Dynamic Financial Protocol With KYC Identifier for Interoperability
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Solution Overview
Problem
Lack of interoperability between different financial systems hinders seamless transaction processing, leading to increased costs, delays, and security vulnerabilities due to unauthorized access and fraud.
Innovation Solution
A dynamic financial protocol that generates a universally-accepted financial identifier for transactions, incorporating KYC details, bank account information, and dynamically evolving factors, ensuring secure and compliant transactions across diverse networks.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If traditional financial mechanisms are used, then system compatibility is maintained, but interoperability between different financial systems deteriorates
Solution Approach 1:
The patent creates a universal financial message structure that can operate across multiple different financial systems and protocols. The message format is designed to be system-agnostic, enabling single protocol to serve multiple financial networks and transaction types, thereby achieving interoperability without requiring system-specific implementations
Solution Approach 2:
The protocol uses configurable parameters and tags that can be adjusted to accommodate different financial systems and transaction requirements. By changing message parameters rather than the core structure, the system maintains compatibility across diverse financial infrastructures while preserving a consistent underlying protocol
2Reliability
If standardized authentication mechanisms are implemented, then security against fraud is improved, but transaction processing complexity increases
Solution Approach 1:
The patent performs authentication and validation operations during the message creation and routing phases, before the actual transaction processing occurs. KYC verification, device authentication, and compliance checks are completed in advance, so that by the time the transaction is executed, security validation is already established, reducing real-time processing complexity
Solution Approach 2:
The authentication mechanism is divided into separate, modular components including KYC verification, device authentication, message validation, and compliance checking. Each component operates independently and can be applied selectively based on transaction requirements, reducing overall system complexity while maintaining comprehensive security
3Productivity
If interoperable platforms are deployed, then transaction connectivity is improved, but system complexity increases
Solution Approach 1:
The patent introduces a standardized message format and routing protocol that acts as an intermediary layer between different financial systems. This intermediate protocol translates between various system-specific formats and a universal structure, enabling seamless interoperability without requiring direct integration between each pair of systems, thereby reducing overall architectural complexity
Data Source
AI summary
A computer system for generating a dynamic financial protocol can include: non-transitory computer-readable storage media encoding instructions which, when executed by the one or more processors, causes the computer system to: receive a request for a financial transaction from a user; validate information associated with the user, including Know Your Customer (KYC) details about the user; generate a financial identifier for the financial transaction, wherein the financial identifier is a global unique identifier for the financial transaction; generate a message in accordance with the dynamic financial protocol, wherein the message includes: the fixed part includes the user's KYC details, an account of the user, and the financial identifier; the configuration part includes account details of a recipient; and the dynamic part is a multidimensional array that includes additional transaction details; and process the financial transaction initiated by the user based on validation of the recipient using the financial identifier.