BMW Selects Blockchain Startup Bloom to Develop Customer Lending Solution
German automotive giant, BMW selects blockchain startup Bloom to develop customer lending solutions with the aim of streamlining its financial services for its customers.
Launching a ‘BMW Financial Services Collaboration Lab’ (BMW FSCL), Bloom together with five other start-ups shortlisted from 212 applicants, will collaborate in a 10-week lab at BMW Financial Services’ offices in Hilliard, Ohio, to further develop their ideas, alongside leading subject matter experts in the automotive and financial sectors.
The BMW FSCL aims to digitalise the customer journey, critical areas that the the program will focus on are data analytics, insights and building a blockchain strategy. Ian Smith, the CEO of BMW Group Financial Services USA, stated that BMW is:
“looking to examine any and all methods of how blockchain ledgers could support the transformation of current data warehousing, payment, and customer information tracking.”
Smith went on to explain that BMW’s goal is to automate a large part of their processing, and focus more on tracking and securing of information.
Bloom already has an extensive team of highly qualified technologists, scientists and mathematicians led by Jesse Leimgruber, a Stanford Computer Scientist, that have utilised blockchain technology to increase security of consumer data in the lending process.
Bloom’s blockchain-based mobile application has been designed to allow users to secure their data on their own local device, thus applying for credit without exposing data to risk. Furthermore, Bloom aims to revolutionise the way individuals apply for financing, through its inclusive and straightforward on-boarding process.
Based on the Ethereum blockchain, Bloom are not short of funding, having raised $41 million in their ICO that closed on January 1st. Anne Ching, Head of Partnerships at Bloom stated that Bloom is:
“excited to be working with the BMW Financial Services team to build a streamlined and easy lending experience to improve the customer journey,”
The program will be funded by L Marks, who together with BMW intend to give these nascent technologists free reign to explore ideas whatever the cost. Stuart Marks, Chairman of L Marks stated:
“The next 10 weeks will see these impressive startups embark on an exciting journey to bring their ideas to life”
BMW has been actively investing in blockchain technology with aim of solving a wide variety of problems, from the manufacturing through to finance. The multinational car maker is also a founding member of the Mobility Open Blockchain Initiative (MOBI), alongside Ford, GM, IBM and over 30 others that aim to accelerate the adoption of distributed ledger technology in the automobile industry.
As per a previous BCTech Report, Europe’s largest car buyer Auto1 partnered with Deutsche Bank and Allianz to create a blockchain car financing platform entitled ‘Auto1 Fintech’.