AU2021106622A4 - A rental bond transaction system - Google Patents

Abstract

A RENTAL BOND TRANSACTION SYSTEM ABSTRACT The present invention is an online platform for leveraging private capital to enable tenants experiencing housing stress to access low-cost debt securities for new or existing rental bonds at a specified rate of interest only. The platform comprises of an interface to facilitate tenant access to finance by entering application data, a module for calculating the credit risk of the tenant based on the application data and tenant behaviour, a module for investors to supply funds for use in the platform as rental bond loans and a module for tenants to improve their behaviour scores through community service. The platform is characterised in that it automatically supplies funds by the investor to multiple tenant accounts in order to spread the risk of a default on the loan by any one tenant. 1 of 23 A RENTAL BOND TRANSACTION SYSTEM DRAWINGS Figure 1. Peer-to-peer (P2P) Tenancy Ecosystem 1.- - - - Optional transaction Direct transaction Agent / Property Manager App Plaon updated p band holder Figure 9 e Lease updated Bond4odgement Bond receipt lodgement 10. I e-LeaseAgn Pa rent& & getenl fees Bond authority bondrepayment Contract) pluaten6 uBondtlodgement escrow 6. claims return Lease updated Ptrm added B r to the lease " .ndtecei~c -Makepayments-J PLATFORM -Earnreturns& Lenders/lne BorrowersI/ Tenants PROCESSING App App alsondfinance CORE .0-investmoney- Ap (Web /App) Dnliver R[otm& Pay claim I microfinance Structure, coordinate claim I option & manage risk Rent Asset collection Goenment .* maintenance foundation * I . *, corporates' Bond set maintenance lodgement *.4 \ Social seree N providers .Landlord App 000 Social Impact 7. ContractorsApp Rental Bond (SIRB) . Asset 8. .n. * ~ - -- -maintenance ......................... ................ 3. 11. Figure 2.

Description

1 of 23

A RENTAL BOND TRANSACTION SYSTEM DRAWINGS

Figure 1.

Peer-to-peer (P2P) Tenancy Ecosystem

1.- - - - Optional transaction

Direct transaction

Agent / Property Plaon updated Manager App p band holder

Figure 9 e Lease updated Bond4odgement Bond receipt

lodgement 10. I e-LeaseAgn Pa rent&& getenl fees Bond authority bondrepayment Contract) uBondtlodgement pluaten6 escrow 6. claims return

Lease updated Ptrm added B r to the lease " .ndtecei~c

-Makepayments-J PLATFORM -Earnreturns& Lenders/lne App BorrowersI/ Tenants PROCESSING App alsondfinance CORE .0-investmoney- Ap (Web /App) Dnliver R[otm& Pay claim I microfinance Structure, coordinate claim I option & manage risk Rent Asset collection Goenment .* maintenance foundation * I

. *, corporates' Bond lodgement set maintenance *.4 \ Social seree N providers .Landlord App

000 ContractorsApp Impact Social Rental Bond 7. (SIRB) .

Asset

8. .n. * ~ - -- -maintenance

3. ......................... ................ 11.

Figure 2.

A RENTAL BOND TRANSACTION SYSTEM TECHNICAL FIELD

[0001] The present invention relates to the information technology industry and, more particularly to an online system for supplying bonds from investors to tenants. The intention of the invention is to enable sustainable social value in addressing the issue of access to housing and community service.

BACKGROUND

[0002] Around thirty five per cent of the population rent properties, of which one in ten tenants are renting long-term for more than ten years, and this is on the rise. Tenants often have difficulty saving money. Many tenants find it difficult to enter the rental market because of the requirement by many landlords for tenants to pay a rental bond. This becomes increasingly challenging during time of economic downturn.

[0003] Rental bonds are necessary in order to offer landlords a level of comfort in the event of potential damage done to the property by the tenant, rent defaults, or to pay for defaults under the tenancy agreement such as the cost of cleaning the property after a tenant leaves the property.

