System and method for allocating excess funds in control account

• US 8,606,676 B1
• Filed: 03/15/2013
• Issued: 12/10/2013
• Est. Priority Date: 02/28/2007
• Status: Active Grant

• 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): AMELUNXEN, BARBARA J
• Application Number:
  US13/842,360
• Time in Patent Office: 270 Days
• Field of Search: 705/35, 705/39, 705/36.R, 705/42, 705/37
• US Class Current: 705/35
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

A method, program product and system, the comprising: one or more computers, configured for accessing databases comprising: aggregated deposit account information for a plurality of FDIC-insured interest-bearing aggregated deposit accounts held in depository institutions participating in program, and client account information; obtaining via an internet interface transfer data; allocating first amount to and/or from one depository institution, comprising: selecting sub-set of aggregated deposit accounts to deposit or to withdraw funds, while avoiding withdrawing funds for a respective sub-period one or more of other aggregated deposit accounts based on criteria; allocating funds to an aggregated deposit account held in one or more other depository institutions; allocating second fund amount from client accounts among the aggregated deposit accounts to substantially match the first amount; generating data for instructions to transfer funds to or from the sub-set of depository institutions.

Claims

1. A method for interim allocation of uninsured funds in a control operating account in an intermediary bank prior to actual distribution to one or more of a plurality of Federal Deposit Insurance Corporation (FDIC)-insured and interest-bearing destination aggregated accounts held among a plurality of deposit institutions participating in a program, comprising:

(A) accessing, by one or more computers, one or more electronic databases comprising;

(1) aggregated account information for a plurality of the FDIC-insured and interest-bearing destination aggregated accounts held in the deposit institutions participating in the program, wherein funds from a first plurality of client accounts of a plurality of clients are aggregated with funds of other client accounts in the destination aggregated accounts held in the deposit institutions, wherein each of the respective deposit institutions holds one or more of the destination aggregated accounts;

(2) client account information for each of the respective client accounts comprising

(i) a respective balance of funds from the respective client account held in each of one or more of the destination aggregated accounts holding funds of the respective client account and attributed to the respective client account; and

(ii) information on a respective balance of funds held in the control operating account at the intermediary bank;

(B) obtaining, by the one or more computers, transaction data for a second plurality of the client accounts comprising client deposits/transfers and/or withdrawals/transfers or nets thereof, with the transaction data for each respective one of the second plurality of the client accounts comprising a respective amount for each respective deposit/transfer and each respective withdrawal/transfer or the net thereof;

(C) obtaining, by the one or more computers, an aggregated transaction amount based on a total net transaction from the transaction data for a plurality of the client accounts;

(D) receiving or having received in the control operating account funds from one or more of the deposits/transfers of the plurality of said client accounts;

(E) monitoring, by the one or more computers, the control operating account during an interim period prior to transfer of one or more fund amounts to one or more of the destination aggregated accounts in their respective deposit institutions, the monitoring comprising determining, for each of the second plurality of the client accounts with funds held in the control operating account, whether the respective amount of funds held in the control operating account for the respective client account exceeds a predetermined amount;

(F) determining, by the one or more computers, or having determined by the one or more computers, an eligible client account that has funds in one or more of the destination aggregated accounts in one or more of the deposit institutions and that can have funds allocated to the control operating account in the intermediary bank on an interim basis that will result in balance of funds in the control operating account equal to or less than the predetermined amount;

(G) changing an attribution, by the one or more computers, or having changed an attribution, by the one or more computers, in the one or more electronic databases, of a first amount of funds of one of the second plurality of the client accounts that has funds in the control operating account in the intermediary bank that exceeds the predetermined amount, to the eligible client account, prior to the transfer of the amounts of funds to one or more of the destination aggregated accounts, on at least an interim basis in the one or more electronic databases;

(H) changing an attribution, by the one or more computers, or having changed an attribution, by the one or more computers, in the one or more electronic databases, of the first amount of funds in one or among more than one of the destination aggregated accounts in one or more of the deposit institutions holding funds of the eligible client account, to the one client account with the excess amount in the control operating account, in order to reduce the amount of funds listed in the one or more electronic databases for the one client account in the control operating account;

