Incentive System for Consumer Data Sharing Privacy Control

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Solution Overview

Problem

Current privacy laws and regulations limit the sharing of personal and financial information, leading to a significant percentage of customers opting out, which reduces the ability of financial institutions to leverage their customer databases and increases new-account acquisition costs.

Innovation Solution

A system and method that allows customers to select variable levels of privacy settings in exchange for corresponding account benefits and features, such as interest rate adjustments, fee discounts, and rewards points, using a hierarchical organizational structure and decision tree to motivate customers to share their information.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Object-affected harmful factors

If privacy laws require opt-out mechanisms for information sharing, then consumer privacy control is improved, but customer database leverage capability deteriorates

Engineering Contradiction:

Improveconsumer privacy controlVSAvoidcustomer database leverage capability

Core Design Contradiction:

Object-affected harmful factorsVSProductivity

Solution Approach 1:

The patent implements dynamic privacy settings that allow consumers to adjust their information sharing preferences at different times and for different purposes. Instead of a static opt-out mechanism, consumers can dynamically control which categories of information are shared with specific third parties, enabling real-time adjustment of privacy levels while maintaining database utility.

Inventive Principle:

Principle #15Dynamics

Solution Approach 2:

The system applies different privacy levels to different categories of personal information. Rather than treating all information uniformly, the patent enables granular control where consumers can selectively share specific types of data (e.g., demographic information versus financial information) with different third parties, optimizing both privacy protection and data utilization.

Inventive Principle:

Principle #3Local quality

2Object-affected harmful factors

If consumers are given opt-out options for information sharing, then privacy protection is improved, but new-account acquisition costs increase

Engineering Contradiction:

Improveprivacy protectionVSAvoidnew-account acquisition costs

Core Design Contradiction:

Object-affected harmful factorsVSLoss of energy

Solution Approach 1:

The patent implements preliminary action by proactively presenting consumers with customized incentive offers before they complete the opt-out decision. The system pre-calculates personalized incentives based on consumer profiles and predicted preferences, presenting these offers at the moment of decision-making to influence the choice toward information sharing while minimizing acquisition costs.

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The system dynamically adjusts incentive parameters (such as cash bonuses, credit line offers, or interest rate discounts) based on consumer responses and market conditions. By changing these parameters in real-time, the system optimizes the balance between providing sufficient incentives to maintain database leverage and minimizing the cost of acquiring new accounts.

Inventive Principle:

Principle #35Parameter changes

3Adaptability or versatility

If significant percentages of customers opt out of information sharing, then consumer privacy autonomy is improved, but institution's data utilization capability deteriorates

Engineering Contradiction:

Improveconsumer privacy autonomyVSAvoiddata utilization capability

Core Design Contradiction:

Adaptability or versatilityVSProductivity

Solution Approach 1:

The patent implements continuous feedback loops where the system monitors consumer information sharing decisions and their responses to incentive offers. This feedback is used to refine incentive strategies, adjust privacy settings recommendations, and improve the matching between consumer preferences and data sharing opportunities, thereby increasing overall participation rates while respecting consumer autonomy.

Inventive Principle:

Principle #23Feedback

Solution Approach 2:

The system acts as an intermediary between consumers and third-party data requesters, facilitating negotiated information sharing arrangements. Rather than simple opt-out or forced sharing, the intermediary platform enables consumers to negotiate the terms of data sharing, including the scope, purpose, and compensation, thereby maintaining autonomy while enabling productive data utilization.

Inventive Principle:

Principle #24Intermediary (Mediator)

Data Source

PatentUS8301493B2System and method for providing incentives to consumers to share information

Publication Date: 2012.10.30 CHASE MANHATTAN BANK USA NAT ASSOC

AI summary

A system and method for providing incentives to consumers to share their consumer information with third parties is provided. According to one aspect of the present invention, a method is provided which includes the steps of: accepting consumer information; storing the consumer information; requesting permission from the consumer to share their consumer information with a third party; and offering the consumer a selected incentive in exchange for their permission to share their consumer information.