The bond required to rent a property is typically four weeks rent. There are many tenants that do not have the ability to easily make the bond payment. Their bond from a previous rental property is often not released until after the bond on their new rental property is due. In addition, they are required to pay a month's rent in advance. The cost to enter the rental market is thus significant.

[0004] Around 20% of bonds on rental properties are subject to a claim by the landlord or their real estate agent on their behalf. Most claims made on rental bonds are for cleaning the property after the exit by the tenant or failure to pay the final week's rent.

[0005] The object of the present invention is to provide a means of creating bonds without financially burdening tenants in order to promotee equitable housing access.

[0006] A further object of the present invention is to provide tenants with reputational currency (natural capital) based on a behavioural score determined by an algorithm based on transactions performed via the platform (ecosystem) and tenant app. The tenant app captures a tenant's profile, creditworthiness and rental history, facilitates rental agreements with agents and landlords, rental payments, property inspections, access to bond finance and communications between relevant stakeholders to facilitate the rental cycle from start to finish. This behavioural score is used by the algorithm to determine risk and classify the bond finance and define the return for investors. Hence, the overarching aim being rental inclusion through access to low-cost economic capital and incentivise community service to improve reputational scores.

SUMMARY OF THE INVENTION

[0007] According to the present invention, there is provided an online system for supplying loans from investors to tenants for the requirement of the bond, the system comprising:

1) an interface to allow tenants to apply for rental bond loans by entering application data; (a) Wherein the platform enables tenants and landlords or agents to formalise a Lease agreement or smart contract, with the platform as a co-tenant and party to the bond with the rental bond authority. While a tenant enters into a finance agreement for the loan amount, the loan is deposited via the agent or directly by the platform with the relevant bond authority, the platform becomes the interested party to the bond enabling the tenant to simply pay a small interest amount to the platform's investors on a monthly basis for bond finance. Once the lease agreement matures, the bond is refunded to the platform and subsequently returned to investors less any claim amount (if applicable).

2) a module for all users to create a self-sovereign identification (digital ID) for use online and with the platform; (a) wherein the user is able to validate themselves via an authorised digital ID validating agency; (b) wherein the user has full authority and privacy over their digital ID;

3) a module for tenants to create a rental CV via a tenant interface that stores historical behavioural data, application data and transaction data to enable complete applications as determined by the platform, providing rental options that are affordable, and based on user preferences;

(a) wherein the application data is verified through each stage by a

verified attribute provider facilitated by the platform;

(b) wherein the rental CV process pre-qualifies users to access rental

bond finance enabling immediate rental inclusion based on the

qualified application data;

(c) wherein the tenant can pay their rent to their agent or landlord in

addition to their bond fees via the tenant interface of the platform;

(d) wherein the tenant can communicate and chat via the Tenant interface

to action a lease and finance agreement, manage their rent cycle,

access relevant information, and transition to and from tenancies

simply;

(e) wherein the algorithms within the module consume tenant data

supplied by the tenant, information from other verified attribute

providers and the system generated behaviour score to calculate a

value that is used to classify the tenant into respective investment

classes which in turn have associated finance costs and return ratios

attached for investors. Once tenants have been classified, they can be

matched with willing investors within the relevant investment class and

once agreeing with the terms of the capital access can be issued with

a bond contract. The reputation score is generated based initially on

the behaviour feedback provided by agents and landlords. This data is

processed through the machine learning model to enhance the

predictive algorithm for probability of default. These values will then

supplement the application, classification and approval process;

(f) wherein the platform automatically attributes social capital for positive

behaviour, and depletes social capital for negative behaviour;

(g) Preferably, the currency of the social capital is calculated as a social

coin and stored in a secure wallet. Users of the platform can transact

using either fiat currency or social coins;

4) a module for investors to supply funds for use in the system as rental bondloans; (a) wherein the system automatically supplies funds by the investor to multiple tenant accounts in order to spread the risk of a default on the loan by any one tenant.

