Investor Network Validation With Positional Data and Anonymous Communication
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Solution Overview
Problem
Existing systems lack an efficient and secure method for financial market participants to communicate and share information while protecting investor privacy, particularly in the context of shareholder interactions and corporate governance.
Innovation Solution
A computing system, The Investor Network, facilitates communication and information exchange among retail and institutional investors, issuers, and other financial market participants by validating investor profiles based on positional information without revealing personal data, enabling secure and anonymous interactions through a social networking platform.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Measurement precision
If investor profiles are validated using personal information, then investor verification accuracy is improved, but investor privacy protection deteriorates
Solution Approach 1:
The patent extracts only the necessary positional information (account holder status, security ownership) from investor profiles while omitting personal identifying information. The validation process uses a database query that retrieves only the minimal required fields to verify investor status without exposing personal data, thus resolving the contradiction between verification accuracy and privacy protection.
Solution Approach 2:
The patent introduces an intermediary validation mechanism where the system queries a database using an identifier to obtain information from investment accounts. This intermediary process allows verification of investor status without direct access to or exposure of personal information, maintaining both verification accuracy and privacy protection.
2Reliability
If direct issuer-shareholder communication is enabled, then corporate governance is improved, but information security risks increase
Solution Approach 1:
The patent creates an intermediary platform (the Investor Network system) that facilitates communication between issuers and shareholders. This intermediary infrastructure provides secure channels for information exchange, validates participant identities, and maintains data protection, thereby enabling direct communication while mitigating security risks through controlled access and encrypted data transmission.
Solution Approach 2:
The system extracts and processes only the necessary information for communication validation (account holder status, security ownership) while excluding personal identifying information from the communication platform. This selective data handling enables secure issuer-shareholder dialogue without exposing sensitive personal data, thus improving corporate governance while maintaining information security.
3Ease of operation
If investor validation process is simplified, then ease of access is improved, but validation security deteriorates
Solution Approach 1:
The patent implements a self-service validation mechanism where investors provide their own identifiers (account numbers, security information) and the system automatically queries the database to verify their status. This automated self-validation process simplifies access by eliminating manual verification steps while maintaining security through cryptographic data protection and authenticated database queries.
Solution Approach 2:
The system uses an intermediary database query mechanism that validates investors by exchanging identifiers and retrieving minimal necessary information. This intermediary process provides secure validation without requiring complex manual verification procedures, thus simplifying access while maintaining validation security through automated, authenticated data exchange.
Data Source
AI summary
In an embodiment, a method performed in the computing system comprises steps of (a) electronically receiving an identifier concerning an investor's ownership or management of at least one brokerage account or at least one security; (b) electronically validating by the computing system the investor by querying a record database using the identifier to obtain an information from at least one investment account associated with the investor; (c) electronically extracting by the computing system the information; (d) electronically populating by the computing system a profile for the investor with the extracted information and electronically storing the extracted information to a computer readable medium in a profile database, wherein the extracted information comprises at least the investor's positional information; (e) electronically providing by the computing system at least one capability to the investor, wherein the capability allows the investor to electronically perform one or more activities; and (f) electronically generating by the computing system a representation of a quantity of a security owned or managed by the investor from the investor's positional information without generating a personal information of the investor.