On September 11, the BMW financial – unit of the multinational automobile major, and a blockchain startup Bloom announced their partnership to streamline the customers lending experiences.
The cooperation is part of the first-ever organized BMW Collaboration Lab – a 10-week program created for 6 startups that are selected from a total of 212 applications. The main idea of the program is to give further mentoring, try out their products, and offer them an opportunity to network with the experts of their industry.
Bloom offers Ethereum powered, decentralized credit scoring. Their protocol IPFS Bloom is made to estimate credit risk via “federated attestation-based identity verification and the creation of a network of peer-to-peer and organisational creditworthiness vouching (“credit staking”)”, as said in the white paper of the company.
The main idea behind the collaboration is to improve the BMW’s customers applying process for financing. Both of the companies agreed, that the existing process is too complicated. Other aim of the project is to enhance the current security level of customer data.
The role of Bloom is to build a technology for BMW that allows the customer apply for financing from their local devices like mobile phone, while being insured that their data is not risked at any point.
The announced collaboration is not the first time from BMW to show major interest in the blockchain technology. Last May, the german automobile giant made a partnership with cryptocurrency startup DOVU in order to build a reward system on digital assets.
BMW is also known to be part of the Mobility Open Blockchain Initiative (MOBI) – a consortium of automobile manufacturers aiming to improve mobility by using blockchain technologies.
Author: Sarah Tuuli