Automated Savings Plan System for Interest-Free Purchases
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Solution Overview
Problem
Consumers often face difficulties in purchasing products due to insufficient funds or credit, leading to the need for alternative methods that avoid interest rates and layaway fees associated with traditional credit facilities.
Innovation Solution
A computer-implemented method and system that allows customers to create a savings plan by determining the necessary funds and credit, initiating a series of payments into a savings account, and purchasing the item when the account is fully funded, with features like Just in Time inventory management and avoiding interest charges.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Speed
If traditional credit facilities are used to purchase items, then customers can acquire products immediately, but they incur interest rates and loss of credit capacity
Solution Approach 1:
The system performs preliminary actions by automatically creating a savings account and setting up a savings plan before the customer completes the purchase. Funds are pre-allocated and automatically transferred in installments, ensuring the customer has sufficient funds before the transaction is finalized, thus avoiding the need for credit facilities and associated costs.
Solution Approach 2:
The patent introduces an intermediary savings account system that mediates between the customer and the vendor. This intermediary mechanism holds funds in a dedicated savings account and automatically transfers them to the vendor, eliminating the need for direct credit transactions and avoiding interest rates and credit capacity loss.
2Object-generated harmful factors
If customers save manually for products, then they avoid interest charges, but they face inconvenience and lack of automated tracking
Solution Approach 1:
The system enables self-service by automatically managing the entire savings process. The savings account is automatically created, funds are automatically transferred in predetermined installments, and the system tracks progress toward the purchase goal without requiring manual customer intervention. This eliminates the inconvenience of manual saving while avoiding interest charges.
Solution Approach 2:
The system implements feedback mechanisms by providing customers with real-time updates on their savings progress, account balance, and upcoming transfers. This automated tracking and communication keeps customers informed about their saving status, enhancing convenience and transparency without requiring manual monitoring.
3Object-generated harmful factors
If vendors offer layaway plans, then customers can purchase without interest, but vendors incur storage costs and risk of non-payment
Solution Approach 1:
The system performs preliminary actions by securing customer commitment and automatically setting up the savings plan before the purchase is finalized. Funds are pre-allocated and guaranteed to be transferred, eliminating the risk of non-payment for vendors. This preliminary setup ensures both customer affordability and vendor security without requiring physical storage of goods.
4Object-generated harmful factors
If a savings plan system is implemented, then customers can avoid interest and vendors gain sales confidence, but the system complexity increases
Solution Approach 1:
The system achieves multi-functionality by integrating multiple capabilities into a single platform: it creates savings accounts, processes installment transfers, tracks purchase goals, communicates with customers and vendors, and manages inventory reservations. This universal system handles the entire savings-to-purchase workflow, reducing overall complexity despite the range of functions provided.
Data Source
AI summary
Provided is a computer system and method for automatically electronically transferring funds. The system includes a computer display device displaying a user interface configured to provide the customer with a computer input device to create a savings plan to purchase an item with an indicated price. The system provides that the savings plan is based on a series of electronic fund transfers into a savings account to accumulate electronic funds in the savings account equaling the indicated price. The system also includes a computer server which includes a computer processor configured to determine that the customer does not have sufficient funds and sufficient credit to electronically transfer funds equaling the indicated price. The server also includes a computer readable memory with stored instructions to initiate a purchasing action to purchase the item for the customer when the savings account has sufficient funds to purchase the item.