Spring Labs announced that 16 FinTech industry leaders have joined its Spring Founding Industry Partners (SFIP) program to help prevent fraud and boost ID verification capabilities.
Spring Labs has been working on its Spring Protocol, a network designed to transform how information and data are shared globally. The companies joining the SFIP program include SoFi, OnDeck Capital, Avant, GreenSky, Funding Circle, BlueVine, Fundation, Upgrade, Fundbox and Better Mortgage, among others. These participants, which have helped fund more than $100 billion in consumer or small business (SMB) loans, are collaborating on the research, development and implementation of Spring Protocol before it launches to the public.
"As an ever-increasing amount of financial transactions move online, new types of mission-critical fraud and ID verification solutions, based on information-sharing, must be developed," said Noah Breslow, CEO of OnDeck Capital, in a press release. "We believe the team at Spring Labs has the right background to galvanize industry leaders around the creation of a new and innovative network."
Spring Protocol is different from existing solutions because it enables participants to exchange information without the need to share underlying data through the use of advanced cryptography and blockchain technology. For financial institutions, the Protocol aims to reduce the risk of data breaches by eliminating the need for data replication, while consumers will be able to decrease the likelihood of their data being compromised in a hack by reducing the replication of data during the standard ID verification and fraud mitigation processes.
"We are extremely excited about the initial partners, and this is an incredible opportunity to expand the development of the Spring Network," said John Sun, president and chief product officer of Spring Labs. "We have plans to include other verticals in the near future, and look forward to announcing those partnerships in the coming months."