(I) updating based at least in part on the attribution changes of steps (G) and (H), by the one or more computers, one or more of the electronic databases with data for each of a third plurality of the client accounts, with updated data for each of the client accounts comprising a respective balance of funds of the respective client account held in each of one or more of the deposit institutions holding funds of the respective client account and in the control operating account;

(J) allocating, by the one or more computers, the aggregated transaction amount to one or more of the destination aggregated accounts in one or more of the deposit institutions; and

(K) generating an instruction, by the one or more computers, to have distributed to one or more of the destination aggregated accounts in one or more of the deposit institutions the aggregated transaction amount in accordance with the allocating step.

2. The method as defined in claim 1, wherein the eligible client is determined based at least in part on whether it has funds held in one or more of the aggregated deposit accounts in one or more deposit institutions associated with a same financial entity as the one client account that has funds in the control operating account in the intermediary bank that exceed the predetermined amount.

3. The method as defined in claim 1, wherein the allocating step (J) is performed by selecting, by the one or more computers, one or more of the aggregated deposit accounts held in one deposit institution to which to deposit/transfer or to withdraw/transfer funds, while avoiding withdrawing funds for a respective sub-period of time from each of one or more other of the aggregated deposit accounts held in one or more other of the deposit institutions.

4. The method as defined in claim 3, wherein the allocating step (J) is performed based at least in part on a minimum cap and/or a maximum cap for the one deposit institution.

5. The method as defined in claim 1, wherein the obtaining data for client deposits/transfers and withdrawals/transfers comprises receiving a sweep file.

6. The method as defined in claim 1, wherein the monitoring step is performed on at least an hourly basis.

7. The method as defined in claim 1, wherein the determining step determines a plurality of eligible other client accounts.

8. The method as defined in claim 1, wherein the attribution step (H) changes the attribution of funds in a plurality of the destination aggregated accounts.

9. The method as defined in claim 1, further comprising:

determining or having determined the eligible client account based on a balance of funds the client account has in the one or more destination aggregated accounts in the different deposit institutions.

10. The method as defined in claim 1, wherein the information in the one or more databases on a respective amount of funds held in the control operating account at the intermediary bank for each of a plurality of respective client accounts includes information that a plurality of the client accounts are accounts of one financial entity;

and wherein the determining step (F) determines the eligible client account based at least in part on whether the respective client account is associated with the same financial entity as the client account that exceeds the predetermined amount.

11. The method as defined in claim 1, wherein the predetermined amount is less than or equal to an insurance limit for FDIC insurance.

12. A system for interim allocation of uninsured funds in a control operating account in an intermediary bank prior to actual distribution to one or more of a plurality of Federal Deposit Insurance Corporation (FDIC)-insured and interest-bearing destination aggregated accounts held among a plurality of deposit institutions participating in a program, comprising:

one or more computers operably connected to memory comprising computer-readable program code, that when executed by the one or more computers, causes performance of the following steps;

(A) accessing, by the one or more computers, one or more electronic databases comprising;

(1) aggregated account information for a plurality of the FDIC-insured and interest-bearing destination aggregated accounts held in the deposit institutions participating in the program, wherein funds from a first plurality of client accounts of a plurality of clients are aggregated with funds of other client accounts in the destination aggregated accounts held in the deposit institutions, wherein each of the respective deposit institutions holds one or more of the destination aggregated accounts;

(2) client account information for each of the respective client accounts comprising

(i) a respective balance of funds from the respective client account held in each of one or more of the destination aggregated accounts holding funds of the respective client account and attributed to the respective client account; and

(ii) information on a respective balance of funds held in the control operating account at the intermediary bank;

(B) obtaining, by the one or more computers, transaction data for a second plurality of the client accounts comprising client deposits/transfers and/or withdrawals/transfers or nets thereof, with the transaction data for each respective one of the second plurality of the client accounts comprising a respective amount for each respective deposit/transfer and each respective withdrawal/transfer or the net thereof;

