Specification
DESC:METHOD AND SYSTEM FOR AUTOMATICALLY MANAGING FINANCIAL TRANSACTIONS AND MITIGATING FINANCIAL RISK FOR TRANSPORT SCHEDULES
TECHNICAL FIELD
[0001] The present subject matter described herein, in general, relates to financial services and loan products, more particularly relates to a product, method and system for automatically managing financial transactions and mitigating financial risk in disbursing loans for a plurality of transport schedules.
BACKGROUND
[0002] The existing financial products are underwritten primarily on a combination of past records (e.g., credit scores), future payment ability and collaterals etc. This method precludes large number of self-employed men and women and small businesses who require short tenure, small borrowings. e.g., a vegetable vendor or a rickshaw or truck operator. The trucking / transport/ goods carrying business is very fragmented with over small and medium transport operators, and these transport operators do not have access to formal credit for their working capital. The delay in payments from transporters drives up the inefficiencies with respect to idle times of vehicle.
[0003] On the other hand, for Investors (Financial Institutions, NBFCs, HNI’s) there are limited mechanisms to have access to verifiable Trip Data and hence no working capital distribution mechanism is available for small and medium truckers, even though Truck operators mostly MSMEs qualify under priority lending sector, working capital products are not available due to lack of collateral and trip data.
SUMMARY
[0004] This summary is provided to introduce aspects related to a method and system managing financial transactions and mitigating financial risk for a plurality of transport schedules of a plurality of transporters.
[0005] In an aspect of the present disclosure, a system for automatically managing financial transactions and mitigating financial risk for a plurality of transport schedules of a plurality of transporters is disclosed. The system comprises a management device connected to a network, a plurality of devices communicably connected to a management device via the network and configured to communicate with each other. The plurality of devices comprises a lender device, a transporter device, a customer device, at least one remote server and an operator device communicably connected to the transporter device, communicably connected to a management device via the network. The management platform is configured to run on the management device and the plurality of devices.
[0006] In another aspect of the present disclosure, a method for automatically managing financial transactions and mitigating financial risk for a plurality of transport schedules of a plurality of transporters is disclosed. The method comprises the steps of: automatically obtaining a present trip data of a trip schedule to be completed from at least one transporter device, determining an intention score and an ability score of at least one transporter for the trip schedule, automatically sending an approval for a loan to a transporter with a maximum eligible amount to the management platform based on the intention score and the ability score for the trip schedule, determining a first portion loan amount for completing the trip schedule based on the approved maximum eligible amount to the transporter device, validating the past trip data of previously completed trip schedules of the transporter and the present trip data and automatically determining a trip score based on the validations of the past trip data.
[0007] The method further comprises determining a receivable score for the customer corresponding to the transporter based on an ageing data of the customer for the previously completed trip schedules, determining a transporter score being the summation of the trip score and the receivable score, determining a Value At Risk (VAR) score for the transporter from the payment data of the corresponding customer for predicting a percentage of money at risk, determining a Margin At Risk (MAR) score for the transporter from a predefined benchmark margin and an actual margin of the transporter for predicting a percentage of margin at risk, determining a second portion from the first portion of loan amount based on the Value At Risk (VAR) score, the Margin At Risk (MAR) score and the transporter score of the transporter and automatically disbursing the second portion of the amount directly to the operator via the operator device.
[0008] In the aspects of the present disclosure, the management device is configured to perform the steps in method for automatically managing financial transactions and mitigating financial risk for a plurality of transport schedules. The management device comprises an acquisition module for obtaining data, a validation module for validating data, an alert module for sending notifications to the plurality of devices, a score calculation module for determining various scores for the system, a finance transaction module for managing transactions between the and the plurality of devices and the management device and a decisioning module for decision making in approval and disbursal of loans.
OBJECTIVES
[0009] It is an objective of the present invention to provide a method for automatically disbursing loans and managing financial transactions for a transport schedule.
