System and method to performing on-line credit reviews and approvals

• US 6,088,686 A
• Filed: 12/03/1996
• Issued: 07/11/2000
• Est. Priority Date: 12/12/1995
• Status: Expired due to Term

• Current Assignee: Citibank (South Dakota) NA (Citigroup Incorporated)
• Original Assignee: Citibank (South Dakota) NA (Citigroup Incorporated)
• Inventors: Mayr, Mona, Walker, Darcy, Seib, Dennis, Sussman, Lawrence J., Marino, Glenn, Musci, Richard, Dean, Charles G. Jr.
• Primary Examiner(s): Peeso, Thomas R.
• Application Number:
  US08/758,770
• Time in Patent Office: 1,316 Days
• Field of Search: 705/38, 705/39, 705/35, 235/375, 235/379, 235/383
• US Class Current: 705/38
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• 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

A user-friendly on-line computerized system operates in real-time thus streamlining the processing of applications for products and services offered by a financial institution. The system automates many steps in the credit and liability review and approval process, performs background credit worthiness evaluations based upon a applicant'"'"'s credit score, financial information and new or existing relationship with the financial institution, recommends to those applicants who exceed the initial criteria for credit consideration specific credit products with predetermined credit qualified offer amounts, and ensures the required operating (credit/liability) policies are appropriately completed. The system immediately analyzes an applicant'"'"'s credit bureau history and automated credit scoring, and provides these results to the LBR. The system also takes into account information relating to the applicant'"'"'s new or existing relationship with the financial institution, if any, into the credit decision request. This enables the system to provide applicants with an up-front conditional approval (based on systematic evaluation of credit bureau history, credit score, debt burden, and applicant'"'"'s new or existing relationship deposits), subject to required verifications.

Claims

1. A method for performing an automatic on-line review of an applicant'"'"'s application for a product or service offered by a financial institution, in real-time, comprising the steps of:

a) receiving a first set of data into a data processing and communication system, said data relating to information provided by said applicant;

b) receiving a second set of data into said data processing and communication system, said second set of data relating to the product or service requested by said applicant; and

c) using said first data to access at least one database internal to said financial institution to evaluate the existing assets and liabilities said applicant has at said financial institution and generating on a real time basis a relationship profile for said applicant, said relationship profile being based upon at least an amount of assets and liabilities said applicant currently has with the financial institution.

2. The method according to claim 1, further comprising the steps of:

d) generating a category representing said relationship profile, said relationship profile being based upon at least an amount of assets and liabilities said applicant currently has with the financial institution; and

e) using said category to set a price based on said category from a product profile table, said table containing information regarding prices for products or services offered by the financial institution.

3. The method according to claim 2, further comprising the step of:

f) comparing said first data and said relationship profile against a pre-screening criteria to determine whether or not said prescreening criteria has been met, said prescreening criteria including said customer'"'"'s income; and

g) routing an applicant'"'"'s application that fails to meet said prescreening criteria to a manual review.

4. The method according to claim 1, further comprising the steps of:

d) performing a fraud verification on said first set of data using information within said financial institution including a review of a fraud file internal to said financial institution;

e) in addition to said performing step (d) above, gathering credit reports from at least one credit bureau using said first set of data, and comparing said credit reports against a minimum disaster/policy criteria.

5. The method according to claim 4, further comprising the step of:

f) routing an applicant'"'"'s application that fails to meet said disaster/policy criteria to a manual review.

6. The method according to claim 4, further comprising the steps of:

e) comparing said applicant'"'"'s application score against an approved cutoff value; and

f) referring an applicant'"'"'s application that fails to meet said approval cutoff value to a manual review.

7. The method according to claim 1, further comprising the steps of:

d) accessing a social security database to perform a social security number screen using information from the first set;

e) accessing a credit bureau using said first set of data; and

f) applying a minimum disaster/policy screen against the first and second set of data.

8. The method according to claim 1, further comprising the steps of:

d) assigning a credit limit amount to said applicant;

e) determining if requested loan amount is within the limits of the product maintenance file; and

then

f) approving disbursement of funds to said applicant.

9. The method of claim 1 wherein said assets include assets being deposited by said applicant at the time the review is performed.

10. A computer system for processing an application by an applicant for a product or service offered by a financial institution, comprising programming to perform the following processes:

a) evaluating the application according to predetermined operating policies, ranking the application according to a predetermined scoring and immediately conveying an evaluation status to a local branch representative;

b) providing to the local branch representative a maximum allowable amount of credit for the application in response to a request for a particular product, wherein an estimated payment for the particular product, in addition to all known debt of the applicant, including applicant provided debt and credit bureau provided debt, would not exceed stored product specified parameters up to a designated controlling debt burden;

c) providing the local branch representative with a systematic identification of verification categories required based on an amount offered and accepted, and enabling the local branch representative to select a methodology of completing the required verifications, and preventing booking of the application unless all required verifications are completed;

d) automatically reviewing all of the applicant'"'"'s accounts when reviewing the credit to determine an aggregate balance amount that gives rise to a best price for offering to the applicant for the requested product, wherein said computer includes a series of tables that contain a plurality of price points for each product to perform said determination; and

e) maintaining an incomplete application on the system in a format that permits completion of the application at a later date by any local branch representative, and providing a prompt to the local branch representative to encourage follow up of an incomplete application based on an automatic aging of an incomplete application.

