Geolocation-Based Syndicate Lending System

Solution Overview

Problem

Businesses and employees face income fluctuations due to unpredictable labor demands, exacerbated by economic and disaster-related hardships, making it challenging to manage expenses and access loans with stable repayment terms.

Innovation Solution

A geolocation-based peer-lending system that uses a disaster funding modeler to assess risk ratings for members of a business syndicate, facilitating loans by matching requesting members with lender members based on local disaster and economic data, allowing for income-sensitive repayment adjustments.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If businesses and employees rely on traditional loan systems during economic disasters, then loan availability may be maintained, but repayment terms become unstable and require frequent adjustments

Engineering Contradiction:

Improverepayment term stabilityVSAvoidincome sensitivity

Core Design Contradiction:

ReliabilityVSAdaptability or versatility

Solution Approach 1:

The system pre-identifies geographically dispersed lenders outside disaster-affected areas before disasters occur. These lenders are pre-vetted and registered in the platform, so when a disaster strikes, loan requests can be rapidly matched with pre-qualified lenders who are less likely to be impacted by the same disaster, providing stable repayment terms from the outset

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The patent introduces a platform intermediary that manages the lending relationship between borrowers in disaster-affected areas and lenders in unaffected areas. This intermediary handles risk assessment, matching, and coordination, allowing borrowers to access loans with more stable repayment terms while lenders remain protected from direct exposure to disaster risks

Inventive Principle:

Principle #24Intermediary (Mediator)

2Ease of operation

If peer-to-peer loans are provided during local disasters, then financial support can be accessed, but risk concentration in the same geographical area increases

Engineering Contradiction:

Improveloan accessibilityVSAvoidgeographical risk concentration

Core Design Contradiction:

Ease of operationVSObject-affected harmful factors

Solution Approach 1:

The system applies different quality characteristics to different geographical locations by identifying and selecting lenders from areas with different disaster risk profiles. Borrowers in high-risk areas are matched with lenders in low-risk areas, creating a spatial differentiation of risk exposure that reduces geographical risk concentration while maintaining loan accessibility

Inventive Principle:

Principle #3Local quality

Solution Approach 2:

The patent segments the lender population by geographical location and disaster risk exposure. Instead of treating all lenders uniformly, the system divides them into different groups based on their location relative to disaster-affected areas, allowing for more prudent risk management while maintaining accessible lending channels for borrowers

Inventive Principle:

Principle #1Segmentation

3Quantity of substance

If national-scale disaster funding is provided, then broad financial support can be offered, but repayment terms require frequent adjustments due to widespread income impact

Engineering Contradiction:

Improvefunding coverageVSAvoidrepayment term stability

Core Design Contradiction:

Quantity of substanceVSReliability

Solution Approach 1:

The system applies different quality characteristics to different geographical locations by identifying and selecting lenders from areas with different disaster risk profiles. Borrowers in high-risk areas are matched with lenders in low-risk areas, creating a spatial differentiation of risk exposure that reduces geographical risk concentration while maintaining loan accessibility

Inventive Principle:

Principle #3Local quality

Solution Approach 2:

The patent segments the lender population by geographical location and disaster risk exposure. Instead of treating all lenders uniformly, the system divides them into different groups based on their location relative to disaster-affected areas, allowing for more prudent risk management while maintaining accessible lending channels for borrowers

Inventive Principle:

Principle #1Segmentation

Data Source

PatentUS11756116B1Worker syndicate with geolocation-based funding

Publication Date: 2023.09.12 WELLS FARGO BANK NA

AI summary

A computer system for facilitating peer-to-peer anonymous lending between members of a business syndicate is disclosed. The system is structured to generate, by a disaster funding modeler circuit, based on disaster and economy data received from an external source, a projection of a need for a loan for a particular syndicate member located in a particular geographical area. The location of the syndicate member is determined based on member-provided information and/or based on global positioning system (GPS) information received from the member's computing device. This information is supplemented by additional information received from a municipality computer system (e.g., vehicle positioning information). The system is further structured to facilitate a peer-to-peer loan transaction. The system is further structured to generate further projections of conditions in the particular geographical area and, when the projections are indicative of worsening conditions, facilitate automatic loan repayment plan adjustment to an income-sensitive repayment plan.