Federated Directory Funds Transfers Without Multiple Credentials

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Solution Overview

Problem

Existing peer-to-peer (P2P) funds transfer systems require complex and time-consuming authentication and identification processes, necessitating users to enroll in multiple payment directories with different credentials, which is cumbersome and insecure.

Innovation Solution

A federated directory management system that normalizes data from multiple P2P directories, resolves data collisions, and facilitates fund transfers between users of different directories without requiring them to enroll in each system, using a uniform database and predefined rules.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If users enroll in multiple payment directories with different credentials for secure funds transfer, then security and reliability are improved, but device complexity and ease of operation deteriorate

Engineering Contradiction:

ImprovesecurityVSAvoidcomplexity of managing multiple credentials

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

The patent introduces a federated directory management system as an intermediary that mediates between multiple payment directories and users. This system provides unified authentication and credential management, allowing users to access multiple directories through a single interface without managing separate credentials for each directory, thus maintaining security while reducing complexity

Inventive Principle:

Principle #24Intermediary (Mediator)

Solution Approach 2:

The federated directory management system provides universal authentication capabilities across multiple payment directories. A single credential set issued by the federated system can be used to access multiple different payment directories, making the authentication mechanism multi-functional and eliminating the need for separate credentials for each directory

Inventive Principle:

Principle #6Universality (Multi-functionality)

2Reliability

If users enroll in multiple payment directories with different credentials, then reliability is improved, but ease of operation deteriorates

Engineering Contradiction:

ImprovesecurityVSAvoidease of funds transfer

Core Design Contradiction:

ReliabilityVSEase of operation

Solution Approach 1:

The federated directory management system acts as an intermediary that simplifies the user experience by providing a unified interface for accessing multiple payment directories. Users interact with a single system rather than multiple separate directories, making funds transfer operations easier while maintaining the security benefits of multi-directory access

Inventive Principle:

Principle #24Intermediary (Mediator)

Solution Approach 2:

The patent merges multiple payment directory access points into a single federated interface. By combining authentication and access management for multiple directories into one unified system, users experience simplified operations while the underlying multi-directory architecture maintains security

Inventive Principle:

Principle #5Merging (Combining)

3Adaptability or versatility

If multiple payment directories are used for funds transfer, then adaptability is improved, but device complexity deteriorates

Engineering Contradiction:

Improveability to transfer funds across different platformsVSAvoidcomplexity of interdirectory processing

Core Design Contradiction:

Adaptability or versatilityVSDevice complexity

Solution Approach 1:

The federated directory management system serves as an intermediary that handles the complexity of interdirectory communication and data normalization. It translates between different directory formats and protocols, enabling adaptable funds transfer across multiple platforms while shielding users and individual directories from the underlying complexity

Inventive Principle:

Principle #24Intermediary (Mediator)

4Reliability

If complex authentication and identification processes are implemented, then reliability is improved, but loss of time deteriorates

Engineering Contradiction:

Improveauthentication securityVSAvoidtime for authentication and identification

Core Design Contradiction:

ReliabilityVSLoss of time

Solution Approach 1:

The federated directory management system performs authentication and identification actions in advance by establishing unified credentials and access rights before funds transfer operations. Users are authenticated once against the federated system, which then handles subsequent access to multiple directories without requiring repeated authentication, thus maintaining security while reducing time loss

Inventive Principle:

Principle #10Preliminary action

Data Source

PatentUS12443931B1Systems and methods for funds transfers via a federated directory

Publication Date: 2025.10.14 WELLS FARGO BANK NA

AI summary

A system, method, and apparatus for interdirectory funds transfers is provided. A method includes: receiving data from two or more payment directories, the data comprising information pertaining to a plurality of users, each of which are enrolled with at least one of the two or more peer-to-peer payment directories. The method includes receiving, by the federated directory management computer system, a request for a fund transfer to a payee and determining, by the federated directory management computer system based on the received data and the request, that the fund transfer is either an interdirectory transfer or an intradirectory transfer. The method includes identifying, by the federated directory management computer system based on the determination, a payment rail for the fund transfer and processing, by the federated directory management computer system based on the determination, the fund transfer via the identified fund rail.