U.S. patent application number 12/847944 was filed with the patent office on 2010-11-25 for method and apparatus for analyzing financial data.
This patent application is currently assigned to CASHEDGE, INC.. Invention is credited to Sanjeev Dhcer, Venkatachari Dilip.
Application Number | 20100299286 12/847944 |
Document ID | / |
Family ID | 24492309 |
Filed Date | 2010-11-25 |
United States Patent
Application |
20100299286 |
Kind Code |
A1 |
Dilip; Venkatachari ; et
al. |
November 25, 2010 |
Method and Apparatus for Analyzing Financial Data
Abstract
A system analyzes multiple financial accounts having a common
account holder and identifies a particular attribute, such as
interest rate, associated with each of the multiple financial
accounts. The system then makes a determination regarding whether
an adjustment of funds among the multiple financial accounts would
benefit the account holder. If the adjustment of funds would
benefit the account holder, then recommending the adjustment of
funds to the account holder and offering to perform the recommended
adjustment of funds. The system executes the adjustment of funds if
the account holder accepts the offer to perform the recommended
adjustment of funds.
Inventors: |
Dilip; Venkatachari; (New
York, NY) ; Dhcer; Sanjeev; (New York, NY) |
Correspondence
Address: |
COURTNEY STANIFORD & GREGORY LLP
PO Box 9807
San Jose
CA
95157
US
|
Assignee: |
CASHEDGE, INC.
New York
NY
|
Family ID: |
24492309 |
Appl. No.: |
12/847944 |
Filed: |
July 30, 2010 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
|
|
09621946 |
Jul 24, 2000 |
7797207 |
|
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12847944 |
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Current U.S.
Class: |
705/500 |
Current CPC
Class: |
G06Q 20/10 20130101;
G06Q 40/025 20130101; G06Q 40/04 20130101; G06Q 40/12 20131203;
G06Q 40/06 20130101; G06Q 99/00 20130101; G06Q 20/102 20130101;
G06Q 40/02 20130101 |
Class at
Publication: |
705/500 |
International
Class: |
G06Q 90/00 20060101
G06Q090/00 |
Claims
1. A method comprising: analyzing a plurality of asset accounts
having a common account holder; identifying an attribute associated
with each of the plurality of asset accounts; and determining
whether an adjustment of assets among the plurality of assets
accounts would benefit the account holder.
2-51. (canceled)
Description
RELATED APPLICATIONS
[0001] This application is a continuation of U.S. patent
application Ser. No. 09/621,946, filed Jul. 24, 2000, which is
incorporated by reference in its entirety herein.
TECHNICAL FIELD
[0002] The present invention relates to the analysis of financial
data and, more particularly, to the analysis of multiple financial
accounts and other market data to determine whether the allocation
of assets and/or liabilities among the multiple financial accounts
is optimal.
BACKGROUND
[0003] Customers of financial institutions (both individual
customers and businesses) typically maintain multiple financial
accounts at one or more financial institutions. Financial
institutions include, for example, banks, savings and loans, credit
unions, mortgage companies, lending companies, and stock brokers.
These financial accounts include asset accounts (such as savings
accounts, checking accounts, certificates of deposit (CDs), mutual
funds, bonds, and equities) and debt accounts (such as credit card
accounts, mortgage accounts, home equity loans, overdraft
protection, and other types of loans).
[0004] In many situations, a user's asset accounts may not be
earning the best available interest rate or the user's debt
accounts my not be at the most competitive interest rate. It would
be to the user's benefit to adjust the funds between different
accounts to maximize the interest earned in the asset accounts
and/or minimize the interest paid in the debt accounts. For
example, a user may have a checking account that pays no interest,
but has a high balance. A portion of the funds in the checking
account could be transferred to a savings account or other asset
account that pays interest on the funds in the account. Similarly,
a user with a high credit card balance could save money if a
portion of the credit card balance was transferred to a home equity
line of credit at a lower interest rate.
[0005] Certain users do not regularly monitor the balances of their
asset accounts or debt accounts. These users typically rely on the
statements issued (e.g., monthly or quarterly) by the financial
institution responsible for the account. Thus, these users do not
typically know the balances of their various accounts. Even on the
day they receive their statement from the financial institution,
the status of the accounts may have changed due to other
transactions that occurred after the statement was generated.
[0006] Other users track asset account and debt account balances
using paper forms or registers which are reconciled against the
account statements issued by the financial institutions. If the
user accurately enters every financial transaction and successfully
reconciles every statement from the financial institution, then the
paper forms or registers will reflect the current account balances
of the user's accounts. However, to determine whether the user's
assets or debts could be adjusted for the benefit of the user, the
user would need to manually review the various account balances and
interest rates, and determine the amount of funds to be transferred
between the different accounts. This process can be tedious,
especially to users that do not have the patience to review
multiple accounts, compare balances and interest rates, and
calculate the estimated savings associated with certain
transactions. The user must also determine whether the time and
effort required to implement the transactions is worthwhile in view
of the savings that result from the transactions. For example, if
the user must go to the financial institution to transfer funds
which would result in an interest savings of a few dollars, the
user must decide whether the transaction is worthwhile. This
cost-benefit analysis is typically performed for each transaction
each time the user reviews their accounts.
[0007] Certain financial software packages allow users to enter
financial transactions and generate reports indicating current
account balances. Example software packages include Quicken
available from Intuit Inc. of Mountain View, Calif., and Microsoft
Money available from Microsoft Corporation of Redmond, Wash. If all
financial transactions are entered into the financial software
package and each statement from a financial institution is
reconciled, then the software package accurately displays the
user's account balances. However, to determine whether funds should
be transferred between accounts, the user is required to review
multiple accounts, compare balances and interest rates, and
calculate the estimated savings associated with certain
transactions. Additionally, the user must perform a cost-benefit
analysis for each transaction, as discussed above.