[0008] Preferably, the online system allows an investor to increase their return by funding tenants with a higher credit risk. More preferably, the online system is automatically adapted to dispatch messages to third parties to input data into the system to verify the data supplied by tenant. The system may include a module for transferring rental bond payments from the investors to the account of a residential tenancy authority holding funds on behalf of the tenant and landlord. It is preferred that the module for calculating the credit risk of the tenant is continuously updated based on the ongoing payments and transactions by a tenant to the system. The online system may automatically require the tenant to increase their repayments if their credit risk increases during the term of the loan, or the system determines that the calculated trust is diminishing.

[0009] Preferably, the online system allows an investor to increase their return by funding tenants with a higher credit risk. More preferably, the online system is automatically adapted to dispatch messages to third parties to input data into the system to verify the data supplied by tenant. The system may include a module for transferring rental bond payments from the investors to the account of a residential tenancy authority holding funds on behalf of the tenant and landlord. It is preferred that the module for calculating the credit risk of the tenant is continuously updated based on the ongoing payments

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and transactions by a tenant to the system. The online system may automatically require the tenant to increase their repayments if their credit risk increases during the term of the loan, or the system determines that the calculated trust is diminishing.

[0010] Any of the features described herein can be combined in any combination with any one or more of the other features described herein within the scope of the invention.

BRIEF DESCRIPTION OF DRAWINGS Embodiments of the invention will be described with reference to the following drawings, in which:

[0011] Figure 1 is a diagram showing the constituents of the platform of the present invention.

[0012] Figure 2 is a diagram of the components, transaction flow and stakeholders that comprise of the rental bond described as a Social Impact Rental Bond (SIRB).

[0013] Figure 3 is a diagram showing the identity qualification and integration of the present invention.

[0014] Figure 4 is a diagram showing the application process regarding the present invention.

[0015] Figure 4 is a diagram showing how the present invention is contractually bound and administered including the necessary network of stakeholders that are connected via the platform.

[0016] Figure 6 is a diagram of the behavioural score algorithm of the present invention and how social capital is earned or depleted based on behavioural and transactional data channelled through the platform.

[0017] Figure 6a is a diagram of the recommendation algorithm and machine learning loop that influences the social capital generated by user interactions with the platform of the present invention.

[0018] Figure 6b is a diagram of the machine learning algorithm that influences the financial risk of the tenant via user interactions with the platform of the present invention.

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[0019] Figure 7 is a simplified diagram of the primary stakeholders that transact via the platform.

[0020] Figure 8 is a diagram of how the platform accesses user identity information to verify identity for a specific transaction.

[0021] Figure 9 is an overview of the smart contract (lease agreement) and the unique relationship that the platform legally binds between the relevant stakeholders.

[0022] Figure 10 is a diagram of the payment processing and transaction flows that the platform orchestrates depending on the task and time triggered by user events or contractual aims.

[0023] Figure 11 is a diagram of the tenant user journey in accessing the platform of the present invention.

[0024] Figure 12 is a diagram of the agent user journey in accessing the platform of the present invention.

[0025] Figure 13 is a diagram of the landlord user journey in accessing the platform of the present invention.

[0026] Figure 14 is a diagram of the community partner user journey in accessing the platform of the present invention.

[0027] Figure 15 is a diagram of the investor user journey in accessing the platform of the present invention.

[0028] Figure 16 of a real estate listing with a link for a prospective tenant to the online behaviour of the present invention.

CP

[0029] Figure 17 is an illustration of the tenant interface of the online platform of the present invention running on a mobile phone.

[0030] Figure 18 is an illustration of the identity interface of the online platform of the present invention running on a mobile phone.

[0031] Figure 19 is an illustration of the referee interface of the online platform of the present invention running on a mobile phone.

[0032] Figure 20 is an illustration of the investor interface of the online platform of the present invention running on a mobile phone.

[0033] Figure 21 is an illustration of the agent interface of the platform of the present invention running on a mobile phone. Figure 1 is diagram showing the constituents of the system of the present invention. DETAILED DESCRIPTION

[0034] The constituents of the platform (1) of the present invention are shown in figure 1. The constituents include the platform (1), tenants (4), agents (5), investors (6), landlords (7), contractors (8), a rental bond authority (10), and social service providers (13). The platform (1) is run on a remote server accessible by various digital devices running a software application as illustrated in figure 7.

