Asynchronous Loan Origination for Immediate Debit Authorization
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Solution Overview
Problem
Customers face issues with overdraft fees and delayed transaction authorizations when using debit cards, and credit cards are not universally accepted, leading to inefficiencies and potential transaction failures.
Innovation Solution
An account management system asynchronously triggers a loan data structure origination process during transactions, allowing for immediate authorization and flexible financing options, even when account balances are insufficient, by independently initiating loan origination from the authorization message.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If traditional loan processing is used for insufficient balance transactions, then financing can be provided to customers, but transaction authorization is delayed and processing time increases
Solution Approach 1:
The system performs preliminary actions by sending the authorization request to the POS system immediately when the transaction is initiated, even before the loan origination process completes. The loan origination is triggered in the background asynchronously, allowing the authorization to proceed without waiting for loan processing to finish.
Solution Approach 2:
The system segments the transaction processing into two independent parts: (1) the authorization message transmission to the POS system, and (2) the loan origination process. These are handled separately and asynchronously, so that one does not block the other, resolving the time delay issue while maintaining financing capability.
2Reliability
If synchronous loan origination is performed during transaction authorization, then loan data can be created, but transaction processing speed decreases and error rates increase
Solution Approach 1:
The system uses periodic/asynchronous action by triggering the loan origination process independently after the authorization is sent. The loan data structure creation occurs in periodic batches or asynchronously rather than blocking the transaction flow, maintaining both reliability of loan creation and high transaction processing speed.
3Ease of operation
If debit card transactions are used, then immediate payment capability is provided, but overdraft fees are charged and transaction rejection occurs when balance is insufficient
Solution Approach 1:
The system introduces an intermediary mechanism - the automated loan origination process - that acts as a mediator between the insufficient balance and the transaction requirement. When a debit card transaction is attempted with insufficient funds, the system automatically triggers loan origination to bridge the gap, preventing transaction rejection and avoiding overdraft fees while maintaining ease of operation.
Data Source
AI summary
Disclosed herein are system, method, and computer program product embodiments for asynchronous loan data structure origination. An account management system may receive from a point of sale system, transaction data and a request for authorizing a transaction. In response to receiving the transaction data, the account management system may determine that a difference between a transaction value and an account balance is less than a line of credit parameter. In response to the determining, the account management system may transmit, to the point of sale system, an authorization message indicating that the transaction is authorized. The account management system may also automatically trigger an asynchronous loan origination process to create a loan data structure for a loan balance corresponding to the difference. The asynchronous loan origination process occurs independently from transmitting the authorization message to the point of sale system.