Credit Card Application System Using Purchasing Power Indicators

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Solution Overview

Problem

Customers without established credit histories or low FICO scores are often denied credit cards, posing a challenge for retail stores seeking to retain customers and build loyalty.

Innovation Solution

A system and method that utilize purchasing data to estimate a customer's creditworthiness, allowing for the submission of a credit card application to a bank and, if denied, requesting reconsideration based on a purchasing power indicator or overriding the denial with a predicted credit score.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If traditional credit score assessment is used, then credit card issuance reliability is improved, but customers without established credit histories are denied

Engineering Contradiction:

Improvecredit card issuance reliabilityVSAvoidadaptability to customers without credit history

Core Design Contradiction:

ReliabilityVSAdaptability or versatility

Solution Approach 1:

The patent changes the assessment parameter from traditional FICO credit scores to alternative data parameters including purchasing behavior, payment history, and demographic information. This allows the system to evaluate creditworthiness of customers without established credit histories by using different measurement parameters that still predict repayment reliability.

Inventive Principle:

Principle #35Parameter changes

Solution Approach 2:

The patent introduces an intermediary assessment layer between the customer and the traditional credit scoring system. This intermediary system aggregates alternative data from multiple sources (purchasing data, payment data, demographic data) and generates an alternative credit score that mediates the decision-making process, allowing customers without traditional credit history to be evaluated through intermediate metrics.

Inventive Principle:

Principle #24Intermediary (Mediator)

2Adaptability or versatility

If alternative data is used to assess creditworthiness, then customer coverage is improved, but assessment accuracy may deteriorate

Engineering Contradiction:

Improvecustomer coverageVSAvoidcreditworthiness assessment accuracy

Core Design Contradiction:

Adaptability or versatilityVSMeasurement precision

Solution Approach 1:

The patent combines multiple different data types (purchasing behavior, payment history, demographic information, transaction frequency) into a composite alternative credit score. This composite approach mirrors how diverse data sources are integrated to create a more robust and accurate credit assessment, similar to how composite materials combine different properties to achieve superior performance.

Inventive Principle:

Principle #40Composite materials

Solution Approach 2:

The patent implements feedback mechanisms where the alternative credit assessment results are continuously refined based on actual repayment behavior. The system learns from outcomes and adjusts the weighting and selection of alternative data parameters, improving measurement precision over time as more data becomes available from the expanded customer base.

Inventive Principle:

Principle #23Feedback

Data Source

PatentUS10692139B2System, method, and non-transitory computer-readable storage media for applying for a credit card

Publication Date: 2020.06.23 WALMART APOLLO LLC

AI summary

In different embodiments of the present invention, systems, methods, and computer-readable storage media related to an application for a credit card for a target customer. A credit card application is prepared based on information associated with the target customer. If the credit card application is denied, then either (1) a request for reconsideration or (2) an override is prepared based on an established purchasing power indicator associated with the customer.