Financial product and collaborative system and method for providing and monitoring a financial product

• US 20020138415A1
• Filed: 11/28/2001
• Published: 09/26/2002
• Est. Priority Date: 03/21/2001
• Status: Active Grant

• Current Assignee: Thomas G. Siska
• Original Assignee: Thomas G. Siska
• Inventors: Siska, Thomas G.
• Granted Patent: US 7,395,240 B2
• Time in Patent Office: Days
• US Class Current: 705/38
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A method and a Financial Product providing for Banks and other large Finance Companies (Intermediaries) to market and fund the Financial Product to its Customers (Customers) and potential Customers, whereby the entire Financial Product processes are administered by a contracted Finance Company (Contractor) that possess loan, leasing and/or factoring specialty expertise that the Intermediary does not have or cannot duplicate cost effectively. The Contractor will indemnify and/or insure the Intermediary from loss of principle and interest, thereby eliminating all risk to the Intermediary, or alternatively the Contractor will indemnify the Intermediary, and further guarantee the indemnification through an insurance company in the form of a performance bond, or another third party in the form of a put option. In a further alternative the indemnification may be entirely in the form of a performance bond or put option. Since the Intermediary provides money for the Financial Product, the cost will be in most cases lower than the cost of money the Contractor can provide directly. The Contractor is able to drastically reduce its marketing costs as volume gets funneled in from its customer Intermediaries. The Customer benefits from having easier access to the various Financial Products and a lower price due to this process. The Intermediary can now serve its customers better, employ funds more efficiently, earn fees for providing marketing services benefitting the Contractor, all while completely eliminating the risk of loss on the contracted Financial Products.

RELATED APPLICATIONS

This is a continuation-in-part application of Ser. No. 09/813,745 filed Mar. 21, 2001.

Claims

1. A method of providing a Financial Product to a customer comprising the steps of:

offering a Financial Product through a first institution;

providing said Financial Product to said customer;

providing money for said Financial Product;

collaborating with a second institution for said second institution to service said Financial Product;

obtaining said money provided for said Financial Product from said first institution; and

,

obtaining indemnification for said first institution against all risk for providing said money for said Financial Product wherein said indemnification at least in part is in the form of a performance bond.

2. The method of claim 1 further comprising the step of:

providing said Financial Product in the name of the first institution.

3. The method of claim 1 wherein said indemnification is obtained from said second institution and backed-up by an insurance company.

4. The method of claim 3 wherein said insurance company provides said performance bond.

5. The method of claim 1 wherein said first institution is a bank.

6. The method of claim 1 wherein said second institution is a finance company.

55. The method of claim 1 further comprising the step of trading said Financial Product.

7. A method of providing a Financial Product to a customer comprising the steps of:

offering a Financial Product through a first institution;

servicing said Financial Product by a second institution

providing said Financial Product to said customer;

providing money for said Financial Product;

obtaining said money provided for said Financial Product from said first institution; and

providing indemnification for said first institution of all risk for providing said money for said Financial Product, wherein said indemnification at least in part is in the form of a performance bond.

8. The method of claim 7 further comprising the steps of:

obtaining said Financial Product in the name of said second institution.

9. The method of claim 7 further comprising obtaining said indemnification in part from said second institution, and in part from an insurance company.

10. The method of claim 9 further comprising said insurance company providing said performance bond.

11. The method of claim 7 wherein said first institution is a bank.

12. The method of claim 7 wherein said second institution is a finance company.

14. The method of claim 13 further comprising said Contractor providing indemnification for said Intermediary company, and an insurance company providing a guarantee of said Contractor'"'"'s indemnification for said Intermediary company for providing money for said contracted Financial Product.

15. The method of claim 14 further comprising said insurance company providing said performance bond.

16. The method of claim 13 wherein said Intermediary company is a bank.

17. The method of claim 13 wherein said Contractor is a finance company.

18. The method of claim 7 further comprising the step of trading said Financial Product.

20. The method of claim 19 wherein said indemnification is obtained in part from said second institution and in part from a third party.

58. The method of claim 19 further comprising the step of trading said Financial product.

63. The method of claim 9 further comprising the step of trading said Financial product.

64. The method of claim 13 further comprising the step of trading said Financial product.

13. A method of distributing and servicing a plurality of Financial Product marketed by an Intermediary company comprising the steps of:

offering a plurality of Financial Product through an Intermediary company, said Financial Product including Financial Products provided directly by said Intermediary company and Financial Products not provided directly by said Intermediary company;

marketing said plurality of Financial Products to a plurality of customers and potential customers;

supplying a customer a contracted Financial Product not directly provided by said Intermediary company;

collaborating with a Contractor to service said contracted Financial Product;

providing money for said contracted Financial Product from said Intermediary company; and

,

obtaining indemnification for said Intermediary company against all risk associated with providing money for said contracted Financial Product, wherein said indemnification at least in part is in the form of a performance bond.

