Portable Credit Data Intermediary for Transparent Evaluation
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Solution Overview
Problem
Existing credit score evaluation methods are opaque to customers, making it difficult for them to understand and improve their credit scores, especially for immigrants and those in informal economies, as they often lack access to traditional financial institutions and struggle with Know Your Customer (KYC) regulations.
Innovation Solution
A system that allows customers to build credit using portable financial data through an application programming interface (API), enabling the collection and transfer of transaction histories and other financial data to support credit worthiness decisions, providing real-time credit score information and improving data security.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Loss of information
If traditional credit evaluation methods are used, then credit scores can be determined, but the process becomes opaque and difficult for customers to understand and control
Solution Approach 1:
The patent introduces a portable data intermediary system that sits between customers and financial institutions. This intermediary collects, stores, and manages customer financial data portably, allowing customers to control their own credit information while providing financial institutions with necessary data for credit evaluation. The intermediary acts as a mediator that transparently manages the credit data flow, resolving the opacity issue while maintaining evaluation capability.
Solution Approach 2:
The system enables customers to self-manage their credit data through portable storage and control mechanisms. Customers can directly provide their own financial data to financial institutions via the portable data system, reducing reliance on opaque institutional processes. This self-service approach gives customers visibility and control over their credit information, addressing the transparency and control issues.
2Adaptability or versatility
If customers rely on traditional financial institutions to build credit, then credit worthiness can be established, but access becomes difficult or impossible for immigrants and those in informal economies
Solution Approach 1:
The portable data system creates a universal credit building mechanism that works across different financial institutions and customer types. Instead of requiring customers to partner with specific institutions, the system provides a universal platform where any customer with portable financial data can build credit. This multi-functional approach serves traditional customers, immigrants, and informal economy participants equally, improving accessibility while maintaining assessment reliability through standardized data handling.
Solution Approach 2:
The portable data intermediary enables customers from diverse backgrounds to bridge the gap with financial institutions. For immigrants and informal economy participants who lack traditional institutional partnerships, the intermediary system provides a neutral platform to port and present their financial data, making credit building accessible without requiring traditional institutional gatekeeping.
3Reliability
If KYC regulations are strictly enforced through traditional institutions, then customer identity verification is achieved, but the process becomes difficult for certain customer groups
Solution Approach 1:
The portable data system enables customers to self-manage their identity verification data. Instead of institutions imposing complex KYC processes, customers can directly control and provide their own verified identity information through the portable data platform. This self-service approach maintains verification accuracy while significantly improving ease of operation for all customer groups.
4Loss of information
If credit score information is provided without easy interpretation, then evaluation data is available, but customers struggle to understand and improve their scores
Solution Approach 1:
The portable data intermediary serves as an interpretive layer between raw credit evaluation data and customers. The system can present credit information in customer-friendly formats, explain factors affecting scores, and provide actionable guidance for improvement. This intermediary function maintains full information availability while dramatically improving interpretability and customer understanding.
Data Source
AI summary
Systems, apparatuses, methods, and computer program products are disclosed for continuous evaluation of customer credit. An example method includes receiving, by communications hardware, historical customer financial data, and generating, by user profile circuitry and based on the historical customer financial data, a user credit profile. The example method further includes receiving, by the communications hardware, real-time customer financial data, and updating, by the user profile circuitry and based on the real-time customer financial data, the user credit profile. The example method further includes receiving, by the communications hardware and from a server device, a request for credit data, wherein the credit data is based on the user credit profile, and transmitting, by the communications hardware, the credit data to the server device.