U.S. patent application number 11/796562 was filed with the patent office on 2008-04-17 for methods and systems for opening and funding a financial account online.
Invention is credited to Amy B. Byal, Rockne Egnatios, Robert L. JR. Evans, Gerard Marineau.
Application Number | 20080091591 11/796562 |
Document ID | / |
Family ID | 38656232 |
Filed Date | 2008-04-17 |
United States Patent
Application |
20080091591 |
Kind Code |
A1 |
Egnatios; Rockne ; et
al. |
April 17, 2008 |
Methods and systems for opening and funding a financial account
online
Abstract
Methods of systems of opening an account with a financial
institution. One method can include electronically receiving
account application information over at least one network. The
account application information includes personal information
associated with a customer requesting to open an account. The
method also includes processing the account application information
to assess a first risk to the financial institution of opening the
account for the customer and electronically receiving funding
source information. The funding source information specifies at
least one of an existing credit card account and an existing debit
card account. In addition, the method includes processing the
funding source information to assess a second risk to the financial
institution of transferring funds from at least one of the existing
credit card account and the existing debit card account. The method
further includes electronically transferring funds to the account
from at least one of the existing credit card account and the
existing debit card account based on at least one of the first risk
and the second risk.
Inventors: |
Egnatios; Rockne;
(Scottsdale, AZ) ; Byal; Amy B.; (Mesa, AZ)
; Marineau; Gerard; (Redmond, WA) ; Evans; Robert
L. JR.; (Scottsdale, AZ) |
Correspondence
Address: |
MICHAEL BEST & FRIEDRICH LLP
100 E WISCONSIN AVENUE
Suite 3300
MILWAUKEE
WI
53202
US
|
Family ID: |
38656232 |
Appl. No.: |
11/796562 |
Filed: |
April 27, 2007 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
|
|
60796232 |
Apr 28, 2006 |
|
|
|
60816820 |
Jun 27, 2006 |
|
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Current U.S.
Class: |
705/38 |
Current CPC
Class: |
G06Q 40/00 20130101;
G06Q 40/02 20130101; G06Q 20/10 20130101; G06Q 20/108 20130101;
G06Q 40/025 20130101; G06Q 30/0224 20130101 |
Class at
Publication: |
705/038 |
International
Class: |
G06Q 40/00 20060101
G06Q040/00; G06Q 90/00 20060101 G06Q090/00 |
Claims
1. A method of opening an account with a financial institution, the
method comprising: electronically receiving account application
information over at least one network, the account application
information including personal information associated with a
customer requesting to open an account; processing the account
application information to assess a first risk to the financial
institution of opening the account for the customer; electronically
receiving funding source information over at least one network, the
funding source information specifying at least one of an existing
credit card account and an existing debit card account; processing
the funding source information to assess a second risk to the
financial institution of transferring funds from at least one of
the existing credit card account and the existing debit card
account; and electronically transferring funds to the account from
at least one of the existing credit card account and the existing
debit card account based on at least one of the first risk and the
second risk.
2. The method of claim 1, wherein processing the account
application information to assess a first risk to the financial
institution of opening the account for the customer includes
verifying an identity of the customer.
3. The method of claim 2, wherein verifying an identity of the
customer includes providing a verification score associated with
the customer.
4. The method of claim 2, wherein verifying an identity of the
customer includes prompting the customer to answer at least one
preset question.
5. The method of claim 1, further comprising terminating a new
account opening process based on the first risk.
6. The method of claim 1, wherein processing the account
application information to assess a first risk to the financial
institution of opening the account for the customer includes
determining a risk score associated with the customer.
7. The method of claim 1, further comprising terminating a new
account opening process based on the second risk.
8. The method of claim 1, wherein processing the funding source
information to assess a second risk to the financial institution of
transferring funds from a funding source includes determining a
risk score associated with the funding source.
9. The method of claim 1, wherein processing the funding source
information to assess a second risk to the financial institution of
transferring funds from at least one of the existing credit card
account and the existing debit card account includes attempting to
match at least a portion of the funding source information with at
least a portion of the account application information.
10. The method of claim 9, wherein attempting to match at least a
portion of the funding source information with at least a portion
of the account application information includes processing
previously-collected debit data.
11. The method of claim 1, further comprising determining at least
one funding constraint for the account based on at least one of the
first risk and the second risk.
12. The method of claim 1, further comprising placing a hold on the
account based on the second risk.
13. The method of claim 12, further comprising prompting a customer
for new funding source information.
14. An account management system for opening an account with a
financial institution, the system comprising: an input/output
interface receiving account application information and funding
source information from at least one remote device, the account
application information including personal information associated
with a customer requesting to open an account and the funding
source information specifying at least one of an existing credit
card account and an existing debit card account; a processor
processing the account application information to assess a first
risk to the financial institution of opening the account for the
customer, processing the funding source information to assess a
second risk to the financial institution of transferring funds from
at least one of the existing credit card account and the existing
debit card account, and electronically transferring funds to the
account from at least one of the existing credit card account and
the existing debit card account based on at least one of the first
risk and the second risk.
15. The system of claim 14, wherein the processor terminates a new
account opening process based on the first risk.
16. The system of claim 14, wherein the processor processes the
account application information to assess a first risk to the
financial institution of opening an account for the customer by
verifying an identity of the customer.
