Automated Financial Transaction File Format Converter

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Solution Overview

Problem

Current international electronic financial transactions face inefficiencies due to the use of different electronic file formats, leading to costly and time-consuming manual processing, especially for low-value, high-volume transactions, as existing systems lack an automated conversion method that preserves data and ensures uniformity and certainty in transaction settlement.

Innovation Solution

A converter software module that automatically converts electronic transaction files between NACHA and SWIFT formats, enabling seamless processing of international transactions by transmitting and reconciling settlement data, thus facilitating the communication and settlement of transactions across different financial networks.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Adaptability or versatility

If manual processing is used to handle different electronic file formats, then transaction compatibility is improved, but processing time and costs increase

Engineering Contradiction:

Improvetransaction compatibilityVSAvoidprocessing time

Core Design Contradiction:

Adaptability or versatilityVSLoss of time

Solution Approach 1:

The patent introduces an intermediary conversion system that automatically translates between different electronic file formats (NACHA, SWIFT, ISO 20022). This intermediary converter resolves the contradiction by providing format compatibility through automated conversion rather than manual processing, thereby maintaining versatility while dramatically reducing processing time and costs.

Inventive Principle:

Principle #24Intermediary (Mediator)

Solution Approach 2:

The patent replaces the mechanical manual processing system with an automated electronic conversion system. The converter automatically performs format translations using software algorithms, eliminating the need for manual intervention and thereby reducing processing time while maintaining the ability to handle multiple formats.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

2Adaptability or versatility

If manual processing is used to handle different electronic file formats, then format conversion capability is improved, but processing costs increase

Engineering Contradiction:

Improveformat conversion capabilityVSAvoidprocessing costs

Core Design Contradiction:

Adaptability or versatilityVSLoss of energy

Solution Approach 1:

The automated conversion system acts as an intermediary that provides format conversion capability through software-based translation. This eliminates costly manual processing while maintaining the ability to convert between NACHA, SWIFT, and ISO 20022 formats, thereby reducing processing costs without sacrificing conversion capability.

Inventive Principle:

Principle #24Intermediary (Mediator)

Solution Approach 2:

The conversion system performs format translations automatically without requiring manual intervention. The system serves itself by using automated algorithms to convert between formats, eliminating labor costs while maintaining comprehensive format conversion capability across different financial networks.

Inventive Principle:

Principle #25Self-service

3Productivity

If automated conversion is implemented, then processing speed is improved, but system complexity increases

Engineering Contradiction:

Improveprocessing speedVSAvoidsystem complexity

Core Design Contradiction:

ProductivityVSDevice complexity

Solution Approach 1:

The patent segments the conversion system into distinct modules, each handling specific format conversions (NACHA to SWIFT, SWIFT to ISO 20022, etc.). This segmentation allows the system to achieve high processing speeds through specialized automated conversion routines while managing complexity by organizing functionality into separate, manageable components.

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

The conversion system is designed as a universal platform that can handle multiple format conversions through a single integrated system. Rather than creating separate systems for each conversion type, the patent implements a multi-functional converter that achieves high processing speed across all format pairs while managing overall system complexity through unified architecture.

Inventive Principle:

Principle #6Universality (Multi-functionality)

4Adaptability or versatility

If different electronic file formats are used by different financial networks, then network autonomy is improved, but transaction uniformity deteriorates

Engineering Contradiction:

Improvenetwork autonomyVSAvoidtransaction uniformity

Core Design Contradiction:

Adaptability or versatilityVSManufacturing precision

Solution Approach 1:

The patent introduces an intermediary conversion layer that preserves network autonomy by allowing each financial network to maintain its native format while achieving transaction uniformity through automated conversion. The converter translates between formats, enabling uniform processing across networks without requiring any network to change its autonomous format standards.

Inventive Principle:

Principle #24Intermediary (Mediator)

Data Source

PatentUS8156040B2Method and system for conducting international electronic financial transactions

Publication Date: 2012.04.10 US FEDERAL RESERVE BANK OF MINNEAPOLIS

AI summary

Converting electronic files comprising financial transaction data for supporting international electronic financial transactions. A gateway financial institution that processes electronic payments can organize files comprising international financial transactions according to the destination country. The gateway financial institution can transmit the organized transaction files to an interface that is coupled to the computing systems of foreign financial institutions. The interface can convert the transaction files from the format of the originating financial institution to the format of the receiving financial institution. The converted transaction files can then be forwarded to the respective foreign financial institutions. The interface can also transmit additional data associated with the transaction files to support settlement of the transactions.