CALCULATING CREDIT WORTHINESS USING TRANSACTIONAL DATA

• US 20080270292A1
• Filed: 04/25/2007
• Published: 10/30/2008
• Est. Priority Date: 04/25/2007
• Status: Active Grant

• Current Assignee: Bank of America Corp.
• Original Assignee: Bank of America Corp.
• Inventors: Ghosh, Debashis, Banerjee, Sudeshna, Newman, Kurt D., Pinto, Arun R., Joffe, David N., Nobili, William Anthony
• Granted Patent: US 7,734,539 B2
• Time in Patent Office: Days
• US Class Current: 705/38
• 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

Abstract

Aspects of the invention provide for the use of transactional data in determining credit and product offerings. Further aspects of the invention provide for generating financial statements and indices using transactional data for use by users and/or financial institutions. The transactional based financial statements and indices may be used for making underwriting and financial planning decisions.

Claims

1. A method of determining credit worthiness of a customer, the method comprising:

receiving transactional data corresponding to transactions associated with the customer;

categorizing the transactional data into inflows and outflows;

generating a cash flow statement based on the categorized transactional data;

generating a net worth statement using the transactional data; and

determining credit worthiness based on the generated cash flow statement and net worth statement.

2. The method of claim 1, further including originating a loan based on the determined credit worthiness of the customer.

3. The method of claim 1, further including:

analyzing the transactional data to determine if the customer'"'"'s account is a primary transactional account;

weighting the generated cash flow statement and the net worth statement based on whether the customer'"'"'s account is a primary transactional account; and

determining credit worthiness based on the weighted generated cash flow statement and net worth statement.

4. The method of claim 2, further including:

determining a FICO score for the customer;

weighting the FICO score along with the generated cash flow and net worth statement; and

determining credit worthiness based on the weighted FICO score, cash flow, and net worth statement.

5. The method of claim 1, wherein the transactional data comprises credit and debit card transactions.

6. The method of claim 1, wherein the transactional data comprises electronic bill payment transactions.

7. The method of claim 1, wherein the transactional data comprises checking and saving account transactions.

8. The method of claim 7, wherein the checking and saving account transactional data is analyzed for life event changes to a customer.

9. The method of claim 7, wherein the checking account transactional data is analyzed to determine whether the checking account is a primary checking account.

10. The method of claim 3, further comprising:

calculating a share of wallet for the customer indicating a percentage of a customer'"'"'s financial requirement filled by a particular financial institution;

weighting the share of wallet along with the generated cash flow and net worth statement; and

determining credit worthiness based on the weighted share of wallet, cash flow, and net worth statement.

11. The method of claim 3, further including:

calculating a transaction based index for the customer;

weighting the transaction based index along with the generated cash flow and net worth statement; and

determining credit worthiness based on the weighted transaction based index, the weighted cash flow, and the weighted net worth statement.

12. The method of claim 11, wherein the transaction index comprises a luxury ratio index.

13. The method of claim 11, wherein the transaction index comprises a discretionary index.

14. The method of claim 11, wherein the transaction index comprises a travel and entertainment index.

15. The method of claim 11, wherein the transaction index comprises a necessity index.

16. The method of claim 11, wherein the transaction index comprises a relative customer purchase risk profile index based on transaction costs during one month and a weighted FICO score for the transaction categories that incurred charges during that one month.

17. A system for loan processing, the system comprising:

a computer, the computer comprising a memory and a processor, wherein the processor executes computer-executable instructions in the memory for;

receiving transactional data corresponding to transactions associated with the customer;

categorizing the transactional data into inflows and outflows;

generating a cash flow statement based on the categorized transactional data;

generating a net worth statement;

weighting the generated cash flow statement and the net worth statement; and

determining credit worthiness based on weighted cash flow statement and net worth statement; and

originating a loan based on the determined credit worthiness of the customer.

18. The system of claim 17, wherein the computer-executable instructions further comprising:

determining a FICO score for the customer;

weighting the FICO score along with the generated cash flow and net worth statement; and

determining credit worthiness based on the weighted FICO score, cash flow, and net worth statement.

19. A method of determining credit worthiness of a customer, the method comprising:

receiving transactional data corresponding to transactions by the customer;

categorizing the transactional data into inflows and outflows;

calculating a cash flow statement based on the categorized transactional data;

calculating a net worth statement using the transactional data;

calculating a FICO score;

calculating a transaction index; and

determining credit worthiness based on the calculated cash flow statement, the net worth statement, the FICO score and the transaction index.

20. The method of claim 19, further including originating a loan based on the determined credit worthiness of the customer.

21. (canceled)

22. A computer-readable medium storing computer-executable instructions configured to cause a processor to perform a method comprising:

categorizing transactional data corresponding to transactions associated with a customer into inflows and outflows;

generating a cash flow statement based on the categorized transactional data;

generating a net worth statement based on the transactional data;

weighting the generated cash flow statement and the net worth statement, along with a FICO score for the customer;

determining credit worthiness score based on weighted FICO score, cash flow statement and net worth statement; and

originating a loan based on the determined credit worthiness of the customer.