[0008] If the user does identify the funds to be transferred
between different accounts, the user is then required to execute
the necessary transactions. To execute these transactions, the user
may need to visit one or more financial institutions and request
the appropriate fund transfers. However, if one or more of the
financial institutions is located in a distant town, the fund
transfers may need to be processed by check or bank wire.
Alternately, the user may execute some of the transactions through
an online banking service, if the financial institution supports
online banking. However, typical online banking services do not
permit the transfer of funds between two different financial
institutions. Thus, if a user wants to transfer funds, for example,
from a checking account at a bank to a money market account at a
stock broker, the user cannot generally execute the transfer using
online banking.
[0009] Instead, the user needs to withdraw funds manually using,
for example, a check and manually deposit the funds in the second
account (either in person or by mail). Since the second account may
place a hold on the deposit, the actual fund transfer may not occur
for a week (or longer) depending on the amount of the check, the
policies of the financial institutions, and any delays involved
with mailing the check. A bank wire provides a faster method of
transferring funds between financial institutions, but is not
generally cost-effective for small transfers (e.g., transfers of
less than a few thousand dollars), due to the costs associated with
the bank wire. For small transfers, the costs associated with the
bank wire may exceed the interest savings generated by the
transfer.
[0010] Thus, the systems available today do not provide a mechanism
for automatically analyzing multiple user accounts to identify fund
transfers that would be favorable to the user.
[0011] The systems and methods described herein addresses these and
other problems by automatically analyzing multiple user accounts,
both asset accounts and debt accounts, to determine whether an
adjustment of funds between accounts would benefit the account
holder.
SUMMARY
[0012] The system and methods described herein perform an automated
analysis of multiple user accounts to determine whether those
accounts are optimized based on, for example, the best available
interest rates, interest rates on the user's accounts, and the
user's account balances. The analysis system makes recommendations,
if necessary, to adjust account funds if the user could earn
greater interest by adjusting asset accounts and/or pay less
interest by adjusting debt accounts. Additionally, the analysis
system may make recommendations to adjust account funds from one or
more asset accounts to one or more debt accounts, or vice versa, if
such a transaction is favorable to the user.
[0013] A particular embodiment analyzes multiple asset accounts
having a common account holder and identifies an attribute
associated with each of the multiple asset accounts. A
determination is made regarding whether an adjustment of assets
among the multiple asset accounts would benefit the account
holder.
[0014] In one embodiment, a recommendation is generated
recommending opening a new asset account if available market
interest rates for similar asset accounts are better than at least
one of the multiple asset accounts.
[0015] In another embodiment, the multiple asset accounts include a
first asset account associated with a first financial institution
and a second asset account associated with a second financial
institution.
BRIEF DESCRIPTION OF THE DRAWINGS
[0016] FIG. 1 illustrates an exemplary network environment in which
various servers, computing devices, and financial management
systems exchange data across a network, such as the Internet.
[0017] FIG. 2 illustrates an example of the interaction between a
particular pair of financial institution servers, a market
information service, a client computer, and a financial management
system.
[0018] FIG. 3 is a block diagram showing pertinent components of a
computer in accordance with the invention.
[0019] FIG. 4 is a block diagram showing exemplary components and
modules of a financial management system.
[0020] FIG. 5 is a block diagram showing exemplary components and
modules of an asset analysis and recommendation module.
[0021] FIG. 6 is a block diagram showing exemplary components and
modules of a debt analysis and recommendation module.
[0022] FIG. 7 is a block diagram showing exemplary components and
modules of a balance sheet analysis and recommendation module.
[0023] FIG. 8 is a flow diagram illustrating a procedure for
identifying financial transactions to optimize a user's asset
account balances.
[0024] FIG. 9 is a flow diagram illustrating a procedure for
identifying financial transactions to optimize a user's debt
account balances.
[0025] FIG. 10 is a flow diagram illustrating a procedure for
identifying financial transactions to optimize a user's balance
sheet.
[0026] FIG. 11 is a flow diagram illustrating a procedure for
automatically optimizing a user's asset accounts, debt accounts,
and balance sheet.
[0027] FIG. 12 is a table illustrating various information
associated with different financial institutions.
[0028] FIG. 13 is a table illustrating various customer information
related to financial accounts and user preferences.
[0029] FIGS. 14-15 illustrate exemplary user interface screens
illustrating various account entry fields and account
recommendations.
DETAILED DESCRIPTION
[0030] The system and methods described herein automatically
analyze multiple financial accounts to determine whether the
account balances are optimized based on the best available interest
rates, the interest rates associated with the multiple financial
accounts, and the balances of the multiple financial accounts.
After analyzing the accounts, recommendations are provided, if
necessary, for adjusting account funds to allow the account holder
to earn greater interest in asset accounts and/or pay less interest
in debt accounts. Additionally, recommendations may be provided to
adjust account funds from one or more asset accounts to one or more
debt accounts, or vice versa, if such an adjustment is favorable to
the account holder. The systems and methods described herein may
operate in a proactive manner, such that the various
recommendations are generated without any action or request by the
user. The financial management system described herein may
regularly analyze a user's accounts and make recommendations, if
appropriate, on its own initiative, without any prompting from the
user.
[0031] As used herein, the terms "account holder", "customer",
"user", and "client" are interchangeable. "Account holder" refers
to any person having access to an account. A particular account may
have multiple account holders (e.g., a joint checking account
having husband and wife as account holders or a corporate account
identifying several corporate employees as account holders).
Various financial account and financial institution examples are
provided herein for purposes of explanation. However, it will be
appreciated that the system and procedures described herein can be
used with any type of asset account and any type of debt account.
Example asset accounts include savings accounts, money market
accounts, checking accounts (both interest-bearing and
non-interest-bearing), certificates of deposit (CDs), mutual funds,
bonds, and equities. Example debt accounts include credit card
accounts, mortgage accounts, home equity loans, overdraft
protection, margin accounts, personal loans, and other types of
loans. Exemplary financial institutions include banks, savings and
loans, credit unions, mortgage companies, mutual fund companies,
lending companies, and stock brokers.
