TOTAL STRUCTURAL RISK MODEL

• US 20090222377A1
• Filed: 02/29/2008
• Published: 09/03/2009
• Est. Priority Date: 02/29/2008
• 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: Choudhuri, Tirthankar, Xu, Di, Haggerty, Kathleen, Gupta, Amber, Yuan, Chao, Dewan, Anjali
• Granted Patent: US 7,814,008 B2
• Time in Patent Office: Days
• US Class Current: 705/38
• 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
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

The present invention generally relates to financial data processing, and in particular it relates to credit scoring, consumer profiling, consumer behavior analysis and modeling. More specifically, it relates to risk modeling using the inputs of credit bureau data, size of wallet data, and, optionally, internal data.

Claims

1. A method for obtaining a comprehensive consumer default risk value for a consumer, said method comprising:

making a request for said comprehensive consumer default risk value for said consumer;

receiving said comprehensive consumer default risk value for said consumer, wherein said comprehensive consumer default risk value is calculated by a method for determining a comprehensive consumer default risk value, said method comprising;

obtaining consumer credit data relating to said consumer;

modeling consumer spending patterns of said consumer using said consumer credit data to obtain an estimated spend capacity of said consumer; and

calculating said comprehensive consumer default risk value for said consumer based upon said consumer credit data and said estimated spend capacity.

2. The method of claim 1, wherein said method for determining a comprehensive consumer default risk value further comprises:

obtaining internal data relating to said consumer; and

further calculating said comprehensive consumer default risk value for said consumer based upon said consumer credit data, said internal data and said estimated spend capacity.

3. The method of claim 1, further comprising determining a strategy to interact with said consumer based on said received comprehensive consumer default risk value.

4. The method of claim 2, further comprising determining a strategy to interact with said consumer based upon said received comprehensive consumer default risk value.

5. The method of claim 1, wherein said determining a strategy further comprises making student loan approval decisions for said consumer based upon said received comprehensive consumer default risk value.

6. The method of claim 2, wherein said determining a strategy further comprises making student loan approval decisions for said consumer based upon said received comprehensive consumer default risk value.

7. The method of claim 1, wherein said determining a strategy further comprises soliciting said consumer for additional student loans in accordance with said received comprehensive consumer default risk value.

8. The method of claim 2, wherein said determining a strategy further comprises soliciting said consumer for student loans in accordance with said received comprehensive consumer default risk value.

9. The method of claim 1, further comprising establishing a new student loan account based upon said received comprehensive consumer default risk value.

10. The method of claim 2, further comprising establishing a new student loan account based said received upon comprehensive consumer default risk value.

11. The method of claim 1, further comprising originating a student loan based upon said received comprehensive consumer default risk value.

12. The method of claim 2, further comprising originating a student loan based upon said received comprehensive consumer default risk value.

13. The method of claim 1, further comprising changing an interest rate on a student loan based upon said received comprehensive consumer default risk value.

14. The method of claim 2, further comprising changing an interest rate on a student loan based upon said received comprehensive consumer default risk value.

15. The method of claim 1, further comprising pursuing collection activities on a student loan based upon said received comprehensive consumer default risk value.

16. The method of claim 2, further comprising pursuing collection activities on a student loan based upon said received comprehensive consumer default risk value.

17. The method of claim 1, wherein said determining a strategy further comprises discontinuing a relationship with said consumer based upon said received comprehensive consumer default risk value.

18. The method of claim 2, wherein said determining a strategy further comprises discontinuing a relationship with said consumer based upon said received comprehensive consumer default risk value.

19. The method of claim 1, wherein said method for determining a comprehensive consumer default risk value further comprises:

receiving credit bureau data comprising a plurality of accounts of said consumer over a previous period of time;

identifying any balance transfers into at least one of said plurality of accounts based upon said credit bureau data;

discounting any spending identified for any of said plurality of accounts for any portion of said previous period of time in which a balance transfer to such account is identified; and

estimating a purchasing ability of said consumer based on said credit bureau data and said discounting.

20. The method of claim 2, wherein said method for determining a comprehensive consumer default risk value further comprises:

receiving credit bureau data comprising a plurality of accounts of said consumer over a previous period of time;

identifying any balance transfers into at least one of said plurality of accounts based upon said credit bureau data;

discounting any spending identified for any of said plurality of accounts for any portion of said previous period of time in which a balance transfer to such account is identified; and

estimating a purchasing ability of said consumer based on said credit bureau data and said discounting.