Abstract:
A system method for quickly and easily processing a loan application is disclosed. The original application is processed quickly using supplemental technology such as a barcode scanner, mag-stripe reader, biometric or card tap device to fill out the applicant&#39;s personal details. If the application is approved a seamless transition is made within the mobile device to collect any additional information and allow the applicant to use e-signatures and sign the document directly on the device. Any additional documents needed to disburse a loan are collected by taking a photo of the document and optionally processing it via OCR with the mobile device&#39;s camera.

Description:
FIELD OF THE INVENTION 
       [0001]    The invention relates generally to the field of applications for financial services, and in particular, to systems and methods for processing loan applications. 
       BACKGROUND OF THE INVENTION 
       [0002]    Consumer loan applications offered through merchants have traditionally been processed by collecting all the data needed to assess the applicant up-front—either through a computer application, a website or on paper. After the application process, loan documents would then need to be filled out (either electronically or manually) and submitted manually via fax or as email attachments. Additional documentation such as identification, void cheques, and invoices also need to be collected and forwarded to the lender before the loan can be approved. 
         [0003]    The application process described above would often take 20 minutes or longer for the merchant to complete and then the subsequent final approval process including the assembly of the additional documents could take hours or even days. 
         [0004]    There is a need in the art for a system and method that improves processing times of prior art loan approval processes. 
       SUMMARY OF THE INVENTION 
       [0005]    It is an objective of the invention to incorporate a number of time-reducing technologies and novel business processes to get the total application and approval process down to just a couple of minutes, all without compromising any of the regulatory requirements of a financial institution opening an account through a third party. 
         [0006]    Accordingly, the invention permits a potential loan borrower&#39;s loan application to be carried out on location, and processed efficiently. First, the loan amount, type of item purchased and basic customer data are entered into the loan application form. 
         [0007]    Borrower&#39;s personal data for this form can be gathered one of three ways, by scanning the 2D bar coding on a borrower ID (such as a driver&#39;s license) through a scanner or camera, by a “swipe” of borrower ID using a peripheral reader, or entered manually. 
         [0008]    Once the form is complete it is submitted to an application running on a server which runs an ID check, scrubs the information against a set of databases of fraudulent addresses or terrorist lists, undertakes a credit bureau check of the borrower and then assesses the borrower&#39;s credit to decide on the appropriate rate based on the available lenders for that particular merchant. 
         [0009]    The application is rejected or accepted based on the potential borrower&#39;s credit history 
         [0010]    The original application is processed quickly using supplemental technology such as a barcode scanner, mag-stripe reader, biometric or card tap device to fill out the applicant&#39;s personal details. If the application is approved a seamless transition is made within the mobile device to collect any additional information and allow the applicant to use e-signatures and sign the document directly on the device. Any additional documents needed to disburse a loan are collected by taking a photo of the document and optionally processing it via OCR with the mobile device&#39;s camera. 
         [0011]    According to one embodiment of the invention, there is provided a method of processing a loan application in real time including inputting loan information into a loan application form, the loan application form electronically displayed on a mobile device, the mobile device in communication with a network, capturing a photograph of a barcode on a borrower identification using a camera in the mobile device, scanning the photograph for borrower information, populating the loan application form with the borrower information, sending the loan application form via the network to a loan application processing server for a criminal and credit history check based on the borrower information, and verifying the borrower information, and upon verifying, selecting a lender to disburse the loan based on the borrower information. 
         [0012]    According to one aspect of the invention, the method further includes adjusting a plurality of loan parameters. 
         [0013]    According to another aspect of the invention, the method further includes capturing a first photograph of the borrower, capturing a second photograph of the borrower&#39;s identification, and saving the first and second photographs to a computer readable medium. 
         [0014]    According to another aspect of the invention, the method further includes generating documents for the borrower to endorse. 
         [0015]    According to another aspect of the invention, the documents are generated electronically. 
         [0016]    According to another aspect of the invention, the documents are endorsed electronically. 
         [0017]    According to another aspect of the invention, the method further includes collecting banking information. 
         [0018]    According to another aspect of the invention, the banking information includes photographing a void cheque. 
         [0019]    According to another aspect of the invention, the method further includes submitting the endorsed documents to an administration system running on a server. 
         [0020]    According to another aspect of the invention, the scanning is performed by a barcode scanning application running on the mobile device. 
         [0021]    According to a second embodiment of the invention, there is provided a method of populating a loan application form on a mobile device including displaying a loan application form via a mobile app on the mobile device, activating a camera in the mobile device to capture a photograph of a barcode on a borrower identification, scanning and decoding the barcode to extract borrower information; and inputting the extracted borrower information into loan application form. 
