Systems and methods for providing enhanced account management services for multiple banks

• US 8,355,985 B1
• Filed: 03/20/2009
• Issued: 01/15/2013
• Est. Priority Date: 10/21/1998
• Status: Expired due to Fees

• Current Assignee: Island Intellectual Property LLC (Double Rock Corporation)
• Original Assignee: Island Intellectual Property LLC (Double Rock Corporation)
• Inventors: Bent, Bruce, Bent, Bruce II
• Primary Examiner(s): Patel, Jagdish
• Application Number:
  US12/408,507
• Time in Patent Office: 1,397 Days
• Field of Search: 705/39, 705/35
• US Class Current: 705/39
• 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

This invention includes methods for delivering account management services to multiple financial institutions that provide for customer deposit accounts without transaction but than nevertheless offer interest and receive enhanced deposit insurance. The methods apply at least one customer transaction to that customer'"'"'s deposit account, and then re-allocate customer-deposited funds among the plurality of financial institutions in order that, for each customer, the risk of loss is not substantially increased, and that, for each financial institution, the amount of customer-deposited funds is not substantially decreased. Preferably, risk of loss is reduced by increasing the fraction of each customer'"'"'s deposited funds covered by FDIC deposit insurance, and interest and enhanced insurance are available by innovative management of customer transactions and accounts. This invention also includes computer systems for practicing the methods and program products for accordingly configuring such computer systems.

Claims

1. A deposit interchange system for operating an interchange program, wherein a plurality of financial entities participate in the interchange program, comprising:

one or more electronic databases, stored on one or more computer-readable media, comprising;

(1) aggregated account information for a plurality of government backed-insured and interest-bearing aggregated deposit accounts held in a plurality of financial entities that are depository institutions in an interchange program, wherein each of a plurality of the depository institutions in the interchange program holds at least one of the aggregated deposit accounts, wherein source funds associated with a plurality of the financial entities participating in the interchange program are aggregated in the plurality of the aggregated deposit accounts, the aggregated account information for each of a plurality of the respective financial entities that is a depository institution, comprising;

a respective balance of funds for each of the one or more aggregated deposit accounts held in the respective depository institution;

a balance of source funds associated with the respective depository institution, held in one or more of the aggregated deposit accounts in other of the depository institutions in the interchange program holding source funds of the respective depository institution, the source funds of a respective one of the depository institutions comprising funds of client accounts associated with the respective depository institution in the interchange program; and

(2) client account information for each of a plurality of respective primary client accounts of a plurality of clients, comprising;

(a) a respective balance of the respective client account held in the interchange program; and

(b) a respective balance of funds from the respective client account held in each of one or more of the depository institutions in the interchange program holding funds of the respective client account in one or more aggregated deposit accounts therein; and

one or more computers configured to form the following components;

a communication component, configured on the one or more computers, to obtain via an internet interface an instruction from or on behalf of one of the client accounts, at least information on an amount of funds to be deposited in one or more aggregated deposit accounts in one or more of the other depository institutions in the interchange program, wherein the one client account is associated with a first one of the depository institutions;

a selection and allocation engine, configured on the one or more computers,

to select, using the one or more computers, at least one other of the other depository institutions in the interchange program for an allocation of at least a portion of the amount of funds of the one client account, based at least in part on whether or not wherein the at least one other depository institution has source funds associated therewith held in one or more aggregated deposit accounts in one or more other of the depository institutions in the interchange program, determined by accessing the one or more databases,

to allocate, using the one or more computers, funds of the one client account to one or more aggregated deposit accounts held in the at least one other depository institution that was selected, the allocating so that the balance of funds held in the at least one other depository institution in the one or more aggregated deposit accounts therein of the one client account does not exceed a predetermined amount; and

to allocate, using the one or more computers, offset funds to one or more aggregated deposit accounts held in the first depository institution, the offset funds comprising funds of client accounts associated with one or more other of the financial entities participating in the interchange program, the allocating comprising calculating client account funds for allocation so that the balance of funds held in the first depository institution in the one or more aggregated deposit accounts therein of any client account with funds in the offset funds does not exceed a predetermined amount;

an amount generator, configured on the one or more computers, to generate one or more amounts to transfer to and/or from at least one of the aggregated deposit accounts in the at least one other depository institution, based, at least in part, on the allocation made to the aggregated deposit accounts held in the at least one other depository institution and the first depository institution, made by the selection and allocation engine;

an interest engine, configured on the one or more computers, to determine for the aggregated deposit accounts, on a periodic basis, interest earned and to allocate the interest earned among the client accounts with funds held in the respective aggregated deposit accounts; and

an update engine, configured on the one or more computers, to update or have updated in the one or more electronic databases, for respective of the depository institutions in the interchange program, the respective balance of source funds of the respective depository institution held in the one or more aggregated deposit accounts in one or more of the other depository institutions in the interchange program based on the allocations and based on the interest earned by the client accounts in the aggregated deposit accounts held in the respective depository institutions.