[0035] A tenant (4) is introduced to the platform (1) via a listing made by the agent (5) landlord (7) on a third-party website (26) (see figure 16), or by the landlord (7) or social service provider (13). The website (26) has a link (28) to enable the prospective tenant (4) to apply for bond finance. The repayment attributed to the finance is for the interest on the bond only. The bond itself is financed by investors (6) via the platform and deposited with the bond authority by the platform (1) directly or indirectly via the platform (1) and agent (5). This may occur prior to commencing a new tenancy or during a tenancy whereby a tenant wishes to access their bond and elect to finance it

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instead. Once the lease term is completed, the bond amount is released back to the investors (6) less any claims against the tenant (4) by the landlord (7) or agent (5) if applicable. Once the prospective tenant (4) clicks the link (28), they are taken to the tenant interface (29) shown in figure 17. On registration including identity verification as illustrated in Figure 8, the tenant interface (30) in figure 17 includes various contextual questions which allow the platform (1) to assess the credit risk of the prospective tenant (4), to calculate a behavioural score (see Figure 6). The questions are designed to have yes or no answers to various components, so that interpretation of the responses by humans is not required and the platform can function as a self-reliant automated platform where component scores are calculated as needed. This score, along with the tenant registration data is added to the Rental CV as illustrated in the tenant interface 31 in figure 18 for the tenant (4).

[0036] The qualifying questions for the prospective tenant (4) via the tenant interface 37 shown in figure 19, for example: Do you have a criminal record? What is your driver's licence number? How many years have you been employed in your current job? Have you ever been convicted of the illegal manufacture or distribution of a controlled substance? Are you a smoker of tobacco products? Do you consent to a police check? Do you consent to a credit check? Do you consent to a background check against the National Tenancy Database? What is your age? Are you employed on a casual, part time or full-time basis? Are welfare payments less than 50% of your income? Are you earning over $500 per week (welfare payments can't be your only income so you'll also need to be working)? Are you in default under any other credit contract? Are you living in Australia as a citizen or permanent resident? Are you on a working visa or sponsorship visa? Have you made an insurance claim in the past 2 years? Do you consent to our terms and conditions for the use of your personal information as part of the tenancy contracting process?

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[0037] The answers provided by the tenant (4) to these questions can be submitted with the permission of the tenant (4) to the landlord (7) and/or the agent (5) for their consideration.

[0038] The platform (1) is adapted to verify the answers provided by the prospective tenant (4). For example, if the tenant (4) claims to be employed by a particular company and the tenant provides a contact email address for the company, then the platform (1) dispatches an electronic message to the address with a link back to the referee interface (36) shown in figure 19. On receiving a confirmation of these details the data is marked as verified within the Rental CV of the tenant (4).

[0039] The platform (1) orchestrates the relevant components and parties to the SIRB smart contract (9) and more specifically in figure 5, for the purpose of a new bond loan agreement as shown in figure 4, whereby a tenants (4), agents (5) and the platform (1) become 'interested parties' with respect to the security amount of the bond. Access to finance provided by investors (6) as shown in figure 5 for the bond via the platform (1) may be facilitated by social service providers (13), the agent (5), the landlord (7) or the tenant (4) themselves. Once relevant identity screening as described in figure 3 is performed, a bond loan can be initiate as shown in figure 4 and registered with the relevant bond authority (10).

[0040] Investors (6) are onboarded into platform (1) via the investor interface (40) shown in figure 20 and described in figure 15. The onboarding process automates the identity verification process for of investors as described in figure 3, and in accordance with 'know your customer' (KYC) procedures including beneficial owners, in addition to categorising their investor class. Figure 20 shows the investor interface (40) that prompt questions to assess the investors' appetite for risk, and the amount of investment the investor wishes to commit. Some jurisdictions may be required by their investment commission to obtain a financial services licence to operate the platform. In order to maintain the licence, the investment commission regulates the type of information that the licensee obtains from different types of investors. The types of investors include: (1) wholesale investors, (2) sophisticated investors, (3) professional investors, (4) experienced investors and (5) retail investors.

