Surrogate Investor Codes for Privacy-Preserving Data Linking

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Solution Overview

Problem

Current market research methods, particularly in the wealth-management industry, face challenges in gathering accurate and detailed investor-specific data without violating customer privacy or exposing sensitive information, as existing methods either suffer from survey biases or are prohibitively costly, and Database Compilation methods are limited by the need for pre-aggregated or pre-coded data that restricts analysis granularity.

Innovation Solution

A method and system that enable the creation of a multi-source database by gathering customer-specific data from multiple financial institutions and linking it at the individual investor level without disclosing unique identifiers or non-public personal information, using Surrogate Investor Codes derived from customer-identifying information to maintain data privacy and security.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Quantity of substance

If Survey Research is used to gather investor data, then data collection cost is reduced, but measurement precision and data accuracy deteriorate due to survey biases

Engineering Contradiction:

Improvedata collection costVSAvoiddata accuracy

Core Design Contradiction:

Quantity of substanceVSMeasurement precision

Solution Approach 1:

The patent introduces Surrogate Investor Codes as an intermediary mechanism that enables direct data collection from multiple financial institutions without requiring survey methods. These codes allow the database compiler to link investor records across institutions accurately while maintaining privacy, eliminating survey biases and improving measurement precision without increasing costs proportionally

Inventive Principle:

Principle #24Intermediary (Mediator)

2Measurement precision

If Database Compilation is used to gather investor data, then measurement precision and data accuracy improve, but device complexity and implementation difficulty worsen due to pre-aggregation requirements

Engineering Contradiction:

Improvedata accuracyVSAvoidimplementation complexity

Core Design Contradiction:

Measurement precisionVSDevice complexity

Solution Approach 1:

The patent applies preliminary action by having financial institutions pre-assign Surrogate Investor Codes to their customer records before data submission. This pre-coding eliminates the need for complex post-collection matching and linking processes, reducing implementation complexity while maintaining the ability to compile accurate multi-source investor databases

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The patent uses Surrogate Investor Codes as simplified copies or proxies of actual investor identifiers. These surrogate codes replicate the linking function of unique identifiers without exposing sensitive personal information, reducing implementation complexity by avoiding the need to handle and match complex personal data across institutions

Inventive Principle:

Principle #26Copying

3Productivity

If unique identifiers are used to link investor data across financial institutions, then productivity and data linking accuracy improve, but reliability and data security worsen due to privacy disclosure risks

Engineering Contradiction:

Improvedata linking efficiencyVSAvoiddata security

Core Design Contradiction:

ProductivityVSReliability

Solution Approach 1:

The patent introduces Surrogate Investor Codes as an intermediary that replaces direct use of unique identifiers like Social Security Numbers. These surrogate codes maintain the linking functionality needed for productivity while eliminating privacy disclosure risks, as they cannot be traced back to identify specific investors even if intercepted or misused

Inventive Principle:

Principle #24Intermediary (Mediator)

Solution Approach 2:

The patent creates surrogate copies of investor identifiers that preserve the essential linking capability without containing the sensitive information. These copied surrogate codes enable efficient data matching and consolidation across institutions while ensuring that the original unique identifiers never leave the financial institutions' secure systems

Inventive Principle:

Principle #26Copying

4Ease of operation

If pre-aggregated data is used in Database Compilation, then ease of operation improves, but measurement precision and analysis granularity worsen

Engineering Contradiction:

Improvedata processing easeVSAvoidanalysis granularity

Core Design Contradiction:

Ease of operationVSMeasurement precision

Solution Approach 1:

The patent applies preliminary action at the coding stage rather than the aggregation stage. Financial institutions pre-assign Surrogate Investor Codes to individual investor records before any aggregation occurs. This allows data to remain in detailed, non-aggregated form with full linking capability, enabling both easy operation through pre-coded records and high measurement precision through maintainable investor-level granularity

Inventive Principle:

Principle #10Preliminary action

Data Source

PatentUS10839105B1Method and system for compiling a multi-source database of composite investor-specific data records with no disclosure of investor identity

Publication Date: 2020.11.17 PLUTOMETRY CORP

AI summary

A system and method are disclosed for compiling a database of investor-related data by gathering and linking customer-specific data records from multiple unaffiliated financial institutions, where such data records are coded in such a manner that the database compiler is enabled to link, across data providers and/or time periods, data records that pertain to the same investor without being provided any information that reveals the identity of any investor.