17. The system of claim 14, wherein the processor processes the
account application information to assess a first risk to the
financial institution of opening the account for the customer by
determining a risk score associated with the customer.
18. The system of claim 14, wherein the processor terminates a new
account opening process based on the second risk.
19. The system of claim 14, wherein the processor processes the
funding source information to assess a second risk to the financial
institution of transferring funds from at least one of the existing
credit card account and the existing debit card account funding
source by determining a risk score associated with the funding
source.
20. The system of claim 14, wherein the processor processes the
funding source information to assess a second risk to the financial
institution of transferring funds from at least one of the existing
credit card account and the existing debit card account by
attempting to match at least a portion of the funding source
information with at least a portion of the account application
information.
21. The system of claim 20, wherein the processor attempts to match
at least a portion of the funding source information with at least
a portion of the account application information by processing
previously-collected debit.
22. A system for opening an account with a financial institution,
the system comprising: an account management system; at least one
network; and at least one remote device electronically transmitting
account application information and funding source information to
the account management system over the at least one network, the
application account information including personal information
about a customer requesting to open an account and the funding
source information specifying at least one of an existing credit
card account and an existing debit card account; the account
management system processing the account application to assess a
first risk to the financial institution of opening the account for
the customer, processing the funding source information to assess a
second risk to the financial institution of transferring funds from
at least one of the existing credit card account and the existing
debit card account, and electronically transferring funds to the
account from at least one of the existing credit card account and
the existing debit card account based on at least one of the first
risk and the second risk.
Description
RELATED APPLICATIONS
[0001] The present application claims priority to U.S. Provisional
Application No. 60/796,232 filed on Apr. 28, 2006 and U.S.
Provisional Application No. 60/816,820 filed on Jun. 27, 2006, the
entire contents of which are herein both incorporated by
reference
BACKGROUND OF THE INVENTION
[0002] In the usual course of opening a financial account, and
particularly a demand deposit account, a consumer physically visits
a bank, savings and loan, or credit union (i.e., a financial
institution) of choice and provides account application information
(e.g., personal information) that meets the financial institution's
requirements for risk assessment and identity verification (e.g.,
name; address; social security number; an identification card, such
as a driver's license; etc.). The consumer also provides funds to
be used in opening the account. The consumer is then presented with
and chooses between various account options. The account is then
"opened" using the consumer's account application information,
funds presented by the customer are placed in the account, and the
consumer signs a signature card to be used to confirm later
transactions.
[0003] With the growing use of the Internet and online services,
such as online banking services, customers desire mechanisms and
services for opening and funding a new account remotely in order to
avoid having to physically visit a financial institution. In
response, financial institutions have created a number of online
account opening services. Using an online account opening service,
a customer can provide account application information and can
provide account information of an existing account (e.g., a
checking account) that is to be used as a funding source for the
new account. Since the customer is physically remote from the
financial institution and cannot provide physical account
verification or authorization (e.g., a paper check, a credit or
debit card, or other paper documents), the financial institution
must attempt to verify the customer and/or the funding source.
[0004] In many existing online account opening services, verifying
the funding source of the customer can be intrusive and
time-consuming. For example, in order to verify a funding source, a
customer may be required to provide a username and a password or
other security mechanisms for the funding source that can be used
to access the funding source remotely (e.g., online). The financial
institution associated with the online account opening service uses
the supplied username and password to attempt to remotely access
the funding source. If the financial institution can access the
funding source, the financial institution can verify that the
customer owns the funding source. Many customers, however, may be
unwilling to provide access information for a funding source to a
third-party. In addition, many customers may not have
remotely-accessible funding sources.
[0005] Another method of verifying a funding source for a new
account opened through an online account opening service involves
making a small or micro payment of a random amount to a funding
source of the customer. If the customer can verify the amount of
money deposited in the funding source, the financial institution
can verify that the customer owns the funding source. The process
of making a micro payment to a funding source, however, can take
several days to complete, and does not allow the customer to apply
and open a new account within a single online session.
SUMMARY OF THE INVENTION
[0006] Embodiments of the invention provide methods and system of
opening an account with a financial institution. One method can
include electronically receiving account application information
over at least one network. The account application information
includes personal information associated with a customer requesting
to open an account. The method also includes processing the account
application information to assess a first risk to the financial
institution of opening the account for the customer and
electronically receiving funding source information over at least
one network, wherein the funding source information specifies at
least one of an existing credit card account and an existing debit
card account. In addition, the method includes processing the
funding source information to assess a second risk to the financial
institution of transferring funds from at least one of the existing
credit card account and the existing debit card account and
electronically transferring funds to the account from at least one
of the existing credit card account and the existing debit card
account based on at least one of the first risk and the second
risk.
[0007] Additional embodiments provide an account management system
for opening an account with a financial institution. The account
management system can include an input/output interface and a
processor. The input/output interface receives account application
information and funding source information from at least one remote
device. The account application information includes personal
information associated with a customer requesting to open an
account, and the funding source information specifies at least one
of an existing credit card account and an existing debit card
account. The processor processes the account application
information to assess a first risk to the financial institution of
opening the account for the customer. The processor also processes
the funding source information to assess a second risk to the
financial institution of transferring funds from at least one of
the existing credit card account and the existing debit card
account. In addition, the processor electronically transfers funds
to the account from at least one of the existing credit card
account and the existing debit card account based on at least one
of the first risk and the second risk.