[0010] It is another objective of the present invention to provide a system for automatically disbursing loans and managing financial transactions in a transport network.
[0011] It is still another objective of the present invention to provide a service platform installed on an apparatus for automatically disbursing loans and managing financial transactions in transport networks.
[0012] It is still another objective of the present invention to provide a system and methods for automatic hassle free, paperless loan approvals and disbursements for a plurality of transport schedules.
[0013] It is still another objective of the present invention to provide a system and method for automatically verifying the financial capacity of the truck owners and drivers through a plurality of credit channels for lending loans.
[0014] It is still another objective of the present invention to provide a system and method for mitigating financial risk while disbursing loans for a plurality of trip schedules.
BRIEF DESCRIPTION OF THE DRAWINGS
[0015] The detailed description is described with reference to the accompanying figures. In the figures, the left-most digit(s) of a reference number identifies the figure in which the reference number first appears. The same numbers are used throughout the drawings to refer to features and components.
[0016] Figure 1 illustrates a system for automatically managing financial transactions and mitigating financial risk for a plurality of transport schedules of a plurality of transporters in accordance with an exemplary embodiment of the present disclosure.
[0017] Figure 2 illustrates a flow chart for the method for automatically managing financial transactions of a transport schedule in accordance with the present disclosure.
[0018] Figure 3 illustrates a flow chart for the method for automatically managing financial transactions and mitigating financial risk in disbursing loans in accordance with the exemplary embodiment of the present disclosure.
[0019] Figure 4a illustrates an example of determination of the trip score of the transporter in accordance with the present disclosure.
[0020] Figure 4b illustrates an example of determination of the receivable score of the transporter in accordance with the present disclosure.
[0021] Figure 4c illustrates an example of determination of the transporter score (TS) of the transporter in accordance with the present disclosure.
[0022] Figure 5 illustrates a flow chart for the steps involved in determining an intention score and an ability score of at least one transporter in accordance with the present disclosure.
[0023] Figure 6 illustrates an example of validations of the profile data, regulatory data, loan default data and the financial data for determining intention score and ability score of the transporter in accordance with the present disclosure.
[0024] Figure 7 illustrates an example of risk category with number of alerts the number of alerts sent to the management platform based on validation of data.
[0025] Figure 8 illustrates the management device (400) in accordance with an exemplary embodiment of the present disclosure.
[0026] Figure 9 illustrates a system for automatically lending loans and managing financial transactions for a transport schedule in accordance with another exemplary embodiment of the present disclosure.
[0027] Figure 10 illustrates a flow chart of the method of present invention in accordance with one example of the present disclosure.
DETAILED DESCRIPTION
[0028] According to the present disclosure, a method and system for automatically lending loans and managing financial transactions for a transport schedule are disclosed. The present invention provides the automated method for small borrowers, like transporters, truck owners, drivers to borrow small amounts as loan for a short to very short tenures to complete a shipment or transport of goods, otherwise called as ‘a transport schedule’ or ‘trip schedule’. The present invention provides lending of such small amounts automatically for the verifiable trips having verified credentials of Trucks, Drivers, Customers, and lenders. The present invention provides access to the various credit channels of the borrowers to verify the capacity of the borrowers automatically or with minimal user inputs. Further, the present invention provides an application or ERP platform installed on all devices of the system for automatically lending loans and managing the financial transactions for the trips.
[0029] The present invention provides a medium or link between truck drivers, small owners, the customers, and aggregators(transporters) for efficiently handling the financial needs of small owners and truck drivers for completing the shipments. Further, the present invention allows a payment facility or the escrow device to perform all the financial transactions between the customers, truck drivers, small owners, the customers, and aggregators.
