Net present 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 the one or more computers, one or more Net Present Value (NPV) calculations on the selected accounts by applying one or more NPV forecast rules to the selected accounts and applying one or more NPV attrition rules to results of the NPV forecast rules using the selected amounts and rates, wherein the NPV calculations determine a present value of an expected profitability value of current products;
(c) wherein applying the NPV attrition rules comprises matching the NPV attrition rule against the selected accounts, matching the matched accounts to the results of the NPV forecast rules, obtaining an attrition rate for the matched accounts, calculating an effective attrition rate for each of one or more forecast periods, performing the NPV attrition rule to calculate an NPV expected value using the effective attrition rate, and storing the NPV expected value in the database; and
(d) wherein the NPV 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.
35 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, amounts and rates from account data stored in a database using selection criteria specified by one or more rules; and (b) performing, in the one or more computers, one or more Net Present Value (NPV) calculations on the selected accounts by applying one or more NPV forecast rules to the selected accounts and applying one or more NPV attrition rules to results of the NPV forecast rules using the selected amounts and rates, wherein the NPV calculations determine a present value of an expected profitability value of current products; (c) wherein applying the NPV attrition rules comprises matching the NPV attrition rule against the selected accounts, matching the matched accounts to the results of the NPV forecast rules, obtaining an attrition rate for the matched accounts, calculating an effective attrition rate for each of one or more forecast periods, performing the NPV attrition rule to calculate an NPV expected value using the effective attrition rate, and storing the NPV expected value in the database; and (d) wherein the NPV 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, 16)
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17. 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 Net Present Value (NPV) calculations on the selected accounts by applying one or more NPV forecast rules to the selected accounts and applying one or more NPV attrition rules to results of the NPV forecast rules using the selected amounts and rates, wherein the NPV calculations determine a present value of an expected profitability value of current products; (c) wherein applying the NPV attrition rules to the selected accounts comprises matching the NPV attrition rule against the selected accounts, matching the matched accounts to the results of the NPV forecast rules, obtaining an attrition rate for the matched accounts, calculating an effective attrition rate for each of one or more forecast periods, performing the NPV attrition rule to calculate an NPV expected value using the effective attrition rate, and storing the NPV expected value in the database; and (d) wherein the NPV 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 (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 one or more computers performing a method of financial processing, comprising:
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(a) selecting, in the 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 the one or more computers, one or more Net Present Value (NPV) calculations on the selected accounts by applying one or more NPV forecast rules to the selected accounts and applying one or more NPV attrition rules to results of the NPV forecast rules using the selected amounts and rates, wherein the NPV calculations determine a present value of an expected profitability value of current products; (c) wherein applying the NPV attrition rules comprises matching the NPV attrition rule against the selected accounts, matching the matched accounts to the results of the NPV forecast rules, obtaining an attrition rate for the matched accounts, calculating an effective attrition rate for each of one or more forecast periods, performing the NPV attrition rule to calculate an NPV expected value using the effective attrition rate, and storing the NPV expected value in the database; and (d) wherein the NPV 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 (34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48)
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Specification