[0008] Further embodiments provide a system for opening an account
with a financial institution. The system can include an account
management system, at least one computer network, and at least one
remote device. The remote device electronically transmits account
application information and funding source information to the
account management system over the at least one network. The
application account information includes personal information about
a customer requesting to open an account, and the funding source
information specifies at least one of an existing credit card
account and an existing debit card account. The account management
system processes the account application to assess a first risk to
the financial institution of opening the account for the customer.
The account management system also processes the funding source
information to assess a second risk to the financial institution of
transferring funds from at least one of the existing credit card
account and the existing debit card account. In addition, the
account management system electronically transfers funds to the
account from at least one of the existing credit card account and
the existing debit card account based on at least one of the first
risk and the second risk.
BRIEF DESCRIPTION OF THE DRAWINGS
[0009] FIG. 1 illustrates a system for opening an account according
to an embodiment of the invention.
[0010] FIG. 2 illustrates a method of opening an account using the
system of FIG. 1 according to an embodiment of the invention.
[0011] FIG. 3 illustrates a system for configuring the system of
FIG. 1 according to an embodiment of the invention.
[0012] FIG. 4 illustrates a method of verifying a funding source
for a new account according to an embodiment of the invention.
[0013] FIG. 5 illustrates a hypothetical scenario for approving new
account requests according to an embodiment of the invention.
[0014] FIG. 6 illustrates a system for monitoring an account
opening process according to an embodiment of the invention.
DETAILED DESCRIPTION
[0015] Before any embodiments of the invention are explained in
detail, it is to be understood that the invention is not limited in
its application to the details of construction and the arrangement
of components set forth in the following description or illustrated
in the following drawings. The invention is capable of other
embodiments and of being practiced or of being carried out in
various ways. Also, it is to be understood that the phraseology and
terminology used herein is for the purpose of description and
should not be regarded as limited. The use of "including,"
"comprising" or "having" and variations thereof herein is meant to
encompass the items listed thereafter and equivalents thereof as
well as additional items. The terms "mounted," "connected" and
"coupled" are used broadly and encompass both direct and indirect
mounting, connecting and coupling. Further, "connected" and
"coupled" are not restricted to physical or mechanical connections
or couplings, and can include electrical connections or couplings,
whether direct or indirect. Also, electronic communications and
notifications may be performed using any known means including
direct connections, wireless connections, etc.
[0016] It should also be noted that a plurality of hardware and
software based devices, as well as a plurality of different
structural components, may be utilized to implement the invention.
Furthermore, and as described in subsequent paragraphs, the
specific configurations illustrated in the drawings are intended to
exemplify embodiments of the invention and that other alternative
configurations are possible.
[0017] FIG. 1 illustrates a system 10 for opening an account with a
financial institution according to an embodiment of the invention.
As shown in FIG. 1, the system 10 includes an account management
system 11 and one or more remote devices 12. The remote devices 12
can include but are not limited to a client computer 12a and a
financial institution system 12b. It should be understood that the
client computer 12a can include various devices, such as personal
digital assistants ("PDAs"), Blackberry devices, cellular phones,
and any other type device configured to output or transmit data to
an external device. In some embodiments, the client computer 12a
includes a general purpose computing device.
[0018] As shown in FIG. 1, the remote devices 12 can be connected
to the account management system 11 via one or more networks 13.
The networks 13 can include a local area network ("LAN"), a wide
area network ("WAN"), a cellular network, the Internet, and/or
other types of networks. Alternatively or in addition, the remote
devices 12 can be directly connected to the account management
system 11.
[0019] The account management system 11 can include an input/output
interface 11a, one or more processors 11b, and one or more memory
modules 11c. The input/output interface 11a can be configured to
receive information from the remote devices 12 and can be
configured to transmit information to the remote devices 12 (e.g.,
over the network 13). The input/output interface 11a can be
configured to store information received from the remote devices 12
to the memory module 12c.
[0020] The memory module 12c can also store one or more software
modules and/or applications and data that the processor 12a can
fetch and execute in order to perform account opening services
and/or other account management services. For example, as described
below with respect to FIG. 4, the memory module 12c can store a
rules engine application and rules applied by the rules engine
application, an automated configuration application, and a
management console application. The memory module 12c can also
store output generated by the processor 12a and/or other data used
by the applications stored in the memory module 12c.
[0021] It should be understood that the systems and devices
illustrated in FIG. 1 can be combined and distributed in various
configurations. For example, the account management system 11 can
be combined with a financial institution system 12b and provided as
a single system (e.g., provided by a single server). The account
management system 11 can also be distributed among a plurality of
systems or devices (e.g., provided by a plurality of servers).
[0022] FIG. 2 illustrates a method 14 of opening an account using
the system 10 according to an embodiment of the invention. In
particular, the method 14 illustrates a method of verifying and
opening a new account for a customer through an online account
opening service of a financial institution [e.g., provided or
hosted (e.g., ASP hosted) by the account management system 11]. It
should be understood, however, that the account opening and funding
method 14 can also be used to open new accounts when a customer
physically visits or contacts (e.g., via a telephone) a location of
a financial institution (e.g., a branch or a call center). For
example, an agent or employee associated with the financial
institution may use the online account opening service to determine
whether to approve or reject an application for a new account
presented by a customer physically visiting or contacting a
location of the financial institution. A customer may also use the
online account opening service to initiate a new account
application and may visit a branch of a financial institution or
call a call center of a financial institution in order to complete
the application.
