AU2016102055A4

AU2016102055A4 - This invention describes a method for the positioning of a financial services merchant as the central repository of trust in a transaction between buyer and seller relating to an asset that is or has been previously secured by the Merchant by way of a contract with the seller.

Info

Publication number: AU2016102055A4
Application number: AU2016102055A
Authority: AU
Inventors: Ian Flego; John Grant
Original assignee: Asseteq Holdings Pty Ltd
Current assignee: Asseteq Holdings Pty Ltd
Priority date: 2016-12-02
Filing date: 2016-12-02
Publication date: 2017-02-16
Anticipated expiration: 2024-12-02

Abstract

A method of creating a trusted transaction wherein a merchant, at the request of a seller, will verify to the seller and a potential buyer, the identity of the seller, through the means of either a current established relationship between the two entities or via a term of a financial contract and a verification that the asset which the seller is engaged with and which has previously been provided to the merchant as security for the provision of finance will be suitable security to the merchant for a potential future finance advance to a buyer, whilst at the request of the buyer, the merchant will provide to the seller verification that the buyer has completed an identity verification process with the merchant and has been successfully identified for credit provision purposes and the buyer has completed an application for a financial process with the merchant and has been successfully approved for finance to purchase the asset that is being sold by the seller.

Description

2016102055 02 Dec 2016 AUSTRALIA Patents Act 1990

PROVISIONAL SPECIFICATION

TRUSTED DIGITAL MARKET TRANSACTION

The invention is described in the following statement 1 2016102055 02 Dec 2016

TITLE

Trusted Digital Market Transaction FIELD

On-line financial services BACKGROUND

[0001] When a person purchases an asset (‘Asset’) using funds borrowed from a third party finance provider such as a bank or a finance provider (‘Lender’) they enter a finance contract with the finance provider to repay the finance provided over certain defined terms (‘Contract’). The finance provider will agree as a term of the Contract that the borrower of funds will also become the registered owner of the asset (‘Owner’).

[0002] The advance of funds is usually in the form of a loan or a lease of the goods for a defined period of time and with the common requirement that the terms and conditions of the finance provider in respect of the repayment by the borrower or lessee of the principal, interest and any fees and charges of the original advance of funds are satisfied within the agreed term of the Contract.

[0003] In exchange for the provision of funds to purchase the Asset, the Owner will agree to provide security to the Lender in the form of a registered charge over the Asset purchased. The purpose of this security is to allow the Lender to recover the Asset and liquidate it if required should the Owner default on the agreed terms of the Contract with the Lender.

[0004] When the Owner decides to sell the Asset it is common for it to be advertised for sale in an on-line classifieds website or digital marketplace. 2 2016102055 02 Dec 2016

The purpose of advertising in this way is so the Owner can attract Buyers who are interested in the Asset with a view to completing a sale of the Asset to the Buyer.

[0005] Current practice is that the Lender has no involvement in the advertising of the Asset by the Owner or in any discussions that Owner may have with any potential Buyer or with the Buyer as a part of any conversation with the Owner. The Lender is an unconnected party to any transaction between the Owner and the Buyer other than requiring the Owner to satisfy the balance of any Contract owing to the Lender as at the day of completion of the sale of the Asset. Even in this situation the Lender has no direct engagement with the Buyer as a party to the contract for the sale of the Asset.

[0006] This invention has been specifically devised to engage the Lender directly in the negotiations between the Owner and the Buyer relating to agreeing the terms of sale of the Asset from the Owner to the Buyer.

SUMMARY

[0007] The technical problem addressed in this invention resolves 3 key identified issues of an Owner and a Buyer entering into a transaction instigated on-line where neither party has any capacity during the pre-contractual negotiations between the Owner and the Buyer to simultaneously (1) independently verify the true identity of the other party (2) independently verify whether the Asset being sold in the transaction will be suitable security for the provision of finance required to complete the purchase and (3) independently verify whether the Buyer has the financial capacity to complete the purchase.

