Method and apparatus for risk based pricing
First Claim
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1. A method of pricing a financial product, the method comprising:
- receiving application data;
selecting a price for said financial product;
calculating, based at least in part on said application data, expected cash flow data;
calculating, based at least in part on said expected cash flow data and said price, a potential return on investment (ROI) for said application; and
approving said application with said price if said potential ROI is within a target ROI.
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Abstract
A system, method, apparatus, computer program code and means for pricing a financial product includes first receiving application data. A price for the financial product is selected. Based on the application data, expected loss data for the application is calculated. A potential return on investment (ROI) for the application is then calculated based at least in part on the expected loss data and the price. The application, with the selected price, is approved if the potential ROI is within a target ROI.
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Citations
27 Claims
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1. A method of pricing a financial product, the method comprising:
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receiving application data;
selecting a price for said financial product;
calculating, based at least in part on said application data, expected cash flow data;
calculating, based at least in part on said expected cash flow data and said price, a potential return on investment (ROI) for said application; and
approving said application with said price if said potential ROI is within a target ROI. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20)
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21. A method of pricing a financial product, the method comprising:
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receiving application data;
selecting an initial price for said financial product;
calculating, based at least in part on said application data, expected loss data;
calculating, based at least in part on said expected loss data and said initial price, a potential return on investment (ROI) for said application;
selecting a revised price for said financial product if said potential ROI based on said initial price is outside a target ROI;
calculating, based at least in part on said expected loss data and said revised price, a revised potential ROI for said application; and
approving said application if said revised potential ROI for said application is within a target ROI.
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22. An apparatus for pricing a financial product, the apparatus comprising:
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a processor;
a communication device, coupled to said processor, receiving application data from at least a first user device; and
a storage device in communication with said processor and storing instructions adapted to be executed by said processor to;
select a price for said financial product;
calculate, based at least in part on said application data, expected loss data;
calculate, based at least in part on said expected loss data and said price, a potential return on investment (ROI) for said application; and
approve said application with said price if said potential ROI is within a target ROI. - View Dependent Claims (23, 25)
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24. A system for pricing a financial product, comprising:
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at least a first user device having a processor;
a communication device, coupled to said processor, configured to send and receive data over a network; and
a storage device in communication with said processor and storing instructions adapted to be executed by said processor to receive application data; and
forward said application data to an at least first lender device said at least first lender device having a second processor, a second communication device, coupled to said second processor, configured to send and receive data over said network and to receive said application data; and
a second storage device in communication with said second processor and storing instructions adapted to be executed by said second processor to select a price for said financial product;
calculate, based at least in part on said application data, expected loss data;
calculate, based at least in part on said expected loss data and said price, a potential return on investment (ROI) for said application; and
approve said application with said price if said potential ROI is within a target ROI.
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26. A computer program product in a computer readable medium for pricing a financial product, comprising:
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first instructions for receiving application data;
second instructions for selecting an initial price for said financial product;
third instructions for calculating, based at least in part on said application data, expected loss data;
fourth instructions for calculating, based at least in part on said expected loss data and said initial price, a potential return on investment (ROI) for said application;
fifth instructions for selecting a revised price for said financial product if said potential ROI based on said initial price is outside a target ROI;
sixth instructions for calculating, based at least in part on said expected loss data and said revised price, a revised potential ROI for said application; and
seventh instructions for approving said application if said revised potential ROI for said application is within a target ROI.
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27. A device for pricing a financial product, the device comprising:
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means for receiving application data;
means for selecting a price for said financial product;
means for calculating, based at least in part on said application data, expected loss data;
means for calculating, based at least in part on said expected loss data and said price, a potential return on investment (ROI) for said application; and
means for approving said application with said price if said potential ROI is within a target ROI.
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Specification