Automated Transaction Decisioning System for Real-Time Limit Verification

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Solution Overview

Problem

Financial institutions face inefficiencies and inconsistencies in processing transactions due to outdated credit limit information and the need for manual approval processes, which can delay processing and lead to inaccurate decisions.

Innovation Solution

A system and method for automatically decisioning transaction requests using real-time account activity and limit information, applying business rules to determine if transactions are within predetermined limits, and allowing for automatic approval or rejection based on risk thresholds.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If manual review processes are used to determine transaction approval, then accuracy in decision-making can be maintained, but processing speed and efficiency deteriorate

Engineering Contradiction:

Improveaccuracy in transaction approvalVSAvoidtransaction processing speed

Core Design Contradiction:

ReliabilityVSProductivity

Solution Approach 1:

The system enables self-service automation where the transaction decisioning system automatically retrieves limit information, applies business rules, and makes approval decisions without requiring manual intervention from reviewers, thereby maintaining accuracy while significantly improving processing speed

Inventive Principle:

Principle #25Self-service

Solution Approach 2:

The patent replaces the mechanical manual review process with an automated electronic system that uses computer algorithms to apply business rules and make decisions, substituting human manual operations with automated computational processes to achieve both speed and consistency

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

2Productivity

If credit limit information is transmitted to external entities for review, then transaction approval can be determined, but information accuracy deteriorates due to outdated data

Engineering Contradiction:

Improvetransaction approval capabilityVSAvoidcredit limit information accuracy

Core Design Contradiction:

ProductivityVSLoss of information

Solution Approach 1:

The system extracts the credit limit information retrieval function from external entities and performs it internally at the financial institution, ensuring that the most current limit information is always accessed without relying on external transmissions that may become outdated

Inventive Principle:

Principle #2Taking out (Extraction)

Solution Approach 2:

The system implements real-time feedback loops where the automated system continuously retrieves and updates limit information from the financial institution's systems, ensuring that decision-making always uses the most current data without manual intervention

Inventive Principle:

Principle #23Feedback

3Reliability

If credit limit information is requested and transmitted before transaction decisioning, then approval determination can be made, but processing time increases

Engineering Contradiction:

Improvetransaction decision accuracyVSAvoidtransaction processing time

Core Design Contradiction:

ReliabilityVSLoss of time

Solution Approach 1:

The system performs preliminary actions by pre-configuring business rules and having the automated system retrieve limit information in real-time as part of the transaction processing workflow, eliminating the need for separate preliminary information requests and transmissions

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The patent merges the credit limit information retrieval, business rule application, and transaction decision-making into a single integrated automated process, eliminating the sequential steps of separate information requests and transmissions that cause delays

Inventive Principle:

Principle #5Merging (Combining)

4Productivity

If automated decisioning is implemented, then processing efficiency is improved, but system complexity increases

Engineering Contradiction:

Improvetransaction processing efficiencyVSAvoidautomated decisioning system complexity

Core Design Contradiction:

ProductivityVSDevice complexity

Solution Approach 1:

The automated decisioning system is designed as a universal platform that handles multiple transaction types and applies various business rules through a single integrated system, reducing the need for separate manual processes and simplifying overall system architecture despite the automation complexity

Inventive Principle:

Principle #6Universality (Multi-functionality)

Data Source

PatentUS8799161B2Automatically decisioning transaction requests

Publication Date: 2014.08.05 BANK OF AMERICA CORP

AI summary

A system and method of automatically decisioning transaction requests is provided. In some examples, a decisioning system may receive customer transaction limit information, as well as current activity information. The system may determine whether a requested transaction is within a first transaction limit. If not, the system may determine whether the requested transaction is within a second transaction limit. If so, one or more business rules may be applied to the requested transaction to determine whether the transaction is approved.