TransUnion invests in Spring Labs to bolster information security and consumer privacy
TransUnion is trying to show the industry just how focused on information security and consumer privacy the company really is.
The company said its latest example of commitment to build and invest in technology to help businesses and consumers transact in an increasingly digital marketplace arrived recently with a preferred equity investment and strategic cooperation agreement with Spring Labs, an advanced cryptography and blockchain based financial technology firm transforming the exchange of sensitive data.
According to a news release, the companies are collaborating to increase access to Spring Labs’ data exchange network and products, while enabling TransUnion to expand protection of sensitive consumer data and promote transformative technology in its business.
“Spring Labs built a state-of-the-art technology protocol that cryptographically transforms and anonymizes data to unlock new data and products,” said Steve Chaouki, president of U.S. markets at TransUnion, who is joining the Spring Labs board of directors.
“The ability to securely exchange information without revealing the underlying data and identity of network participants creates opportunities for our customers and the consumers they serve through sharing of historically siloed data,” Chaouki continued in the news release
TransUnion highlighted that Spring Labs is “revolutionizing” the way consumer financial data is stored and shared among financial services institutions with a network foundation known as the Spring Protocol.
This privacy-preserving information exchange can return control and value to data owners, unlocking new data sources and enabling competitively sensitive parties to collaborate for the common good.
Spring Labs’ advanced cryptography can allow strict control of information visibility, and its permissioned blockchain can provide a time-stamped, immutable record and audit trail. The company explained this approach can offer a “rare” combination of transparency and privacy, uniquely suited to data exchanges in instances where participants may be concerned about sharing with competitors.
For example, finance companies and lenders can exchange information to identify fraud or verify identities without disclosing underlying data.
“We are thrilled to announce TransUnion’s investment and related cooperation agreement. With tens of thousands of customers, TransUnion is the ideal partner for Spring Labs as a respected global information and insights company that shares our commitment to stewarding sensitive data. We see multiple avenues for collaboration, including the extension of our products, services and network to TransUnion’s customers,” said Adam Jiwan, co-founder of Spring Labs.
“Additionally, by joining our board, Steve will help drive continued growth for Spring Labs through his deep understanding of the business, data and analytics needs of financial services and other industries,” Jiwan added.
At the core of this relationship, TransUnion will help expand existing Spring Labs’ networks to new organizations, as well as develop new networks based on customer needs and interests.
“Our core promise is to make trust possible between businesses and consumers,” said Marko Ivanov, senior vice president at TransUnion and Spring Labs partnership lead. “Spring Labs resolves the challenge of information sharing among competitors without inhibiting competition while providing regulatory transparency and protecting consumer privacy.
“In addition, the flexibility and ease of integration of the Spring Protocol will enable rapid design and deployment of new networks in numerous industries across multiple use cases including credit risk, fraud and marketing. We are excited about the possibilities,” Ivanov went on to say.
Spring Labs recently demonstrated the potential of its technology by deploying a network for data sharing among Property Assessed Clean Energy (PACE) financing providers, launched in the fourth quarter.
Network participants estimate it could save up to $10 million in fraud or 1% of total industry loan transactions.