Distributor Portal Electronic Transaction Processing

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Solution Overview

Problem

Current methods for processing changes to annuity contracts are inefficient due to reliance on manual and multi-step communication processes between financial advisors, insurance carriers, and customers, which are time-consuming and prone to errors.

Innovation Solution

A system utilizing a distributor portal for entirely electronic communication and transaction processing, allowing for the initiation and management of various annuity transactions such as funds transfers and asset allocations, by facilitating communication between annuity contract holders and carriers through a messaging protocol.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Productivity

If manual and multi-step communication processes are used between financial advisors, insurance carriers, and customers, then transaction processing can be completed with basic infrastructure, but the process becomes time-consuming and error-prone

Engineering Contradiction:

Improvetransaction processing efficiencyVSAvoidtime for transaction processing

Core Design Contradiction:

ProductivityVSLoss of time

Solution Approach 1:

The patent replaces manual communication processes with an electronic messaging protocol. Financial advisors, insurance carriers, and customers communicate through standardized electronic messages rather than manual phone calls, emails, or physical document exchanges. This substitution of mechanical/manual processes with automated electronic systems directly improves transaction processing efficiency while reducing processing time.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

Solution Approach 2:

The patent implements standardized message formats and protocols that change the parameters of communication. By defining specific message structures, validation rules, and processing standards, the system transforms unstructured manual communication into structured electronic transactions. This parameter standardization enables automated processing, improving both efficiency and speed while reducing errors.

Inventive Principle:

Principle #35Parameter changes

2Productivity

If manual authorization processes are used for annuity transactions, then system complexity remains low, but processing speed and efficiency deteriorate

Engineering Contradiction:

Improvetransaction approval speedVSAvoidelectronic communication system complexity

Core Design Contradiction:

ProductivityVSDevice complexity

Solution Approach 1:

The patent segments the transaction authorization process into distinct electronic message types and handling procedures. Different transaction types (withdrawals, transfers, allocations) are handled through specific message protocols, allowing specialized processing paths. This segmentation enables faster, more efficient processing of each transaction type while managing system complexity through modular design.

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

The patent creates a universal messaging protocol that handles multiple transaction types through a common framework. The same electronic communication infrastructure supports withdrawals, transfers, allocations, and other annuity transactions, reducing overall system complexity while improving processing speed through standardized routines.

Inventive Principle:

Principle #6Universality (Multi-functionality)

3Loss of time

If electronic communication is implemented for all transaction requests, then communication speed and efficiency improve, but system complexity and implementation difficulty increase

Engineering Contradiction:

Improvecommunication time between partiesVSAvoidelectronic communication infrastructure

Core Design Contradiction:

Loss of timeVSDevice complexity

Solution Approach 1:

The patent introduces standardized message formats and protocols as intermediaries between different parties in the electronic communication system. These standardized messages act as a common language that simplifies integration between financial advisors, insurance carriers, and customers, reducing implementation difficulty while maintaining fast electronic communication speeds.

Inventive Principle:

Principle #24Intermediary (Mediator)

Data Source

PatentUS10354331B2Receiving and processing transaction requests using a distributor portal

Publication Date: 2019.07.16 BANK OF AMERICA CORP

AI summary

A method of initiating and processing an annuity transaction request according to a messaging protocol that uses entirely electronic forms of communication is provided. Upon receiving an annuity transaction request at a distributor portal associated with an annuity distribution entity, from an individual associated with the annuity, the distributor portal collects information relevant to the annuity transaction request, such as details about the annuity contract and the particular type of transaction request, and transmits the transaction request to a carrier of the annuity. The receiving, collecting, processing and transmitting is conducted entirely by the distributor portal, which facilities the exchange of electronic communications between the different parties involved.