[0032] Various attributes associated with an asset account and/or a
debt account are discussed herein. These attributes are used to
analyze various accounts and make recommendations that would
benefit the account holder. Example attributes include interest
rate, loan repayment terms, minimum balance, type of collateral,
etc. Although particular examples are discussed herein with
reference to interest rates, it will be appreciated that the
methods and systems described herein are applicable to any type of
attribute.
[0033] FIG. 1 illustrates an exemplary network environment 100 in
which various servers, computing devices, and financial management
systems exchange data across a data communication network. The
network environment of FIG. 1 includes multiple financial
institution servers 102, 104, and 106 coupled to a data
communication network 108, such as the Internet. A market
information service server 110 and a financial management system
118 are also coupled to network 108. Additionally, a wireless
device 112 and a client computer 114 are coupled to network 108.
Wireless device 112 may be a personal digital assistant (PDA), a
handheld or portable computer, a cellular phone, a pager, or any
other device capable of communicating with other devices via a
wireless connection. A financial information provider 116 is
coupled between network 108 and client computer 114.
[0034] Network 108 may be any type of data communication network
using any communication protocol. Further, network 108 may include
one or more sub-networks (not shown) which are interconnected with
one another.
[0035] The communication links shown between the network 108 and
the various devices (102-106 and 110-118) shown in FIG. 1 can use
any type of communication medium and any communication protocol.
For example, one or more of the communication links shown in FIG. 1
may be a wireless link (e.g., a radio frequency (RF) link or a
microwave link) or a wired link accessed via a public telephone
system or another communication network. Wireless device 112
typically accesses network 108 via a wireless connection to another
communication network that is coupled to network 108. Certain
devices, such as servers, may be coupled to a local area network
(LAN), which is coupled to network 108. Client computer 114 may
access network 108 in different ways. First, client computer 114
may directly access network 108, for example, by using a modem to
access a public telephone network (e.g., a public switched
telephone network (PSTN)) that is coupled to network 108.
Alternately, client computer 114 may access financial information
provider 116, which establishes a connection to network 108.
Financial information provider 116 may act as a "buffer" between
network 108 and client computer 114, or may allow commands and data
to simply pass-through between the network 108 and the client
computer 114.
[0036] Each of the financial institution servers 102, 104, and 106
are typically associated with a particular financial institution
and store data for that financial institution, such as customer
account data. The market information service server 110 may
represent one or more services that collect and report information
regarding current financial market conditions. For example, a
particular market information service may collect information from
many financial institutions to generate a report identifying the
average interest rates for savings, checking, or other accounts.
The report may also identify the highest rates for each type of
account and the financial institution offering those rates.
Multiple market information service servers 110 may be coupled to
network 108, each server providing a different type of market
data.
[0037] Financial management system 118 performs various account
analysis functions to determine whether a user's financial accounts
(e.g., both asset accounts and debt accounts) are optimized. These
analysis functions are discussed in greater detail below. Wireless
device 112 and client computer 114 allow a user to access
information via the network 108. For example, the user can access
account information from one of the financial institution servers
102, 104, or 106, access current interest rate data from market
information service server 110, or send a request for an analysis
of the user's financial accounts to financial management system
118. Financial information provider 116 acts as an intermediary
between client computer 114 and other devices coupled to network
108. For example, client computer 114 generates a request for data
or account analysis and communicates the request to the financial
information provider 116. The financial information provider 116
then retrieves the requested data or initiates the requested
account analysis on behalf of the user of client computer 114.
[0038] FIG. 2 illustrates an example of the interaction between a
particular pair of financial institution servers 132 and 134, a
market information service server 140, a client computer 136, and a
financial management system 138. Client computer 136 is capable of
accessing financial institution server 132 via a communication link
142 and accessing financial institution server 134 via a
communication link 144. For example, the user of client computer
136 may retrieve account information or interest rate information
from one or both of the financial institution servers 132, 134.
Client computer 136 is also capable of interacting with financial
management system 138 via a communication link 146. The user of
client computer 136 may access financial management system 138, for
example, to have the system analyze the user's financial
accounts.
[0039] Financial management system 138 is coupled to the two
financial institution servers 132 and 134 via two communication
links 148 and 150, respectively. Communication links 148 and 150
allow the financial management system 138 to retrieve information
from the financial institution servers 132, 134, and execute
transactions on the financial institution servers on behalf of the
user of client computer 136. Financial management system 138 is
also coupled to market information service server 140 through a
communication link 152, which allows the financial management
system to retrieve various information regarding market interest
rates and other market data. Financial institution servers 132 and
134 are capable of communicating with one another via a
communication link 154, which allows the servers to exchange data
and other information with one another.
[0040] Communication links 142-154 may be dial-up connections
and/or connections via one or more networks of the type discussed
above with respect to FIG. 1.
[0041] FIG. 3 is a block diagram showing pertinent components of a
computer 180 in accordance with the invention. A computer such as
that shown in FIG. 3 can be used, for example, to perform various
financial analysis operations such as accessing and analyzing a
user's financial account information to make account
recommendations. Computer 180 can also be used to access a web site
or other computing facility to access the various financial
analysis functions. The computer shown in FIG. 3 can function as a
server, a client computer, or a financial management system, of the
types discussed herein.
[0042] Computer 180 includes at least one processor 182 coupled to
a bus 184 that couples together various system components. Bus 184
represents one or more of any of several types of bus structures,
such as a memory bus or memory controller, a peripheral bus, and a
processor or local bus using any of a variety of bus architectures.
