Automatic categorization of financial transactions

• US 20020173986A1
• Filed: 06/24/2002
• Published: 11/21/2002
• Est. Priority Date: 06/19/2000
• Status: Abandoned Application

• Current Assignee: Microsoft Technology Licensing LLC (Microsoft Corporation)
• Original Assignee: Microsoft Corporation
• Inventors: Foxman, Leib A., Mihailovich, Sarah, Lehew, Christian R.
• Application Number:
  US10/178,588
• Publication Number:
  US 20020173986A1
• Time in Patent Office: Days
• US Class Current: 705/1
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03

Abstract

Financial transactions are automatically categorized based on mappings of filtered transaction descriptions to financial categories. The filtered transaction descriptions may exclude extraneous characters and unwanted prefix and suffix characters. A category lookup facility tries to find a match between a stored category-description pair lookup entry and a transaction'"'"'s filtered description. Upon finding a matching entry, a financial category is assigned to the transaction based on the category of the matching stored category-description pair. The category lookup facility may include stored global-user lookup data, which may be based on how multiple users of the system have previously categorized transactions.

Claims

1. A method of automatically categorizing a financial transaction having a transaction description, the method comprising:

filtering the transaction description to produce a filtered transaction description;

determining whether the filtered transaction description matches a category lookup-facility entry; and

upon finding a match between the filtered description and a category lookup-facility entry, assigning a financial category to the transaction based on the match.

2. The method of claim 1, wherein filtering the transaction description includes normalizing the transaction description by removing non-alphabetic or non-alphanumeric characters from the transaction description.

3. The method of claim 2, wherein normalizing the transaction description includes making all alphabetic characters of the transaction description a single case (upper or lower).

4. The method of claim 1, wherein filtering the transaction description includes excluding unwanted prefix characters from the transaction description.

5. The method of claim 4, wherein excluding unwanted prefix characters includes searching for strings of unwanted prefix characters by traversing a trie-like data structure of stored unwanted prefix characters while parsing the transaction description.

6. The method of claim 5, wherein excluding unwanted prefix characters includes setting a prefix exclusion marker to distinguish unwanted prefix characters from filtered description characters.

7. The method of claim 6, wherein filtering the transaction description includes excluding unwanted suffix characters from the transaction description.

8. The method of claim 7, wherein excluding unwanted suffix characters includes searching for strings of expected filtered description characters by traversing a trie-like data structure of stored expected filtered description characters while parsing the transaction description.

9. The method of claim 8, wherein excluding unwanted suffix characters includes setting a suffix exclusion marker to distinguish filtered description characters from unwanted suffix characters such that, for setting the prefix exclusion marker and the suffix exclusion marker, the transaction description is parsed a single time.

10. The method of claim 1, wherein the category lookup facility includes stored user-level lookup data.

11. The method of claim 1, wherein the category lookup facility includes global-user lookup data.

12. The method of claim 11, wherein the stored global-user lookup data is maintained by:

filtering transactions to be processed for entry into the stored global-user lookup data;

counting instances of category-description pairings to produce associated category-description-pairing counts for category-description pairings that are unique relative to other category-description pairings; and

selecting category-description pairings for inclusion into, or exclusion from, the stored global user lookup data based on the category-description pairings counts.

13. The method of claim 12, further comprising:

excluding from the stored global lookup data category-description pairings that have associated category-description-pairing counts below a threshold.

14. The method of claim 12, wherein category-description pairings are selected for inclusion into the stored global user lookup data such that, if multiple category-description pairings have descriptions that are the same and categories that are different, a category-description pairing having a largest associated count value among the multiple pairings is selected for inclusion in the stored global user lookup data and any of the multiple pairings that have relatively smaller associated count values are excluded from the global user data.

15. The method of claim 1, wherein the category lookup facility includes stored keyword lookup data.

16. A computer-readable medium having computer-executable instructions for performing the steps recited in claim 1.

18. The computer system of claim 17, wherein the description filter includes a description normalizer that excludes characters other than lower case letters and blank spaces from the filtered descriptions.

19. The computer system of claim 17, wherein the description filter includes a prefix excluder that excludes unwanted prefix characters from the filtered descriptions.

20. The computer system of claim 17, wherein the description filter includes a suffix excluder that excludes unwanted suffix characters from the filtered descriptions.

21. The computer system of claim 17, wherein the category lookup facility includes user-level data that specifies how a user has previously assigned financial categories to transactions.

22. The computer system of claim 17, wherein the category lookup facility includes keyword data that specifies how keywords in filtered descriptions map to financial categories.

23. The computer system of claim 17, wherein the global-user data excludes filtered description-and-financial category pairings for which fewer than a threshold number of instances have been counted.

24. The computer system of claim 17, wherein the filtered description-and-financial category pairings have been selected for inclusion into the global-user data such that, if multiple filtered description-and-financial category pairings have common filtered descriptions but different financial categories, a filtered description-and-financial category pairing is selected from among the multiple filtered pairings such that a pairing that has a largest associated count value is included in the global-user data and any remaining pairings that have relatively smaller associated count values are excluded from the global-user data.

26. The computer readable medium of claim 25, wherein the one or more predetermined criteria include a criterion for excluding pairings corresponding to transactions categorized using stored keyword data.

27. The computer readable medium of claim 25, wherein the one or more predetermined criteria include a criterion for excluding pairings corresponding to transactions categorized using stored global-user data.

28. The computer readable medium of claim 25, wherein the one or more predetermined criteria include a criterion for excluding pairings corresponding to transactions categorized with a customized non-standard category.

29. The computer readable medium of claim 25, wherein the global-user data is stored in a trie data structure.

17. A computer system that automatically categorizes financial transactions, the system comprising:

a description filter that accepts as input financial transaction descriptions and produces as output filtered descriptions;

a category lookup facility that, upon finding a match between a filtered description and stored lookup facility data, assigns a financial category to the filtered description; and

wherein the category lookup facility includes global-user data that indicates how a plurality of users have previously assigned financial categories to transactions.

25. A computer readable medium storing computer-readable global-user data comprising:

a plurality of filtered financial transaction description-and-financial category pairings based on how a plurality of system users have assigned financial categories to financial transactions, wherein;

the filtered description-and-financial category pairings are based on a set of transactions that has been filtered to exclude transactions in accordance with one or more predetermined criteria;

each filtered description-and-financial category pairing has a corresponding count value that indicates how often the pairing'"'"'s filtered description has been categorized with the pairing'"'"'s financial category;

the filtered description-and-financial category pairings have been filtered to exclude pairings that do not have associated count values that exceed a threshold; and

the filtered description-and-financial category pairings have been selected for inclusion into the global-user data such that, if multiple filtered description-and-financial category pairings have common filtered descriptions but different financial categories, a filtered description-and-financial category pairing is selected for inclusion in the global-user data from among the multiple filtered pairings such that a pairing that has a largest associated count value is included in the global-user data and any remaining pairings that have relatively smaller associated count values are excluded from the global-user data.