Life-time value financial processing in a relational database management system
First Claim
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1. A method of performing financial processing, comprising:
- (a) selecting, in one or more computers, accounts, forecast amounts, attrition rates and propensity rates from data stored in a database using selection criteria specified by one or more rules; and
(b) performing, in one or more computers, one or more Net Present Value (NPV) and one or more Future Value (FV) calculations on the selected accounts for one or more forecast periods according to the rules using the selected forecast amounts, the attrition rates and the propensity rates, wherein;
(1) performing the NPV calculations comprises calculating forecast amounts for each forecast period for the selected accounts, applying attrition rates to the calculated forecast amounts to arrive at NPV expected values, and calculating an NPV amount by combining the NPV expected values for each forecast period and discounting the combined NPV expected values; and
(2) performing the FV calculations comprises calculating propensity amounts for each forecast period for the selected accounts using the propensity rates, applying the attrition rates to the calculated propensity amounts to arrive at FV expected values, and calculating an FV amount by discounting the FV expected values for each forecast period and summing the discounted FV expected values;
(c) wherein the NPV and FV amounts are combined to provide a Life-Time Value (LTV) for the selected accounts for presentation by one or more computers to a user for financial analysis of the LTV.
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Abstract
A Life-Time Value (LTV) system is a data-driven computer-facilitated financial model that provides accurate and consistent profitability projections using current period account level profitability data stored in a Relational Database Management System (RDBMS). The Life-Time Value system performs Net Present Value (NPV) and Future Value (FV) processing using business-rule and data-driven applications that embrace the current period profit components, defines forecast periods, parameters and methodologies, and applies appropriate growth values, attrition values and propensity values to an object of future value interest.
32 Citations
48 Claims
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1. A method of performing financial processing, comprising:
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(a) selecting, in one or more computers, accounts, forecast amounts, attrition rates and propensity rates from data stored in a database using selection criteria specified by one or more rules; and (b) performing, in one or more computers, one or more Net Present Value (NPV) and one or more Future Value (FV) calculations on the selected accounts for one or more forecast periods according to the rules using the selected forecast amounts, the attrition rates and the propensity rates, wherein; (1) performing the NPV calculations comprises calculating forecast amounts for each forecast period for the selected accounts, applying attrition rates to the calculated forecast amounts to arrive at NPV expected values, and calculating an NPV amount by combining the NPV expected values for each forecast period and discounting the combined NPV expected values; and (2) performing the FV calculations comprises calculating propensity amounts for each forecast period for the selected accounts using the propensity rates, applying the attrition rates to the calculated propensity amounts to arrive at FV expected values, and calculating an FV amount by discounting the FV expected values for each forecast period and summing the discounted FV expected values; (c) wherein the NPV and FV amounts are combined to provide a Life-Time Value (LTV) for the selected accounts for presentation by one or more computers to a user for financial analysis of the LTV. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16)
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17. A system for performing financial processing, comprising:
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one or more computers; means, performed by the computers, for; (a) selecting accounts, forecast amounts, attrition rates and propensity rates from data stored in a database using selection criteria specified by one or more rules; and (b) performing one or more Net Present Value (NPV) and one or more Future Value (FV) calculations on the selected accounts for one or more forecast periods according to the rules using the selected forecast amounts, the attrition rates and the propensity rates, wherein; (1) performing the NPV calculations comprises calculating forecast amounts for each forecast period for the selected accounts, applying attrition rates to the calculated forecast amounts to arrive at NPV expected values, and calculating an NPV amount by combining the NPV expected values for each forecast period and discounting the combined NPV expected values; and (2) performing the FV calculations comprises calculating propensity amounts for each forecast period for the selected accounts using the propensity rates, applying the attrition rates to the calculated propensity amounts to arrive at FV expected values, and calculating an FV amount by discounting the FV expected values for each forecast period and summing the discounted FV expected values; (c) wherein the NPV and FV amounts are combined to provide a Life-Time Value (LTV) for the selected accounts for presentation by one or more computers to a user for financial analysis of the LTV. - View Dependent Claims (18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32)
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33. An article of manufacture comprising a storage device embodying instructions that, when read and executed by one or more computers, results in the computers performing a method of financial processing, the method comprising:
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(a) selecting, in one or more computers, accounts, forecast amounts, attrition rates and propensity rates from data stored in a database using selection criteria specified by one or more rules; and (b) performing, in one or more computers, one or more Net Present Value (NPV) and one or more Future Value (FV) calculations on the selected accounts for one or more forecast periods according to the rules using the selected forecast amounts, the attrition rates and the propensity rates, wherein; (1) performing the NPV calculations comprises calculating forecast amounts for each forecast period for the selected accounts, applying attrition rates to the calculated forecast amounts to arrive at NPV expected values, and calculating an NPV amount by combining the NPV expected values for each forecast period and discounting the combined NPV expected values; and (2) performing the FV calculations comprises calculating propensity amounts for each forecast period for the selected accounts using the propensity rates, applying the attrition rates to the calculated propensity amounts to arrive at FV expected values, and calculating an FV amount by discounting the FV expected values for each forecast period and summing the discounted FV expected values; (c) wherein the NPV and FV amounts are combined to provide a Life-Time Value (LTV) for the selected accounts for presentation by one or more computers to a user for financial analysis of the LTV. - View Dependent Claims (34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48)
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Specification