19. A method of providing a Financial Product to a customer comprising the steps of:

offering a Financial Product through a first institution;

providing said Financial Product to said customer;

providing money for said Financial Product;

collaborating with a second institution for said second institution to service said Financial Product;

obtaining said money provided for said Financial Product from said first institution; and

,

obtaining indemnification for said first institution of all risk for providing said money for said Financial Product wherein said indemnification at least in part is in the form of a put option.

21. A contracted Financial Product comprising money supplied from a first institution to a customer, said money supplied from said first institution insured against risk of default of said Financial Product by said customer at least in part by a performance bond, said Financial Product serviced by a second institution.

22. The contracted Financial Product of claim 21 including a guarantee by said second institution for said first institution against said risk of default.

23. The contracted Financial Product of claim 21 wherein said first institution is a bank.

24. The contracted product of claim 21 wherein said second institution is a finance company.

26. The contracted Financial Product of claim 25 including a guarantee by said second institution for said first institution against said risk of default.

29. The method of claim 28 further comprising the step of providing said Financial Product in the name of the first institution.

31. The method of claim 28 wherein said indemnification obtained for said first institution is guaranteed by a third party.

32. The method of claim 28 wherein said first institution is a bank.

33. The method of claim 28 wherein said second institution is a finance company.

34. The method of claim 31 wherein said third party is an insurance company.

35. The method of claim 34 wherein said insurance company provides said guaranty of said second institution'"'"'s indemnification to said first institution in the form of a performance bond in favor of said first institution.

36. The method of claim 28 wherein said Financial Product is a high risk Financial Product.

38. The method of claim 37 further comprising the step of providing said Financial Product in the name of the first institution.

39. The method of claim 37 wherein said indemnification is obtained entirely from said second institution.

40. The method of claim 39 wherein said indemnification obtained from said second institution is guaranteed by a third party.

41. The method of claim 37 wherein said first institution is a bank.

42. The method of claim 37 wherein said second institution is a finance company.

43. The method of claim 40 wherein said third party is an insurance company.

44. The method of claim 43 wherein said insurance company provides said guaranty of said second institution'"'"'s indemnification to said first institution in the form of a performance bond in favor of said first institution.

45. The method of claim 37 wherein said Financial Product is a high risk Financial Product.

46. The method of claim 37 further comprising the steps of obtaining said Financial Product in the name of a third party owned at least in part by one of said first institution and said second institution.

48. The method of claim 47 further comprising the step of providing said Financial Product in the name of the first institution.

49. The method of claim 47 wherein said indemnification is obtained entirely from said second institution.

50. The method of claim 47 wherein said indemnification is obtained in part from said second institution and in part from a third party.

51. The method of claim 47 wherein said first institution is a bank.

52. The method of claim 47 wherein said second institution is a finance company.

53. The method of claim 50 wherein said third party is an insurance company.

54. The method of claim 53 further comprising said insurance company providing a performance bond to insure said first institution against said risk.

56. The method of claim 28 further comprising the step of trading said Financial Product.

57. The contracted Financial Product of claim 21 wherein said contracted Financial Product is tradeable on a secondary market.

59. The method of claim 27 further comprising the step of trading said Financial product.

60. The method of claim 37 further comprising the step of trading said Financial product.

61. The method of claim 47 further comprising the step of trading said Financial product.

62. The contracted Financial Product of claim 25 wherein said contracted Financial Product is tradeable on a secondary market.

25. A contracted Financial Product comprising money supplied from a first institution to a customer, said money supplied from said first institution insured against risk of default of said Financial Product by said customer at least in part by a put option, said Financial Product serviced by a second institution.

27. A method of providing a financial product comprising using a performance bond to support a financial services company'"'"'s guarantee to a money supplier for the use of money in a contracted service.

28. A method of providing a Financial Product to a customer comprising the steps of:

providing money for a Financial Product by a first institution

offering said Financial Product through a second institution;

servicing said Financial Product by said second institution;

providing said Financial Product to a customer; and

obtaining indemnification for said first institution against all risk for providing said money for said Financial Product.

30. The method of clam 28 wherein said indemnification is obtained from said second institution.

37. A method of providing a Financial Product to a customer comprising the steps of:

providing a customer a Financial Product through a first institution;

providing money for said Financial Product from said first institution;

collaborating with a second institution for said second institution to service said Financial Product;

said second institution obtaining indemnification for said first institution against all risk for providing said money for said Financial Product.

47. A method of providing a Financial Product to a customer comprising the steps of:

offering a Financial Product through a first institution;

collaborating with a second institution for said second institution to service said Financial Product;

providing said Financial Product to a customer;

obtaining money for said Financial Product from said first institution; and

,

indemnifying said first institution of all risk for providing said money for said Financial Product.