[0041] The investor interface (40) contains questions which enable the platform (1) to assess the type of investor who is using the platform. The questions include, for example, is your gross personal income over the last 2 years of least $250,000? Do you have net assets of over $2.5 million? Do you hold a financial services licence? Are you an experienced investor? The questions are designed to have yes or no answers, or require input via drop-down menus, so the data input into the platform can be automatically assessed by the platform (1).

[0042] The investor interface (43) in figure 20 enables the prospective investor to choose their level of risk considering the potential return. The greater the risk, the greater the return. The risk of investing is calculated by the platform (1) algorithms as described in figure 6a, which determines the risk profile of each tenant (4) based on their demographic data and calculated in the form of a behaviour score for each tenant 4 described broadly in figure 6 more specifically in figure 6b.

[0043] The behaviour score of the tenant (4) is affected by the ongoing data fed into the platform (1) as described in figure 6. If the tenant (4) defaults on any payment, or is late on any payment to the platform, the routine inspection of the property indicates concerns, then their behaviour score is decreased. As a result, the tenant is required to pay higher interest payments on any future bond loans or is debarred entirely from the platform (1). The tenant may improve their behaviour score by completing community service to reduce interest payments or even re-qualify for access to the platform if debarred. The platform (1) can also automatically initiate the eviction process and send timely electronic notifications to the tenant (4) adhering to due process of the

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Residential Tenancies Act. The platform automates this process and facilitates electronic communication with all constituents involved.

[0044] The risk of default is spread across many investors who are also providing funds to the platform (1). For example, if a tenant defaults on a loan for a bond of $2,000, then a single investor would lose the entire $2,000. However, if the default of $2,000 is spread across 10,000 investors, then each investor only stands to lose 20 cents. The distributed risk model ensures that the risk to any one investor reduces as the investor pool increases.

[0045] Because shelter is a necessity, borrowers are less likely to default on a bond loan than a loan for less important goods. Reputation and behaviour become tangible assets that are is influenced by individual behaviour and are integrated into the iteration within the platform (1).

[0046] Figure 21 shows the agent interface (44) which onboards agents (5) into the platform (1) as described in further detail in figure 12. The questions asked in the agent interface include, for example: are you looking to manage properties on your own or as part of a team? Are you a licensed agent or agent representative? What is your agent licence number? Do you consent to our terms and conditions being added to the special conditions in the tenancy agreement? What is the email address of your preferred cleaner? What is the email address of your preferred plumber? What is the email address of your preferred electrician? What is the authority bond reference number for this property? What is the billing account number for the residential tenancy authority?

[0047] Figure 21 shows the agent interface (46) which provides agents with a tool to perform property inspections that include 'move-in' inspections, 'routine' inspections and 'exit' inspections which enable the platform's algorithm (see Figure 6) to assess and monitor tenant behaviour and risk throughout the lease period and term of finance.

[0048] The tenant (4) pays both the rent and specified rate of interest for the bond (see Figure 10) to the platform (1) as per the smart contract (lease agreement) described in Figure 5 and 9. In this way, the algorithm as described in figure 6, 6a, 6b, 8 and 10 of the present invention through a series of calculations based on attributes, behaviour and transaction data, can continuously assess the financial risk of the tenant.

[0049] The platform (1) automatically allocates the correct payments to the investor, agent and landlord. This obviates the need for a behaviour account on the part of the agent. Managing a behaviour account can otherwise be a significant burden for the real estate agent.

[0050] The platform (1) uses the email addresses or mobile phone numbers input by the agents (18) to directly contact the third-party service contractors known to the agents. These behavioured (verified) contractors are onboarded by the platform, and may include handymen, cleaners, plumbers or electricians whose fees may be deducted from the rent should repairs or maintenance be required during the lease, or from the bond in the event of a claim made by the landlord at the conclusion of a lease.