A random access memory (RAM) 186 and a read only memory (ROM) 188
are coupled to bus 184. Additionally, a network interface 190 and a
removable storage device 192, such as a floppy disk or a CD-ROM,
are coupled to bus 184. Network interface 190 provides an interface
to a data communication network such as a local area network (LAN)
or a wide area network (WAN) for exchanging data with other
computers and devices. A disk storage 194, such as a hard disk, is
coupled to bus 184 and provides for the non-volatile storage of
data (e.g., computer-readable instructions, data structures,
program modules and other data used by computer 180). Although
computer 180 illustrates a removable storage 192 and a disk storage
194, it will be appreciated that other types of computer-readable
media which can store data that is accessible by a computer, such
as magnetic cassettes, flash memory cards, digital video disks, and
the like; may also be used in the exemplary computer.
[0043] Various peripheral interfaces 196 are coupled to bus 184 and
provide an interface between the computer 180 and the individual
peripheral devices. Exemplary peripheral devices include a display
device 198, a keyboard 200, a mouse 202, a modem 204, and a printer
206. Modem 204 can be used to access other computer systems and
devices directly or by connecting to a data communication network
such as the Internet.
[0044] A variety of program modules can be stored on the disk
storage 194, removable storage 192, RAM 186, or ROM 188, including
an operating system, one or more application programs, and other
program modules and program data. A user can enter commands and
other information into computer 180 using the keyboard 200, mouse
202, or other input devices (not shown). Other input devices may
include a microphone, joystick, game pad, scanner, satellite dish,
or the like.
[0045] Computer 180 may operate in a network environment using
logical connections to other remote computers. The remote computers
may be personal computers, servers, routers, or peer devices. In a
networked environment, some or all of the program modules executed
by computer 180 may be retrieved from another computing device
coupled to the network.
[0046] Typically, the computer 180 is programmed using instructions
stored at different times in the various computer-readable media of
the computer. Programs and operating systems are often distributed,
for example, on floppy disks or CD-ROMs. The programs are installed
from the distribution media into a storage device within the
computer 180. When a program is executed, the program is at least
partially loaded into the computer's primary electronic memory. As
described herein, the invention includes these and other types of
computer-readable media when the media contains instructions or
programs for implementing the steps described below in conjunction
with a processor. The invention also includes the computer itself
when programmed according to the procedures and techniques
described herein.
[0047] For purposes of illustration, programs and other executable
program components are illustrated herein as discrete blocks,
although it is understood that such programs and components reside
at various times in different storage components of the computer,
and are executed by the computer's processor. Alternatively, the
systems and procedures described herein can be implemented in
hardware or a combination of hardware, software, and/or firmware.
For example, one or more application specific integrated circuits
(ASICs) can be programmed to carry out the systems and procedures
described herein.
[0048] FIG. 4 is a block diagram showing exemplary components and
modules of a financial management system 220. A communication
interface 222 allows the financial management system 220 to
communicate with other computing systems, such as servers, client
computers, and portable computing devices. In one embodiment,
communication interface 222 is a network interface to a LAN, which
is coupled to another data communication network, such as the
Internet.
[0049] The financial management system 220 stores customer data
224, such as customer account information, online banking login
name and password, and user preferences. Financial management
system 220 also stores financial institution data 226 and market
information 228. Financial institution data 226 includes, for
example, transaction routing data, account offerings, account
interest rates, and minimum account balances. Market information
228 includes data such as average interest rates for different
types of accounts (both asset accounts and debt accounts), the best
available interest rates for each type of account, and the
financial institutions offering the best available interest
rates.
[0050] An asset analysis and recommendation module 230 analyzes
various asset accounts to determine whether the accounts are
earning the best available interest rates (or close to the best
interest rates) and whether the fund allocation among the asset
accounts is optimal or close to optimal. If fund adjustments would
benefit the account holder, then module 230 makes the appropriate
recommendations to the account holder. The asset accounts analyzed
may be associated with two or more different financial
institutions. A debt analysis and recommendation module 232
analyzes various debt accounts to determine whether the accounts
are paying the most competitive (i.e., the lowest) interest rates
or close to the best interest rates. Module 232 also determines
whether the allocation of funds among the debt accounts is optimal
or close to optimal, and makes recommendations, if necessary, to
adjust funds in a manner that reduces the overall interest
payments. The debt accounts analyzed may be associated with two or
more different financial institutions.
[0051] A balance sheet analysis and recommendation module 234
analyzes both asset accounts and debt accounts to determine whether
the allocation of funds among all of the accounts is optimal or
close to optimal. If fund adjustments would benefit the account
holder, then the balance sheet analysis and recommendation module
234 makes the appropriate recommendations to the account
holder.
[0052] A report generator 236 generates various types of reports,
such as account activity history, current recommendations to adjust
funds among accounts, or a report comparing the current market
interest rates to the interest rates of a user's current accounts.
A transaction execution module 238 executes financial transactions
at the direction of account holders. For example, an account holder
may request that the financial management system 220 execute the
recommendations generated by one or more of the three analysis and
recommendation modules 230, 232, and 234. In this example,
transaction execution module 238 identifies the recommendations and
executes the financial transactions necessary to implement the
recommendations.
[0053] FIG. 5 is a block diagram showing exemplary components and
modules of asset analysis and recommendation module 230. An asset
account information collection module 250 collects information
about a user's asset accounts. When a user accesses the financial
management system and requests an analysis of the user's asset
accounts, the system prompts the user to enter account information
for all of the user's asset accounts. The information provided for
each account may include the name of the financial institution, the
account number, and the login name and password for online access
to the account. This information is typically stored by the
financial management system to avoid asking the user to re-enter
the same information in the future. Based on the information
provided by the user, the asset account information collection
module 250 is able to access the user's accounts and determine the
balance of each account as well as other information such as the
interest rate and minimum balance for the account.
[0054] After collecting the user's asset account information, the
collection module 250 organizes the account information into a
common format and communicates the information to an asset analysis
and recommendation engine 254 for processing.
[0055] A financial institution and market data collection module
256 collects information about particular financial institutions
(e.g., transaction routing information and account offerings) and
information about current market interest rates. The information
about financial institutions may be retrieved from the financial
institutions themselves or from one or more market information
services that provide information about various financial
institutions. The information relating to current market interest
rates is collected from one or more market information services.
