Credit Line Decisioning with Real-Time Micro-Batch Data
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Solution Overview
Problem
Existing credit line management systems are batch-based, leading to data acquisition delays of up to 2 days and monthly decision-making, which hinders efficient and timely adjustments, increasing the risk of fraud and reducing decision-making accuracy.
Innovation Solution
A system for real-time credit line management that integrates real-time, external credit line information with internal data via a data orchestrator, applies exclusion rules, and uses a credit line decisioning system to make frequent decisions, supported by an interactive visual tool for enhanced monitoring and decision-making.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Speed
If batch-based processing is used to manage credit lines, then system complexity is reduced and ease of operation is improved, but decision-making speed deteriorates with delays of up to 2 days and monthly decision cycles
Solution Approach 1:
The patent segments the batch processing system into multiple micro-batches that process credit line data in smaller, more frequent intervals. This segmentation allows the system to maintain operational simplicity while achieving faster decision-making speeds by processing data in manageable chunks throughout the day rather than waiting for monthly or daily batches.
Solution Approach 2:
The patent implements periodic action by scheduling multiple micro-batch processing cycles throughout the day at regular intervals. This periodic processing approach enables the system to maintain a simple batch-based architecture while achieving near real-time decision-making capabilities through frequent, structured processing cycles.
2Loss of time
If batch-based processing with monthly decision cycles is used, then operational simplicity is maintained, but loss of time increases with delays of up to 2 days for data acquisition
Solution Approach 1:
The patent applies preliminary action by pre-processing and preparing credit line data in micro-batches before final decision-making is required. This allows the system to have data ready in advance with minimal delay, enabling faster response times while maintaining the simplicity of batch-based processing architecture.
3Reliability
If real-time data processing is implemented to improve decision-making accuracy and prevent fraud, then decision-making speed is improved, but device complexity increases requiring data orchestrators and micro-batch processing systems
Solution Approach 1:
The patent introduces a data orchestrator as an intermediary component that coordinates between data sources, micro-batch processing systems, and decision-making engines. This intermediary layer manages the complexity of real-time processing while presenting a simplified interface to users, enabling improved decision-making accuracy without requiring end-users to directly manage system complexity.
Solution Approach 2:
The patent segments the complex real-time processing system into modular micro-batch processing units, each handling specific data transformation and analysis tasks. This modular segmentation allows the system to achieve high decision-making accuracy through comprehensive real-time data analysis while managing complexity through organized, independent processing modules that can be developed and maintained separately.
4Productivity
If frequent credit line decisions are made based on real-time data, then productivity is improved with daily decision-making, but loss of time for data processing and integration increases without efficient micro-batch processing
Solution Approach 1:
The patent segments credit line data processing into multiple micro-batches that are processed in parallel throughout the day. This segmentation enables the system to make frequent credit line decisions with daily or even intra-day updates while minimizing data processing time by distributing the processing load across multiple smaller batches rather than processing all data in single large batches.
Solution Approach 2:
The patent implements continuous useful action by maintaining ongoing micro-batch processing cycles that continuously ingest, process, and analyze credit line data throughout operating hours. This continuous processing approach enables frequent decision-making with minimal delays by ensuring data is constantly being processed and made available for decisions rather than waiting for periodic batch cycles.
Data Source
AI summary
Disclosed systems and methods may receive real-time, external credit line information into one or more source applications. Thereafter, the real-time, external credit line information may be merged with internal credit line information and legacy information via a data orchestrator. The merged information may be further consolidated via the data orchestrator resulting in one or more micro batches of merged credit line information that are transmitted to a credit line decisioning system at frequent intervals. At least one exclusion rule may be applied to the transmitted credit line information, and thereafter, the transmitted credit line information may be provided to an interactive visual tool for real-time credit line management. The interactive interface allows for a user to incorporate real-time credit line information into credit line management decision-making. Thus, the credit line management system described herein provides real-time credit line information to enable real-time decision-making regarding credit line increase, decrease, and closure.