[0051] The platform (1) includes an interface to onboard the contractors. The platform also keeps a contextual behaviour score for each contractor. The contextual behaviour score is determined by component ratings provided by the landlord, the agent and/or the tenant regarding the quality of the service provided by the contractor. These ratings form part of the self-sovereign record for the contractor. Components may also include: the types of insurance held by the contractor, licensing held, and timely engagement. If the behaviour score of the contractor decreases below a minimum threshold, the contractor can be debarred from the platform. Other parties to the platform can engage contractors who uses the platform if the contractor is

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within the local area of the property. The platform matches service requests based on a series of questions answered by the user to determine whether a request is classified as 'urgent' or'non-urgent' in accordance with the residential tenancies act. The platform allocates repairs according to the determined classification to behavioured contractors matching both the skills, availability and proximity to the request, and informs all parties electronically as progress is made through to completion, feedback and payment.

[0052] The platform (1) provides each party with a ledger of the transactions, which can be viewed at any time and accessed via the user interface. The platform (1) of the present invention can also offer 'connected insurance' between landlords and tenants using the platform (1), so that if damage to the property is done by the tenant, then the landlord can seek reimbursement from the insurance company. The platform (1) tracks the use of the bond so that the landlord cannot make a claim for repairs from both the insurer and from the bond payment. This helps to ensure that only genuine insurance claims are made. Tenants (4) can also access insurance for their personal items not covered by the insured rented premises. Tenants (4) who have insurance in place for their own possessions generally treat other private property with similar care, promoting further behaviour in the platform ecosystem. Contractors (8) in the same way as tenants (4) have their currency of insurance monitored via the platform (1) to ensure compliance.

[0053] The platform (1) of the present invention facilitates access to property for tenants and provides an opportunity for investors. An existing tenant (4) can also be refunded the bond they have already paid in exchange for a funded bond loan facilitated by the platform (1), providing a low rate of interest only loan (debt security) to be paid in ongoing instalments along with their rent. Low-income earners sometimes require urgent access to short term loans. The platform of the present invention provides a means for accessing the capital that is locked into a bond for such a purpose.

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[0054] The platform (1) of the present invention provides a mechanism for tenants (4) to improve their reputation (behavioural score) as described in figure 6 by completing community service tasks. These tasks may be for the benefit of the broader community or to support the functioning of the system. Community service tasks may be defined by social service providers (community partners), other public sector partners or the platform (1) itself. These tasks are posted to a service marketplace on the tenant app and can be accessed by the tenant (4) based on their proximity to the required task. On completion of the tasks, a verification process must be completed that may require platform administrator confirmation and/or through a verification task that is posted to the marketplace and confirmed independently. Each task allows the tenant to earn social coin (SC) which is stored in the social capital wallet and is used as the basis for determining the reputation score. This function allows the tenant (4) to rebuild their reputation score even in the event of default to be able to maintain bond finance applicability.

Concluding Remarks

[0055] In the present specification and claims (if any), the word 'comprising' and its derivatives including 'comprises' and 'comprise' include each of the stated integers but does not exclude the inclusion of one or more further integers.

[0056] Reference throughout this specification to 'one embodiment' or 'an embodiment' means that a particular feature, structure, or characteristic described in connection with the embodiment is included in at least one embodiment of the present invention. Thus, the appearance of the phrases 'in one embodiment' or'in an embodiment' in various places throughout this specification are not necessarily all referring to the same embodiment. Furthermore, the particular features, structures, or characteristics may be combined in any suitable manner in one or more combinations.

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[0057] In compliance with the statute, the invention has been described in language more or less specific to structural or methodical features. It is to be understood that the invention is not limited to specific features shown or described since the means herein described comprises preferred forms of putting the invention into effect. The invention is, therefore, claimed in any of its forms or modifications within the proper scope of the appended claims (if any) appropriately interpreted by those skilled in the art.

EDITORIAL NOTE 2021106622

There are 3 pages of claims only.

