The world is slowly, yet surely, getting accustomed to decentralized networks controlling vital aspects of modern life. In the same way that cryptocurrencies tackled financial institutions head-on, this week’s startup, Spring Labs, is redefining what it means to control and exchange data (credit + identity) in a decentralized way.
⚾ The Elevator Pitch:
When you think of data management, there are three baseline components: (a) transparent permissioning, (b) privacy protection, and (c) data augmentation. These three tenets always need to be met regardless of the type of system being used to transport data - decentralized or centralized.
This is where Spring Labs comes in. Spring Labs has developed a patented tokenization and matching technology that facilitates the secure sharing of sensitive data. They are primarily focused on using this technology to increase access to financial services via a ‘credit invisible’ consumer experience - instead of solely relying on credit reports (a highly centralized system), lending institutions can now use data points that were once ignored like utility bills, telecom bills, subscriptions, and more to make underwriting decisions.
👇 The Drop Down
Stage: Series B
Tech trend: Medtech
Traction: Raised $30M in Series B from TransUnion, Multiple products are available around Secure Data Exchange, Income Stability Indicators, Featured on Forbes and TechCrunch
Team: Credit & Financial Experts
Adam Jiwan | Anna Fridman | John Sun
🔍 Why we like it
- 📈 Data is powerful .. and they have all of it
Although traditional credit checks have been effective till date to accurately predict someone’s ability to complete payments, nobody has questioned the process till recently. In a world that is quickly moving into newer transaction frameworks — Airbnbs instead of long-term-rents, crypto payouts instead of fiat transactions, no car but an ‘Uber subscription’ — the old credit system no longer covers all the bases. Spring Labs realizes this and has made it a priority to tap into all the data - not just watch traditional credit systems check for. Today, Spring Labs checks for everything like telecom bills, utility companies, insurance companies, subscriptions, and more to make their decentralized credit assessments.
- 👫 Transparency will win
One of the biggest criticisms of the traditional credit system is that there is zero transparency in how it is calculated. The status quo is, a person goes to a bank and walks out with a number which defines their quality of life - with zero explanation on how that number is defined. Yes, there are some indicators that are recommended to improve, but the exact calculation is hidden.
Spring Labs questioned this altogether. They built ISI (Income Stability Indicators) that uses 300+ granular attributes to generate easy-to-use risk scores for lenders to holistically evaluation applications for underwriting. Best part is? — ISI is completely transparent for the consumers.
🤝 Get involved with Spring Labs
- Connect with them on Twitter and LinkedIn
- Check out this Forbes article about Spring Labs
- Check out their website!