[0030] Referring to Figure 1, illustrated is a system (1000) for automatically managing financial transactions and mitigating financial risk for a plurality of transport schedules of a plurality of transporters in accordance with an exemplary embodiment of the present disclosure. The transport schedule comprises one or more scheduled trips for a shipment of a package or a plurality of packages. The system comprises a management device (400) connected to a network, a plurality of devices (100, 200, 300, 400 and 500) communicably connected to a management device (400) via the network and communicating with each other. The plurality of devices comprises a lender device (500), a transporter device (200), a customer device (100) communicably connected to the transporter device (200), an operator device (300) communicably connected to the transporter device (200) and at least one remote server (600) communicably connected to a management device (400) via the network. The present disclosure provides a management platform, a software application, that is installed in the management device (400) and the plurality of devices and configured to run on all the devices.
[0031] In one embodiment of the present disclosure, the customer device (100) sends a request for a transport schedule of a shipment or package to be delivered, through the customer device (100) as per his/her requirement. The transporter is also called “aggregator”. The transporter receives the request for the transport schedule from the customer through the transporter device (200). The transporter device (200) identifies the availability and occupancy of the truck drivers and owners for the transport schedule based on the real time data stored on the database and subsequently allots the transport schedule or trip to the truck drivers and owners based on the real-time availability.
[0032] Further, the trip / transport schedule information is sent to the truck drivers and owners at the operator device (300). The operator or truck owner accepts/agrees the trip/transport schedule electronically thereby executing an agreement with the transporter through the operator device (300). Upon the execution of agreement, the transporter device (200) updates the database with the agreement and consent of the borrower for the trip/transport schedule. Further, the transporter device (200) sends a cost estimate for the trip schedule to the management device (400) and requests payment for the trip schedule equivalent to the cost estimate from the management device (400). The cost estimate comprises at least one of: Lorry Receipt (LR), e-way bill, Truck Handling Charges (THC).
[0033] The management device (400) being an escrow device, sends the cost estimate for the trip schedule received from the transporter to the lender device (500) for a loan approval from the lender. The lender approves the trip schedule and loan for the cost estimate through the lender’s device (500). Further, Lender verifies the financial capacity and financial scores of the transporter through a plurality of credit channels of the transporter for paperless approval. Upon approval, the lender device (500) sends the loan approval and corresponding payment equivalent to the cost estimate to the management device (400) for the trip schedule. Customer comprises corporate clients and industries ordering a package delivery or logistics from a truck operator through the transporter. Lender comprises Banks, credit/financial institutions, non-banking finance corporations and brokers.
[0034] Initially, the management device (400) transfers a first payment to operator device (300) based on predefined terms and conditions to initiate the trip or shipment, predefined terms and conditions may sometimes include partial payments or predefined percentage of amount. Further, the management device (400) shares the details of loan and payment transaction details to the transporter device (200). The truck driver may then initiate the trip schedule. The truck driver picks up the package with goods and delivers the package as per the transport schedule and requirements by the customer. Upon delivering the package, the driver marks the transport schedule or shipment as completed and shares a Proof of Delivery (PoD) to the transporter and the management device (400) through the operator device (300).
[0035] Transporter device may verify the Proof of Delivery thorough customer device or any other channels. After the verification of delivery, or receipt of proof of delivery, the management device (400) transfers a second payment, which is a balance amount of the transport schedule, to the driver based on predefined terms and conditions. The transporter device (200) further sends a bill/invoice to the customer’s device (100) for the trip schedule completed to collect the payment. The customer clears invoice by paying the amount to the escrow. The escrow (400) receives the payment made by the customer for the bill/invoice and settles/ repays the loan provided to the borrower, to the lender on behalf of the borrower.
[0036] As described, the system comprises a plurality of devices connected over a network. Each device refers to the user of the device. In the present invention, the terms “customer” and “customer device”, “transporter” and “transporter device”, “lender” and “lender device” are interchangeably used respectively, and each term means to a device used by the respective user. Further, terms “operator”, “borrower”, “truck driver”, “truck owner”, “operator device” are interchangeably used in the present invention. Further, terms “escrow”, “manager”, “payment facility, “management device” are interchangeably used in the present invention.
