Borrowing Schemes for Customizable Credit Management
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Solution Overview
Problem
Traditional credit systems lack flexibility for consumers, as they are based on periodic payments and compounding interest, with little ability for consumers to alter or customize financial terms, leading to inflexible credit arrangements that do not align with individual needs or circumstances.
Innovation Solution
The introduction of various borrowing schemes, such as Chase Simple, Chase Moments, My Chase, Chase Finish Line, Chase Split, and Take Charge, which allow consumers to designate interest-free transactions, set alerts for spending limits, create custom pay-down plans, split payments, and pay certain balances in full, providing greater control over credit usage and management.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If traditional credit systems with periodic payments and compounding interest are used, then credit providers can maintain standardized financial terms, but consumers lose flexibility to customize payment terms and manage credit according to their individual needs
Solution Approach 1:
The patent segments the credit management system into multiple independent borrowing schemes (e.g., fixed payment plans, minimum payment plans, interest-free periods, promotional rates). Each scheme operates as a separate module that consumers can select and combine, allowing customization without overwhelming system complexity. The segmentation enables consumers to divide their credit usage across different schemes based on their specific needs.
Solution Approach 2:
The system implements dynamic credit terms that can change over time and be adjusted by consumers. Borrowing schemes allow consumers to modify payment amounts, due dates, and interest rate applications dynamically. The system adapts to consumer circumstances by allowing changes to payment plans, promotional period extensions, and flexible payoff options, making the credit arrangement responsive rather than static.
2Adaptability or versatility
If promotional periods with no interest or reduced payments are offered, then consumers receive temporary relief, but they still cannot selectively alter or modify credit terms on an as-needed basis after the promotional period ends
Solution Approach 1:
The system allows consumers to pre-select and configure their preferred borrowing schemes before needing them. Consumers can set up multiple payment plans in advance, choose promotional periods beforehand, and pre-arrange payoff schedules. This preliminary configuration reduces the need for reactive changes and provides a framework that can be activated when needed, maintaining both flexibility and predictability.
Solution Approach 2:
The borrowing schemes are designed to be universally applicable across different credit scenarios and consumer situations. A single scheme can serve multiple functions: it can provide promotional periods, establish minimum payments, set fixed payment amounts, or enable interest-free borrowing. This multi-functionality allows consumers to use the same system framework for various credit needs without requiring separate arrangements for each situation.
3Ease of operation
If consumers are required to make periodic payments based on outstanding balance with compounding interest, then credit providers can maintain simple standardized processing, but consumers experience inflexible credit arrangements that do not align with individual circumstances
Solution Approach 1:
The system enables consumers to self-configure their credit arrangements by selecting from predefined borrowing schemes and customizing parameters within those schemes. Consumers can independently set payment amounts, choose promotional periods, and arrange payoff plans without requiring complex manual processing or extensive provider intervention. This self-service approach simplifies the provider's processing burden while maintaining consumer control.
Solution Approach 2:
The system allows consumers to modify key parameters of their credit arrangements, such as payment amounts, payment frequencies, interest rate applications, and promotional period lengths. By enabling parameter changes within a standardized framework, the system maintains processing efficiency while providing substantial customization. Consumers can adjust parameters as their financial situation changes without requiring a complete restructuring of their credit agreement.
Data Source
AI summary
A system and method providing a borrowing scheme. The method comprises the steps of: determining a designated event using the programmed computer processor; determining parameters associated with the designated event using the programmed computer processor; providing incentives to the user via the network, wherein the incentives comprise upgrades, discounts or access associated with the designated event; determining whether a transaction is associated with the designated event using the programmed computer processor; rewarding at least one benefit to the transactions associated with the designated event using the programmed computer processor; and allowing a user to selectively pay down transactions or balance amount(s) associated with the designated event.