Electronic Lending System Online Loan Application
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Solution Overview
Problem
Current online banking systems do not offer on-line lending services, requiring customers to have an established account or line of credit, limiting access to loan applications and qualification verifications.
Innovation Solution
A method for customers to apply for loans online through a computer interface, involving authentication, risk analysis, and approval processes, allowing for streamlined entry into on-line lending services by receiving and reviewing customer information, performing credit checks, and presenting terms and conditions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If online banking systems require customers to have an established account or line of credit before accessing lending services, then system security and customer verification are improved, but accessibility and convenience of loan applications deteriorate
Solution Approach 1:
The system segments the lending service access into two paths: existing customers can access through their established accounts, while new customers can apply through a separate online application process that collects necessary information without requiring pre-existing account setup. This segmentation resolves the contradiction by providing differentiated access routes.
Solution Approach 2:
The system performs preliminary customer verification and information collection during the online application process itself, gathering necessary identification and financial data before loan approval. This preliminary action eliminates the need for customers to have established accounts beforehand, improving accessibility while maintaining verification standards.
2Reliability
If traditional offline loan application processes are used, then thorough verification and risk analysis are ensured, but processing time and customer convenience deteriorate
Solution Approach 1:
The system replaces manual offline verification processes with automated electronic verification systems that can check customer information, credit history, and risk factors electronically. This substitution maintains thorough verification accuracy while dramatically reducing processing time from days to minutes.
Solution Approach 2:
The system implements automated feedback loops where verification results, risk analysis outcomes, and approval decisions are immediately communicated to applicants through the online platform. This real-time feedback mechanism maintains rigorous verification standards while eliminating the delays associated with traditional mail or in-person communication cycles.
3Measurement precision
If comprehensive customer information collection is performed, then loan approval accuracy and risk assessment are improved, but system complexity and data processing requirements worsen
Solution Approach 1:
The system employs a universal customer information collection platform that serves multiple functions: it gathers data for loan applications, performs initial verification, conducts risk assessment, and creates customer profiles for future services. This multi-functionality reduces overall system complexity by consolidating what would otherwise require separate systems for each function.
Solution Approach 2:
The system implements a nested information architecture where customer data is collected in hierarchical layers: basic identification information, financial information, and detailed verification data are nested within progressively more comprehensive profiles. This nesting allows the system to access only the necessary level of detail for each specific verification task, managing complexity while maintaining assessment accuracy.
Data Source
AI summary
A method for interfacing with a financial institution using a computer interface is disclosed for on-line or E-Lending. A customer selects a lending product on the website of a financial institution. The financial institution receives information to authenticate the customer, and receives additional information related to the financial history and lending needs from the customer. The terms and conditions related to the lending product are presented to the customer and an authorization to an application is received from the customer. A risk analysis is performed using information received from the customer and the application of the loan is subject to approval based at least in part on the risk analysis. The third set of information related to insurance, disclosures, etc is received from the customer and a fourth set of information related to the closing information is provided back to the customer. The loan may be further closed on-line or with an attorney or agent.