[0037] In an exemplary embodiment, each device is a computing device comprising not only limited to a mobile device, a smart phone, a laptop, a tablet, a palm top, a personal computer, a portable device, a hand-held unit, and any other suitable electronic device. Each device comprises at least one processing unit, a memory unit, a user interface, a database, and a battery. The plurality of devices are connected together in the network via the internet. In an implementation of the invention, the plurality of devices is connected via a wireless network not only limited to a cellular network, Wi-Fi, WLAN, Bluetooth, or an access point. In another implementation of the present invention, the plurality of devices are connected via a wired network not only limited to LAN, cable, Fiber, or any suitable wired network or connections. The plurality of devices are configured to communicate with each other within a network. A software application or an ERP platform is installed in each device of the plurality of devices in the system. The software application comprises a plurality of instructions to perform a specific function/ functions stored in the memory unit and run by at least one processing unit of the device.
[0038] In another embodiment, each device comprises a server having at least one processing unit, a memory unit, a user interface, a database, and a battery. The transport device may comprise a database storing details of Truck operators, for example, the database comprises demographic details, capacity, bank accounts, and credit/financial score of the truck operators. The database further comprises information on real-time availability and occupancy of trucks and truck operators. In yet another embodiment, the database may comprise details of drivers, customers, lenders, and transporters. The database is updated from time to time based on real-time data from drivers, truck operators, customers, lenders, and transporters. For example, the database is updated based on real-time availability and occupancy of a truck and a truck operator. In another example of the invention, the database may be a cloud database stored in a remote server, updated from time to time and accessible over the network via internet.
[0039] Further to the embodiment, the transporter device identifies availability of the resources and allocates the resources as per the requirement of the customer. For example, transporter device identifies the availability of truck and truck owners and drivers from the real-time data stored in the database, based on a requirement of the customer, and assigns/allocates the trip to the at least one of the available truck owners or drivers. The information of truck drivers and owners is stored, maintained, and accessed by the transporter device.
[0040] In accordance with another embodiment of the present disclosure, a method for automatically managing financial transactions and mitigating financial risk in disbursing loans for a plurality of transport schedules of a plurality of transporters is disclosed. In an implementation, the method is performed by the system (1000) comprising a plurality of devices connected in a network as disclosed in the previous embodiment. Figure 2 shows a flow chart for the method for automatically managing financial transactions of a transport schedule in accordance with the present disclosure. The method comprises the steps as follows:
1. sending a request or placing an order of a transport schedule of a shipment by a customer through the customer device (100) as per his/her requirement
2. receiving the request/ order for the transport schedule from the customer by the transporter device (200)
3. identifying the availability and occupancy of the Truck drivers and owners by the transporter device for the transport schedule
4. allocating the transport schedule or trip to the Truck drivers and owners based on the real-time availability;
5. sending the trip / transport schedule information to the Truck drivers and owners at the operator device (300);
6. accepting the trip/transport schedule electronically thereby executing an agreement with transporter by the Truck drivers and truck owners on the operator device (300);
7. updating the database of the transporter device with the agreement and consent for the trip/transport schedule;
8. sending a cost estimate for the trip schedule to the management device (400), the cost estimate includes not limited to Lorry Receipt (LR), e-way bill, Truck Handling Charges (THC)
9. requesting payment for the trip schedule equivalent to the cost estimate from the management device (400) by the transporter device (200).
10. sending the cost estimate for the trip schedule by the management device to the lender device (500) for a loan approval from the lender
11. approving the trip schedule and loan for the cost estimate by the lender through the lender device (500)
12. sending the loan approval and payment equivalent the cost estimate to management device (400) to be financed to the truck owners for the trip schedule;
13. transfers a first payment directly to the operator device (300) based on predefined terms and conditions, predefined terms and conditions may include partial payments, or a predefined percentage of amount based on determination of a plurality of scores of the transporter;
14. sharing the details of loan and payment details to the transporter device by management device
15. Initiating the trip schedule by the driver, the driver picks up the package with goods and delivers the package as per the transport schedule and requirements by the customer;
16. upon delivering the package, the driver marks the transport schedule as completed and shares a Proof of Delivery (PoD) to the transporter and the management device through the operator device;
17. transferring a second payment to the driver (operator device) based on predefined terms and conditions by the management device, predefined terms and conditions include partial payment or difference in cost estimate and the first payment based on determination of a plurality of scores of the transporter;
18. sending a bill/invoice from the transporter device (200) to the customer’s device (100) for the trip schedule completed to collect payment;
19. clears the invoice sent by paying the amount to the management device through the customer’s device;
20. receiving the payment made by the customer for the bill/invoice at management device (400).
