Computer-implemented methods, program product, and system for micro-loan product management

• US 8,818,887 B2
• Filed: 12/18/2008
• Issued: 08/26/2014
• Est. Priority Date: 12/21/2007
• Status: Active Grant

• Current Assignee: Pathward National Association
• Original Assignee: MetaBank (Meta Financial Group Incorporated)
• Inventors: Ahlers, Rebecca, Miller, Eric, Galit, Scott, Sorbe, Trent, Larson, Troy
• Primary Examiner(s): Wong, Eric T
• Application Number:
  US12/338,684
• Publication Number:
  US 20090164363A1
• Time in Patent Office: 2,077 Days
• Field of Search: 705/35
• 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 20/108 Remote banking, e.g. home banking
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/40 Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
• 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

Embodiments of the present invention include methods, program product and systems for card and bank product management. An embodiment of a method of advancing funds to a banking customer, for example, includes establishing a line of credit with a bank through an on-line access interface with the bank, determining whether access to funds through the line of credit should occur for a customer transaction and providing one or more preselected increments of funds for the customer transaction. A cumulative amount of the one or more preselected increments, for example, can be less than a total available line of credit for a customer having an established line of credit with the bank. The method further includes decrementing the total available line of credit by the cumulative amount of the one or more preselected increments provided for the customer transaction and a predetermined fee amount for each preselected increment of funds.

Claims

1. A lending institution computer associated with a lending institution to advance a plurality of micro-loans to a plurality of demand accounts for a plurality of customer transactions, the lending institution computer comprising:

an input/output unit for communicating line of credit application data between a plurality of customer interface devices positioned remote from a lending institution computer;

one or more processors; and

non-transitory computer memory encoded with computer program operable on the lending institution computer, the computer program comprising;

a first computer program to facilitate qualifying a plurality of demand account owners for a plurality of line of credit accounts associated with a plurality of demand accounts to thereby define an incremental line of credit qualifying module, the incremental line of credit qualifying module comprising a set of instructions, when executed by the one or more processors of the lending computer, operable to perform the operations of;

prequalifying the plurality of demand account owners for a plurality of line of credit accounts to be associated with the plurality of demand accounts responsive to processing demand account data associated with the plurality of demand accounts;

a second computer program to advance funds from the plurality of line of credit account in one or more of a plurality of separate predetermined loan increments to define a micro-loan dispensing module, the micro-loan dispensing module comprising a set of instructions, when executed by the one or more processors, operable to perform the operations of;

associating a plurality of line of credit identifiers with the plurality of demand accounts responsive to the plurality of customer interface devices accepting terms of the plurality of line of credit accounts to thereby couple the plurality of demand accounts to the plurality of line of credit accounts;

establishing the plurality of line of credit accounts at a lending institution, each of the plurality of the line of credit accounts having a plurality of separate predetermined loan increments each being equal in value and less than a total credit limit, the plurality of demand accounts each being remote from the lending institution and controlled by an institution different from the lending institution;

determining whether to access funds from the plurality of line of credit accounts for a plurality of customer transactions responsive to a plurality of demands by the plurality of demand account owners for funds from the plurality of line of credit accounts for the plurality of customer transactions and the funds demanded being less than a line of credit balance available for each of the plurality of line of credit accounts;

determining a number of separate predetermined loan increments to be added to the plurality of the demand accounts responsive to the determination to access funds from the plurality of line of credits for the plurality of customer transaction;

loading the plurality of the demand accounts with at least one of the plurality of predetermined loan increments that corresponds with the number of separate predetermined loan increments to thereby define a micro-loan so that distributing the micro-loan does not exceed the line of credit balance available for each of the plurality of line of credits;

determining a total value of a predetermined loan advance fee for the micro-loan, the total value being equal to a predetermined loan advance fee multiplied by the number of separate predetermined loan increments, the total value of the predetermined loan advance fee being less than a value of the micro-loan; and

decrementing the line of credit balance available for each of the plurality of line of credits by the value of the micro-loan loaded to the plurality of demand accounts.

2. A lending institution computer of claim 1, wherein the micro-loan dispensing module further comprising the operations of:

continuing to monitor the direct deposit history of each of the plurality of demand account owners so that a determination of whether to access a second micro-loan from the plurality of line of credits accounts is made responsive to the continuous monitoring.

3. A lending institution computer of claim 1, wherein the micro-loan dispensing module further comprising the operations of:

determining whether to change terms associated with each of the plurality of line of credits responsive to a direct deposit history and prior to the determination to access funds from each of the plurality of the line of credit, the determination to change terms being made after establishing the line of credit accounts.

4. A lending institution computer of claim 1, wherein the plurality of demand accounts are prepaid card accounts associated with a plurality of prepaid cards so that loading the plurality of prepaid card accounts with at least one of the plurality of predetermined loan increments enables the plurality of prepaid cards to be used for the plurality of customer transactions;

and wherein the plurality of prepaid cards are controlled by a plurality of prepaid card processors positioned remote from the lending institution.

5. A lending institution computer of claim 2, wherein the micro-loan dispensing module further comprising the operations of:

automatically enhancing borrowing options for the plurality of line of credit accounts over time responsive to one or more of the following;

positive repayment history;

direct deposit history, and positive underwriting determination, and

wherein the borrowing options include the plurality of demand account owners receiving one or more of the following;

longer repayment terms, an option to repay over multiple predetermined periods, an increase in the total credit limit, and lower predetermined loan advance fee for each of the plurality of separate loan increments.