[0023] As shown in FIG. 2, to open a new account (e.g., a savings
account, a demand deposit account, a checking account, a checking
fixed term certificate account, a money market account, a youth
account, a variable term certificate account, etc.) a customer can
access an online account opening service 15 (hereinafter referred
to as the "service") provided by the account management system 11
using a remote device 12, such as a client computer 12a connected
to a network (e.g., the Internet). In some embodiments, the online
account opening service 15 can also be used to open, fund, and/or
manage other types of products, such as credit cards, overdraft
lines of credit, home equity lines of credit, automobile loans,
etc., in a similar manner as opening a new account. A financial
institution associated with the online account opening service 15
can limit the types and number of accounts and products that can be
opened and/or managed using the online account opening service
15.
[0024] In some embodiments, the remote device 12 executes a browser
application to request, access, view, and provide input to screens
(e.g., web pages) of the online account opening service 15. The
remote device 12 can be located at the location of the customer
applying for a new account (e.g., at a customer's home), at a
physical location of a branch of a financial institution, or at a
call center of a financial institution. If the remote device 12 is
located at a call center of a financial institution, a customer
service representative may operate the remote device 12 on behalf
of a customer who calls in a new account request. In some
embodiments, the online account opening service 15 tracks and
manages customers or users connected to the service 15 (e.g.,
through the Internet or through an integrated system of a financial
institution). For example, the service 15 can limit how many times
a user connected from a particular network or system can be
connected to the service 15 (e.g., within a predetermined amount of
time, at one time, etc.).
[0025] In some embodiments, as shown in FIG. 2, the customer
accesses the service 15 through a web site or web pages 17a
provided by a financial institution. For example, in some
embodiments, an "Open an Account" button on a web site of a
financial institution links customers to the web site or web pages
17b of the online account opening service 15. Linking the service
15 to other web sites and pages 17a of a financial institution can
leverage and complement the financial institution's existing online
branding and can provide the financial institution's customers with
a seamless experience when opening a new account online. In some
embodiments, customers of the financial institution can use the
online account opening service 15 to open and fund new accounts 24
hours a day and 7 days a week.
[0026] The screens (e.g., web pages 17b) of the online account
opening service 15 can also be customized and/or branded based on
the financial institution managing or operating the service 15. For
example, screens 17b of the service 15 can be branded with the
financial institution's logo, standards, and/or with a format
consistent with other web pages of the financial institution. In
some embodiments, a financial institution configures the screens
and/or functionality of the online account opening service 15 using
an automated configuration application 16 (e.g., a web-based
configuration wizard) (see FIG. 3). As shown in FIG. 3, the
automated configuration application 16 can be stored and executed
(e.g., ASP hosted) by the account management system 11.
Alternatively or in addition, the automated configuration
application 16 can be locally stored on a device of a financial
institution or a remote device and can transmit or download
configuration information to the account management system 11.
[0027] As shown in FIG. 3, a user (e.g., an individual associated
with a financial institution) can use a remote device 12, such as a
computer, to access the application 16. In some embodiments, the
remote device 12 executes a browser application to request, access,
view, and provide input to screens (e.g., web pages) of the
automated configuration application 16. Using the screens of the
application 16, the user can provide configuration information,
which can be transmitted to the account management system 11 (e.g.,
directly or via one or more networks 13). The account management
system 11 can then process the configuration information in order
to modify the functionality of the service 15. In some embodiments,
the account management system 11 stores the configuration
information (e.g., in the memory module 11c) and automatically
applies the configuration information the next time a request for a
new account for the financial institution is submitted. For
example, after receiving configuration information from a
particular financial institution via the automated configuration
application 16, the account management system 11 can erase or
override existing configuration information associated with the
financial institution and can store the new configuration
information.
[0028] The automated configuration application 16 can provide a
financial institution with an easy (e.g., online) process that
aligns the accounts, products, options, pricing, policies, rules,
etc. offered by the financial institution through the service 15
with the financial institution's existing policies and procedures.
Using the automated configuration application 16, a financial
institution 16 can self-direct the look, feel, and functionality of
the service 15 without having to physically contact the creator or
provider of the service 15 in order to have the service 15
rewritten or redesigned. The automated configuration application 16
can walk a user through available configurations and can allow a
financial institution to configure and change the look, feel, and
functionality of the online account opening service 15 as needed in
an automated fashion with minimal effort and time. In some
embodiments, financial institutions can also customize the online
account opening service 15 by providing unique content within
screens of the service 15 and/or by adding additional screens not
part of the standard process flow provided by the service 15.
[0029] The service 15 can provide a series of screens (e.g., web
pages 17b) that automate an account opening and funding process for
customers. In some embodiments, customer presentation screens of
the online account opening service 15 are driven by a customer's
input and selections in previous screens plus business rules and
policies provided by a financial institution (e.g., via the
automated configuration application 16). By customizing the
screens, the online account opening service 15 can ensure that
customers are presented with only the necessary process steps for
completing an application for particular products selected by the
customer.
[0030] The online account opening service 15 can also save and
resume a new account application prior to its completion at any
point during the application process. By allowing a customer to
save a new account application, a customer or a customer service
representative can review, revise, or reconstitute an application
prior to its completion.
