Reputation Scoring System Using Telephone Number Authentication
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Solution Overview
Problem
The existing credit reporting system in the United States is limited by its reliance on social security numbers, which hinders the expansion of credit evaluation and reporting infrastructure globally, and lacks a secure and efficient means to track and verify identities, especially for international transactions.
Innovation Solution
A reputation scoring and reporting system that uses telephone numbers as a means of identification, allowing for secure authentication and aggregation of financial and personal information, enabling real-time calculation and updating of reputation scores, and facilitating worldwide deployment through existing communication networks.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If the credit reporting system relies on social security numbers for identification, then credit history can be accumulated and associated with individuals within the United States, but the system cannot be expanded globally and lacks infrastructure for international credit evaluation
Solution Approach 1:
The patent applies universality by using telephone numbers as a universal identification mechanism that functions across all countries and cultures. Telephone numbers are already universally assigned and recognized globally, allowing the credit reporting system to operate internationally without requiring country-specific identification infrastructure. This multi-functional approach enables the same system to serve both domestic and international credit evaluation needs.
Solution Approach 2:
The patent introduces telephone numbers as an intermediary element that bridges the gap between existing global communication infrastructure and the needed credit reporting functionality. Rather than building new identification infrastructure from scratch, the system leverages the already-established telephone numbering system as a mediator to associate credit history with individuals worldwide.
2Loss of information
If manual credit reporting methods are used, then detailed credit information can be collected, but the process is time-consuming and costly
Solution Approach 1:
The patent implements self-service by enabling automated collection and reporting of credit information through electronic data exchange between creditors, borrowers, and the credit reporting system. The system automatically processes credit applications, evaluates creditworthiness based on accumulated history, and generates reports without requiring manual intervention, thereby maintaining information accuracy while dramatically reducing processing time.
Solution Approach 2:
The patent replaces manual mechanical processes with electronic automated systems. Instead of manual data collection, review, and report generation, the system uses electronic databases, automated algorithms for credit evaluation, and digital communication networks to process credit information, eliminating the time-consuming manual operations while preserving data accuracy.
3Reliability
If credit reports are not readily available, then lenders may charge higher fees to compensate for unknown risks, but consumers gain increased access to credit information and competition among lenders
Solution Approach 1:
The patent applies preliminary action by pre-collecting and storing credit information in electronic databases before credit decisions are needed. Credit history is continuously accumulated and updated in the system, so when a credit application is submitted, the evaluation can immediately access comprehensive historical data, ensuring reliable risk assessment without delaying the credit decision process.
Solution Approach 2:
The patent implements feedback mechanisms where credit information is continuously updated and reported back to the system by creditors and borrowers. This ongoing feedback loop ensures that the credit database remains current and accurate, providing reliable information for risk assessment while enabling quick access to updated credit status for both lenders and consumers.
Data Source
AI summary
The reputation scoring and reporting system for accounts associated with telephone numbers and maintained in an electronic database includes processing a request for a reputation report corresponding to an account in the database. The request is authenticated via the telephone number associated with the account. A reputation report is then sent to a subscriber in response to an authenticated request. In return, transaction information between the subscriber and entity is associated with the account in the electronic database. The reputation score for the account is calculated in real-time based on the transaction information stored in the electronic database.