DETERMINING TECHNOLOGY COSTS ASSOCIATED WITH A FINANCIAL PRODUCT

• US 20120191493A1
• Filed: 01/21/2011
• Published: 07/26/2012
• Est. Priority Date: 01/21/2011
• Status: Abandoned Application

• Current Assignee: Bank of America Corp.
• Original Assignee: Bank of America Corp.
• Inventors: McCourt, Timothy
• Application Number:
  US13/011,319
• Publication Number:
  US 20120191493A1
• Time in Patent Office: Days
• US Class Current: 705/7.11
• CPC Class Codes: G06Q 10/063 Operations research, analysis or management

Abstract

The present invention provides for methods, apparatus and computer programs for determining technology costs associated with a financial product, and, in specific embodiments, an equity trade. In specific embodiments of the invention the technology application costs may be determined on a per-process basis and subsequently totaled to determine the overall cost. The invention provides for identifying a plurality of processes and a plurality of technology applications each of which are associated with a financial product. Once the processes and technology application have been identified, process allocation percentages are determined for each of the technology applications and identified processes associated with each of the technology applications and a per-financial product technology cost for each of the plurality of technology applications is determined over a predetermined time period. Additionally, the per-process technology cost is determined for the financial product based on the per-financial product technology cost for each of the plurality of technology applications and the process allocation percentages associated with a respective process and a respective technology application.

Claims

1. A method for determining per-process technology application cost for a financial product, the method comprising:

identifying a plurality of processes and a plurality of technology applications each of which are associated with a financial product;

determining process allocation percentages for each of the identified technology applications and processes associated with each of the technology applications;

determining, via a computing device processor, a per-financial product technology cost for each of the plurality of technology applications over a predetermined time period; and

determining, via a computing device processor, the per-process technology application cost for the financial product based on the per-financial product technology cost for each of the plurality of technology applications and the process allocation percentages associated with a respective process and a respective technology application.

2. The method of claim 1, wherein the financial product further comprises a financial trade product.

3. The method of claim 2, wherein the financial trade product further comprises an equity trade product.

4. The method of claim 1, wherein determining process allocation percentages further comprises mapping the plurality of processes to each of the plurality of technology applications to assess the process allocation percentages.

5. The method of claim 1, wherein determining the per-financial product technology cost further comprises determining a total technology cost for each of the plurality of technology applications, wherein the total technology cost for each of the plurality of technology applications accounts for entity-wide costs.

6. The method of claim 5, wherein determining the total technology cost further comprises receiving core costs, administrative costs and infrastructure costs for each of the plurality of technology applications and summing the core costs, administrative costs and infrastructure costs to result in the total technology cost for each of the plurality of technology applications.

7. The method of claim 1, wherein determining the per-financial product technology cost further comprises determining the per-financial product technology cost based on a financial product allocation percentage associated with a respective financial product and one of the technology applications.

8. The method of claim 5, wherein determining the per-financial product technology cost further comprises calculating, via the computing device processor, the per-financial product technology cost for each technology application by multiplying the total technology cost for each of the plurality of technology applications by a financial product allocation percentage associated with a respective financial product.

9. The method of claim 1, wherein determining per-process technology cost further comprises calculating, via the computing device processor, a per-process technology cost by multiplying the per-financial product technology cost for each of the plurality of technology applications by the process allocation percentage associated with the process and the technology application.

10. The method of claim 1, further comprising determining, via a computing device processor, a volume of financial products occurring over the predetermined time period.

11. The method of claim 10, further comprising determining, via a computing device processor, a financial product technology unit cost based on the volume.

12. The method of claim 10, further comprising determining, via a computing device processor, a per-process technology cost per financial product unit based on the volume.

13. The method of claim 12, wherein determining per-process technology cost per financial product unit further comprises calculating the per-process technology cost per financial product unit by dividing the per-process technology cost by the volume.

14. An apparatus for determining per-process technology cost for a financial product, the method comprising:

a computing platform including at least one processor and a memory; and

a financial product technology cost determining module stored in the memory, executable by the processor and including,

a technology cost determining routine configured to determine a per-financial product technology cost for each of a plurality of technology applications, wherein the per-financial product technology cost is incurred over a predetermined time period, and

a per-process technology cost determining routine configured to determine, the per-process technology cost for the financial product based on the per-financial product technology cost for each of the plurality of technology applications and a process allocation percentage associated with a respective process and one of the technology applications.

