Embedded Account Opening APIs for Frictionless Third-Party Checkout
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Solution Overview
Problem
Existing electronic transactions require users to set up source and destination accounts in advance, leading to inconvenience and potential loss of opportunities due to the delay and complexity of the process, especially when making purchases without a pre-existing account.
Innovation Solution
A system and method that integrates account-open functionality via third-party platforms, allowing users to establish new accounts without leaving the third-party environment, using APIs and SDKs to facilitate seamless account setup and access to financial institution services directly from third-party applications.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If users set up accounts in advance at third-party websites, then account security and proper verification are improved, but user convenience and transaction speed deteriorate due to the need to leave the third-party environment and complete separate account setup procedures
Solution Approach 1:
The patent combines the account setup process with the third-party service environment by integrating the financial institution's account opening functionality directly into the third-party website. This allows users to complete account verification and setup without leaving the third-party interface, thereby maintaining both security requirements and user convenience.
Solution Approach 2:
The patent introduces an intermediary integration layer that connects the third-party website with the financial institution's account management system. This intermediary enables seamless communication between the two systems, allowing account verification and setup to occur within the third-party environment while maintaining the security protocols of the financial institution.
2Reliability
If users visit a third-party website to set up an account before making a purchase, then account establishment is improved, but transaction time and opportunity loss worsen due to the delay and additional steps required
Solution Approach 1:
The patent enables users to perform account setup actions in advance within the third-party environment itself, rather than requiring a separate visit to the financial institution's website. The integration allows account verification and establishment to occur before the actual transaction, eliminating the need for users to leave the third-party site and reducing overall transaction time.
Solution Approach 2:
By merging the account establishment process with the third-party service workflow, the system allows users to complete necessary account setup steps as part of the natural transaction flow, thereby eliminating separate time-consuming steps and reducing the loss of transaction opportunities.
3Ease of operation
If the system integrates multiple functionalities into third-party services via APIs, then user access convenience is improved, but system complexity and security permission management worsen
Solution Approach 1:
The patent segments the API functionality into distinct modules, each handling specific financial operations such as account verification, account opening, and transaction processing. This segmentation allows the system to manage complexity by organizing functions into discrete, independently manageable units while maintaining ease of access through the unified third-party interface.
Solution Approach 2:
The patent implements local quality by assigning different access permissions and security levels to different API functions and data types. Rather than applying a uniform security model, the system tailors permission settings to specific functionalities and user contexts, thereby managing complexity through differentiated access control while maintaining overall system security.
Data Source
AI summary
A computing system may include a network circuit configured to communicate with a third party computing device via a network, one or more interface elements (e.g., application programming interfaces and/or software development kits) providing account open functionality, and an account open circuit configured to: accept, via the interface elements, a set of user data and an account open request for opening a new account with the provider, where the set of user data is received from a user computing device of a user via a third party website or application; establish the new account by generating a set of account data associated with the new account without directing the user to the operating environment of a website or application of the provider; and transmit the set of account data to the third party computing device for use by the third party computing device in a transaction with the user.