Claims (1)

1. A RENTAL BOND TRANSACTION SYSTEM

   1. An improved way to provide tenants with access to 'low-cost' finance from willing investors for the purpose of rental bonds, the platform comprising: a. an interface to allow tenants to apply for rental bond loans by entering application data; b. an interface for users to create a self-sovereign identification (digital ID) for use within the platform c. An interface that enables tenants to create a rental profile (Rental CV) based on application data capture at the platforms request, and which is automatically attributed based on an algorithm (tenant interaction and transaction performance) within the platform.

   2. A module according to claim 2, wherein the platform is automatically adapted to dispatch messages to third parties to input data into the platform to verify the data supplied by tenant, improving the accuracy of data necessary to enable sequential calculations (algorithm); 3. A module according to claim 2 wherein said module for calculating a behavioural score that indicates the credit risk of the tenant based on the application data (calculated on a triangle of trust); a. wherein the algorithm processes specific data sequentially, made accessible via the network of validators within the platform, so as to enable access to finance, risk management, and social capital.

   4. A module according to claim 3, wherein the platform includes a module for

   calculating tenant risk and is continuously updated (algorithm) based on the

   ongoing payments to the online platform and transactions within alternate

   modules on the platform.

   a. Wherein the platform automatically stores social capital generated from tenant transactions and activity within the platform;

   5. A module according to claim 5 for investors to supply funds for use in the platform as rental bond loans (debt securities);

   a. wherein the platform automatically supplies funds by qualified and willing investors to multiple tenant accounts, in order to spread the risk of a default on the loan by any one tenant.

   b. wherein the platform allows an investor to increase their return by

   funding tenants with a higher credit risk.

   c. wherein the platform enables other users to qualify as investors on the

   platform.

   d. wherein the platform facilitates the transfer of rental bond payments

   from the platform to the account of a residential tenancy authority

   holding funds on behalf of the tenant, platform and landlord.

   e. wherein the platform includes a module for creating an electronic lease

   agreement or smart contract;

   a. wherein the lease agreement or smart contract and registered bond

   incorporates the 'platform' as a 'co-tenant' and party to the lease

   agreement between tenant and landlord;

   b. Wherein the rental bond is provided by the platform for the purpose of

   security to the benefit of the tenant and landlord;

   c. Wherein the tenant pays an ongoing payment to the platform for the

   benefit of the platform being a guarantor on the tenant's behalf with

   respect to the bond amount.

   6. The online platform of claim 5, wherein the platform includes a module for

   agents to inspect and evaluate the performance of a lease and property

   condition in accordance with the smart contract and the Residential Tenancies

   Act (1997);

   a. wherein the platform captures property inspection and condition data; b. wherein the data captured is an input for machine learning purposes to feed the platform algorithm

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   A RENTAL BOND TRANSACTION SYSTEM 23 Aug 2021

   DRAWINGS

   Figure 1. 2021106622

   Figure 2.

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   3 of 23 2021106622 23 Aug 2021

   Figure 3.

   4 of 23

   Figure 4.

   5 of 23

   Figure 5.

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   Figure 6. 23 Aug 2021

   Behavioural Score (algorithm) Social Incentive and default remediation algorithm

   Social Capital Coin 2a. (Reputation 2b. Wallet) 2021106622

   User Defined Independent Verifiers (Can Other Verified attributes, Institutions Verified Permissions be other tenants of users 2c. attribute and access provider Verified Attribute in ecosystem) Unverified Provider Attribute Provider

   Verify Proof Verify default or of Service negative behaviour 4. 5. EARN SOCIAL CAPITAL Borrowers / Tenants Agent / Property Earning of App (other Users) Manager App Social Coins Other through service Ecosystem Partners and positive Post Service behaviour Verification Tasks Opportunities Load Service opportunity Confirmation Confirmation of Service of Service Transaction Data processing Select Service Task 4.