2. The system as defined in claim 1, wherein the interest engine is configured to post to the respective client accounts the interest earned.

3. The system as defined in claim 1, wherein the one client account is owned by or for a government entity.

4. The system as defined in claim 1, wherein the one client account is owned by or for an individual person institution.

5. The system as defined in claim 1, wherein the one client account is owned by or for a corporate entity.

6. The system as defined in claim 1,

wherein a plurality of the client accounts are client transaction accounts,

wherein the communication component is also configured to obtain via the internet interface an instruction with withdrawal information on funds to be withdrawn from one or more of the aggregated deposit accounts in one or more of the depository institutions in the interchange program based on withdrawals from one or more of the client transaction accounts,

wherein the selection and allocation engine is also configured to select one or more depository institutions for withdrawals from the one or more aggregated deposit accounts held therein based on the withdrawal information;

and

further comprising;

a transaction update engine, configured on the one or more computers, for storing the withdrawal information in the one or more databases.

7. The system as defined in claim 1, wherein an amount of the offset funds allocated to the first depository institution is approximately equal to the balance of source funds associated with the first depository institution held in one or more other of the depository institutions in the interchange program in one or more aggregated deposit accounts therein holding source funds associated with the first depository institution.

8. The system as defined in claim 1, wherein an amount of the offset funds allocated to the first depository institution is greater than the balance of source funds associated with the first depository institution held in one or more other of the depository institutions in the interchange program in one or more aggregated deposit accounts therein holding source funds associated with the first depository institution.

9. The system as defined in claim 1, wherein an amount of the offset funds allocated to the first depository institution being is less than the balance of source funds associated with the first depository institution held in one or more other of the depository institutions in the interchange program in one or more aggregated deposit accounts therein holding source funds associated with the first depository institution.

10. The system as defined in claim 1,

wherein the communication component is further configured to obtain data for deposit transactions for one or more of the client accounts, and/or to receive data for withdrawal transactions for one or more of the client accounts, and

further comprising:

the one or more computers configured to obtain a net of deposit and withdrawal transactions; and

wherein the selection and allocation engine is further configured to select one or more of the depository institutions in the interchange program, and to allocate the net of the deposit and withdrawal transactions from the client accounts to these selected one or more depository institutions.

11. The system as defined in claim 10, wherein the data for withdrawal transactions comprises credit card transactions and/or debit card transactions.

12. The system as defined in claim 1, wherein the selection and allocation engine is further configured to select the at least one of the other depository institutions for allocation, based, at least in part, on a difference between the balance of source funds associated with that at least one other depository institution held in one or more aggregated deposit accounts in one or more other of the depository institutions in the interchange program, and the balance of funds held in the one or more aggregated deposit accounts of the at least one other depository institution.

13. The system as defined in claim 1, further comprising:

the one or more computers configured to determine or have determined or have obtained electronically for each of a plurality of the client accounts, an updated balance of funds in the respective client account resulting from debit and/or credit transactions associated with the respective client account; and

wherein the selection and allocation engine is further configured to perform the allocating operation, based, at least in part, on the respective updated balances of funds for the respective client accounts.

14. A deposit interchange method for operating an interchange program, wherein a plurality of financial entities participate in the interchange program, comprising:

accessing, using one or more computers, one or more electronic databases, stored on one or more computer-readable media, comprising;

(1) aggregated account information for a plurality of government backed-insured and interest-bearing aggregated deposit accounts held in a plurality of financial entities that are depository institutions in an interchange program, wherein each of a plurality of the depository institutions in the interchange program holds at least one of the aggregated deposit accounts, wherein source funds associated with a plurality of the financial entities participating in the interchange program are aggregated in the plurality of the aggregated deposit accounts, the aggregated account information for each of a plurality of the respective financial entities that is a depository institution, comprising;

a respective balance of funds for each of the one or more aggregated deposit accounts held in the respective depository institution;

a balance of source funds associated with the respective depository institution, held in one or more of the aggregated deposit accounts in other of the depository institutions in the interchange program holding source funds of the respective depository institution, the source funds of a respective one of the depository institutions comprising funds of client accounts associated with the respective depository institution in the interchange program; and

(2) client account information for each of a plurality of respective client accounts of a plurality of clients, comprising;

(a) a respective balance of the respective client account held in the interchange program; and