After collecting the financial institution information and the
market data, the collection module 256 communicates the collected
information and data to the asset analysis and recommendation
engine 254.
[0056] A default asset analysis logic 258 defines a default set of
logic rules used to analyze a user's asset accounts. These default
logic rules are used if the user does not create their own set of
logic rules and does not select from one of several sets of
alternate asset analysis logic rules 260 and 262. The alternate
logic rules 260 and 262 may provide different approaches to asset
account analysis (e.g., a conservative approach, a moderate
approach, or an aggressive approach). In particular embodiments, at
least one of the alternate logic rules 260, 262 is associated with
a financial and/or investment celebrity, who defines the particular
set of logic rules based on their financial and/or investment
expertise.
[0057] The particular logic rules selected for each user may be
different based on the sets of logic rules chosen by the user.
Additionally, the logic rules selected for a particular user may
change over time as the financial management system learns more
about the user's payment or spending habits. For example, if the
user regularly makes a $1000 payment from a particular checking
account on the 15th of each month, a rule may be created by the
financial management system to ensure that the checking account has
at least a $1000 balance on the 14th of each month. If the checking
account does not have a sufficient balance, then the financial
management system may recommend a fund transfer to raise the
balance of the checking account to cover the anticipated $1000
payment on the 15th. This type of user-specific logic rule may be
stored with the other user data in the financial management
system.
[0058] Asset analysis and recommendation engine 254 analyzes the
user's asset account information by applying the various asset
analysis logic rules to the asset account information. The asset
analysis and recommendation engine 254 also considers market data
collected by collection module 256 when analyzing the user's asset
accounts. After analyzing the user's asset accounts, the asset
analysis and recommendation engine 254 generates one or more
recommendations to adjust the fund allocation among the asset
accounts. The recommendation may also include opening a new asset
account (e.g., an account that pays a higher interest rate) and/or
closing an existing asset account (e.g., an account that pays a low
interest rate). The recommendations and analysis results are output
on communication link 264 for use by other modules or components in
the financial management system.
[0059] FIG. 6 is a block diagram showing exemplary components and
modules of debt analysis and recommendation module 232. A debt
account information collection module 270 collects information
about a user's debt accounts. When a user accesses the financial
management system and requests an analysis of the user's debt
accounts, the system prompts the user to enter account information
for each of the user's debt accounts. The information provided for
each account may include the name of the financial institution, the
account number, and information necessary to access the account
online. This information is typically stored by the financial
management system to avoid asking the user to re-enter the same
information in the future. Based on the information provided by the
user, the debt account collection module 270 accesses the user's
debt accounts and determines the balance of each account as well as
other information, such as the interest charged and the maximum
balance for the account.
[0060] After collecting the user's debt account information, the
collection module 270 organizes the account information into a
common format and communicates the account information to a debt
analysis and recommendation engine 274 for processing.
[0061] A financial institution and market data collection 276
collects information regarding particular financial institutions
and information about current market interest rates. The
information relating to financial institutions may be retrieved
from the financial institutions themselves or from one or more
market information services that provide information about various
financial institutions. The information relating to current market
interest rates is collected from one or more market information
services. After collecting the financial institution information
and the market data, the collection module 276 communicates the
collected information and data to the debt analysis and
recommendation engine 274.
[0062] A default debt analysis logic 278 defines a default set of
logic rules used to analyze a user's debt accounts. These default
logic rules are used if the user does not create their own set of
logic rules and does not select from one of the several sets of
alternate debt analysis logic 280 and 282. The alternate logic
rules 280 and 282 may provide different approaches to debt account
analysis, such as a conservative approach, a moderate approach, or
an aggressive approach. In a particular embodiment, at least one of
the alternate logic rules 280, 282 is associated with a financial
and/or investment celebrity, who defines the particular set of
logic rules based on their financial and/or investment
expertise.
[0063] The particular logic rules selected for each user may be
different based on the sets of logic rules chosen by the user.
Additionally, the logic rules selected for a particular user may
change over time as the financial management system learns more
about the user's payment or spending habits. For example, if the
user has too many expenses (i.e., the current month's expenses
exceed the user's typical monthly income), then the logic rules may
suggest a short-term loan to cover the expenses, thereby avoiding a
situation in which the user has insufficient funds to pay bills as
they become due. Additionally, if the loan will only be required
for a short period of time, the rules may suggest opening (or
taking advantage of an existing) overdraft protection account.
[0064] Different debt logic rules may be applied depending on a
user's opinions regarding debt. One user might use the majority of
available assets to pay down debts, thereby minimizing the user's
level of debt. Another user might want to maintain a larger
"cushion" of cash and only pay down debts if the available assets
exceed a predetermined amount (e.g., $10,000). Debt rules from, for
example, a celebrity or well-known financial analyst might
recommend setting aside savings at the beginning of the month to
"force" the appropriate monthly savings. The remainder of the
assets are then used to pay monthly bills and other expenses. Other
financial analysts may use different sets of logic rules to define
the analysis and handling of asset accounts and debt accounts.
[0065] Debt analysis and recommendation engine 274 analyzes the
user's debt account information by applying the various debt
analysis logic rules to the debt account information. The debt
analysis and recommendation engine 274 also considers market data
collected by collection module 276 when analyzing the user's debt
accounts. After analyzing the user's debt accounts, the debt
analysis and recommendation engine 274 generates one or more
recommendations to adjust the fund allocation among the debt
accounts. The recommendation may also include opening a new debt
account (e.g., an account with a lower interest rate) and/or
closing an existing debt account (e.g., an account with a high
interest rate). The recommendations and analysis results are output
on communication link 284 for use by other modules or components in
the financial management system.
