Financial account segmentation system

• US 8,412,604 B1
• Filed: 09/03/2010
• Issued: 04/02/2013
• Est. Priority Date: 09/03/2009
• Status: Active Grant

• Current Assignee: Visa International Service Association (Visa, Inc.)
• Original Assignee: Visa International Service Association (Visa, Inc.)
• Inventors: Graham, Jessica, McConnell, Steven
• Primary Examiner(s): RANKINS, WILLIAM E
• Application Number:
  US12/875,972
• Time in Patent Office: 942 Days
• Field of Search: 705 35- 45
• US Class Current: 705/35
• CPC Class Codes: G06Q 30/0204 Market segmentation
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03

Abstract

Disclosed is a method and system for optimizing an existing customer financial product account database for a financial institution. A customized product segmentation strategy based at least on the financial product account database identifies opportunities to cross-sell new credit and debit products, and increase the usage of credit and debit products among existing customers.

Claims

1. A method for identifying customers of a financial institution for product offerings comprising operating a computer to perform the steps of:

receiving, at the computer, from one or more financial information databases, financial data of customers of said financial institution and their accounts, the financial data comprising variables;

based on the financial data, identifying one or more clusters of customers from among the customers;

identifying a financial product to be associated with a first cluster of customers; and

identifying, by the computer, a subset of variables from among the variables of the financial data wherein the subset of variables characterizes customers who have a propensity to respond positively to an offer;

wherein the financial data comprises financial accounts of the customers of the financial institution;

wherein the financial data further comprises financial information from a debit usage database or a credit usage database; and

wherein the subset of variables includes at least two or more of a total number of deposits made into a user'"'"'s financial account, duration as a user of the financial account, whether or not online banking is used, a number of transfers into the financial account, a FICO score, a user'"'"'s age, a number of times logging onto the financial account, whether or not a money market account is owned, an age of the most recent account, a total amount spent using checks, a total sum of ATM (automated teller machine) debits made in a period of time, or a total number of transactions made at an ATM.

2. The method of claim 1 wherein the offer is an offer for a debit card.

3. A method for identifying customers of a financial institution for product offerings comprising operating a computer to perform steps of:

receiving, from one or more financial information databases, financial data of customers of said financial institution and their accounts, the financial data comprising variables;

based on the financial data, identifying one or more clusters of customers from among the customers;

identifying a financial product to be associated with a first cluster of customers; and

identifying, by the computer, a subset of variables from among the variables of the financial data wherein the subset of variables characterize customers who have a propensity to respond positively to an offer;

wherein the financial data comprises financial accounts of the customers of the financial institution;

wherein the financial data further comprises financial information from a debit usage database or a credit usage database; and

wherein the subset of variables includes at least two or more of a total number of transfers made from a user'"'"'s financial account, duration as a user of the financial account, a number of times logging onto the financial account, an end of month balance for a consumer loan, a negative indication score, whether or not online banking is used, employment status, or member affiliation.

4. The method of claim 3 wherein the offer is an offer for a credit card.

5. A method for identifying customers of a financial institution for product offerings comprising operating a computer to perform steps of:

receiving, from one or more financial information databases, financial data of customers of said financial institution and their accounts, the financial data comprising variables;

based on the financial data, identifying one or more clusters of customers from among the customers;

identifying a financial product to be associated with a first cluster of customers; and

identifying, by the computer, a subset of variables from among the variables of the financial data wherein the subset of variables characterize customers who have a propensity to respond positively to an offer;

wherein the financial data comprises financial accounts of the customers of the financial institution;

wherein the financial data further comprises financial information from a debit usage database or a credit usage database; and

wherein the subset of variables includes at least two or more of a duration since last debit transaction, a number of end-of-month purchases, interest paid, duration since last activity on the account, a behavioral score, a minimum payment due, a current cash balance, whether or not there is a certificate of deposit, a number of times logging onto the financial account, an end of month balance on a money market account, or an overall statement balance.

