Calculating credit worthiness using transactional data

• US 7,734,539 B2
• Filed: 04/25/2007
• Issued: 06/08/2010
• Est. Priority Date: 04/25/2007
• Status: Active Grant

• Current Assignee: Bank of America Corp.
• Original Assignee: Bank of America Corp.
• Inventors: Ghosh, Debashis, Pinto, Arun R., Joffe, David N., Newman, Kurt D., Nobili, William A., Banerjee, Sudeshna
• Primary Examiner(s): Kazimi, Hani
• Assistant Examiner(s): ALI, HATEM M
• Application Number:
  US11/740,130
• Publication Number:
  US 20080270292A1
• Time in Patent Office: 1,140 Days
• Field of Search: 705/38
• 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. An apparatus comprising:

a computer, the computer comprising a memory and a processor, where the processor executes computer-executable instructions in the memory to perform a method of;

receiving transactional data corresponding to transactions associated with a customer;

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

generating a net worth statement using the transactional data, where the generating includes calculating an amount of assets held by the customer at a different institution;

calculating a transaction index for the customer;

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

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, transaction index, cash flow, and net worth statement.

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

3. The apparatus of claim 2, the method 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.

4. The apparatus of claim 1, wherein the transactional data comprises credit card transactions, debit card transactions, and a dividend deposit transaction.

5. The apparatus of claim 1, wherein the transactional data comprises electronic bill payment transactions.

6. The apparatus of claim 1, wherein the transactional data comprises checking and saving account transactions, and interest deposit transaction.

7. The apparatus of claim 6, wherein the checking and saving account transactional data is analyzed for life event changes to a customer.

8. The apparatus of claim 6, wherein the checking account transactional data is analyzed to determine whether the checking account is a primary checking account.

9. The apparatus of claim 6, wherein the transactional data corresponding to the checking account transactions comprises payor name and dollar amount of the checking account transactions.

10. The apparatus of claim 1, wherein the transaction index comprises a luxury ratio index.

11. The apparatus of claim 1, wherein the transaction index comprises a discretionary index.

12. The apparatus of claim 1, wherein the transaction index comprises a travel and entertainment index.

13. The apparatus of claim 1, wherein the transaction index comprises a necessity index.

14. The apparatus of claim 1, 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.

15. a 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 at an institution associated with a customer;

generating a categorized transactional index based on the transactional data;

generating a cash flow statement based on categorized transactional data;

generating a net worth statement, where the customer has an account outside of the institution and amount of assets held in the account is calculated using the transaction data;

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

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

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

determining credit worthiness based on the weighted share of wallet, cash flow statement, and net worth statement, and categorized transactional index, where the net worth statement includes the account outside of the institution; and

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

16. The system of claim 15, 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.

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

receiving transactional data corresponding to transactions occurring at an institution by the customer;

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

calculating a net worth statement using the transactional data, where the net worth statement includes the account outside of the institution;

calculating a transactional index;

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

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

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

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

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

18. The method of claim 17, further including originating a loan based on the determined credit worthiness of the customer.

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

generating a cash flow statement based on transactional data associated with a customer of a first institution;

generating a net worth statement based on the transactional data, where the generating includes calculating an amount of assets held by the customer at a different institution;

calculating a transaction index for the customer;

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

determining credit worthiness based on weighted FICO score, cash flow statement, transaction index and net worth statement, where the cash flow statement includes categorized transactional data; and

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

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

determining credit worthiness based on the weighted share of wallet, cash flow statement, and net worth statement, and categorized transactional index, where the net worth statement includes the account outside of the institution; and

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