[0031] In addition, the online account opening service 15 can
provide additional services. For example, the service 15 can
display product information and options and associated selection
tools, can provide electronic signature tools, can provide email
confirmation services, can provide instant access to a newly funded
account, and/or can provide online banking services.
[0032] Returning to FIG. 2, once the customer accesses the online
account opening service 15, the customer can provide account
application (e.g., personal) information 18 (e.g., a name, an
address, a date of birth, a phone number, a social security number,
a demographic, a driver's license number, etc.) via one or more
screens of the service 15 (e.g., web pages 17b of the service 15).
It should be understood that customers accessing the online account
opening service 15 can include existing customers of a financial
institution and new customers applying for a first account with a
financial institution. In some embodiments, information associated
with existing customers accessing the service 15 is automatically
obtained by the service 15 through an accessible system of the
financial institution (e.g., a core system of the financial
institution). If personal information for an existing customer can
be accessed from a system of the financial institution by the
online account opening service 15, the service 15 may not prompt
the customer to provide some or any account application information
18 or may only prompt the existing customer to provide any updated
personal information (e.g., adding shares, updating name or
addresses). Alternatively, if a customer is a new customer of the
financial institution, the service 15 may prompt the customer for
additional account application information 18, such as primary
owner information, secondary owner information, additional owner(s)
information, physical address information (e.g., cannot include
P.O. Box), mailing address information (e.g., can include P.O.
Box), international addresses information, standard premium
information, etc.
[0033] Using the account application information 18, the online
account opening service 15 can attempt to authenticate and verify
the customer (e.g., in order to prevent identity theft). For
example, the online account opening service 15 can verify an
identity of a customer using a verification service 20. One
commercially operational example of a network embodying a customer
verification service 20 is the ID Verification.TM. brand network
and service operated and offered by Penley. The verification
service 20 can include a web-based anti-money laundering tool,
which helps financial institutions meet compliance burdens (e.g.,
USA PATRIOT 326, 314(a), OFAC, etc.), and an identity fraud
prevention program. For example, the verification service 20 can
verify the identity of individuals and businesses by cross-checking
aggregated records (e.g., billions of aggregated records) from
multiple independent sources. In some embodiments, the verification
service 20 provides substantially real-time results and provides a
"pass" or "fail" answer and/or an intermediate verification score.
The verification service 20 can also provide options for adding
"out of wallet" or preset question/answer sets that must be
answered by the customer in order to verify the customer's
identity.
[0034] As shown in FIG. 2, if the customer does not pass the
verification process performed by the verification service 20 (step
22), the online account opening service 15 can terminate or fail
the new account process or transaction (step 24). If the customer
passes the verification process (step 22), the online account
opening service 15 can identify a financial risk associated with
the customer (e.g., the likelihood that the customer is attempting
a fraudulent account opening). For example, the online account
opening service 15 can use a risk assessment service 26 to
determine a risk (e.g., a risk score) associated with the customer.
One commercially operational example of a network embodying a risk
assessment service 26 is the Qualifile.TM. brand network and
service operated and offered by eFunds Corporation of Phoenix,
Ariz. (embodiments of which are described in co-pending U.S.
application Ser. Nos. 09/653,595; 10/136,042; and 10/221,011; the
entire contents of which are all herein incorporated by reference).
The risk assessment service 26 can access financial data, such as
debit bureau information, credit bureau data, demographic data,
etc., from one or more sources (e.g., tri-bureau credit models) to
predict or determine a risk associated with a customer. In some
embodiments, the risk assessment service 26 uses one or more
identity theft tools, such as a fraud identification system
including a neural-network decisioning model, to predict the
likelihood of identity manipulation or fraud. The identity theft
tools can use customer data to provide a score on a customer that
indicates a fraud risk level involved with doing business with the
customer. In some embodiments, the identity theft tools also
provide identity manipulation and predictive fraud modeling, which
can identify inconsistent, inaccurate, or fraudulent information
provided by a customer. In addition, in some embodiments, the
identity theft tools provide fraud attributes on a real-time basis.
An example of such a fraud identification service 26 is the
FRAUDFINDER.TM. brand fraud identification system from ChexSystems,
Inc., a wholly-owned subsidiary of eFunds Corporation.
[0035] The risk assessment service 26 can be used to accommodate
consumer authentication. The risk assessment service 26 can use a
logistic-regression model to predict the likelihood of
account-related abuse. For example, the risk assessment service 26
can use customer data to calculate a risk that an account will be
closed for abuse at a later date and can deliver a recommendation
to a financial institution regarding an action to take on a new
account application. Potential recommendations include approval of
a new account and rejection of the new account. In some
embodiments, the risk assessment service 26 also calculates
cross-selling opportunities for additional products for a consumer.
For example, based on a credit score and key demographic variables
determined by the risk assessment service 26, the risk assessment
service 26 can recommend which other products, if any, a financial
institution should offer a customer. In some embodiments, the
online account opening service 15 forwards cross-selling
opportunities determined by the risk assessment service 26 to the
customer for consideration (e.g., via one or more screen of the
service 15). In some embodiments, a financial institution
associated with the online account opening service 15 can also set
parameters (e.g., via the automated configuration application 16)
that allow risk assessment alignment with or customization from
other risk assessment application channels.
