Bloom has announced the details of a partnership with BMW Group Financial Services that will help in simplifying the Group’s customer lending experience during the 10-day BMW Collaboration Lab 2018.
BMW’s Blockchain Push
BMW invited 212 domestic and international startups applicants to sell their ideas to a panel of Judges drawn from BMW of North America, BMW Financial Services and L Marks. The panel of Judges selected six startups to join the 10-week collaboration, and blockchain-based Bloom Inc. was among them.
Bloom proposed to use the crucial public-private encryption that drives the blockchain technology to help in authenticating and proving a customer’s credit history without keeping the customers’ private data on their servers.
Bloom’s head of Partnerships Anne Ching stated:
“Bloom is excited to participate in such a forward-thinking initiative. I’m excited to be working with the BMW Financial Services team to build a streamlined and easy lending experience to improve the customer journey.”
BMW Group Financial Services in the U.S. announced a 10-day accelerator program in May dubbed BMW Financial Collaboration Lab 2018.
Actualizing Blockchain and Fintech in Core Businesses
The aim was to provide startups in the Fintech and blockchain-related areas a chance to partner with the Group to develop their ideas and realize game-changing and innovative technologies that will ultimately benefit dealers, consumers, and partners. They accepted submissions for consideration between May 8, 2018, and June 17, 2018.
The Chairman of L Mark Stuart Marks remarking on the 10-day program said:
“The BMW Group Financial Services Collaboration Lab is an exciting way to unearth and nurture talent and develop new solutions to some of the challenges the industry is facing.”
Bloom proposes to introduce decentralized lending using a decentralized global credit scoring system that will overturn the current system if financing. Decentralized lending will reduce default rates and bring more certainty to the lending market by using better tools to access credit risk and lending requests.
By reducing default rates and unhealthy loans, lenders will take less risk and therefore reduce the cost of finance. Bloom plans to fix this via a mobile-based App that will secure data on an individual’s local device using a seamless onboarding process.