Payee Identification from Cleared Items for Online Payment Adoption
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Solution Overview
Problem
Bank customers are slow to adopt online payment functionality due to lack of identification of potential payees from cleared items in their financial accounts, limiting the use of electronic bill presentment and payment services.
Innovation Solution
A system and method that identifies payees from cleared items posted to a financial account, generating suggestions and activation screens for consumers to enroll in online payment services, utilizing a network of consumer, financial institution, and electronic bill payment and presentment service provider computers to facilitate electronic bill presentment and payment distribution.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If bank customers manually identify and enroll payees for online payment services, then payment security and customer control are maintained, but customer adoption rate is slow and time consumption is high
Solution Approach 1:
The system automatically identifies potential payees from cleared transaction items and generates enrollment suggestions without requiring manual customer input. The system serves itself by analyzing its own transaction data to proactively identify enrollment opportunities, reducing both time consumption and manual effort while maintaining customer control through optional acceptance of suggestions
Solution Approach 2:
The system performs preliminary analysis of cleared items to identify potential payees before the customer would naturally encounter them. By pre-processing transaction data and generating enrollment suggestions in advance, the system accelerates the adoption process without compromising security, as customers still review and approve suggestions before enrollment
2Ease of operation
If the system automatically identifies payees from cleared items, then convenience is enhanced and time is reduced, but system complexity increases
Solution Approach 1:
The system introduces an intermediary component that analyzes cleared items and generates payee suggestions, acting as a bridge between raw transaction data and customer decision-making. This intermediary layer processes information automatically while presenting simplified options to customers, enhancing convenience without requiring the entire system to become complex
Solution Approach 2:
The system segments the payee identification process into distinct functional modules: cleared item analysis, payee candidate generation, suggestion presentation, and customer confirmation. This segmentation allows each component to perform its specific function with appropriate complexity level, keeping the overall system manageable while providing automated convenience
3Adaptability or versatility
If online payment functionality is made more accessible through automatic payee identification, then customer stickiness to the bank increases, but data processing requirements increase
Solution Approach 1:
The system applies partial action by analyzing only cleared items that meet specific criteria for payee identification, rather than processing all transaction data. By focusing on relevant subsets of data and generating suggestions only when appropriate conditions are met, the system enhances customer stickiness through improved service while minimizing unnecessary data processing and energy consumption
Data Source
AI summary
Systems, methods, and apparatus for establishing payees based on cleared items posted to a financial account are provided. Information associated with a cleared item posted to a financial account of a consumer may be obtained. Based at least in part on the obtained information, a payee associated with the cleared item may be identified. A form may be generated for activating, at a service provider, at least one of online payment functionality for payments made to the payee by the service provider on behalf of the consumer or electronic bill presentment of billing information of the payee to the consumer through the service provider. The form may be transmitted to a network entity for presentation to the consumer.