Integrated Electronic Credit Application System for Automotive Finance
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Solution Overview
Problem
The automotive industry faces inefficiencies in credit application processing and securitization, particularly in the lack of integrated electronic systems for handling credit applications, contracting, and document management, leading to cumbersome paper-based transactions and delayed funding.
Innovation Solution
An integrated electronic system comprising a Credit Application Module for centralized entry and routing, an eContracting Module for same-day funding, and an eDocument Storage Module with digital encryption for secure document transmission, storage, and retrieval, enabling paperless transactions and irrevocable proof of authenticity.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If paper-based transactions are used for credit application processing and securitization, then document authenticity and traceability are maintained through physical signatures, but transaction speed is reduced and administrative burdens increase
Solution Approach 1:
The patent replaces the mechanical paper-based system with an electronic system that uses digital signatures and encryption. The eContracting Module electronically transmits contract information to financing sources, and the eDocument Storage Module stores authenticated electronic documents with digital encryption, eliminating the need for physical paper handling while maintaining security and authenticity through electronic means.
Solution Approach 2:
The patent creates authenticated electronic copies of documents that serve as legal equivalents to physical originals. The eDocument Storage Module stores electronic copies with digital encryption and authentication mechanisms that provide irrevocable proof of authenticity, allowing multiple parties to access and verify document copies without needing to handle physical originals.
2Reliability
If manual credit application routing is used, then funding decisions can be made with human oversight, but processing time is extended and same-day funding is delayed
Solution Approach 1:
The patent introduces an electronic intermediary system (the integrated electronic system comprising Credit Application Module, eContracting Module, and eDocument Storage Module) that facilitates rapid information exchange between dealers, financing sources, and securitization agents. This electronic intermediary enables same-day funding by automating the transmission and processing of credit application information while maintaining human oversight for funding decisions.
Solution Approach 2:
The system performs preliminary electronic routing and preprocessing of credit applications through the Credit Application Module, which electronically transmits application information to appropriate financing sources before human review. This preliminary electronic action prepares and organizes information in advance, enabling faster funding decisions and same-day funding when approved.
3Productivity
If integrated electronic systems are implemented for credit application and securitization, then transaction speed and efficiency are improved, but system complexity and implementation difficulty increase
Solution Approach 1:
The patent divides the integrated electronic system into three distinct functional modules: the Credit Application Module for receiving and routing applications, the eContracting Module for electronic transmission and processing of contract information, and the eDocument Storage Module for secure storage and retrieval of authenticated documents. This segmentation allows each module to be developed, implemented, and maintained independently while working together as an integrated system.
Solution Approach 2:
The integrated electronic system is designed to perform multiple functions across different stages of the credit application and securitization process. The same electronic infrastructure supports credit application routing, contract information transmission, document authentication, storage, and retrieval, eliminating the need for separate systems for each function and reducing overall complexity despite the multi-functional capabilities.
4Reliability
If digital encryption is used for electronic document storage and transmission, then security and authenticity are enhanced, but data processing time and storage requirements increase
Solution Approach 1:
The patent extracts and separates the encryption/decryption functions into dedicated security processes within the eDocument Storage Module. Authentication information is electronically transmitted and stored with digital encryption, and the system provides rapid authenticated retrieval by efficiently managing the encryption/decryption processes. This extraction allows security functions to be optimized independently, minimizing their impact on overall data processing time.
Data Source
AI summary
The present invention is an integrated electronic credit application, contracting, and securitization system and method. In one embodiment, the present invention comprises the following integrated components: a Credit Application Module, an eContracting Module and an eDocument Storage Module. Together the components enable “paper-lese” commercial transactions.