[0036] As shown in FIG. 2, if a customer does not pass the risk
assessment process performed by the risk assessment service 26
(step 28), the online account opening service 15 can terminate or
fail the new account transaction (step 24). If a customer passes
the risk assessment process (step 28), in some embodiments, the
service 15 obtains funding source information 30 from the customer
that identifies an existing founding source from which funds can be
transferred to a new account. The funding source information 30 can
include a customer name, a funding account routing transit number
("RTN"), etc. It should be understood that the customer can
manually input funding source information 30 (e.g., via a screen of
the service 15) and/or can use a card reader or other data
accessing device to input funding source information. For example,
the customer can use a card reader connected to the remote device
12 to swipe a credit card or debit card or can use a MICR check
reader connected to the remote device 12 to scan a paper check. It
should also be understood that, in some embodiments, the customer
provides the funding source information 30 with or at the same time
as the account application information 18.
[0037] In some embodiments, the online account opening service 15
provides several funding options. Therefore, the funding source
information 30 can specify a credit card or debit card account, an
ACH transfer, an ATM account, a wire transfer, etc. It should be
understood that the service 15 can allow customers to
electronically transfer funds to a new account from an existing
account (e.g., a checking account) managed by the financial
institution from which the customer is requesting a new account or
can allow customers to electronically transfer funds to a new
account from an existing account or source managed by another
financial institution, such as a debit card or a credit card
account. For example, in some embodiments, the online account
opening service 15 accepts credit card information and/or debit
card information, validates the card information, and enacts a
series of electronic transactions to transfer funds from a credit
card account or a debit card account to a new account.
[0038] As shown in FIG. 2, using the funding source information 30,
the online account opening service 15 can perform risk assessment
and evaluation services on the funding source specified by the
customer, such as determining a risk score for the funding source,
performing additional identity authentication services, and/or
performing data matching services, such as a magnetic ink character
recognition ("MICR") or account number and name data matching
services, to verify the customer and/or the funding source. For
example, the service 15 can attempt to match a customer's personal
data 18 and/or funding source data 30 to financial data (e.g.,
credit bureau data, debit bureau data, financial account data,
historical debit data collected by the financial institution, etc.)
accessible and/or owned by the financial institution. For example,
a financial institution can attempt to match a customer's name to
the customer's funding source by accessing previously-collected
debit data. In some embodiments, the online account opening service
15 combines the results of various risk assessment and evaluation
services in order to determine a risk score associated with the
funding source.
[0039] If the online account opening service 15 can match all or a
portion of the customer's funding source information 30 with the
customer's account application information 18 (or if a risk score
associated with the funding source is equal to or above a
predetermined threshold or value set by the financial institution)
(step 34), the service 15 can proceed with approving the new
account application and opening and funding the new account from
the specified funding source. In some embodiments, the service 15
can open a new account by transmitting data and/or instructions to
a separate application or system (e.g., managed by the financial
institution), which "opens" the new account (e.g., stores a new
database record in an account database managed by the financial
institution).
[0040] After the account is "opened" or created, the service 15 can
transfer funds to the account. In some embodiments, the service 15
can transfer funds by transmitting instructions to a separate
application or system, which performs the transfer. As noted above,
the service 15 can allow transfers from various funding sources.
Therefore, the service 15 can perform various types of electronic
fund transfers, such as a credit card transaction, an ACH transfer,
a debit card or ATM transaction, or a wire transfer. The funds
transfers can occur over various time periods. For example, the
service 15 can perform a substantially real-time debit card or ATM
transaction, can perform a next day ACH transfer, and/or can
perform a multiple day (e.g., 3 day) wire transfer.
[0041] As shown in FIG. 2, if the online account opening service 15
cannot match some or all of the customer's funding source
information 30 with the customer's account application information
18 (or if a risk score associated with the funding source is below
or unequal to a predetermined threshold or value set by the
financial institution), the service 15 can reject and terminate the
new account transaction or can accept the new account transaction
and place a hold on the new account (step 38). In some embodiments,
after placing a hold on a new account, the service 15 directs the
customer applying for the new account to fund the new account
through a different funding source (e.g., a credit card account or
a debit card account) and prompts the customer for new funding
source information 30.
[0042] In some embodiments, if a new account transaction is
accepted and/or if a hold is placed on a new account, the account
opening service 15 also determines one or more constraints for the
funding of the new account. For example, as shown in FIG. 4, the
online account opening service 15 can apply rules 40 (e.g.,
business rules set by the financial institution associated with the
service 15) via a rules engine application 42 to one or more
funding inputs 42 (e.g., a verification score, identity
verification data, identity authentication data, an account risk
score, matching data, etc.) in order to determine one or more
funding outputs 44. The funding outputs 44 can include a funding
decision (i.e., whether to accept the customer's request to open a
new account). If the customer's request for a new account is
accepted, the funding outputs 44 can also include one or more
funding constraints for a new account (e.g., a maximum funding
amount, a funding hold time, etc.). In some embodiments, by
developing parameters for funding constraints based upon the
decisions or scores determined by customer and funding source
authentication and/or risk assessment services, the service 15
provides an account opening solution that minimizes customer
intrusion, time, and effort while maximizing risk mitigation. For
example, highly qualified prospective customers or customers can
have the most flexibility in funding their new account and less
qualified prospective customers or customers can have less
flexibility in funding their new account. In some embodiments,
using the rules 40 and the rules engine application 42 to determine
funding constraints on a new account, a financial institution
managing the online account opening service 15 can allow more new
accounts to be opened online.