21. settling/ repaying the loan provided to the transporter to the lender by the management device.
[0041] Further the method may comprise of verifying the financial capacity and credit scores of the transporters through a plurality of credit channels of the transporters for paperless approval. For example, lender may have access to formal credit channels and payment systems of the truck drivers, such as UPI, Bharat Bill Payment System, GSTN, Digi locker, e-Sign and eKYC for paperless credit approval and disbursements of loan for a qualified trip. Further, the method may comprise verifying the Proof of Delivery through customer device or any other channels. After the verification of delivery, or receipt of proof of delivery, the management device (400) transfers the second payment, which is a balance amount of the transport schedule, to the truck driver.
[0042] In another embodiment of the present disclosure, a method for automatically managing financial transactions and mitigating financial risk for a plurality of transport schedules of a plurality of transporters is disclosed. The present invention mitigates the financial risk in disbursing small loans to truck operators and transporters for trip schedules. Figure 3 shows a flow chart for the method for automatically managing financial transactions and mitigating financial risk in disbursing loans in accordance with the exemplary embodiment of the present disclosure. The method comprises the steps of automatically obtaining a present trip data of a trip schedule to be completed from at least one transporter device (200), determining an intention score and an ability score of at least one transporter for the trip schedule, forwarding the intention score and the ability score to the lender device (500) and receiving an approval for a loan based on a predefined thresholds of the intention score and the ability score for the trip schedule from the lender device (500), automatically sending an approval for a loan to a transporter with a maximum eligible amount to the management platform based on the intention score and the ability score for the trip schedule, and determining a first portion loan amount for completing the trip schedule based on the approved maximum eligible amount to the transporter device (200). The present trip data comprises vehicle data, driver data, e-way document and an amount required to complete the trip schedule.
[0043] The method further comprises the step of validating the past trip data of previously completed trip schedules of the transporter and the present trip data and automatically determining a trip score based on the validations of the past trip data, determining a receivable score for the customer corresponding to the transporter based on an ageing data of the customer for the previously completed trip schedules, determining a transporter score (TS) being the summation of the trip score and the receivable score, determining a Value At Risk (VAR) score for the transporter from the payment data of the corresponding customer for predicting a percentage of money at risk, and determining a Margin At Risk (MAR) score for the transporter from a predefined benchmark margin and an actual margin of the transporter for predicting a percentage of margin at risk. The method further comprises the step of determining a second portion from the first portion of loan amount based on the Value At Risk (VAR) score, the Margin At Risk (MAR) score and the transporter score (TS) of the transporter and automatically disbursing the second portion of the amount directly to the operator via the operator device (300).
[0044] The method further comprises receiving at least one input from the transporter device (200) and automatically verifying an identity of the transporter based on the at least one input from the transporter device (200). For example, the identity of the transporter is verified based on OTP, a password, biometric authentication, or any other security metrics received at the transporter device (200).
