Anonymous Loan Issuance Using Behavioral Profiles
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Existing mobile banking systems require extensive personal data for creditworthiness determination and loan processing, which is time-consuming and increases complexity, especially for nano and micro-loans.
Innovation Solution
A method and system that connects a mobile device to a loan issuance server via a wireless network, using non-identification attributes from an electronic wallet and public data sources to generate a user ID and credit score, allowing for anonymous creditworthiness assessment and loan approval without full name, credit card number, or government ID, and generates a behavioral profile based on location and transaction patterns.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Measurement precision
If extensive personal data is collected for creditworthiness determination, then loan approval accuracy is improved, but processing time and system complexity increase
Solution Approach 1:
The patent extracts only the essential data elements needed for creditworthiness assessment (device identifiers, transaction history, location data) while eliminating unnecessary personal information collection. This selective extraction maintains assessment accuracy while significantly reducing processing time and complexity.
Solution Approach 2:
The system performs preliminary creditworthiness assessments using available device and transaction data before formal loan application. This pre-screening process identifies qualified borrowers in advance, enabling faster processing when loan requests are submitted.
2Measurement precision
If extensive personal data is collected for creditworthiness determination, then loan approval accuracy is improved, but device and system complexity increase
Solution Approach 1:
The patent extracts only the essential data elements needed for creditworthiness assessment (device identifiers, transaction history, location data) while eliminating unnecessary personal information collection. This selective extraction maintains assessment accuracy while significantly reducing processing time and complexity.
Solution Approach 2:
The system creates simplified data models and profiles that capture essential creditworthiness indicators without requiring complex personal data structures. These simplified copies enable accurate assessment while reducing system complexity.
3Reliability
If personal identification data is required for loan processing, then credit history verification is improved, but user anonymity and data security are reduced
Solution Approach 1:
The patent introduces device identifiers and anonymized transaction histories as intermediary data elements that verify creditworthiness without exposing personal identity information. These intermediaries enable reliable credit assessment while preserving user anonymity and security.
Solution Approach 2:
The system segments user data into identification elements (device IDs, anonymized profiles) and verification elements (transaction histories, credit behaviors). This segmentation allows credit verification to proceed using non-identifying data, maintaining anonymity while ensuring reliability.
Data Source
AI summary
A system and method determines the creditworthiness of a consumer and issues a loan and generates a behavioral profile for that consumer. An initial set of data is acquired from the consumer that includes non-identification attributes without obtaining a full name, a credit card number, a passport number, or a government issued ID number that allows identification of the consumer. A user ID number matches the initial set of data to a physical user in a transaction database. A credit score based on the average credit among a plurality of user profiles is matched to determine a maximum credit for the consumer. A loan is credited and a behavioral profile is generated based on the consumer check-ins and location and correlating periodic location patterns to loan and transactional activities.