Dynamic Financial Institution Selection for Fund Transfer Optimization

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Solution Overview

Problem

Conventional financial transaction systems cause undesirable delays in fund transfers due to reliance on traditional methods and clearinghouse systems, making funds inaccessible for extended periods.

Innovation Solution

A computer-implemented logic system dynamically selects sending and receiving financial institutions based on proximity to optimize the transfer process by determining the optimal financial institution for routing funds, reducing transfer time and improving accessibility.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If traditional clearinghouse systems are used for fund transfers, then financial institutions can process transactions through established channels, but transfer time increases and funds become inaccessible for extended periods

Engineering Contradiction:

Improvetransaction processing reliabilityVSAvoidfund transfer time

Core Design Contradiction:

ReliabilityVSLoss of time

Solution Approach 1:

The patent segments the fund transfer process by identifying and separating the core transfer function from traditional clearinghouse intermediation. It enables direct peer-to-peer transfers between financial institutions, eliminating unnecessary intermediate processing steps while maintaining transaction reliability through established security protocols.

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

The system performs preliminary actions by pre-establishing transfer routes and authorizing transactions before funds are actually moved. The patent implements pre-authorization mechanisms and advance route determination that prepare the transfer pathway in advance, reducing actual transfer time while ensuring reliability through prior validation.

Inventive Principle:

Principle #10Preliminary action

2Productivity

If dynamic selection of transfer financial institutions is implemented, then transfer efficiency and speed improve, but system complexity increases

Engineering Contradiction:

Improvetransfer efficiencyVSAvoidsystem complexity

Core Design Contradiction:

ProductivityVSDevice complexity

Solution Approach 1:

The patent introduces an intermediary component that manages the complexity of dynamic institution selection. This intermediary system handles the logic for selecting optimal transfer financial institutions based on various criteria, shielding users from the underlying complexity while enabling efficient dynamic routing decisions.

Inventive Principle:

Principle #24Intermediary (Mediator)

Solution Approach 2:

The system dynamically changes parameters such as institution selection criteria, transfer routes, and processing priorities based on real-time conditions. By adjusting these parameters dynamically, the system optimizes transfer efficiency without requiring permanent structural complexity, adapting to changing conditions while maintaining manageable system architecture.

Inventive Principle:

Principle #35Parameter changes

Data Source

PatentUS9582788B2Dynamically selecting sending and receiving accounts

Publication Date: 2017.02.28 DWOLLA INC

AI summary

A computer implemented system for optimizing the transfer of funds from an account holder to an associate is disclosed. The system uses digitally stored logic to identify the geographic location of a first financial institution involved in the transaction. The system dynamically selects from a plurality of financial institutions a second financial institution which is located near the first financial institution to be involved in the transaction. Selecting a second financial institution nearby the first financial institution facilitates the transaction and reduces the time transaction funds are unavailable.