[0066] FIG. 7 is a block diagram showing exemplary components and
modules of balance sheet analysis and recommendation module 234. An
account information collection module 290 collects information
about a user's asset accounts and debt accounts. When a user
accesses the financial management system and requests an analysis
of the user's balance sheet, the system prompts the user to enter
account information for each of the user's asset accounts and debt
accounts. The information provided for each account may include the
name of the financial institution, the account number, and
information necessary to access the account online. This
information is typically stored by the financial management system
to avoid asking the user to re-enter the same information in the
future. Based on the information provided by the user, the account
collection module 290 accesses the user's debt accounts and
determines the balance of each account as well as other
information, such as the interest charged or earned, and the
maximum balance or credit limit associated with the account.
[0067] After collecting the user's asset and debt account
information, the collection module 290 organizes the account
information into a common format and communicates the account
information to a balance sheet analysis and recommendation engine
294 for processing.
[0068] A financial institution and market data collection 296
collects information regarding particular financial institutions
and information about current market interest rates for both asset
accounts and debt accounts. The information relating to financial
institutions may be retrieved from the financial institutions
themselves or from one or more market information services that
provide information about various financial institutions. The
information relating to current market interest rates is collected
from one or more market information services. After collecting the
financial institution information and the market data, the
collection module 296 communicates the collected information and
data to the balance sheet analysis and recommendation engine
294.
[0069] A default balance sheet analysis logic 298 defines a default
set of logic rules used to analyze a user's balance sheet. These
default logic rules are used if the user does not create their own
set of logic rules and does not select from one of the several sets
of alternate balance sheet analysis logic 300 and 302. The
alternate logic rules 300 and 302 may provide different approaches
to debt account analysis, such as a conservative approach, a
moderate approach, or an aggressive approach. In a particular
embodiment, at least one of the alternate logic rules 300, 302 is
associated with a financial and/or investment celebrity, who
defines the particular set of logic rules based on their financial
and/or investment expertise.
[0070] The particular logic rules selected for each user may be
different based on the sets of logic rules chosen by the user.
Additionally, the logic rules selected for a particular user may
change over time as the financial management system learns more
about the user's payment or spending habits. For example, if the
user has funds earning a low interest rate in a savings account and
carries a balance on a credit card with a high interest rate, the
logic rules may suggest applying some or all of the funds in the
savings account to pay off all or a portion of the balance on the
credit card.
[0071] Different balance sheet logic rules may be applied depending
on a user's opinions regarding assets and debts. One user might
prefer to use the majority of available assets to pay down debts,
thereby minimizing the user's level of debt. Another user might
want to maintain a larger "cushion" of cash and only pay down debts
if the available assets exceed a predetermined amount (e.g.,
$5,000).
[0072] Balance sheet analysis and recommendation engine 294
analyzes the user's balance sheet information by applying the
various balance sheet analysis logic rules to the balance sheet
information. The balance sheet analysis and recommendation engine
294 also considers financial institution and market data collected
by collection module 296 when analyzing the user's balance sheet.
After analyzing the user's balance sheet, the balance sheet
analysis and recommendation engine 294 generates one or more
recommendations to adjust the fund allocation among the user's
asset accounts and debt accounts. The recommendation may also
include opening one or more new accounts and/or closing one or more
existing accounts. The recommendations and analysis results are
output on communication link 304 for use by other modules or
components in the financial management system.
[0073] FIG. 8 is a flow diagram illustrating a procedure for
identifying financial transactions to optimize a user's asset
account balances. The procedure begins by analyzing the user's
asset accounts (block 320). The procedure then determines the best
available asset accounts (block 322), for example, by using market
interest rate information from a market information service. Next,
the procedure determines whether there are better accounts for the
user's assets (block 324). These "better" accounts may include
asset accounts that earn higher interest rates than the user's
current asset accounts.
[0074] If the procedure identifies better accounts for the user's
assets, then the procedure selects the best alternative account (or
accounts) and makes a recommendation that the user open the
alternative account (block 326). If the procedure does not identify
any better accounts for the user's assets, then the procedure
continues to block 328, where the procedure determines whether the
assets in the user's accounts should be adjusted. If the user's
asset accounts should be adjusted, then the procedure identifies
the best adjustment of the user's asset accounts and makes asset
adjustment recommendations to the user (block 330). Finally, the
user is provided the opportunity to automatically execute any of
the recommendations, such as opening one or more new asset accounts
and/or moving funds between asset accounts (block 332). If the user
chooses to have the recommendations executed automatically, the
financial management system executes the necessary financial
transactions to implement the system's recommendations. The
procedure described above with respect to FIG. 8 may be
implemented, for example, by asset analysis and recommendation
module 230.
[0075] FIG. 9 is a flow diagram illustrating a procedure for
identifying financial transactions to optimize a user's debt
account balances. The procedure analyzes the user's debt accounts
(block 350) and determines the best available debt accounts (block
352). The best available debt accounts are determined, for example,
by using market interest rate information from one or more market
information services. Next, the procedure determines whether there
are better accounts for the user's debts (block 354). These
"better" accounts may include debt accounts that charge lower
interest rates than the user's current debt accounts.
[0076] If better accounts are identified for the user's debts, then
the procedure selects the best alternative account (or accounts)
and makes a recommendation that the user open the alternative
account (block 356). If the procedure does not identify any better
accounts for the user's debts, then the procedure continues to
block 358, to determine whether the debts in the user's accounts
should be adjusted. If the user's debt accounts should be adjusted,
then the procedure identifies the best adjustment of the user's
debt accounts and makes asset adjustment recommendations to the
user (block 360). Finally, the user is provided the opportunity to
automatically execute any of the recommendations, such as opening
one or more new debt accounts and/or moving funds between debt
accounts (block 362). If the user chooses to have the
recommendations executed automatically, the financial management
system executes the necessary financial transactions to implement
the system's recommendations. The procedure described above with
respect to FIG. 9 can be implemented, for example, by debt analysis
and recommendation module 232.
