Accounts Confirmation System Using Third-Party Identity Verification API
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Solution Overview
Problem
The existing accounts confirmation process for financial institutions is time-intensive and lacks transparency, as auditors must manually communicate confirmation status and cannot electronically send financial information due to security concerns, relying on physical mail and risking third-party access to customer data.
Innovation Solution
A computerized system utilizing specialized software with a third-party identification verification server API, allowing real-time identity verification and status tracking, and creating an audit trail to ensure secure electronic communication and compliance monitoring.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If physical mail is used for confirmation requests, then security of financial information is maintained, but the process becomes time-intensive and lacks transparency
Solution Approach 1:
The patent introduces a third-party verification server as an intermediary between the auditor and the customer. This server securely stores customer identification information and facilitates verified electronic communication without exposing financial data to unauthorized parties. The intermediary enables electronic confirmation while maintaining security through controlled access and verification protocols.
Solution Approach 2:
The patent replaces the mechanical physical mail system with an electronic communication system. Instead of mailing physical confirmation requests and processing responses through postal services, the system uses secure electronic transmission via email and a verification server, dramatically reducing time while maintaining security through cryptographic protocols and controlled access.
2Productivity
If electronic communication is used for confirmation requests, then the process becomes faster and more transparent, but security concerns arise regarding third-party access to customer data
Solution Approach 1:
The verification server acts as a trusted intermediary that enables electronic communication without exposing customer financial information to unauthorized third parties. The server verifies customer identity and facilitates secure transmission of confirmation data through controlled channels, maintaining security while enabling automation.
Solution Approach 2:
The system creates a verified copy of the communication process through electronic transmission. Instead of relying on physical documents that can be lost or intercepted, the system creates digital copies that can be securely transmitted, tracked, and stored, providing transparency and accountability while maintaining security through encryption and verification protocols.
3Device complexity
If manual status communication is used, then the system remains simple, but the auditor and financial institution lack real-time visibility into the confirmation process
Solution Approach 1:
The system implements continuous feedback mechanisms where the verification server automatically updates the status of confirmation requests and responses. The auditor receives real-time information about the confirmation process status, and the financial institution can monitor progress, eliminating information gaps and providing transparency without requiring complex manual tracking systems.
Data Source
AI summary
A computerized system for performing accounts confirmation of a financial institution's customers. The computerized system solves the security problem of electronically presenting financial information to the financial institution's customers for confirmation. In one embodiment, the system includes specialized software that makes calls using an application programming interface (“API”) of a third-party identification verification server, which allows the auditor to verify the identity of the financial institution's customers prior to providing financial information to be confirmed.