[0008] The solution to this problem is to create a series of computerized processes operating in parallel as between Owner and Lender and 3 2016102055 02 Dec 2016 (separately) Buyer and Lender relating to the utilisation of the Lender’s identity verification processes that them-selves form a part of the Lender’s credit approval processes.

[0009] These parallel processes are used to verify the identity of the Owner (at the time of the original advance of funds by the Lender to the Owner at the commencement of the Contract) and also to verify that the Lender and the Owner have had a contractual relationship for the term of the Contract. Completion of these processes occurs when the Lender issues a digital mark or certification to the Owner that this process has been completed. The Owner can then reveal this certification or mark in an on-line marketplace or internet classifieds website.

[0010] These parallel processes are also used to separately verify (1) the identity of the Buyer and (2) the financial capacity of the Buyer to complete the proposed purchase of the Asset. Completion of this process occurs when the Lender issues a digital mark or certification to the Buyer that this process has been completed. The Buyer can then reveal this certification or mark in an on-line marketplace or internet classifieds website.

[0011] These parallel processes are also used to verify that the Asset is suitable security for the Lender for the provision of any finance required to complete the proposed purchase between the Owner and the Buyer. The Owner of the Asset can then reveal this certification or mark in an on-line marketplace or internet classifieds website.

[0012] These processes are formulated by way of a series of computerised message requests and responses as between the Owner and the Lender and as between the Buyer and the Lender. Completion of these processes occurs when the Lender issues a digital mark or certification to the Owner or Buyer as the case may be that this process has been completed. The Owner 4 2016102055 02 Dec 2016 or the Buyer can then reveal the respective certifications or marks in an online marketplace or internet classifieds website.

[0013] The combination of completion of each of these parallel processes is a digital transaction matrix structure where (1) the identity of each party to the transaction has been independently verified by the Lender and (2) the financial capacity of the Buyer to complete the transaction has been verified to the Owner and (3) the suitability of the Asset the subject of the transaction as security for the Lender has been verified.

[0014] Figure 1 is the request instigated by an Owner to the Lender to verify the identity of the Owner to a potential Buyer of the Asset.

[0015] Figure 2 is the request instigated by an Owner to the Lender to verify that an Asset is owned by the Owner and is suitable security for the Lender to support a Contract.

[0016] Figure 3 is the request instigated by a Buyer to the Lender for verification of the Buyer’s identity.

[0017] Figure 4 is the request instigated by a Buyer to the Lender for finance approval by the Lender of the Buyer to complete the purchase of the Asset.

[0018] Figure 5 shows all of the parallel processes in this invention coming together to form a cross-verified trusted matrix transaction structure.

ADVANTAGEOUS EFFECTS

[0019] The advantageous effects of this solution are considerable. By setting up an environment where all aspects of the proposed transaction are independently verified by the party that may be the provider of finance (the Lender) to complete the transaction (and therefore be taking the most 5 2016102055 02 Dec 2016 commercial risk) before the transaction is entered into the risks of fraud by either the Owner selling the Asset, the Asset itself or by the Buyer of the Asset are considerably mitigated.

[0020] In the case of the Owner selling the Asset; Verification of the Owner’s identity by the Lender due to the prior Contract relationship between the Owner and the Lender will mean that a potential Buyer knows that (a) the Owner is who they represent themselves to be in the on-line marketplace and (b) the Owner has had an on-going relationship with the Lender for the term of the Contract and (c) that the Owner is not in default under the terms of the Contract. This will allow a Buyer to transact with a Lender verified Owner with confidence.

