Using commercial share of wallet to rate business prospects

• US 20070016501A1
• Filed: 03/31/2006
• Published: 01/18/2007
• Est. Priority Date: 10/29/2004
• Status: Abandoned Application

• Current Assignee: American Express Travel Related Services Company, Inc. (American Express Company)
• Original Assignee: American Express Travel Related Services Company, Inc. (American Express Company)
• Inventors: Haggerty, Kathleen, Yuan, Chao, Biswas, Arnab, Turner, Geraldine, Lyon, Charles, Phelan, Robert, Chatterji, Siddhartha, Okoh, Benedict, Ruterman, Jon
• Application Number:
  US11/394,199
• Publication Number:
  US 20070016501A1
• Time in Patent Office: Days
• US Class Current: 705/35
• CPC Class Codes: G06Q 10/063 Operations research, analysis or management
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0201 Market modelling; Market analysis; Collecting market data
• 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 40/08 Insurance

Abstract

Commercial size of spending wallet (“CSoSW”) is the total business spend of a business including cash but excluding bartered items. Commercial share of wallet (“CSoW”) is the portion of the spending wallet that is captured by a particular financial company. A modeling approach utilizes various data sources to provide outputs that describe a company'"'"'s spend capacity. Research analysts can use CSoW/CSoSW to provide a comprehensive and robust indication of the business prospects of a rated company.

Claims

1. A method of rating business prospects, comprising:

(a) modeling industry spending patterns using individual and aggregate corporate data, including financial statement data;

(b) estimating a commercial size of spending wallet of a company based on financial statement data of the company, total business spend of the company, and the model of industry spending patterns; and

(c) issuing a corporate rating based on the commercial size of spending wallet of the company.

2. The method of claim 1, wherein the corporate rating is issued for the company.

3. The method of claim 2, wherein step (c) comprises:

issuing a corporate rating based on the commercial size of spending wallet of the company and historical financial information of the company.

4. The method of claim 1, wherein the company is a customer of a provider, and the corporate rating is issued for the provider.

5. The method of claim 4, wherein step (c) comprises:

issuing a corporate rating for the provider based on the commercial size of spending wallet of the company and historical financial information of the provider.

6. The method of claim 1, wherein step (c) comprises:

updating an existing corporate rating based on the commercial size of spending wallet of the company.

7. The method of claim 1, wherein step (b) comprises:

outputting the commercial size of spending wallet as a score.

8. The method of claim 1, further comprising:

(d) estimating a share of wallet for the company.

9. A system for rating business prospects, comprising:

a processor; and

a memory in communication with the processor, the memory for storing a plurality of processing instructions for directing the processor to;

model industry spending patterns using individual and aggregate corporate data, including financial statement data;

estimate a commercial size of spending wallet of a company based on financial statement data of the company, total business spend of the company, and the model of industry spending patterns; and

issue a corporate rating based on the commercial size of spending wallet of the company.

10. The system of claim 9, wherein the corporate rating is issued for the company.

11. The system of claim 10, wherein the processing instructions for directing the processor to issue a corporate rating comprise instructions for directing the processor to:

issue a corporate rating based on the commercial size of spending wallet of the company and historical financial information of the company.

12. The system of claim 9, wherein the company is a customer of a provider, and the corporate rating is issued for the provider.

13. The system of claim 12, wherein the processing instructions for directing the processor to issue a corporate rating comprise instructions for directing the processor to:

issue a corporate rating for the provider based on the commercial size of spending wallet of the company and historical financial information of the provider.

14. The system of claim 9, wherein the processing instructions for directing the processor to issue a corporate rating comprise instructions for directing the processor to:

update an existing corporate rating based on the commercial size of spending wallet of the company.

15. The system of claim 9, wherein the instructions for directing the processor to estimate comprise instructions for directing the processor to:

output the commercial size of spending wallet as a score.

16. The system of claim 9, further comprising instructions for directing the processor to:

estimate a share of wallet for the company.