         [0022]    According to a third embodiment of the invention, there is provided a system for processing a loan application including a computer readable medium having a database with data imported from a loan application form filled out by a user, the loan application form electronically displayed on a mobile device, the mobile device in communication with a network, a camera on the mobile device for capturing a photograph of a barcode on a borrower identification, a scanner for scanning the photograph for borrower information, computer readable instructions on a computer readable medium that when executed by a computer system populates the loan application form with the borrower information, computer readable instructions on a computer readable medium that when executed by a computer system sends the loan application form via the network to a loan application processing server for a criminal and credit history check based on the borrower information, and computer readable instructions on a computer readable medium that when executed by a computer system verifies the borrower information, and upon verifying, selecting a lender to disburse the loan based on the borrower information. 
         [0023]    According to an aspect of the third embodiment, the camera further captures a first photograph of the borrower, captures a second photograph of the borrower&#39;s identification; and further including a computer readable medium for saving the first and second photographs to a computer readable medium. 
         [0024]    According to another aspect of the third embodiment, the system further includes computer readable instructions on a computer readable medium that when executed by a computer system generates documents for the borrower to endorse. 
         [0025]    According to another aspect of the third embodiment, the system further includes computer readable instructions on a computer readable medium that when executed by a computer system endorses the documents. 
         [0026]    According to another aspect of the third embodiment, the system further includes a computer system executing instructions for collecting banking information. 
         [0027]    According to another aspect of the third embodiment, the banking information includes a photograph of a void cheque. 
         [0028]    According to another aspect of the third embodiment, the system further includes a computer system executing instructions for submitting the endorsed documents to an administration system running on a server. 
         [0029]    According to another aspect of the third embodiment, the scanner comprises a barcode scanning application running on the mobile device. 
     
    
     
       BRIEF DESCRIPTION OF THE DRAWINGS 
         [0030]    Embodiments will now be described, by way of example only, with reference to the attached Figures, wherein: 
           [0031]      FIG. 1  is a schematic diagram of the loan application processing system; 
           [0032]      FIG. 2  is a block diagram showing the components of the merchant user interface mobile application; 
           [0033]      FIG. 3  is a flow diagram showing the steps used to populate the loan application form; 
           [0034]      FIG. 4  shows an exemplary screenshot of the loan application form on an interface for collecting loan details; 
           [0035]      FIG. 5  shows an exemplary screenshot of an approval page where the applicant can adjust the loan parameters; 
           [0036]      FIG. 6  shows an exemplary screenshot of a page where further borrower contact details can be gathered; 
           [0037]      FIG. 7  shows an exemplary screenshot of the borrower&#39;s endorsement page; 
           [0038]      FIG. 8  shows an exemplary screenshot of a form where the borrower&#39;s bank account details can be gathered; 
           [0039]      FIG. 9  shows an exemplary screenshot of the application complete page; 
       
    
    
     DETAILED DESCRIPTION OF THE EMBODIMENTS 
       [0040]    Turning now to  FIG. 1 , a system for processing loan applications in real time is generally indicated by the reference numeral  10 . The system has two technology layers: the origination layer and the administrative/lender layer. The origination layer has three entry points and multiple processes associated with each type of entry point. Those entry points are: 1. the web interface; 2. the API to a partner interface; and, 3. the mobile interface. 
         [0041]    Loan application processing software is run on a loan application processing server  12  accessible to an administrator user interface  14 . The administrator user interface  14  can access the loan application processing software through an internet connection. The administrator is also in communication with a plurality of lender partners  16 . 
         [0042]    Merchants who are registered with the administrator  14  and the loan application processing server  12  can access the loan application processing server  12  via a merchant user interface  18  on the merchants&#39; point-of-sale (POS) system. The merchant user interface  18  can be deployed via a web interface, a mobile application (“mobile app”) running on a mobile device, or an application programming interface (API) integrated directly into the point-of-sale system. 
         [0043]      FIG. 2  is a schematic drawing and shows the components of the merchant user interface  18  deployed via a mobile app. As illustrated, the interface displays information from software modules that enable a user login  201 , activation of the bar code scan  203 , submission of the loan  205 , loan displaying/updating  207  and any other data necessary from the document engine  209 . Each of these modules are in communication, and may exchange data with the loan application server  12 . 
         [0044]      FIG. 3  is a flow diagram showing the steps the system performs for processing loan applications in real time. In step  30 , the merchant logs into the merchant user interface  18  running on a mobile device, which is in communication with merchant&#39;s POS system. The mobile device also has internet connection via WiFi, Bluetooth, 3G, or any other type of internet connection. In step  32 , the merchant selects to create a new loan. In step  34 , the merchant inputs basic loan data into a form presented by the merchant user interface  18 , an example of which can be seen in the exemplary screenshot in  FIG. 4 . This basic loan data can include the loan amount and type of item being purchased by a customer or loan borrower. In step  36 , the borrower&#39;s personal information is gathered via the borrower&#39;s identification. The merchant can select to take a photograph of a 2-D bar code on the borrower&#39;s identification using the camera in the mobile device. When selected, the merchant user interface  18  will deploy the camera and the merchant can take the photograph. Once the photograph is captured, the barcode is scanned and decoded for the borrower&#39;s personal information. This process occurs through the device camera within the mobile application. Alternatively, scanning can be performed by a bar code scanning mobile app on the mobile device and imported into the merchant user interface  18 . In a further alternative, a magnetic strip on the borrower&#39;s identification can be “swiped” using a peripheral magnetic strip reader. If none of these methods are available to the merchant, the numbers on the borrower&#39;s identification can be entered into the form manually. 
