Transaction Processing for Real-Time Installment Loan Conversion

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Solution Overview

Problem

Conventional transaction processing systems lack automated mechanisms for converting transactions into installment loans, leading to inefficiencies in identifying eligible transactions and offering installment loans in real-time.

Innovation Solution

A system and method for real-time online transactional processing using data structures and cloud services to automatically generate loan conversion offers and trigger account allocations based on transaction data, employing ephemeral container instances for secure and efficient processing.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Extent of automation

If conventional transaction processing systems are used, then transactions can be processed, but automated conversion to installment loans is not possible and manual processes are required

Engineering Contradiction:

Improveautomated conversion to installment loansVSAvoidsystem complexity

Core Design Contradiction:

Extent of automationVSDevice complexity

Solution Approach 1:

The system automatically converts transactions to installment loans without requiring manual intervention. The transaction processing system self-services by identifying eligible transactions, generating loan offers, and initiating conversions through automated workflows, eliminating the need for manual form submissions or phone calls from users.

Inventive Principle:

Principle #25Self-service

Solution Approach 2:

The system performs preliminary actions by pre-identifying eligible transactions and pre-generating installment loan offers before the user needs to convert a transaction. The system proactively analyzes transaction data, applies eligibility criteria, and prepares loan offers in advance, enabling seamless conversion when the user accepts the offer.

Inventive Principle:

Principle #10Preliminary action

2Productivity

If financial service providers process large volumes of transactions manually, then all transactions can be reviewed, but real-time processing and identification of eligible transactions is not possible

Engineering Contradiction:

Improvetransaction processing volume and speedVSAvoidtime delay in identifying eligible transactions

Core Design Contradiction:

ProductivityVSLoss of time

Solution Approach 1:

The system continuously processes transactions in real-time as they occur, maintaining constant monitoring and analysis of transaction streams. The automated system operates without interruption, continuously identifying eligible transactions, generating offers, and updating status, ensuring no eligible transactions are missed and enabling immediate conversion opportunities.

Inventive Principle:

Principle #20Continuity of useful action

Solution Approach 2:

The system replaces manual mechanical processing with automated electronic systems. Transaction data is automatically captured, analyzed, and processed through computer-based workflows instead of manual review. The system uses electronic eligibility criteria, automated offer generation, and digital communication to replace manual form processing and phone calls, dramatically increasing processing speed and volume capacity.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

3Ease of operation

If traditional transaction conversion methods are used, then users can initiate loan conversion requests, but the process requires forms, phone calls, or other inconvenient approaches

Engineering Contradiction:

Improveconvenience of transaction conversionVSAvoidtime required for conversion process

Core Design Contradiction:

Ease of operationVSLoss of time

Solution Approach 1:

The system enables users to self-service by automatically presenting installment loan offers for their transactions without requiring them to initiate any action. Users simply need to accept or reject the automated offer, eliminating the need to fill out forms, make phone calls, or navigate complex conversion workflows. The system serves itself by proactively identifying eligible transactions and presenting conversion opportunities.

Inventive Principle:

Principle #25Self-service

Solution Approach 2:

Inventive Principle:

Principle #10Preliminary action

4Reliability

If issuers wait until after transactions are made to identify conversion opportunities, then transaction data is already finalized, but real-time conversion opportunities are lost

Engineering Contradiction:

Improveaccuracy of transaction dataVSAvoidtime delay in processing conversion opportunities

Core Design Contradiction:

ReliabilityVSLoss of time

Solution Approach 1:

Inventive Principle:

Principle #20Continuity of useful action

Data Source

PatentUS12511686B2Real-time online transactional processing systems and methods

Publication Date: 2025.12.30 FIDELITY INFORMATION SERVICES LLC

AI summary

Systems and methods for real time, online transaction processing are disclosed. The system may include one or more memory units storing instructions and one or more processors configured to execute the instructions to perform a method. The method may include receiving, from an event broker, event data that includes account data. The operations may include using a data structure to identify an issuer system associated with the account data and an enrollment status of the issuer system. The method may include generating a filtered transaction data structure to an analyzer and receiving a result data structure. The method may include generating, based on the result data structure, a linked data structure comprising installment loan parameters and an online address. The method may include routing the linked data structure to a user device and receiving approval data that triggers an account allocation.