Background
A crowdfunded replacement for a legacy system
The original system was built more than 20 years ago by one of its member libraries. It had become outdated and insecure, and it relied on manual processing.
The project's funding was unusual: members "crowdfunded" it. Each participating library paid a modest setup fee, and together those fees paid for the year-long project, keeping the cost reasonable for everyone.
The challenge
What the new system had to solve
Reduce staff overhead by automating day-to-day administration, while staying backwards compatible with the old system's proprietary file upload format.
Eliminate data entry errors and double billing with a real-time data integration.
Solve collections and overdraw problems in member accounts.
Offer modern, secure self-service payments so members can fund their accounts easily.
Ensure the financial integrity of the whole system.
The solution
A phased rebuild around a real-time API
With the old system going offline, we built its replacement in phases, launching core functionality quickly to minimize downtime.
Direct integration with DOCLINE. The National Library of Medicine runs DOCLINE, the system libraries use to request interlibrary loans. We designed a custom data-exchange API and worked with DOCLINE's developers to integrate it, so loans between EFTS members flow into EFTS automatically. No manual entry, and accurate data. File uploads are still supported.
An accounting-inspired design. A Lending (accounts receivable) and Borrowing (accounts payable) dashboard lets members track their accounts in real time. Members can't overdraw their balance. Unpaid transactions show under accounts payable instead.
A "Wallet" that ends collections problems. Members deposit funds that pay for transactions in real time, much like an electronic toll wallet. They can add funds securely by ACH or credit card, with optional automatic top-ups when the balance drops below a threshold they set.
Keys to success
Careful work at every step
A project that moves real money between thousands of members needed a high level of care:
Backwards compatibility. We evaluated the old system closely so existing software integrations at many libraries would keep working.
User experience research. We ran an extensive UX study and designed the new system with members, MLA and NLM.
Safe transfer of escrowed funds. We devised a series of checks so funds held in escrow moved into the new system quickly and accurately.
Phased rollout. With thousands of members, it's impossible to interview everyone. A phased launch let us find gaps in the requirements and adjust quickly.
Clean data migration. We migrated key data so the transition caused no overlapping transactions or double billing.
Full financial reconciliation. We confirmed that every fund transfer into and out of the system balanced.
Key features
What members get
Wallet or invoice accounts
With Wallet, deposits pay lenders instantly as transactions arrive. With Invoice, members get a standard monthly invoice for their borrowing.
Accounting system paradigm
Inspired by tools like PayPal and QuickBooks: lending is receivables, borrowing is payables, and unbilled items show members how much to fund.
Data integrations
Connected to MLA's AMS for security and single sign-on, and to its billing and accounting platforms through APIs and sync, so every dollar is tracked.
Real-time transparency
The live DOCLINE integration lets lenders and borrowers track upcoming charges and income on their dashboard.
Pricing automation
Libraries can set pricing rules by billing group that price transactions automatically by loan type and service level.
Simple user experience
A dashboard shows account status at a glance, and a weekly email summarizes the actions each member needs to take, from refunds to funding.