[0077] FIG. 10 is a flow diagram illustrating a procedure for
identifying financial transactions to optimize a user's balance
sheet. The procedure analyzes the user's balance sheet (block 370)
and determines whether there is a better distribution of assets and
debts across the user's balance sheet (block 372). For example, a
"better distribution" of assets and debts may result in greater
interest earned by the user or less interest paid by the user. If
there is a better distribution of assets and debts across the
user's balance sheet, then the procedure identifies the optimal
allocation of assets and debts and makes recommendations to the
user (block 374).
[0078] If the procedure does not identify any better distribution
of assets and debts, then the procedure continues to block 376, to
determine whether the amounts in the user's asset and debt accounts
should be adjusted. If the user's accounts should be adjusted, then
the procedure identifies the best adjustment of the user's asset
and debt accounts and makes adjustment recommendations to the user
(block 378). Finally, the user is provided the opportunity to
automatically execute any of the recommendations (block 380), such
as moving funds between accounts to maximize interest earned or
minimize interest paid. If the user chooses to have the
recommendations executed automatically, the financial management
system executes the necessary financial transactions to implement
the system's recommendations. The procedure described above with
respect to FIG. 10 can be implemented, for example, by balance
sheet analysis and recommendation module 234.
[0079] A user may choose to have the financial management system
220 (FIG. 4) analyze and make recommendations regarding the user's
asset accounts, while ignoring the user's debt accounts. FIG. 8
illustrates an example procedure for this type of analysis and
recommendation. Additionally, the user may select specific asset
accounts to ignore during the analysis procedure. For example, the
user may have a savings account for a special purpose. Even though
the savings account may earn a below-average interest rate, the
user does not want funds transferred into or out of that savings
account. In this example, the user would instruct the financial
management system to ignore that particular savings account.
[0080] The user may also choose to have the financial management
system analyze and make recommendations regarding the user's debt
accounts, while ignoring the user's asset accounts. FIG. 9
illustrates an example procedure for this type of analysis and
recommendation. Additionally, the user may select specific debt
accounts to ignore during the analysis procedure. For example, the
user may want to pay-off and close a particular debt account even
though the account has a favorable interest rate. In this example,
the user would instruct the financial management system to ignore
that particular debt account when performing its analysis.
[0081] The user can also choose to have the financial management
system analyze and make recommendations regarding both the user's
asset accounts and debt accounts (i.e., analyze the user's balance
sheet). FIG. 10 illustrates an example procedure for this type of
analysis and recommendation. Additionally, the user may select
specific asset accounts or debt accounts to ignore during the
analysis procedure. Thus, the user has the option of selecting the
types of accounts to consider, as well as specific accounts to
consider or ignore, when the financial management system performs
its analysis and makes recommendations.
[0082] FIG. 11 is a flow diagram illustrating a procedure for
automatically optimizing a user's asset accounts, debt accounts,
and balance sheet. Initially, the procedure determines the best
adjustment of the user's asset accounts (block 400). The best
adjustment of the user's asset accounts may include opening a new
account, closing an existing account, and/or transferring funds
between accounts (new accounts or existing accounts). If the user's
asset accounts are already optimized, or almost optimized, the
procedure determines that no adjustment of asset accounts is
necessary.
[0083] Next, the procedure determines the best adjustment of the
user's debt accounts (block 402) and the best adjustment of the
user's balance sheet (block 404). The best adjustment of the user's
debt accounts and the user's balance sheet may include opening one
or more new accounts, closing one or more existing accounts, and/or
transferring funds between accounts (new accounts or existing
accounts). If the user's debt accounts are already optimized, or
almost optimized, the procedure determines that no adjustment of
debt accounts is necessary. Similarly, if the user's balance sheet
is already optimized, or almost optimized, then the procedure
determines that no adjustment of asset accounts or debt accounts is
necessary.
[0084] The various logic rules discussed above, which are used by
the financial management system to determine whether funds should
be adjusted between accounts, may define how to determine whether
accounts are "almost optimized." Typical factors that may be
considered in determining whether accounts are "almost optimized"
include: the savings (extra interest earned or less interest paid)
that would result from an adjustment of funds, the difference in
interest rates, the time required to implement the adjustment of
funds, fees associated with the adjustment of funds, and the "risk"
associated with the adjustment. The "risk" may be overdrawing an
account by leaving too little funds to cover unexpected expenses
(or expenses that are greater than expected).
[0085] For example, if a particular adjustment of funds would
result in an increase in interest earnings of three cents per week,
most logic rules will consider this situation "almost optimized."
In this situation, the financial management system will not
recommend the adjustment of funds because the additional interest
is insignificant.
[0086] After the procedure has determined the best adjustment of
the user's accounts (blocks 400, 402, and 404), the procedure
identifies the financial institutions involved in the adjustment of
the user's accounts (block 406). The financial institutions are
determined from the information entered by the user when
identifying the user's accounts to the financial management system.
Next, the procedure contacts the appropriate financial institutions
and/or payment networks and executes the financial transfers
necessary to implement the recommended adjustments to the user's
accounts (block 408). A payment network may be, for example, the
Federal Automated Clearing House (ACH), a debit network, a credit
network, the federal wire system, or an ATM network. The financial
management system is able to automatically access the user's
accounts by using the login name and password for the account,
which is provided by the user when identifying the user's accounts
to the financial management system.
[0087] After executing the financial transactions necessary to
implement the recommended adjustments to the user's accounts, the a
report is generated for the user that identifies the financial
transfers executed (block 410). Finally, the user's account
information is updated in the financial management system such that
the system has accurate account balance information for all of the
user's accounts (block 412).
[0088] The procedure described above with respect to FIG. 11 can be
modified based on the user's preferences with respect to the types
of accounts to be analyzed. For example, if the user selects only
asset accounts for analysis, then the functions associated with
blocks 402 and 404 of the procedure are not performed.
[0089] FIG. 12 shows a table 430 illustrating various information
associated with different financial institutions. The information
contained in table 430 may be obtained from the financial
institution itself or from one or more market information services.