11. The system according to claim 10, wherein the programming further comprises the additional process of:

f) performing a review of an applicant'"'"'s credit history to determine whether or not to offer the applicant a demand deposit account type relationship.

12. The system according to claim 10, wherein the programming further comprises the additional process of:

f) providing a link to a bankcard acquisition process for on-line processing of bankcard applications.

13. The system according to claim 10, wherein the programming further comprises the additional process of:

f) identifying credit qualified applicants to the local branch representative, wherein credit qualified applicants are those applicants that surpass initial credit evaluation screens.

14. The system according to claim 10, wherein said verification categories include at least one selected from the group consisting of:

identification, telephone number, employment, and income.

15. The system according to claim 10, wherein said verification categories includes information about an applicant relating to the applicant'"'"'s capacity, character, collateral and credit.

16. An apparatus for processing applications for products or services offered by a financial institution, comprising:

a) a processing system including a plurality of first data links, accessing a plurality of on-line credit bureaus external to the financial institution via one of the plurality of first data links, accessing a bankcard processing system external to the financial institution via one of the first plurality of data links, accessing a bankcard data access system external to the financial institution storing information regarding existing bankcards via one of said plurality of first data links, and storing credit applications in process, completed and verified credit applications, and pending credit qualified offers, and;

b) a front-end processing and communications system including a terminal for inputting data regarding an applicant, being linked with said credit processing system via one of said plurality of first data links, and having a first dedicated data link;

c) an on-line data access system being linked with said processing system via one of said plurality of first data links, being linked with said front-end processing and communications system via said first dedicated data link, and including a plurality of databases storing information regarding all applicants of the financial institution, account information, applicant demographic information and banking transactions; and

d) a decision application processing system being linked with said processing system via one of said plurality of first data links, including a second dedicated data link for accessing the bankcard processing system, and routing credit applications to manual review upon rejection of the application by the apparatus.

17. The apparatus according to claim 16, wherein said processing system evaluates the application according to predetermined credit policies, ranks the application according to a predetermined scoring and immediately conveys a credit evaluation status to the front-end processing and communications system for display on the terminal to a local branch representative.

18. The apparatus according to claim 16, wherein said processing system provides the front-end processing system for display on the terminal to a local branch representative with a maximum allowable amount of credit for the application in response to a request for a particular product, and wherein an estimated payment for the particular product, in addition to all known debt of the applicant does not exceed stored product specified parameters up to a designated controlling debt burden.

19. The apparatus according to claim 18, wherein said processing system automatically reviews all of the applicant'"'"'s accounts, including both existing and newly established accounts, when reviewing the application to determine an aggregate balance amount which gives rise to a best price for offering to the applicant for the requested product, and during said review accesses a series of tables that contain a plurality of price points for each product to perform said determination, and provide said front-end processing and communications system with said best price for display on said terminal to a local branch representative.

20. The apparatus according to claim 18, wherein said processing system maintains an incomplete application in a format that permits completion of the application at a later date, and provides said incomplete application to said front-end processing and communications system in response to a request from the front-end processing and communications system.

21. The apparatus according to claim 20, wherein said processing system provides a prompt to the front-end processing and communications system for display on the terminal to a local branch representative to encourage follow up of an incomplete application based on an automatic aging of an incomplete application.

22. The apparatus according to claim 16, wherein said processing system provides the front-end processing system for display on the terminal to a local branch representative with a systematic identification of verification categories required based on an amount offered and accepted, and enabling the local branch representative to select a methodology of completing the required verifications, and preventing booking of the application unless all required verification are completed.

23. The apparatus according to claim 22, wherein said required verifications include at least one selected from the group consisting of:

identification, telephone number, employment, and income.

24. The apparatus according to claim 22, wherein said required verifications include information about a credit applicant relating to the credit applicant'"'"'s capacity, character, collateral and credit.

25. A method for performing an automatic on-line review of an applicant'"'"'s application for a product or service offered by a financial institution, in real-time, comprising:

receiving a first set of data into a data processing and communication system, said data relating to information provided by said applicant;

receiving a second set of data into said data processing and communication system, said second set of data relating to the product or service requested by said applicant;

using said first data to identify on a real time basis a relationship profile with said applicant, said relationship profile being based upon an amount of assets and liabilities said applicant has with the financial institution;

performing a fraud verification on said first set of data;

gathering credit reports from at least one credit bureau using said first set of data, comparing said credit reports against a minimum disaster/policy criteria;

assigning a disaster response code to said first set of data;

preparing a debt burden value based upon said credit report and said first set of data; and

comparing said debt burden value against a debt burden table parameter.

26. A method for performing an automatic on-line review of an applicant'"'"'s application for a product or service offered by a financial institution, in real-time, comprising:

receiving a first set of data into a data processing and communication system, said data relating to information provided by said applicant;

receiving a second set of data into said data processing and communication system, said second set of data relating to the product or service requested by said applicant;

using said first data to identify on a real time basis a relationship profile with said applicant, said relationship profile being based upon an amount of assets and liabilities said applicant has with the financial institution;

performing a fraud verification on said first set of data;

gathering credit reports from at least one credit bureau using said first set of data, comparing said credit reports against a minimum disaster/policy criteria;

determining a debt burden code and assigning said code to said applicant'"'"'s application and assigning a scoring response code to said applicant'"'"'s application; and

comparing said scoring response code to a turndown cutoff value.