         [0045]    In step  38 , the information scanned from step  36  is used to populate the form. The borrower information is matched to the appropriate fields and automatically inserted. 
         [0046]    The completed form is then submitted to the loan application processing server  12  in step  40 . In step  42 , the loan application processing server accesses a service which interprets the data and then performs an identification check, a criminal background check, a credit bureau check, and then checks the borrower&#39;s credit rating. If the identification, criminal, and credit check are not verified, then the borrower is rejected in step  43 . If the identification, criminal, and credit check are verified, then the borrower is accepted in step  44  and an appropriate lender and rate are chosen based on what is available to the borrower for that particular merchant and the borrower&#39;s credit rating and history. 
         [0047]    In step  46 , the merchant optionally can adjust parameters of the loan to customize the loan for the borrower, as shown in the exemplary screenshot in  FIG. 5 . An example of the parameters the merchant can adjust is loan amortization period. 
         [0048]    In step  48 , additional borrower information is collected. This information can be used for further identification of the borrower, to demonstrate the merchant&#39;s due diligence in verifying the borrower&#39;s identification, or for auditing purposes. In one example, the merchant user interface  18  prompts the merchant to take a photo of the identification being used by the borrower and a photo of the borrower to secure the loan. The photographs can be taken by the camera within the mobile device, which is concurrently running the merchant user interface  18 . In this example, the merchant user interface  18  will deploy the camera and the merchant can take the photographs. Once the photographs are captured, they are sent to the loan application server. 
         [0049]    In step  50 , the merchant user interface  18  generates appropriate documents for the borrower to sign. These documents can be physically printed by an external printer and presented to the borrower. In step  52 , the borrower endorses the documents by signing in the appropriate spot. Alternatively, the documents can be rendered on the mobile device running the merchant user interface  18 . In this case, the borrower would sign the documents with a finger or stylus in the appropriate field as shown in the screenshot of  FIG. 7 . 
         [0050]    In step  54 , the merchant user interface  18  prompts the merchant for the borrower&#39;s banking information. The merchant user interface  18  can prompt the merchant to take a photo of a void cheque belonging to the borrower. If the merchant elects to take the photograph at that time, the merchant user interface deploys the camera in the mobile device which sends the captured images from the device to the loan application server. If the merchant chooses to take the photographs at a later time, the photograph can also be taken by a peripheral digital camera or the same mobile device, and then uploaded to the loan application processing server  12  at a later time. Alternatively, the void cheque can be scanned by a peripheral scanner or through the mobile device application, and uploaded to the loan application processing server  12  at a later time. 
         [0051]    In step  56 , the loan completion page also allows for an invoice of the purchased item to be collected through the invoice photo button  132 . The copy of the invoice can be taken via the camera in a mobile device. The photo is sent to the loan application server. The invoice is collected in the application for the final loan file. Optionally, the merchant can provide the copy of the invoice at a later time, by taking a photo of the invoice through a peripheral digital camera and sending it to the loan application processing server  12  at a later time. Alternatively, the merchant can also scan the invoice via a peripheral scanner such as a flatbed scanner. 
         [0052]    In step  56 , the documents are sent to the loan application server and the loan application processing server  12  notifies the administrator via the administrator user interface  14  that a loan application is ready to be disbursed. 
         [0053]    1. Mobile Interface: 
         [0054]    The merchant user interface  18  will now be described in more detail with reference to  FIGS. 4  to. 
         [0055]    A merchant user interface  18  mobile app is first downloaded onto the device through the relevant application “store” provided by the device. 
         [0056]    Assuming the partner has already registered with the service, the partner logs in through the login screen and their fully customized interface and pre-registered preferences are made available. 
         [0057]    From here the partner can start applying for loans.  FIG. 4  shows an exemplary screenshot of the initial screen for a new loan application form and is generally referenced by the number  80 . The form is displayed on a mobile device such as an iPad, or other tablet device, smart phone or other mobile device with connection to the internet through WiFi, Bluetooth, 3G, or any other type of internet connection. Basic loan information is entered in the top section  82  of the initial screen  80  such as the item to be purchased, the requested amount of the loan, and any applicable incentives for the purchase. 
