sector.
GM Financial noted that turning to blockchain to prevent fraud is an indication of their commitment to improving industry data standards.
As GM Financial turns to blockchain to prevent fraud, do you think companies have started appreciating the power of the distributed ledger technology without the cryptocurrency bit?
Let us know your thoughts in the comments section below.