[0043] In some embodiments, the online account opening service 15
uses decision trees to segment a prospective customer base
according to levels of business risk that the funding of a new
account poses to the financial institution operating the online
account opening service 15. Rules 40 supplied by the financial
institution operating the online account opening service 15 (e.g.,
via the automated configuration application 16) can drive the flow
and control of the decision trees. In some embodiments, the
application and status of decision trees can be monitored via a
management console application, as described below with respect to
FIG. 6.
[0044] The authentication/verification and risk assessment
performed by the online account opening service 15 can provide a
substantially instant, same session, independent verification of a
funding source that is a less intrusive way of reducing risk of
fraudulent funding. For example, the authentication/verification
and risk assessment performed by the online account opening service
15 can provide customer verification, customer risk assessment, and
account risk assessment, which can include matching the customer
with the funding source specified by the customer. Therefore, the
authentication/verification and risk assessment performed by the
online account opening service 15 can provide a thorough assessment
of a customer applying for a new account and a thorough assessment
of a funding source specified by the customer, which can reduce
fraud and losses experienced by a financial institution due to
fraud and high risk customers.
[0045] The online account opening service 15 can be integrated with
other services and/or systems of a financial institution (e.g., a
core system). For example, a financial institution can integrate
the online account opening service 15 in real-time with leading
core systems. With support for messages such as New Account, New
Sub-Account, Inquiry, Transaction, Lookup, Card, Warning, Hold,
Password(s), Owner, etc., an integration module of the online
account opening service 15 can map message types to proprietary
host system formats for a generally seamless interface for
automatically routing new account applications to a financial
institution. In some embodiments, the online account opening
service 15 routes new account applications to a financial
institution system in substantially real-time or as a batch (e.g.,
overnight). The integration module of the service 15 can connect to
an environment of a financial institution through an encrypted
Internet- or virtual private network-("VPN-") based connection.
[0046] As shown in FIG. 4, using the rules 40 and the rules engine
application 42, the account management system 11 can determine
whether to allow a customer to open an account and, if the customer
is allowed to open an account, can determine one or more funding
constraints for the account, such as a funding limit for the
account (e.g., $150 to $5,000) and/or a hold time that specifies a
time period before funds transferred to the new account are
available for use (e.g., real-time to 10 days). As described above,
these decisions can be based on the scores determined by the
customer/funding source authentication and/or verification services
used by the online account opening service 15 and/or a final risk
score determined therefrom. The financial institution can set the
limits or constraints applied to each score or ranges of scores in
order to set the risk experienced by the financial institution
accordingly (e.g., via the automated configuration application 16).
As shown in FIG. 4, the account management system 11 can transmit
the funding outputs 44 to a system 46 of a financial institution
directly and/or via one or more computer networks 45. The account
management system 11 can also transmit the funding outputs 44 to
the remote device 12 that submitted the new account
application.
[0047] If the online account opening service 15 approves a new
account for a customer, the service 15 can provide fulfillment and
integration services. For example, the service 15 can provide one
or more forms to a customer for signing. As noted above, the
service 15 can provide electronic signature tools that a customer
can use to digitally sign the account forms. The forms can include
standard forms or custom forms defined by the financial
institution.
[0048] As shown in FIG. 2, after funding constraints have been
determined by the online account opening service 15, the service 15
can perform the initial funding (step 36) (e.g., ACH, credit card,
debit card, etc.) by communicating with one or more external
systems 50 (e.g., a financial institution 50a, a meta bank 50b, a
credit card verification system 50c, a credit card processing and
settlement system 50d, etc.). In some embodiments, the service 15
provides one or more funding options, such as instant funds
transfers, hold placement automation, and conditional funds access.
If the funding source of the customer includes a particular type of
account (e.g., a credit card account 51), the online account
opening service 15 may prompt the customer for additional funding
information 52 (e.g., a credit card account number, a name
associated with a credit card account, an expiration date, etc.)
before performing the new account funding. Performing the funding
transaction can include transferring funds from general ledger to a
share; from a settlement account (share) to another share; from a
customer/member share to another share; from a share in an existing
customer/member's existing account to a share in an existing
customer/member's new account; from cash, check, money order,
payroll check, etc.; or via a core credit union ACH
origination.
[0049] In some embodiments, when creating a new account, the
service 15 can automatically create an account number, name, card,
hold, and PIN associated with the new account. In addition, in some
embodiments, a customer can use the online account opening service
15 to order checks, order a debit card, set up and/or order ATM
card member information, set up and access online or telephone
banking services, set up and access online bill payment services,
configure overdraft options (e.g., set up savings overdraft
protection to prime/membership savings), and/or configure
certificate maturity and dividend options. The online account
opening service 11 can also automate one or more of the above
activities, such as by automatically ordering checks or a debit
card for a customer and/or by setting up a default username and
password that the customer can use to access online banking
services and/or online bill payment services.
[0050] With continued reference to FIG. 2, after creating and
funding the new account (step 54), the online account opening
service 11 can provide account opening information 56 to the
customer and/or a financial institution. For example, the service
15 can provide information to the customer and/or a financial
institution that specifies an amount of money transferred to the
new account, the funding source or type choice, a name associated
with the funding source, a RTN number or credit card number of the
funding source, etc.
[0051] FIG. 5 illustrates a hypothetical scenario 60 for approving
new account requests according to one embodiment of the invention.
