Method, system and apparatus for increasing the deposit-based assets of banking institutions subject to fractional-reserve banking

• US 20080097900A1
• Filed: 04/24/2007
• Published: 04/24/2008
• Est. Priority Date: 10/24/2006
• Status: Active Grant

• Current Assignee: The THEA Financial Services Limited
• Original Assignee: The THEA Financial Services Limited
• Inventors: Berntsen, William O., Casey, Laurence P.
• Granted Patent: US 7,778,923 B2
• Time in Patent Office: Days
• US Class Current: 705/39
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/108 Remote banking, e.g. home banking
• CPC Class Codes: G06Q 20/327 Short range or proximity payments by means of M-devices
• CPC Class Codes: G06Q 20/3672 initialising or reloading thereof
• CPC Class Codes: G06Q 20/40 Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03

Abstract

A system, method and apparatus for increasing the asset base of a banking institution having a first and second account captive therein for fractional-reserve banking, having a portable device for encrypted containment of currency amounts linked to the first account at the banking institution and enabled to perform commercial transactions that affect the balance of the first account; a node device for encrypted containment of currency amounts linked to the second account at the banking institution and enabled to perform commercial transactions that affect the balance of the second account; an encrypted interface between the portable device and the node device for communication therebetween to accurately affect a commercial transaction between in which there is a credit to one and a debit to the other; such that by transacting a commercial transaction between the two devices one of the accounts is debited for the transaction a specific amount and the other account is credited the specific amount debited commensurate with the commercial transaction; and communication of the transaction to the banking institution such that the balances of each respective account are properly credited and debited in accordance with the commercial transaction. The accounts and transactions are based on fractional currency, resembling but replacing metallic currency (coinage). The apparatus of claim 10, wherein the portable device means comprises a microprocessor, display means for displaying said balance and communications with an operator of the device, operator interface means for entering and receiving transaction related and balance related data, power, memory, and wireless communication means for communicating with the banking institution and node device.

Claims

1. A system for increasing the asset base of a banking institution having a first and second account captive therein for fractional-reserve banking, comprising:

(a) a portable device for encrypted containment of currency amounts linked to the first account at the banking institution and enabled to perform commercial transactions that affect the balance of the first account;

(b) a node device for encrypted containment of currency amounts linked to the second account at the banking institution and enabled to perform commercial transactions that affect the balance of the second account;

(c) an encrypted interface between said portable device and said node device for communication therebetween to accurately affect a commercial transaction between the two that comprises a credit to one and a debit to the other;

(d) transacting a commercial transaction between the two devices such that one of the accounts is debited for the transaction a specific amount and the other account is credited said specific amount debited commensurate with the commercial transaction; and

(e) communicating the transaction to the banking institution such that the balances of each respective account are properly credited and debited in accordance with the commercial transaction.

2. The system of claim 1, wherein the commercial transaction comprises fractional currency.

3. The system of claim 1, wherein the accounts comprise fractional currency.

4. The system of claim 1, wherein the portable device comprises a microprocessor, display means for displaying said balance and communications with an operator of the device, operator interface means for entering and receiving transaction related and balance related data, power, memory, and wireless communication means for communicating with the banking institution and node device.

5. The system of claim 1, wherein the portable device further comprises security means for ensuring the accuracy of the transaction and operators of the respective portable and node devices.

6. The system of claim 1, wherein the node device comprises a microprocessor, display means for displaying said balance and communications with an operator of the device, operator interface means for entering and receiving transaction related and balance related data, power, memory, and communication means for communicating with the banking institution and portable device.

7. A method for increasing the asset base of a banking institution having a first and second account captive therein for fractional-reserve banking, comprising:

(a) encrypting in a portable device currency amounts linked to the first account at the banking institution;

(b) encrypting in a node device currency amounts linked to the second account at the banking institution;

(c) enabling the performance of commercial transactions wherein one account is debited a specific amount and the second account is credited that amount in accordance with a commercial transaction;

(c) communicating in an encrypted manner between said portable device and said node device for communication therebetween to accurately affect the commercial transaction between the two that comprises a credit to one and a debit to the other in accordance with the specific amount;

(d) transacting a commercial transaction between the two devices such that one of the accounts is debited for the transaction said specific amount and the other account is credited said specific amount commensurate with the commercial transaction; and

(e) communicating the transaction to the banking institution such that the balances of each respective account are properly credited and debited in accordance with the commercial transaction.

8. The method of claim 7, wherein the commercial transaction comprises fractional currency.

9. The method of claim 7, wherein the accounts comprise fractional currency.

10. An apparatus for increasing the asset base of a banking institution having a first and second account captive therein for fractional-reserve banking, comprising:

(a) portable means for encrypted containment of currency amounts linked to the first account at the banking institution and enabled to perform commercial transactions that affect the balance of the first account;

(b) node device means for encrypted containment of currency amounts linked to the second account at the banking institution and enabled to perform commercial transactions that affect the balance of the second account;

(c) encrypted interface means between said portable device means and said node device means for communication therebetween to accurately affect a commercial transaction between the two that comprises a credit to one and a debit to the other;

(d) such that by transacting a commercial transaction between the two device means one of the accounts is debited for the transaction a specific amount and the other account is credited said specific amount debited commensurate with the commercial transaction; and

(e) communicating means for communicating the transaction to the banking institution such that the balances of each respective account are properly credited and debited in accordance with the commercial transaction.

11. The apparatus of claim 10, wherein the commercial transaction comprises fractional currency.

12. The apparatus of claim 10, wherein the accounts comprise fractional currency.

13. The apparatus of claim 10, wherein the portable device means comprises a microprocessor, display means for displaying said balance and communications with an operator of the device, operator interface means for entering and receiving transaction related and balance related data, power, memory, and wireless communication means for communicating with the banking institution and node device.

14. The apparatus of claim 10, wherein the portable device means further comprises security means for ensuring the accuracy of the transaction and operators of the respective portable and node devices.

15. The apparatus of claim 10, wherein the node device means comprises a microprocessor, display means for displaying said balance and communications with an operator of the device, operator interface means for entering and receiving transaction related and balance related data, power, memory, and communication means for communicating with the banking institution and portable device.

16. The apparatus of claim 10, wherein said microprocessor is an ARM Processor, said display means is an LCD display approximately one inch by one inch, said operator interface means comprises a mouse-type button, LED and wheel, power is provided by a battery, memory comprises memory selected from the group consisting of SRAM, Flash, ROM and combinations thereof, and said communication means comprises a Bluetooth chip and accompanying antenna.