Central Depository Identity Validation via Mobile Tokens

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Solution Overview

Problem

Current systems for customer identity validation are costly and inconvenient for service providers and customers, as they require repeated proof of identity to comply with Know Your Customer (KYC) regulations, leading to inefficiencies and increased burdens.

Innovation Solution

A central depository system aggregates and analyzes identity information from multiple sources, creating a unique validation profile for customers, allowing them to generate a unique code for service providers to verify identity electronically, thus reducing the need for repeated proof and streamlining the validation process.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If service providers require customers to provide proof of identity each time they register, then KYC regulations are complied with, but the process becomes costly and inconvenient for both service providers and customers

Engineering Contradiction:

ImproveKYC regulation complianceVSAvoididentity validation convenience

Core Design Contradiction:

ReliabilityVSEase of operation

Solution Approach 1:

The system performs identity validation in advance by having customers provide proof of identity once to a central depository. The depository then stores validated identity information and provides validation tokens to customers, eliminating the need for repeated validation processes when customers register with different service providers.

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

A central depository acts as an intermediary between customers and multiple service providers. The depository validates customer identity information once and then provides validation tokens to service providers, serving as a trusted mediator that eliminates the need for each service provider to independently verify customer identity.

Inventive Principle:

Principle #24Intermediary (Mediator)

2Reliability

If service providers independently verify customer identities, then KYC requirements are met, but costs increase for both service providers and customers

Engineering Contradiction:

Improveidentity verification accuracyVSAvoidvalidation cost

Core Design Contradiction:

ReliabilityVSLoss of energy

Solution Approach 1:

The system merges the identity validation function into a centralized depository that serves multiple service providers. Instead of each provider independently verifying identity, the depository consolidates validation efforts, reducing redundant verification costs while maintaining verification accuracy through a single trusted source.

Inventive Principle:

Principle #5Merging (Combining)

Solution Approach 2:

The depository creates and distributes validation tokens that serve as copies of the validated identity information. Service providers can verify customer identity by checking these tokens rather than performing full verification processes, significantly reducing validation costs while maintaining reliability.

Inventive Principle:

Principle #26Copying

3Reliability

If physical documentation is required for identity validation, then proof of identity is provided, but the process becomes cumbersome and requires repeated submission

Engineering Contradiction:

Improveproof of identityVSAvoidvalidation time

Core Design Contradiction:

ReliabilityVSLoss of time

Solution Approach 1:

The system replaces the mechanical process of physically submitting documentation with each service provider with an electronic token-based system. The depository stores validated identity information and provides electronic validation tokens that service providers can verify digitally, eliminating the need for repeated physical documentation submission and reducing validation time.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

4Productivity

If a central depository aggregates identity information from multiple sources, then validation efficiency improves, but system complexity increases

Engineering Contradiction:

Improvevalidation efficiencyVSAvoidsystem structure

Core Design Contradiction:

ProductivityVSDevice complexity

Solution Approach 1:

The central depository is designed as a universal system that can validate customer identities across multiple service providers and various types of identification documents. This multi-functional approach consolidates what would otherwise require multiple separate validation systems, improving efficiency while managing complexity through a single standardized platform.

Inventive Principle:

Principle #6Universality (Multi-functionality)

Data Source

PatentUS10467624B2Mobile devices enabling customer identity validation via central depository

Publication Date: 2019.11.05 PAYPAL INC

AI summary

A mobile device is provided that allows a user to generate and present a unique code/token to a service provider for customer identity validation. The service provider may use the unique code/token to retrieve or verify identity information/documents from a central depository to validate the identity of the customer to meet a Know-Your-Customer (KYC), or other identification requirements. The central depository or a central database may facilitate customer identity validation from multiple participants. Information related to proofs of customer identity may be collected and aggregated from multiple verification points and may be used to provide customer identity validation. As such, customers do not have to provide the same proofs of identity again when registering with a new service provider.