ATM Passcode Identification for Secured Credit Collateral Deposits
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Solution Overview
Problem
Consumers without credit or poor credit history face challenges in obtaining secured credit products as they must submit collateral checks manually, which is inefficient and requires manual identification by the provider.
Innovation Solution
A system and method allowing applicants to deposit collateral electronically using a smartphone application or ATM, where a passcode is used to identify and associate the deposit with the applicant's account, eliminating the need for manual identification by the provider.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If applicants submit collateral checks manually by mail or in person, then the provider can identify and process the deposit, but the process is inefficient and requires manual identification by the provider
Solution Approach 1:
The system enables applicants to self-identify and deposit collateral electronically using a smartphone application or ATM. The applicant enters a passcode that automatically identifies their account and associates the deposit with their application, eliminating the need for provider staff to manually identify and process the collateral deposit.
Solution Approach 2:
The manual mechanical process of submitting physical checks by mail or in-person at branches is replaced with an electronic digital system. The passcode message transmitted via electronic communication (text message, email, or in-app notification) substitutes for manual verification procedures, enabling automated identification and processing.
2Productivity
If applicants use electronic deposit methods, then processing efficiency improves, but a passcode verification system must be implemented
Solution Approach 1:
Before the electronic deposit process begins, the system pre-generates and transmits a passcode to the applicant through secure communication channels. This preliminary action ensures that the verification mechanism is already in place and ready to be used, streamlining the subsequent deposit process without adding complexity during the actual transaction.
Solution Approach 2:
The passcode serves as an intermediary element between the applicant and the provider's system. Instead of requiring direct complex authentication protocols, the passcode acts as a simple mediator that the applicant can easily provide, enabling secure verification while maintaining system simplicity.
Data Source
AI summary
A secured credit provider computing system is disclosed. The system includes a processing circuit. The processing circuit can provide, to a user computing device, a passcode corresponding to a product. The processing circuit can receive, from an automated teller machine (ATM), a request corresponding to the product and comprising the passcode. Responsive to determining that the passcode is valid, the processing circuit can cause the ATM to accept a check or paper currency corresponding to a collateral deposit for the product. The processing circuit can receive, from the ATM, a message acknowledging the collateral deposit, the message generated by the ATM upon accepting the check or paper currency. The processing circuit can determine that the collateral deposit satisfies a collateral request for the product and transmit, to the user computing device or the ATM, a notification indicating that the collateral deposit has been approved.