Spring Labs, a US-based blockchain startup recently finished a $23 million first round funding. According to the announcement, the funds will be used to improve the exchange of information between financial institutions.
Spring Labs will use a large part of the funds for the improvement of its blockchain platform Spring Protocol. Three new anti-fraud products that are designed to drastically reduce fraud in the auto finance sector are developed.
These products will be relatively easy to understand and use. They will provide anonymous information to lenders for financing activities like unsecured consumer lending, credit card insurance, business lending, auto lending, etc.
The report shares some unpleasant fact about the current state of the auto finance industry. It’s estimated that between $4 and $6billion are lost every single year. This is only to auto credit via fake IDs.
Spring Labs are doing their part in the fight against fraud
Spring Labs shared their observations on many clone firms. They point out that in the majority of cases, scam artists use a little bit of real information and combine it with the fake. This is done in more than 90% of the false credit accounts.
It should come to as no surprise to anyone that the auto giant General Motors (GM), has been one of the biggest investors in the first funding round. Other big names include the crypto investment bank Galaxy Digital.
This is also not the first project in which Spring Labs and GM participate together.
Earlier this year, GM announced its decision to join the Spring Founding Industry Partners (SPIF) Program. This is a project that is led by Spring Labs and is centered around providing innovative security solutions through extensive research and an ever-increasing exchange of data between the participants.
SPIF currently has over 20 participants and the collaborative research will keep producing greater results. GM itself has shown an increasing interest in blockchain as just last year, the auto giant became one of the earliest members of the Hyperledger blockchain project.
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