Integrated Loan Processing System for Automated Bill Pay Configuration
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Solution Overview
Problem
Obtaining and servicing loans for big-ticket items can be inconvenient and time-consuming, as they require application, underwriting, and regular payment arrangements, which may not be desirable or possible for all payment methods.
Innovation Solution
A financial institution computing system that enables customers to apply for and receive loans electronically, generating loan terms and setting up a bill pay feature, allowing for quick and easy procurement of goods or services using the loan, with options for down payments from various sources like credit cards or checking accounts.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If traditional loan application and servicing processes are used, then loan approval and payment arrangements can be achieved, but the process becomes inconvenient and time-consuming
Solution Approach 1:
The patent combines multiple separate processes (loan application, underwriting, loan setup, and bill pay configuration) into a single integrated transaction package that is processed simultaneously. The transaction package includes loan terms, purchase price, and payment instructions all in one document, allowing the financial institution to complete all steps in one operation rather than requiring separate applications and setups.
Solution Approach 2:
The system performs preliminary actions by pre-configuring bill pay instructions and loan repayment arrangements as part of the original transaction package before the loan is disbursed. The financial institution sets up automatic payments and billing arrangements in advance, so that when the loan is approved, all payment mechanisms are already in place and operational.
2Reliability
If traditional loan processes with multiple steps are used, then proper underwriting and approval can be ensured, but the complexity and time consumption increase
Solution Approach 1:
The patent merges underwriting, approval, and loan configuration into a single automated processing step. The transaction processing logic receives the complete transaction package and processes all aspects (credit check, loan term validation, bill pay setup) simultaneously through integrated software, reducing system complexity while maintaining reliability through automated decision rules.
Solution Approach 2:
The system implements self-service through automated underwriting algorithms and decision-making logic that automatically evaluate loan applications and configure terms without requiring manual intervention from loan officers. The transaction processing logic autonomously validates the transaction package, approves or rejects loans, and sets up payment arrangements based on pre-programmed criteria.
3Ease of operation
If manual bill pay setup is required after loan approval, then payment arrangements can be made, but the process becomes time-consuming and inconvenient
Solution Approach 1:
The patent performs bill pay setup as a preliminary action included in the original transaction package before loan disbursement. The transaction package contains pre-configured payment instructions, billing arrangements, and automatic payment schedules that are activated simultaneously with loan approval, eliminating the need for separate post-approval setup steps.
Solution Approach 2:
The system merges bill pay configuration with loan processing into a single integrated operation. The transaction processing logic simultaneously handles loan approval and bill pay setup, configuring payment arrangements as part of the same automated process that disburses the loan, rather than requiring separate manual configuration steps.
Data Source
AI summary
A method of completing a purchase transaction that includes a loan includes receiving, by a transaction processing logic, a loan application from a network. The method also includes generating, by the transaction processing logic, a plurality of loan terms for the loan application. The method also includes receiving, by the transaction processing logic, a transaction package from the network, where the transaction package includes at least one of the plurality of loan terms and a purchase price. The method also includes tendering, by the transaction processing logic, the purchase price according to the transaction package. The method also includes setting up, by the transaction processing logic, a loan in an account database according to the transaction package.