Method and Apparatus for Estimating the Spend Capacity of Consumers

• US 20090144185A1
• Filed: 02/10/2009
• Published: 06/04/2009
• Est. Priority Date: 10/29/2004
• Status: Active Grant

• 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 B., Yuan, Chao M.
• Granted Patent: US 7,788,152 B2
• Time in Patent Office: Days
• US Class Current: 705/35
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 30/0201 Market modelling; Market analysis; Collecting market data
• CPC Class Codes: G06Q 30/0211 Determining the effectiveness of discounts or incentives
• CPC Class Codes: G06Q 30/0224 based on user history
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof

Abstract

Time series consumer spending data, point-in-time balance information, internal customer financial data and consumer panel information provides input to a model for consumer spend behavior on plastic instruments or other financial accounts, from which approximations of spending ability may be reliably identified and utilized to promote additional consumer spending.

Claims

1. An apparatus for estimating a purchasing ability of a consumer, 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;

receive individual and aggregated consumer data including tradeline data, internal customer data and consumer panel data for a plurality of different consumers;

determine at least two categories of consumers based on the individual and aggregated consumer data, the first category including consumers that primarily pay down credit account balances and the second category including consumers that primarily revolve credit account balances;

model consumer spending patterns for each of the first and second categories based on the individual and aggregated consumer data;

receive tradeline data for a plurality of accounts of an individual consumer for a previous period of time;

identify any balance transfers into at least one of the plurality of accounts, based on the tradeline data;

discount any spending identified for any of the plurality of accounts for any portion of the previous period of time in which a balance transfer is identified;

assign one of the first and second categories to the individual based on the tradeline and consumer panel data, after said discounting;

estimate a purchasing ability of the individual consumer based on the assigned category, and the consumer spending pattern modeled for the assigned category; and

change the terms of a credit account of the individual based on said estimating.