6. The method of claim 5 wherein the offer is an offer for a second credit card.

7. A method for identifying customers of a financial institution for product offerings comprising operating a computer to perform steps of:

receiving, by the computer, from one or more financial information databases, financial data of customers of said financial institution and their accounts, the financial data comprising variables;

based on the financial data, identifying one or more clusters of customers from among the customers;

identifying a financial product to be associated with a first cluster of customers; and

identifying a subset of variables from among the variables of the financial data wherein the subset of variables characterize customers who have a propensity to respond positively to an offer;

wherein the financial data comprises financial accounts of the customers of the financial institution;

wherein the financial data further comprises financial information from a debit usage database or a credit usage database; and

wherein the subset of variables includes at least two or more of an indication of whether or not an ATM card was used in previous twelve months, average end of month balance, average amount of surcharge fees, a number of times logging onto the financial account, number of times a call is made to an automated voice service, an end of month balance on a checking account, and a FICO score.

8. The method of claim 7 wherein the offer is an offer to resume use of a debit card that had not been in use for a predetermined period of time.

9. A system for financial product offerings comprising:

a computer system; and

a first data source having stored therein financial data for customers of a financial institution, the financial data comprising variables that characterize accounts owned by the customers and the customers,

the computer system configured to perform steps comprising;

receiving the financial data from the first data source;

identifying one or more clusters of customers from among the customers;

for each cluster of customers, identifying an associated financial product to be associated with said each first cluster; and

for said each cluster, identifying a subset of variables from the variables comprising the financial data, wherein the subset of variables identify customers who have a propensity to respond positively to an offer;

wherein the subset of variables includes at least two or more of a total number of deposits made into a user'"'"'s financial account, duration as a user of the financial account, whether or not online banking is used, a number of transfers into the financial account, a FICO score, a user'"'"'s age, a number of times logging onto the financial account, whether or not a money market account is owned, an age of the most recent account, a total amount spent using checks, a total sum of ATM (automated teller machine) debits made in a period of time, or a total number of transactions made at an ATM.

10. A system for financial product offerings comprising:

a computer system; and

a first data source having stored therein financial data for customers of a financial institution, the financial data comprising variables that characterize accounts owned by the customers and the customers,

the computer system configured to perform steps comprising;

receiving the financial data from the first data source;

identifying one or more clusters of customers from among the customers;

for each cluster of customers, identifying an associated financial product to be associated with said each first cluster; and

for said each cluster, identifying a subset of variables from the variables comprising the financial data, wherein the subset of variables identify customers who have a propensity to respond positively to an offer;

wherein the subset of variables includes at least two or more of a total number of transfers made from a user'"'"'s financial account, duration as a user of the financial account, a number of times logging onto the financial account, an end of month balance for a consumer loan, a negative indication score, whether or not online banking is used, employment status, or member affiliation.

11. A system for financial product offerings comprising:

a computer system; and

a first data source having stored therein financial data for customers of a financial institution, the financial data comprising variables that characterize accounts owned by the customers and the customers,

the computer system configured to perform steps comprising;

receiving the financial data from the first data source;

identifying one or more clusters of customers from among the customers;

for each cluster of customers, identifying an associated financial product to be associated with said each first cluster; and

for said each cluster, identifying a subset of variables from the variables comprising the financial data, wherein the subset of variables identify customers who have a propensity to respond positively to an offer;

wherein the subset of variables includes at least two or more of a duration since last debit transaction, a number of end-of-month purchases, interest paid, duration since last activity on the account, a behavioral score, a minimum payment due, a current cash balance, whether or not there is a certificate of deposit, a number of times logging onto the financial account, an end of month balance on a money market account, or an overall statement balance.

12. A system for financial product offerings comprising:

a computer system; and

a first data source having stored therein financial data for customers of a financial institution, the financial data comprising variables that characterize accounts owned by the customers and the customers,

the computer system configured to perform steps comprising;

receiving the financial data from the first data source;

identifying one or more clusters of customers from among the customers;

for each cluster of customers, identifying an associated financial product to be associated with said each first cluster; and

for said each cluster, identifying a subset of variables from the variables comprising the financial data, wherein the subset of variables identify customers who have a propensity to respond positively to an offer;

wherein the subset of variables includes at least two or more of an indication of whether or not an ATM card was used in previous twelve months, average end of month balance, average amount of surcharge fees, a number of times logging onto the financial account, number of times a call is made to an automated voice service, an end of month balance on a checking account, and a FICO score.