   SS IDENTITY Borrowers / Tenants PLATFORM PLATFORM Update App (Custodian) Wallet PROCESSING CORE (Web/App)

   Verify Proof of service

   1a. Social Capital Coin (Reputation Wallet)

   BURN SOCIAL 5. CAPITAL Notification of Default / Negative Tenant Behaviour Notification of Default / Negative Tenant Behaviour 7. Deplete Social Coin balance with default and negative tenant Agent / Property Landlord App behaviour Manager App

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   Figure 6a

   Recommendation Algorithm & Machine Learning Social Capital Generation

   Social Capital

   Social interactions enabled by ecosystem Relational PLATFORM PROCESSING Social Capital (Natural & Economic Capital) Trust, reciprocity, values, participation, inclusion Structural Generates flows of supporting. provisioning, rules, norms & diversity Collective action & regulating, and cultural effective management Network of Cognitive ecosystem services by ecosystem Relationships

   8 of 23 2021106622 23 Aug 2021

   Figure 6b

   Assessment Algorithms and Machine Learning

   Machine Learning Algorithm Personal Record - SSI

   Verify Yes

   Verifiabl Record Data No Classify Update SSI e Data?

   Recommendation Algorithm - Capital Finance Cost and Investment Return

   Classification Score (data Regression (multiple Classes for Assign Value (Calculated Cost Issue Capital Track Behaviour range) Algorithm investment category based on classification) and rate)

   Get Tuning Predicting Target Assessment based on data inputs Likelihood of Data Default Yes Start Discrete Classification Model Train Data Target? (Type) (2 Classes - Yes/No) (Calculation)

   Get Generate ble Split Data ila va Behaviour If Available Reputation If A Test Data Data Score Test Model

   Machine Learning Function

   9 of 23 2021106622 23 Aug 2021

   Figure 7.

   10 of 23 2021106622 23 Aug 2021

   Figure 8.

   Identification verification Trust triangle

   Attribute Access

   PLATFORM SS IDENTITY CORE Service PLATFORM PROCESSING Transactions (Custodian)

   Verified Attribute Provider and Permissioned Record Access

   1. Figure 3.

   Optional transaction

   Direct transaction

   11 of 23 2021106622 23 Aug 2021

   Figure 9.

   12 of 23 2021106622 23 Aug 2021

   Figure 10.

   Payment processing Transaction flow

   Payments & Transaction Flow Invoices

   Invoices Agents via app can collect rent through own means or utilise the platform to do so. Platform splits payments and disburses to Tenants via app can all parties 5. elect to pay their rent via the platform Agent Platform

   or directly to the 4. managing agent

   Tenant Bill payments Borrowers / Tenants Rent & bond Agent / Property Landlord App App loan fees Manager App Rent

   Landlord via app can 8. Social receive rent via Rent capital Tenant bond loan Agent or platform. Bill payments can be Contractors App plus bond loan Social fees made in the same 7. Social fees way. capital capital Agent Platform

   Social capital Bond lodgement 10. Platform manages Transaction Data rent collection & processing Invoices bond fee Bond collection return Platform Tenant

   SS IDENTITY PLATFORM Bond returns PLATFORM (Custodian) Payments PROCESSING CORE (Web/App) Social capital Bond authority Bond Authority / platform holds funds in escrow trust for the term of the loan Social Capital Coin (Reputation Wallet) Third Party

   Platform manages investor funds & Optional transaction transactions via Social wallet & provides capital Invest Platform distributes access to loan Earn Direct transaction funds across opportunities multiple bond loans Lender / Investor Platform 6. to lower investor Social Capital risk / loss

   Lenders / Investors Lender / Investor Platform

   App

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   Figure 11.

   Tenant User Journey

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   Figure 12.

   Agent User Journey

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   Figure 13.

   Landlord User Journey

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   Figure 14.

   Community Partner User Journey

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   Figure 15.

   Investor User Journey

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   Figure 16. 23 Aug 2021 2021106622

   26.

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   28. Apply for a Bond loan

   19 of 23

   Figure 17. 23 Aug 2021

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   29.

   20 of 23

   Figure 18. 23 Aug 2021 2021106622

   31. 32.

   33.

   35.

   34.

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   Figure 19. 23 Aug 2021 2021106622

   37.

   22 of 23

   Figure 20. 23 Aug 2021

   40. 39. 2021106622

   38.

   41.

   43. 42.

   23 of 23

   Figure 21. 23 Aug 2021

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   46. 47.