The scenario 60 illustrated in FIG. 5 illustrates hypothetical
percentages of customers opening new accounts using the online
account opening service 15 and choosing various funding sources
(e.g., credit or debit card accounts, checking account or ACH
accounts, and other means). As shown in FIG. 5, using the above
authentication, verification, and risk assessment method 14 as
described above with respect to FIGS. 2 and 4, the online account
opening service 11 can determine whether to accept, reject, or
accept with particular constraints a customer's new account
application. In the hypothetical situation shown in FIG. 5, using
the rules-driven risk management strategy, as described above with
respect to FIG. 4, the online account opening service 15 can accept
and open approximately 11% more accounts. This increase in accepted
new accounts can provide additional revenue for a financial
institution without exposing the financial institution to high or
undesired financial risk.
[0052] As noted above, the online account opening service 15 can
also use similar business rules to provide cross-selling options to
customers. For example, additional products can be dynamically
offered to a customer through the online account opening service 15
based on the decisions, scores, and recommendations determined by
the service 15. A customer can also use interactive screens
provided by the service 15 to accept or decline offered products
and, in some embodiments, to set-up or manage accepted products
[0053] In some embodiments, the online account opening service 15
provides a management console that can provide monitoring (e.g.,
generally seamless reporting and exception management) of the
account opening and/or funding process. FIG. 6 illustrates a system
for managing the funding process according to an embodiment of the
invention. As shown in FIG. 6, the account management system 11 can
provide or host (e.g., ASP host) a management console application
62, and agents or employees associated with a financial institution
can access the management console 62 to obtain a multipurpose view
of automated processes performed by the account management system
11. In some embodiments, an individual associated with a financial
institution can access the management console using a remote device
12 connected to the account management system 11 via one or more
networks 13. For example, an individual can executes a browser
application to request, access, view, and provide input to screens
(e.g., web pages) of the management console application 62.
Alternatively or in addition, the management console application 62
can be stored locally by a remote device 12 and can request and
receive status and reporting information from the account
management system 11 via a direct or indirect (e.g., via the
Internet) connection. Individuals requesting access to the
management console application 62 can be authorized by the
application 62 before being allowed access. For example, an
individual can provide a username, a password, a personal
identification number ("PIN"), and/or other identifying
information, and the management console application 62 can process
the identifying information in order to authorize the
individual.
[0054] In some embodiments, the management console application 62
provides access to queues for manual and exception processes and
can give an account opening process owner or manager a window into
effectiveness and/or efficiency parameters of the account opening
process. For example, the management console application 62 can
display the number of new account requests accepted by the service
15, the number of new account requests rejected by the service 15,
the percentage of new account requests accepted or declined by the
service 15, the average or total amount of funds transferred to new
accounts, the types and number of constraints associated with new
accounts, etc. The parameters can be based on processes occurring
with a predetermined time period, such as processes occurring over
the past 24 hours, over the past week, over the past month, etc.
The management console application 62 can allow an individual to
modify the predetermined time period in order to view parameters
over various time periods. In some embodiments, the management
console application 62 can also display pending new account
requests (e.g., new account requests requiring manual review). An
individual can use the management console application 62 to route a
pending request to a particular individual associated with the
financial institution, to accept a pending request, to reject a
pending request, to set funding constraints for a pending request,
and/or to document information associated with a pending
request.
[0055] The management console application 62 can be secure and can
provide real-time, web-based transaction and activity reporting.
Using the management console application 62, process owners,
product managers, auditors, and compliance officers can have access
to reports and documentation (e.g., standard or customized) that
enable access and management of account opening processes,
policies, and procedures. The management console application 62 can
allow a user to manage open items, automatically assign and route
tasks based on user roles, display a pending queue for tasks
awaiting a review decision, and provide campaign management. The
management console application 62 can also provide audit trails and
can provide permissions-based access control. In some embodiments,
the management console application 62 includes a modular design
that is customizable by a financial institution (e.g., using a
rules-driven strategy). In some embodiments, the management console
application 62 also allows an individual to configure the system
15. For example, the management console can be combined with the
functionality of the automated configuration application 16, as
described above with respect to FIG. 3.
[0056] The functionality of the online account opening service 15
can be governed by the Fair Credit Report Act ("FCRA") and can
provide a notification of an adverse action if the online account
opening service 15 declines a customer's request for a new account.
In some embodiments, the online account opening service 15 or the
financial institution managing the service 15 provides a FCRA call
center for directing customers to individuals or agencies for
processing the notification. As noted above, the online account
opening service 15 can also direct the declined customer to use an
alternate funding source (e.g., a credit card or a debit card) in
order to overcome a declination.
[0057] In some embodiments, in addition to providing account
opening services to a financial institution, the online account
opening service 15 also provides account funding services, ACH
processing services, automated funding risk management strategies
services, and/or professional consulting services for establishing
a custom funding risk management strategy.
[0058] It should be understood that the funding source verification
method described above can be used with various other financial
products and service other than or in addition to new account
opening and funding. For example, the funding source verification
method described above can be performed to authenticate automated
bill payments, to qualify funding accounts for stored value
accounts, and/or to open mortgage accounts. It should also be
understood that the funding source verification method described
above can be combined with other verification methods, such as
challenge deposits, in order to provide additional verification
processes.
[0059] Various features and advantages of the invention are set
forth in the following claims.
* * * * *