(b) a respective balance of funds from the respective client account held in each of one or more of the depository institutions in the interchange program holding funds of the respective client account in one or more aggregated deposit accounts therein; and

obtaining, using the one or more computers, via an internet interface an instruction from or on behalf of one of the client accounts, at least information on an amount of funds to be deposited in one or more aggregated deposit accounts in one or more of the other depository institutions in the interchange program, wherein the one client account is associated with a first one of the depository institutions;

selecting, using the one or more computers, at least one of the other depository institutions in the interchange program for an allocation of at least a portion of the amount of funds of the one client account, based at least in part on whether or not the at least one other depository institution has source funds associated therewith held in one or more aggregated deposit accounts in one or more other of the depository institutions in the interchange program, determined by accessing the one or more databases;

allocating, using the one or more computers, funds of the one client account to one or more aggregated deposit accounts held in the at least one other depository institution that was selected, the allocating so that the balance of funds held in the at least one other depository institution in the one or more aggregated deposit accounts therein of the one client account does not exceed a predetermined amount; and

allocating, using the one or more computers, offset funds to one or more aggregated deposit accounts held in the first depository institution, the offset funds comprising funds of client accounts associated with one or more other of the financial entities participating in the interchange program, the allocating comprising calculating client account funds for allocation so that the balance of funds held in the first depository institution in the one or more aggregated deposit accounts therein of any client account with funds in the offset funds does not exceed a predetermined amount;

generating and outputting, using the one or more computers, one or more amounts to transfer to and/or from at least one of the aggregated deposit accounts in the at least one other depository institution, based, at least in part, on the allocation made to the aggregated deposit accounts held in the at least one other depository institution and the first depository institution, made by the selection and allocation engine;

determining, using the one or more computers, for the aggregated deposit accounts, on a periodic basis, interest earned and allocating the interest earned among the client accounts with funds held in the respective aggregated deposit accounts; and

updating or having updated, using the one or more computers, in the one or more electronic databases, for respective of the depository institutions in the interchange program, the respective balance of source funds associated with the respective depository institution held in the one or more aggregated deposit accounts in one or more of the other depository institutions in the interchange program based on the allocations and based on the interest earned by the client accounts in the aggregated deposit accounts held in the respective depository institutions.

15. The method as defined in claim 14, wherein the determining interest step comprises posting to the respective client accounts the interest earned.

16. The method as defined in claim 14, wherein the one client account is owned by or for a government entity.

17. The method as defined in claim 14, wherein the one client account is owned by or for an individual person.

18. The method as defined in claim 14, wherein the one client account is owned by or for a corporate entity.

19. The method as defined in claim 14,

wherein a plurality of the client accounts are client transaction accounts, and

further comprising:

obtaining, by the one or more computers, via the internet interface an instruction with withdrawal information on funds to be withdrawn from one or more of the aggregated deposit accounts in one or more of the depository institutions in the interchange program based on withdrawals from one or more of the client transaction accounts;

selecting, by the one or more computers, one or more depository institutions for withdrawals from one or more aggregated accounts held therein based on the withdrawal information;

storing or having stored, by the one or more computers, the withdrawal information in the one or more databases.

20. The method as defined in claim 14, wherein an amount of the offset funds allocated to the first depository institution is approximately equal to the balance of source funds associated with the first depository institution held in one or more other of the depository institutions in the interchange program in one or more aggregated deposit accounts therein holding source funds of the first depository institution.

21. The method as defined in claim 14, wherein an amount of the offset funds allocated to the first depository institution is greater than the balance of source funds associated with the first depository institution held in one or more other of the depository institutions in the interchange program in one or more aggregated deposit accounts therein holding source funds associated with the first depository institution.

22. The method as defined in claim 14, wherein an amount of the offset funds allocated to the first depository institution is less than the balance of source funds associated with the first depository institution held in one or more other of the depository institutions in the interchange program in one or more aggregated deposit accounts therein holding source funds associated with the first depository institution.

23. The method as defined in claim 14, further comprising:

obtaining, by the one or more computers, data for deposit transactions for one or more of the client accounts, and/or data for withdrawal transactions for one or more of the client accounts,

determining, by the one or more computers, a net of deposit and withdrawal transactions; and

selecting, by the one or more computers, one or more of the depository institutions in the interchange program; and

allocating, by the one or more computers, the net of the deposit and withdrawal transactions from the client accounts to these selected one or more depository institutions.

24. The method as defined in claim 23, wherein the data for withdrawal transactions comprises credit card transactions and/or debit card transactions.

25. The method as defined in claim 14, wherein the selecting the at least one of the other depository institutions step for allocation is based, at least in part, on a difference between the balance of source funds associated with that at least one other depository institution held in one or more aggregated deposit accounts in one or more other of the depository institutions in the interchange program, and the balance of funds held in the one or more aggregated deposit accounts of the one depository institution.

26. The method as defined in claim 14, further comprising:

determining or having determined or receiving electronically for each of a plurality of the client accounts, an updated balance of funds in the respective client account resulting from debit and/or credit transactions associated with the respective client account; and

performing the allocating operation, based, at least in part, on the respective updated balances of funds for the respective client accounts.