[0045] In an embodiment of the invention, past trip data comprises vehicle data, driver data, turnaround time completed for each trip schedule, e-way document submitted for each trip schedule, and a trip amount spent for each trip schedule. The ageing data comprises a bill submission date, payment collected date and number of days taken for the payment against the bill. The trip score is determined based on validations of validations of the past trip data. Referring to figure 4a, illustrated is an example of determination of the trip score of the transporter in accordance with the present disclosure. As shown in Figure 4a, the trip score is an overall score of validations of each item in past trip data. Since all validations are passed, the trip score is 4. The receivable score is determined based on the number of days taken for the customer for the payment against the bill submission. Referring to figure 4b, illustrated is an example of determination of the receivable score of the transporter in accordance with the present disclosure. As shown in Figure 4b, the number of days taken for the payment is 10 days and so the receivable score is 5. The transporter score (TS) is determined by adding the trip score and the receivable score. Referring to figure 4c, illustrated is an example of determination of the transporter score (TS) of the transporter in accordance with the present disclosure.
[0046] The method may further comprise the step of automatically updating the trip score based on the validation of the present trip data, automatically updating the receivable score for the transporter and the customer based on the ageing data of the customer for the latest trip schedule and updating the transporter score being the summation of the updated trip score and the receivable score.
[0047] The payment data of the corresponding customer comprises customer deductions, amounts greater than a period of ageing and total billed amount to the customer. Value at Risk (VAR%): VAR factors deductions and delay in payments from shippers. Shipper Deductions due to damages or shortages/overall freight value + Receivable outstanding more than threshold days. The VAR is derived by shipper, industry segment, lane, vendor. The Value At Risk (VAR) score is determined using:
Value At Risk (VAR) score (%) = (Customer Deductions + All amounts greater than 90 days of ageing/total customer billing)
The Value At Risk (VAR) score is determined as a percentage from the summation of customer deductions and amounts greater than a period of ageing against the total billed amount to the customer.
[0048] In an embodiment of the invention, the actual margin is determined as a percentage from the difference between the actual bill amount and the charges spent for the trip schedule. The Margin At Risk (MAR) score is determined from the difference between the predefined benchmark margin and the actual margin of the transporter against the Terminal Handling Charges (THC).
Margin at Risk (MAR)%: MAR factors trips operated at a loss.
1. Actual margin (A) for each trip compared with Benchmark margins (B) by truck type, distance, lane, type of freight, season.
2. If A>=B, then A is considered as margin. MAR=0
3. If A
Documents
Application Documents
| # |
Name |
Date |
| 1 |
202211023503-STATEMENT OF UNDERTAKING (FORM 3) [21-04-2022(online)].pdf |
2022-04-21 |
| 2 |
202211023503-PROVISIONAL SPECIFICATION [21-04-2022(online)].pdf |
2022-04-21 |
| 3 |
202211023503-FORM-26 [21-04-2022(online)].pdf |
2022-04-21 |
| 4 |
202211023503-FORM FOR STARTUP [21-04-2022(online)].pdf |
2022-04-21 |
| 5 |
202211023503-FORM FOR SMALL ENTITY(FORM-28) [21-04-2022(online)].pdf |
2022-04-21 |
| 6 |
202211023503-FORM 1 [21-04-2022(online)].pdf |
2022-04-21 |
| 7 |
202211023503-FIGURE OF ABSTRACT [21-04-2022(online)].jpg |
2022-04-21 |
| 8 |
202211023503-EVIDENCE FOR REGISTRATION UNDER SSI(FORM-28) [21-04-2022(online)].pdf |
2022-04-21 |
| 9 |
202211023503-EVIDENCE FOR REGISTRATION UNDER SSI [21-04-2022(online)].pdf |
2022-04-21 |
| 10 |
202211023503-DRAWINGS [21-04-2022(online)].pdf |
2022-04-21 |
| 11 |
202211023503-DECLARATION OF INVENTORSHIP (FORM 5) [21-04-2022(online)].pdf |
2022-04-21 |
| 12 |
202211023503-DRAWING [21-04-2023(online)].pdf |
2023-04-21 |
| 13 |
202211023503-CORRESPONDENCE-OTHERS [21-04-2023(online)].pdf |
2023-04-21 |
| 14 |
202211023503-COMPLETE SPECIFICATION [21-04-2023(online)].pdf |
2023-04-21 |