[0021] In the case of the Asset that the Owner is selling; Verification by the Lender that the Asset is suitable security for the provision of finance will (1) tell the Buyer that the Asset is or has previously been the subject of a Contract with the Lender and (2) that the Asset will be acceptable to the Lender as security for the provision of a new Contract to assist the Buyer in closing the sale of the Asset from the Owner. The provision of this information from the Lender to the Buyer relating to the Asset before the transaction is entered into will also significantly reduce the risk of fraud to the Buyer of purchasing an Asset that has been stolen or which is the subject of an undisclosed secured or unsecured finance charge.

[0022] In the case of the Buyer purchasing the Asset; (1) Verification of the Buyer’s identity by the Lender using established and statutorily required identity verification processes will allow an Owner to proceed with the sale transaction with the Buyer with certainty that the Buyer is who they say they are. (2) Verification by the Lender that the Buyer has the financial capacity to complete the proposed purchase (which may or may not include the provision of finance to the Buyer by the Lender) will allow the Owner to complete the sale of the Asset with confidence that a contract for the sale of 6 2016102055 02 Dec 2016 the Asset can be entered into between the Owner and the Buyer that will be performed.

[0023] This will also be a further benefit to the Buyer who can enter this contract knowing that any residual debt owing to the Lender from the Owner under a Contract will be discharged so as to provide the Buyer with clean title to the Asset.

[0024] The overall effect of the invention specified in this document will be to allow the transacting of e-commerce instigated transactions with much greater certainty as to (1) the identity of all parties in the proposed transaction (2) the capacity of the Buyer to complete a contract once entered into and (3) the legal legitimacy of the Asset the subject of the sale and purchase transaction. This method will reduce the instances of fraud in online transactions involving the provision of finance from a Lender and will facilitate the growth of safer e-commerce financial services transactions that utilise this method of creating related party trust by utilising the relationships that the Lender has each with the Owner, the Asset and the Buyer.

INDUSTRIAL APPLICABILITY

[0025] The industrial applicability of this invention is in any on-line transaction where a Seller of an Asset to a Buyer wishes to obtain independent verification of the Buyer’s identity and ability to complete the purchase of the Asset. Conversely this invention also has applicability on the counterpart side of this transaction where the Buyer of an Asset wishes to obtain independent verification as to the identity of the Seller of the Asset and also as to the suitability of the Asset as security for a finance Contract from the Lender to assist with completing the purchase of the Asset.

[0026] This would include any Lender who engages in the provision of finance to assist the Buyer of an Asset where the pre-contract negotiations 2016102055 02 Dec 2016 7 have been instigated from an on-line classified advertisement created by the Owner and are underway between the Owner and the Buyer where the Lender has (or has previously had) a Contract relationship with the Owner in respect of the Asset.

[0027] Specifically, this invention will have application in any on-line classifieds marketplace where the Owner wishes to sell and Asset that is or has been previously security for a finance contract from a Lender to a Buyer who wishes to purchase the Asset with fiance assistance from the Lender.

Claims

CLAIMS 1 The provision by a finance provider by way of a digital mark or certification in an on-line marketplace or internet classifieds website of verification by the finance provider of the identity of the owner of an asset that is or has been financed by the finance provider to a potential buyer of that asset.
2 The provision by a finance provider by way of a digital mark or certification in an on-line marketplace or internet classifieds website of the suitability of an asset that is or has been financed by the finance provider as security for a future finance advance from the lender to a potential buyer of that asset from the owner of that asset.
3 The provision by a finance provider by way of a digital mark or certification in an on-line marketplace or internet classifieds website of verification by the finance provider of the identity of the buyer of an asset.
4 The provision by a finance provider by way of a digital mark or certification in an on-line marketplace or internet classifieds website of verification by the finance provider that the buyer of an asset has the financial capacity to complete the purchase of an asset.
5 The combining of each of claims 1-4 to create a digital transaction matrix whereby the finance provider has independently verified to each of the owner and the buyer the identity of the other party and the financial capacity of the buyer to complete the purchase and the suitability to the finance provider of the asset the subject of the transaction as security for the provision of any finance provision to the buyer.