Financial Risk Anticipation via Location and Transaction Analysis
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Solution Overview
Problem
Individuals face challenges in avoiding financially risky situations, such as fraud, due to difficulty in self-regulation, leading to potential financial harm and the need for external assistance from family or friends.
Innovation Solution
A financial institution computing system that communicates with a user's mobile device to assess financial risk based on location, transaction data, and social media activity, generating notifications and potentially deactivating accounts to prevent risky decisions, using a network interface, database, and processor to compare location data with fraud data and user habits.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If a person relies on self-regulation to avoid financially risky situations, then they maintain personal autonomy and decision-making control, but they are exposed to high financial risk due to difficulty in self-regulation
Solution Approach 1:
The patent introduces an intermediary system (monitoring device or third-party contact) that mediates between the user and financially risky situations. The system monitors location data, transaction data, and social media activity to detect when the user is approaching high-risk entities or situations, and alerts the user or contacts before the user makes potentially harmful financial decisions, thus providing protection without completely removing user autonomy
Solution Approach 2:
The system performs preliminary actions by proactively identifying and alerting users to potential financial risks before they engage with high-risk entities. By analyzing location data, transaction patterns, and social media activity in advance, the system can warn users about upcoming risky situations, allowing them to take preventive action before financial harm occurs
2Reliability
If a person relies on family or friends to help avoid risky situations, then they gain external protection from fraud, but they lose independence and require constant external assistance
Solution Approach 1:
The patent implements a technological intermediary (automated monitoring system) that replaces or supplements the need for human intermediaries like family or friends. The system automatically monitors user behavior, analyzes risk factors, and provides alerts without requiring constant human intervention, thus maintaining protection while reducing dependence on external assistance
Solution Approach 2:
The system enables self-service protection by providing users with automated tools that independently monitor their own financial risk exposure. Users can configure their own risk parameters, receive personalized alerts, and make informed decisions based on system-generated information, allowing them to protect themselves without requiring ongoing assistance from others
3Measurement precision
If the system continuously monitors user location and activity to detect financial risk, then it provides timely warnings of risky situations, but it increases system complexity and data processing requirements
Solution Approach 1:
The patent divides the risk monitoring system into separate functional modules: location monitoring, transaction data analysis, social media activity tracking, and risk assessment. Each module independently processes specific types of data and contributes to the overall risk determination, making the complex system more manageable and maintainable while preserving comprehensive monitoring capabilities
Solution Approach 2:
The system employs multi-functional data processing that analyzes multiple types of information (location, transactions, social media) through a unified risk assessment framework. This universal approach allows the same core processing logic to handle diverse data sources, reducing overall system complexity compared to having separate specialized systems for each data type
Data Source
AI summary
A financial institution computing system includes a network interface, a database storing transaction data of the user and financial data for a plurality of entities, and a processor. The processor receives location data of the mobile device the financial data for at least one of the entities, determines a financial risk of the user based on a comparison of the location of the mobile device with the location of the at least one entity and based on at least one of the financial data for the at least one entity and the transaction data of the user, generate a notification in response to the financial risk exceeding a financial risk threshold, and cause the notification to be transmitted to the mobile device. The notification indicates that the user is susceptible to a financial risk based on the location of the user with respect to the at least one entity.