Automated Bill Payment Data Transfer Between Financial Institutions

Solution Overview

Problem

Customers are reluctant to switch banks due to the high transaction costs associated with transferring bill payment information from one financial institution to another, making it difficult for banks with better products to acquire customers with existing bill payment setups.

Innovation Solution

A system and method that allows a second financial institution to automatically transfer bill payment information from a first financial institution by receiving a request from the customer, using account access information to acquire the information from either the customer's personal financial manager or the first bank, and setting it up in the second account, utilizing protocols like OFX for communication.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Adaptability or versatility

If a customer switches from one bank to another, then the customer can access better products and services, but the customer incurs high transaction costs by re-entering bill payment information

Engineering Contradiction:

Improveability to switch banksVSAvoidtime to re-enter bill payment information

Core Design Contradiction:

Adaptability or versatilityVSLoss of time

Solution Approach 1:

The system performs preliminary action by automatically transferring bill payment information from the old bank to the new bank before the customer needs to use it. The information is retrieved using account access credentials provided by the customer, eliminating the need for manual re-entry and reducing switching time.

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The new bank acts as an intermediary between the old bank and the customer's bill payment system. It automatically requests and receives bill payment information from the old bank using the provided account access credentials, then sets up this information in the new account, serving as a mediator that facilitates the transfer without requiring customer intervention.

Inventive Principle:

Principle #24Intermediary (Mediator)

2Adaptability or versatility

If a customer switches from one bank to another, then the customer can access better products and services, but the customer incurs high transaction costs by re-entering bill payment information

Engineering Contradiction:

Improveability to switch banksVSAvoidease of setting up bill payment information

Core Design Contradiction:

Adaptability or versatilityVSEase of operation

Solution Approach 1:

The system performs preliminary action by automatically transferring bill payment information from the old bank to the new bank before the customer needs to use it. The information is retrieved using account access credentials provided by the customer, eliminating the need for manual re-entry and reducing switching time.

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The system enables self-service by allowing the customer to provide account access credentials once, then the new bank automatically retrieves and sets up all bill payment information without requiring the customer to manually re-enter data. The customer initiates the process but the system completes it autonomously.

Inventive Principle:

Principle #25Self-service

3Productivity

If banks offer incentives to attract customers, then customer acquisition improves, but the benefits are lost when customers with bill payment information remain sticky

Engineering Contradiction:

Improvecustomer acquisition rateVSAvoidability to switch banks

Core Design Contradiction:

ProductivityVSAdaptability or versatility

Solution Approach 1:

The system performs preliminary action by automatically transferring bill payment information from the old bank to the new bank before the customer needs to use it. The information is retrieved using account access credentials provided by the customer, eliminating the need for manual re-entry and reducing switching time.

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The new bank acts as an intermediary between the old bank and the customer's bill payment system. It automatically requests and receives bill payment information from the old bank using the provided account access credentials, then sets up this information in the new account, serving as a mediator that facilitates the transfer without requiring customer intervention.

Inventive Principle:

Principle #24Intermediary (Mediator)

Data Source

PatentUS7848974B1Electronic acquisition of bill payment information from a financial account

Publication Date: 2010.12.07 JPMORGAN CHASE BANK NA

AI summary

A system and method for computer-implemented method for setting up customer bill payment information associated with a first financial account maintained by a first financial institution in a second account maintained by a second financial institution is provided. A request to transfer bill payment information from a first account with a first financial institution into a second account with a second financial institution is received from a customer, wherein the first account comprises first customer bill payment information, and wherein the transfer request comprises account access information usable to access the first account. The customer bill payment information is acquired by the second financial institution using a computer. The customer bill payment information is set up in the second account.