The information contained in table 430 is periodically updated by
comparing the information stored in the table against the current
financial institution information.
[0090] The first column of table 430 identifies the name of the
financial institution and the second column identifies the American
Banking Association (ABA) number and routing number. The third
column indicates an Internet uniform resource locator (URL)
associated with the financial institution. The fourth column of
table 430 identifies the various account offerings from a
particular financial institution. In this example, Bank of America
offers a savings account, two types of checking accounts (interest
bearing and non-interest bearing), a three month certificate of
deposit (CD), a home equity loan, a credit card account, and
overdraft protection for a checking account. The next column
indicates the type of account (e.g., an asset account or a debt
account).
[0091] The sixth column of table 430 indicates the current interest
rate associated with each account. In the case of an asset account,
the interest rate is the interest paid to a customer based on the
balance in the account. In the case of a debt account, the interest
rate is the interest charged to a customer based on the outstanding
balance of the debt. The last column in table 430 indicates the
minimum balance associated with each account. In this example, the
debt accounts do not have a minimum balance. However, a debt
account may have a maximum balance (e.g., the maximum value that
can be loaned). Although not shown in FIG. 12, additional account
information may be stored in table 430, such as monthly service
charges, per-check charges, service charges for ATM transactions,
or service charges if the minimum balance is not maintained.
[0092] FIG. 13 shows a table 440 illustrating various customer
information related to financial accounts and user preferences.
Most information contained in table 440 is obtained from the user
during an account setup procedure. The current account balance
information is typically retrieved from the financial institution
by the financial management system. The account balance information
is periodically updated by retrieving current information from the
financial institution.
[0093] The first column of table 440 identifies the customer name
(the table contains customer information for multiple customers
accessing the same financial management system). The second column
identifies a financial institution and the third column identifies
an account number as well as an online username and password
associated with the account number. The username and password are
used to access the account to perform online banking functions such
as executing fund transfers or retrieving current account balances.
The fourth column of table 440 identifies the accounts that the
customer has with the financial institution (i.e., active
accounts). For example, John Smith has five active accounts with
Bank of America (savings, interest checking, home equity, credit
card, and overdraft protection), one active account with Charles
Schwab (money market account), and one active account with Rainbow
Credit Union (savings account). The next column in table 440
indicates the current account balance for each active account. The
last column indicates user preferences. The user preferences are
determined by the user based on the manner in which the user wants
information displayed, the manner in which accounts should be
analyzed, and the types of recommendations the user desires.
Additionally, the user preferences may specify certain minimum
balances or other requirements for all accounts or for specific
accounts. For example, the user preferences for John Smith specify
that a minimum balance of $1500 should be maintained in the
interest checking account. These user preferences are typically
incorporated into the logic rules, discussed above, which are used
to determine when and how to adjust funds between accounts.
[0094] Other types of user preferences include a maximum number of
transactions per month in a particular account (e.g., some money
market accounts set limits on the number of transactions in a
particular month). By setting a user preference (or a logic rule)
to limit the number of monthly transactions, the financial
management system will not recommend (or attempt to execute) too
many transactions in a particular month. A user may also set a
preference that requires the financial management system to predict
expenses for the next seven days (e.g., based on historical
expenses during similar periods) and maintain a "buffer" in the
account equal to the predicted expenses for the next seven days.
Further, a user may set a preference indicating that funds should
not be adjusted unless the adjustment results in a savings of at
least five dollars per day.
[0095] FIGS. 14-15 illustrate exemplary user interface screens
illustrating various account entry fields and account
recommendations. FIG. 14 illustrates an example screen 500
generated by a web browser or other application that allows a user
to enter account information and preferences. Each entry identifies
an institution 502 associated with the account and an account
number 504. The user may select whether the financial management
system has access to move funds into the account, out of the
account, or both, by selecting the appropriate check boxes 506. The
user may also set a maximum amount that can be withdrawn from the
account at a particular time or during a particular time period by
entering the amount in field 508. The credit routing number for the
account is entered in field 510 and the debit routing number for
the account is entered in field 512.
[0096] Although not shown in FIG. 14, other fields may be provided
in the user interface to allow the user to enter additional
preferences or information, such as interest rate, minimum balance
the user wants maintained, etc. Certain account information (such
as interest rate and routing numbers) may be obtained from the bank
directly, thereby minimizing the information required to be entered
by the user.
[0097] FIG. 15 illustrates another example screen 550 generated by
a web browser or other application that allows a user to review
recommendations generated by the financial management system. In
the example of FIG. 15, one recommendation 552 is shown--to
transfer funds from the Wells Fargo Checking account into the Chase
Savings account. A recommended amount to transfer 554 has also been
identified. If the recommendation is executed, the projected
savings 556 over the next six months is $26. The reasoning or
analysis supporting the recommendation and the projected savings is
provided at 558. The user can execute the recommendation by
activating the "Execute" button 560 on the screen. After activating
the "Execute" button, the financial management system automatically
performs the necessary steps to transfer the recommended funds
between the two accounts.
[0098] In an alternate embodiment, the user is given the option to
modify the amount to be transferred between the two accounts. For
example, the user may only want to transfer $500 instead of the
recommended $877. In this situation, the financial management
system is still able to automatically perform the steps necessary
to transfer $500 between the two accounts.
[0099] Thus, a system and method has been described that analyzes
multiple user accounts to determine whether those accounts are
optimized, or close to optimized, based on the best available
market interest rates, interest rates associated with the user's
accounts, and the user's account balances. Recommendations are
generated, if necessary, to adjust account funds if the user could
earn greater interest by adjusting asset accounts and/or pay less
interest by adjusting debt accounts. The recommendations may
include adjusting funds from an asset account to a debt account or
vice versa.
[0100] Although the description above uses language that is
specific to structural features and/or methodological acts, it is
to be understood that the invention defined in the appended claims
is not limited to the specific features or acts described. Rather,
the specific features and acts are disclosed as exemplary forms of
implementing the invention.
* * * * *