General Motors Financial Co. is turning to blockchain technology from Spring Labs to strengthen fraud prevention and detection capabilities.
Spring Labs, which counts GM Financial as its “cornerstone partner” in the auto finance space, is building a blockchain-based network of finance and technology companies, company Founder and Chief Executive Adam Jiwan told Auto Finance News.
GM Financial and Spring Labs were in “active discussions” for a year before the announcement last week, Jiwan said. “GM Financial conducted a thorough review of the team, our use cases, and the architecture of [our client network, called] Spring Protocol,” he added.
GM Financial’s onboarding “will likely require client software and some amount of data standardization to fit into the attestation information exchange model,” Jiwan said.
In addition to fraud prevention measures, Spring Labs is building out technology that would coordinate information flow among dealers.
“Should the auto industry shift away from the purchase [and] lease model over to a subscription-based ownership model, blockchain platforms could be used as a registry to track car-access subscriptions efficiently,” Jiwan said. GM Financial declined request for comment.
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