Automated Payment Notification System for Credit Risk Assessment
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Solution Overview
Problem
Financial institutions face challenges in efficiently tracking and managing scheduled payments and creditworthiness of customers, often leading to unnecessary contacts and increased risk assessment costs due to inadequate information transmission about future payments.
Innovation Solution
A system and method for transmitting information associated with scheduled future payments to financial institutions, utilizing a central processing unit, an intermediary data repository, and modules for receiving requests, searching, extracting, and notifying about payments, which includes a scheduled payment application with input, notification, and financial information analysis modules to provide timely and accurate creditworthiness analysis.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If financial institutions manually track scheduled payments and customer behavior, then they can identify high-risk customers, but they incur increased operational costs and time consumption
Solution Approach 1:
The patent introduces an intermediary notification system that automatically transmits scheduled payment information from bill pay systems to financial institutions. This intermediary automates the tracking process, eliminating manual monitoring while maintaining accurate risk assessment capabilities through systematic data collection and transmission.
Solution Approach 2:
The system establishes a feedback loop where financial institutions receive automated notifications about scheduled payments, process this information, and can respond with targeted communications only to high-risk customers. This feedback mechanism improves efficiency by focusing resources on customers who actually need intervention.
2Reliability
If financial institutions contact all customers about upcoming payments, then they can ensure payment collection, but they make unnecessary contacts to low-risk customers who will pay on time
Solution Approach 1:
Instead of contacting all customers (excessive action), the system applies partial action by selectively contacting only high-risk customers identified through automated tracking. The notification system provides financial institutions with filtered information about which customers actually need intervention, eliminating unnecessary contacts while maintaining payment collection assurance for at-risk accounts.
3Reliability
If financial institutions lack accurate information about scheduled payments, then they cannot accurately assess credit risk, but they incur increased costs for manual risk assessment
Solution Approach 1:
The patent introduces an intermediary automated notification system that bridges bill pay systems and financial institutions. This intermediary automatically collects, transmits, and standardizes scheduled payment information, providing financial institutions with accurate data for credit risk assessment without requiring complex manual tracking systems.
Data Source
AI summary
A method for transmitting information with a financial institution. The method includes receiving a request from the financial institution for the information associated with scheduled future payment related to an established destination account and including a capital amount scheduled to be transferred to the financial institution, where the established destination account is associated with credit extended by the financial institution, performing, using a central processing unit (CPU), a search for the information on an intermediary data repository not controlled by the financial institution and based on the request, obtaining a portion of the information from the intermediary data repository based on the search, extracting, using the CPU, the portion of the information from the intermediary data repository to obtain a result, and transmitting the result to the financial institution to notify the financial institution of the scheduled future payment to the financial institution to be credited to the established destination account.