(C) obtaining, by the one or more computers, an aggregated transaction amount based on a total net transaction from the transaction data for a plurality of the client accounts;

(D) receiving or having received in the control operating account funds from one or more of the deposits/transfers of the plurality of said client accounts;

(E) monitoring, by the one or more computers, the control operating account during an interim period prior to transfer of one or more fund amounts to one or more of the destination aggregated accounts in their respective deposit institutions, the monitoring comprising determining, for each of the second plurality of the client accounts with funds held in the control operating account, whether the respective amount of funds held in the control operating account for the respective client account exceeds a predetermined amount;

(F) determining, by the one or more computers, or having determined by the one or more computers, an eligible client account that has funds in one or more of the destination aggregated accounts in one or more of the deposit institutions and that can have funds allocated to the control operating account in the intermediary bank on an interim basis that will result in balance of funds in the control operating account equal to or less than the predetermined amount;

(G) changing an attribution, by the one or more computers, or having changed an attribution, by the one or more computers, in the one or more electronic databases, of a first amount of funds of one of the second plurality of the client accounts that has funds in the control operating account in the intermediary bank that exceeds the predetermined amount, to the eligible client account, prior to the transfer of the amounts of funds to one or more of the destination aggregated accounts, on at least an interim basis in the one or more electronic databases;

(H) changing an attribution, by the one or more computers, or having changed an attribution, by the one or more computers, in the one or more electronic databases, of the first amount of funds in one or among more than one of the destination aggregated accounts in one or more of the deposit institutions holding funds of the eligible client account, to the one client account with the excess amount in the control operating account, in order to reduce the amount of funds listed in the one or more electronic databases for the one client account in the control operating account;

(I) updating based at least in part on the attribution changes of steps (G) and (H), by the one or more computers, one or more of the electronic databases with data for each of a third plurality of the client accounts, with updated data for each of the client accounts comprising a respective balance of funds of the respective client account held in each of one or more of the deposit institutions holding funds of the respective client account and in the control operating account;

(J) allocating, by the one or more computers, the aggregated transaction amount to one or more of the destination aggregated accounts in one or more of the deposit institutions; and

(K) generating an instruction, by the one or more computers, to have distributed to one or more of the destination aggregated accounts in one or more of the deposit institutions the aggregated transaction amount in accordance with the allocating step.

13. The system as defined in claim 12, wherein the eligible client is determined based at least in part on whether it has funds held in one or more of the aggregated deposit accounts in one or more deposit institutions associated with a same financial entity as the one client account that has funds in the control operating account in the intermediary bank that exceed the predetermined amount.

14. The system as defined in claim 13, wherein the allocating step (J) is performed based at least in part on a minimum cap and/or a maximum cap for the one deposit institution.

15. The system as defined in claim 12, wherein the allocating step (J) is performed by selecting, by the one or more computers, one or more of the aggregated deposit accounts held in one deposit institution to which to deposit/transfer or to withdraw/transfer funds, while avoiding withdrawing funds for a respective sub-period of time from each of one or more other of the aggregated deposit accounts held in one or more other of the deposit institutions.

16. The system as defined in claim 12, wherein the monitoring is performed on at least an hourly basis.

17. The system as defined in claim 12, wherein the determining step determines a plurality of eligible other client accounts.

18. The system as defined in claim 12, wherein the attribution step (H) changes the attribution of funds in a plurality of the destination aggregated accounts.

19. The system as defined in claim 12, further comprising:

determining or having determined the eligible client account based on a balance of funds the client account has in the one or more destination aggregated accounts in the different deposit institutions.

20. The system as defined in claim 12, wherein the information in the one or more databases on a respective amount of funds held in the control operating account at the intermediary bank for each of a plurality of respective client accounts includes information that a plurality of the client accounts are accounts of one financial entity;

and wherein the determining step (F) determines the eligible client account based at least in part on whether the respective client account is associated with the same financial entity as the client account that exceeds the predetermined amount.

21. The system as defined in claim 12, wherein the predetermined amount is less than or equal to an insurance limit for FDIC insurance.