         [0058]    Borrower&#39;s personal data is gathered in the lower section  84  of the initial screen  80 . In one example, the 2-D bar code on the borrower&#39;s identification can be scanned by a bar code scanning mobile app and a camera running on the mobile device. On the initial screen  80  a scanning button  86  is made available, which launches the camera and bar code scanning mobile app within the merchant user interface app. Once the bar code is scanned, the loan processing mobile app imports the decoded information and populates the borrower&#39;s personal data in the lower section  84 . The borrower information is matched to the appropriate fields and automatically inserted. Alternatively, the borrower&#39;s information can also be captured by a “swipe” of borrower ID using a peripheral reader or it can be entered manually. 
         [0059]    Once the application form is complete it is submitted automatically to the server application which runs an ID check, scrubs the information against a set of data bases of fraudulent addresses or terrorist lists, undertakes a credit bureau check of the borrower and then assesses the borrower&#39;s credit to decide on the appropriate rate based on the available lenders for that particular merchant. 
         [0060]    The application is rejected or accepted based on their credit history. Sometimes there are multiple prime lenders and multiple non-prime lenders. The server system automatically assigns which lender will match which borrower and documents the loan accordingly. 
         [0061]      FIG. 5  shows an exemplary screenshot of an approval page  90  on the mobile device app. On this approval page  90 , the merchant is given the optional opportunity to adjust the loan amortization and other parameters, such as payment frequency, to tailor the loan to the borrower. The merchant can show the borrower an amortization table via the amortization table button  92  to aid in adjusting the parameters. When depressed, a new window will pop up with the table (not shown). If the merchant makes any changes to the parameters, the merchant will update the loan using the update button  94 . When all changes have been made, the merchant presses the continue button  96  to move to the next page in the process. 
         [0062]      FIG. 6  shows an exemplary screenshot of a further details page  100  on the loan processing mobile app for collecting further borrower details. The further details page  100  allows for a photograph of the ID to be taken via the ID photo button  106 . When the ID photo button is depressed, the mobile device&#39;s camera app is deployed. Once the ID has been photographed, it is dated and time stamped by the loan processing mobile app, then stored on the loan application server. In an alternate embodiment, the merchant can also be prompted to take a photo of the borrower for further proof of identification to demonstrate that the merchant has done his or her due diligence in identifying the borrower. This information is all captured in the system for audit purposes. The merchant then continues the loan application process by pressing the sign document button  108 . 
         [0063]      FIG. 7  shows an exemplary screenshot of the loan documentation page  110  on the loan processing mobile app. This loan documentation page  110  generates the appropriate documents for the borrower (based on the item purchased, loan amount and duration, state or province of residence and lender). The loan documentation page is presented to the borrower for endorsement. When the signature button  112  is depressed, an endorsement pop-up screen  114  appears. The borrower can then sign in the appropriate space by using the mobile a finger or stylus. 
         [0064]    Once the loan documentation page is signed by the borrower, the bank details page  120  appears as shown in the exemplary screen shot of  FIG. 8 . Bank details are optionally collected in the loan application forms to detail from which banking institutions the lender will take payments the payment of the loan. The bank details page  120  allows for a photograph of a borrower&#39;s void cheque to be taken via a cheque photograph button  122 . When the cheque photograph button  122  is depressed, the loan processing mobile app deploys the camera app in the mobile device to take a photo of the void cheque. The cheque information is captured using the mobile device camera or scanned using OCR and then imported into the bank details page  120 . Alternatively, the banking information can be collected manually. The merchant then continues the loan application process by pressing the continue button  126 . If the borrower is unable to provide the banking information at the time of the loan application process, the merchant is given the option of skipping this section via the skip button  124 . 
         [0065]    Once the banking details page  120  is completed or skipped, the loan processing mobile app moves onto the completion page  130  as shown in the exemplary screenshot in  FIG. 9 . The loan completion page  130  can show all the details of the loan and which documents have been completed for the loan. The loan completion page also allows for an invoice of the purchased item to be collected through the invoice photo button  132 . When the invoice photo button is activated, the loan processing mobile app deploys the camera app in the mobile device to allow the merchant to take a photo of the invoice. The photo is stored to the loan application server. The invoice is collected in the application for the final loan file. Optionally, the merchant can provide the copy of the invoice at a later time, by taking a photo of the invoice through a peripheral digital camera and upload it to the mobile device. Alternatively, the merchant can also scan the invoice via a peripheral scanner such as a flatbed scanner. In a further alternative, the invoice can also be collected through integration with the merchant&#39;s point of sale system. 
         [0066]    The loan is now ready to be disbursed and is available in final form for review in the Administrative system. 
         [0067]    The above-described embodiments are intended to be examples of the present invention and alterations and modifications may be effected thereto, by those of skill in the art, without departing from the scope of the invention that is defined solely by the claims appended hereto.