15. The apparatus of claim 14, wherein the financial product further comprises a financial trade product.

16. The apparatus of claim 15, wherein the financial trade product further comprises an equity trade product.

17. The apparatus of claim 14, wherein the technology cost determining routine is further configured to determine a total technology cost for each of the plurality of technology applications, wherein the total technology cost for each of the plurality of technology applications accounts for entity-wide costs.

18. The apparatus of claim 17, wherein the technology cost determining routine is further configured to receive core costs, administrative costs and infrastructure costs for each of the plurality of technology applications and sum the core costs, administrative costs and infrastructure costs to result in the total technology cost for each of the plurality of technology applications.

19. The apparatus of claim 14, wherein the technology cost determining routine is further configured to determine the per-financial product technology cost based on a financial product allocation percentage associated with a respective financial product and one of the technology applications.

20. The apparatus of claim 17, wherein the technology cost determining routine is further configured to calculate the per-financial product technology cost for each technology application by multiplying the total technology cost for each of the plurality of technology applications by a financial product allocation percentage associated with a respective financial product and a respective technology application.

21. The apparatus of claim 14, wherein the per-process technology cost determining routine is further configured to calculate the per-process technology cost by multiplying the per-financial product technology cost for each of the plurality of technology applications by the process allocation percentage associated with a respective financial product process and one of the technology applications.

22. The apparatus of claim 14, wherein the financial product technology cost determining module further comprises a financial product unit cost determining routine configured to determine financial product unit technology cost based on a volume of financial products occurring over the predetermined time period.

23. The apparatus of claim 22, wherein the financial product unit cost determining routine if further configured to determine per-process technology cost per financial product unit.

24. The apparatus of claim 23, wherein the financial product unit cost determining routine is further configured to calculate per-process technology cost per financial product unit by dividing the per-process technology cost by the volume of financial products occurring over the predetermined time period.

28. The computer program product of claim 21, wherein the first set of codes is further configured to cause the computer to determine a total technology cost for each of the plurality of technology applications, wherein the total technology cost for each of the plurality of technology applications accounts for entity-wide costs.

29. The computer program product of claim 28, wherein the first set of codes is further configured to cause the computer to receive core costs, administrative costs and infrastructure costs for each of the plurality of technology applications and sum the core costs, administrative costs and infrastructure costs to result in the total technology cost for each of the plurality of technology applications.

30. The computer program product of claim 24, wherein the first set of codes is further configured to cause the computer to determine the per-financial product technology cost based on financial product allocation percentages associated with a respective financial product and one of the technology applications.

31. The computer program product of claim 28, wherein the first set of codes is further configured to cause the computer to calculate the per-financial product technology cost for each technology application by multiplying the total technology cost for each of the plurality of technology applications by a financial product allocation percentage associated with a respective financial product.

25. A computer program product comprising:

a non-transitory computer-readable medium comprising;

a first set of codes for causing a computer to determine a per-financial product technology cost for each of a plurality of technology applications associated with a financial product, wherein the per-financial product technology cost is over a predetermined period of time; and

a second set of codes for causing a computer to determine a per-process technology cost for the financial product based on the per-financial product technology cost for each of the plurality of technology applications and process allocation percentages associated with a respective process and a respective technology application.

26. The computer program product of claim 25, wherein the financial product further comprises a financial trade product.

27. The computer program product of claim 26, wherein the financial trade product further comprises an equity trade product.

32. The computer program product of claim 25, wherein the second set of codes is further configured to cause the computer to calculate the per-process technology cost by multiplying the per-financial product technology cost for each of the plurality of technology applications by the process allocation percentage associated with the process and the technology application.

33. The computer program product of claim 25, further comprising a third set of codes for causing a computer to determine a volume of financial products occurring over the predetermined time period.

34. The computer program product of claim 33, further comprising a fourth set of codes for causing a computer to determine a financial product technology unit cost based on the volume.

35. The computer program product of claim 33, further comprising a fourth set of codes for causing a computer to determine a per-process technology cost per financial product unit based on the volume.

36. The computer program product of claim 35, wherein the fourth set of codes is further configured to cause the computer to calculate the per-process technology cost per financial product unit by dividing the per-process technology cost by the volume.