Automated Clearing House Segmented Payment and Settlement Systems

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Solution Overview

Problem

Existing automated clearing house systems face complexity and liquidity challenges in supporting multiple interactions and service offerings, leading to increased difficulties in managing assets and ensuring liquidity across various transactions.

Innovation Solution

A computer-implemented system separates payment systems from settlement systems, allowing for modular transaction flows and a common liquidity pool, enabling efficient management of assets and reducing the need to set funds against each service offering.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Adaptability or versatility

If automated clearing house systems support multiple interactions and service offerings, then the versatility and adaptability of the system improves, but the complexity of managing assets and ensuring liquidity across various transactions increases

Engineering Contradiction:
Improveability to support multiple interactions and service offeringsVSAvoidcomplexity of managing assets and ensuring liquidity
Core Design Contradiction:
Adaptability or versatilityVSDevice complexity

Solution Approach 1:

The automated clearing house system is segmented into multiple independent payment systems, each handling specific interactions or service offerings. Each payment system has its own defined transaction flows and can be independently configured, allowing the overall system to support diverse interactions without increasing management complexity across the entire system.

Inventive Principle:
Principle #1Segmentation

Solution Approach 2:

A common liquidity pool is implemented that serves all payment systems within the automated clearing house. This universal liquidity mechanism allows multiple payment systems to share the same liquidity resources, eliminating the need to set funds against each individual service offering and simplifying asset management despite the system's versatility.

Inventive Principle:
Principle #6Universality (Multi-functionality)

2Reliability

If funds are set against each service offering to ensure liquidity, then the reliability of each service is improved, but the complexity and inefficiency of asset management increases

Engineering Contradiction:
Improveliquidity assurance for each service offeringVSAvoidefficiency of asset management
Core Design Contradiction:
ReliabilityVSProductivity

Solution Approach 1:

Multiple payment systems are merged into a single automated clearing house structure that shares a common liquidity pool. This consolidation allows all service offerings to draw from the same liquidity resources, maintaining reliability for each service while dramatically improving asset management efficiency by eliminating redundant fund allocations.

Inventive Principle:
Principle #5Merging (Combining)

Solution Approach 2:

The common liquidity pool serves as a universal resource for all payment systems and service offerings within the automated clearing house. This single liquidity mechanism provides reliability assurance across multiple services without requiring separate asset management processes for each offering.

Inventive Principle:
Principle #6Universality (Multi-functionality)

3Adaptability or versatility

If the automated clearing house system is constructed with multiple payment systems and settlement systems, then the adaptability to different interactions is improved, but the device complexity increases

Engineering Contradiction:
Improvesupport for different interactions and rulesVSAvoidsystem architecture complexity
Core Design Contradiction:
Adaptability or versatilityVSDevice complexity

Solution Approach 1:

The system is segmented into distinct payment systems and settlement systems with clearly defined interfaces and responsibilities. Each payment system can be independently configured to support different interactions and rules, while the modular architecture prevents the overall complexity from becoming unmanageable.

Inventive Principle:
Principle #1Segmentation

Data Source

PatentEP4411614A1Clearance and settlement of transactions
Publication Date: 2024.08.07 VOCALINK LTD
  • EP4411614A1 patent drawingFigure 1
  • EP4411614A1 patent drawingFigure 2~3
  • EP4411614A1 patent drawingFigure 4

AI summary

A computer-implemented system operative to function as an automated clearing house (20) for transactions is described. The system comprises communication means (46) for sending and receipt of transaction-related information to a plurality of financial entities. It also comprises one or more payment systems (41) comprising defined transaction flows, messaging and orchestration of interactions between the automated clearing house and other financial entities. It also comprises one or more settlement systems (42) comprising a defined settlement method. Using the automated clearing house (20), a transaction is cleared and settled through the action of one of the payment systems (41) and an associated settlement system (42). A method of establishing a computer-implemented automated clearing house is also described.