Pre-approved Financing Mapping for Transaction Matching
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Solution Overview
Problem
Current financial systems lack flexibility for customers to plan and secure financing options in advance for purchases, leading to potential denial at checkout and limited financial freedom.
Innovation Solution
A selective financing and payment platform that allows customers to estimate future purchases, receive financing options, agree on terms, and store them for later transactions, enabling automatic loan origination when the transaction matches the planned purchase.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If customers obtain financing at the time of purchase, then the transaction process is simple and direct, but the customer faces risk of denial at checkout and lacks flexibility
Solution Approach 1:
The system performs preliminary financing approval and term negotiation before the actual purchase transaction. Customers can estimate future purchases, receive financing options, agree on terms, and store them for later transactions. This preliminary action eliminates the risk of denial at checkout while maintaining transaction simplicity when the actual purchase occurs.
2Adaptability or versatility
If customers use traditional credit cards or loans, then financing is available, but the process is rigid and lacks flexibility after the initial decision
Solution Approach 1:
The system transforms the static, rigid financing process into a dynamic one. Customers can estimate future purchases in advance, receive financing options with flexible terms, and store multiple financing plans. When the actual purchase occurs, the system dynamically matches the transaction to the appropriate pre-planned financing option, providing adaptability without compromising ease of operation.
3Adaptability or versatility
If customers plan purchases in advance with financing, then flexibility and confidence are improved, but the system complexity increases
Solution Approach 1:
The system segments the financing process into distinct modular components: purchase estimation, financing option generation, term agreement, storage, and transaction matching. Each component handles a specific aspect of the process independently, which reduces overall system complexity while enabling advanced pre-planning capabilities and flexibility for customers.
Data Source
AI summary
A method of processing a customer transaction may include receiving an estimated purchase amount and merchant identity information defining a future purchase from a customer, providing loan terms associated with one or more financing options corresponding to the defined future purchase, responsive to the customer agreeing to terms on a selected financing option, storing the financing option in association with the estimated purchase amount and the merchant identity information, responsive to receiving an indication of a transaction between the customer and a merchant, determining whether the transaction maps to the defined future purchase, and originating a loan to finance the transaction in accordance with the selected financing option in response to the transaction mapping to the defined future purchase.