Future value attrition for 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, amounts and rates from account 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 Future Value (FV) calculations on the selected accounts by applying one or more FV propensity rules to the selected accounts and applying one or more FV attrition rules to results of the FV propensity rules using the selected amounts and rates, wherein the FV calculations determine a possible future profitability value of products that may be purchased in the future;
(c) wherein applying the FV attrition rules comprises matching the FV attrition rule to the selected accounts, matching the results of the FV propensity rule to the matched accounts, obtaining an attrition rate for the matched accounts, calculating an effective attrition rate for each of one or more forecast periods from the attrition rate and a net change rate defined in the FV attrition rule for each forecast period, performing the FV attrition rule to calculate an FV expected value from the effective attrition rate and a propensity rule amount defined in the FV attrition rule, and storing the FV amount in the database; and
(d) wherein the FV attrition rule is selected from a plurality of methods comprising Constant (no compounding), Constant (with compounding), Additive (no compounding), Additive (with compounding), Manual (no compounding), Manual (with compounding), Constant and Negative Compounding methods.
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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.
33 Citations
45 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, amounts and rates from account 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 Future Value (FV) calculations on the selected accounts by applying one or more FV propensity rules to the selected accounts and applying one or more FV attrition rules to results of the FV propensity rules using the selected amounts and rates, wherein the FV calculations determine a possible future profitability value of products that may be purchased in the future; (c) wherein applying the FV attrition rules comprises matching the FV attrition rule to the selected accounts, matching the results of the FV propensity rule to the matched accounts, obtaining an attrition rate for the matched accounts, calculating an effective attrition rate for each of one or more forecast periods from the attrition rate and a net change rate defined in the FV attrition rule for each forecast period, performing the FV attrition rule to calculate an FV expected value from the effective attrition rate and a propensity rule amount defined in the FV attrition rule, and storing the FV amount in the database; and (d) wherein the FV attrition rule is selected from a plurality of methods comprising Constant (no compounding), Constant (with compounding), Additive (no compounding), Additive (with compounding), Manual (no compounding), Manual (with compounding), Constant and Negative Compounding methods. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15)
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16. A system for performing financial processing, comprising:
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one or more computers; logic, performed by the one or more computers, for; (a) selecting accounts, amounts and rates from account data stored in a database using selection criteria specified by one or more rules; and (b) performing one or more Future Value (FV) calculations on the selected accounts by applying one or more FV propensity rules to the selected accounts and applying one or more FV attrition rules to results of the FV propensity rules using the selected amounts and rates, wherein the FV calculations determine a possible future profitability value of products that may be purchased in the future; (c) wherein applying the FV attrition rules comprises logic for matching the FV attrition rule to the selected accounts, for matching the results of the FV propensity rule to the matched accounts, for obtaining an attrition rate for the matched accounts, for calculating an effective attrition rate for each of one or more forecast periods from the attrition rate and a net change rate defined in the FV attrition rule for each forecast period, for performing the FV attrition rule to calculate an FV expected value from the effective attrition rate and a propensity rule amount defined in the FV attrition rule, and for storing the FV amount in the database; and (d) wherein the FV attrition rule is selected from a plurality of methods comprising Constant (no compounding), Constant (with compounding), Additive (no compounding), Additive (with compounding), Manual (no compounding), Manual (with compounding), Constant and Negative Compounding methods. - View Dependent Claims (17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30)
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31. An article of manufacture comprising a storage device embodying instructions that, when read and executed by one or more computers, result in the one or more computers performing a method for financial processing, comprising:
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(a) selecting, in one or more computers, accounts, amounts and rates from account 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 Future Value (FV) calculations on the selected accounts by applying one or more FV propensity rules to the selected accounts and applying one or more FV attrition rules to results of the FV propensity rules using the selected amounts and rates, wherein the FV calculations determine a possible future profitability value of products that may be purchased in the future; (c) wherein applying the FV attrition rules comprises matching the FV attrition rule to the selected accounts, matching the results of the FV propensity rule to the matched accounts, obtaining an attrition rate for the matched accounts, calculating an effective attrition rate for each of one or more forecast periods from the attrition rate and a net change rate defined in the FV attrition rule for each forecast period, performing the FV attrition rule to calculate an FV expected value from the effective attrition rate and a propensity rule amount defined in the FV attrition rule, and storing the FV amount in the database; and (d) wherein the FV attrition rule is selected from a plurality of methods comprising Constant (no compounding), Constant (with compounding), Additive (no compounding), Additive (with compounding), Manual (no compounding), Manual (with compounding), Constant and Negative Compounding methods. - View Dependent Claims (32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45)
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Specification