6. A lending institution computer of claim 1, wherein the computer program further includes a repayment module comprising a set of instructions operable, when executed by the lending institution computer, to perform the operations of:

repaying at least a portion of the micro-loan responsive to a direct deposit received by the lending institution for at least one of the plurality of demand account owners'"'"' benefit so that the repayment of the at least a portion of the micro-loan is deducted from the direct deposit prior to the direct deposit being available to the at least one of the plurality of demand account owners.

7. Non-transitory computer readable memory encoded with computer program operable on a computer associated with a lending institution to advance a plurality of micro-loans to a plurality of demand accounts for a plurality of customer transactions, the computer program comprising:

a first computer program to facilitate qualifying a plurality of demand account owners for a plurality of line of credit accounts associated with a plurality of demand accounts to thereby define an incremental line of credit qualifying module, the incremental line of credit qualifying module comprising a set of instructions, when executed by the one or more processors of the lending computer, operable to perform the operations of;

prequalifying the plurality of demand account owners for a plurality of line of credit accounts to be associated with the plurality of demand accounts responsive to processing demand account data associated with the plurality of demand accounts;

a second computer program to advance funds from the plurality of line of credit account in one or more of a plurality of separate predetermined loan increments to define a micro-loan dispensing module, the micro-loan dispensing module comprising a set of instructions, when executed by the one or more processors, operable to perform the operations of;

associating a plurality of line of credit identifiers with the plurality of demand accounts responsive to the plurality of customer interface devices accepting terms of the plurality of line of credit accounts to thereby couple the plurality of demand accounts to the plurality of line of credit accounts;

establishing the plurality of line of credit accounts at a lending institution, each of the plurality of the line of credit accounts having a plurality of separate predetermined loan increments each being equal in value and less than a total credit limit, the plurality of demand accounts each being remote from the lending institution and controlled by an institution different from the lending institution;

determining whether to access funds from the plurality of line of credit accounts for a plurality of customer transactions responsive to a plurality of demands by the plurality of demand account owners for funds from the plurality of line of credit accounts for the plurality of customer transactions and the funds demanded being less than a line of credit balance available for each of the plurality of line of credit accounts;

determining a number of separate predetermined loan increments to be added to the plurality of the demand accounts responsive to the determination to access funds from the plurality of line of credits for the plurality of customer transaction;

loading the plurality of the demand accounts with at least one of the plurality of predetermined loan increments that corresponds with the number of separate predetermined loan increments to thereby define a micro-loan so that distributing the micro-loan does not exceed the line of credit balance available for each of the plurality of line of credits;

determining a total value of a predetermined loan advance fee for the micro-loan, the total value being equal to a predetermined loan advance fee multiplied by the number of separate predetermined loan increments, the total value of the predetermined loan advance fee being less than a value of the micro-loan; and

decrementing the line of credit balance available for each of the plurality of line of credits by the value of the micro-loan loaded to the plurality of demand accounts.

8. Non-transitory memory as define in claim 7, wherein the micro-loan dispensing module further comprising the operations of:

continuing to monitor the direct deposit history of each of the plurality of demand account owners so that a determination of whether to access a second micro-loan from the plurality of line of credits accounts is made responsive to the continuous monitoring.

9. Non-transitory memory as define in claim 7, wherein the micro-loan dispensing module further comprising the operations of:

determining whether to change terms associated with each of the plurality of line of credits responsive to a direct deposit history and prior to the determination to access funds from each of the plurality of the line of credit, the determination to change terms being made after establishing the line of credit accounts.

10. Non-transitory memory as define of claim 7, wherein the plurality of demand accounts are prepaid card accounts associated with a plurality of prepaid cards so that loading the plurality of prepaid card accounts with at least one of the plurality of predetermined loan increments enables the plurality of prepaid cards to be used for the plurality of customer transactions;

and wherein the plurality of prepaid cards are controlled by a plurality of prepaid card processors positioned remote from the lending institution.

11. Non-transitory memory as define in claim 8, wherein the micro-loan dispensing module further comprising the operations of:

automatically enhancing borrowing options for the plurality of line of credit accounts over time responsive to one or more of the following;

positive repayment history, direct deposit history, and positive underwriting determination, and

wherein the borrowing options include the plurality of demand account owners receiving one or more of the following;

longer repayment terms, an option to repay over multiple predetermined periods, an increase in the total credit limit, and lower predetermined loan advance fee for each of the plurality of separate loan increments.

12. Non-transitory memory as define in claim 7, wherein the computer program further includes a repayment module comprising a set of instructions operable, when executed by the lending institution computer, to perform the operations of:

repaying at least a portion of the micro-loan responsive to a direct deposit received by the lending institution for at least one of the plurality of demand account owners'"'"' benefit so that the repayment of the at least a portion of the micro-loan is deducted from the direct deposit prior to the direct deposit being available to the at least one of the plurality of demand account owners.

13. A computer-implemented method to advance a plurality of micro-loans to a plurality of demand accounts for a plurality of customer transactions, the method comprising:

prequalifying, by a computer associated with a lending institution to define a lending institution computer, the plurality of demand account owners for a plurality of line of credit accounts to be associated with the plurality of demand accounts responsive to processing demand account data associated with the plurality of demand accounts;

associating, by the lending institution computer, a plurality of line of credit identifiers with the plurality of demand accounts responsive to the plurality of customer interface devices accepting terms of the plurality of line of credit accounts to thereby couple the plurality of demand accounts to the plurality of line of credit accounts;

establishing, by the lending institution computer, the plurality of line of credit accounts at a lending institution, each of the plurality of the line of credit accounts having a plurality of separate predetermined loan increments each being equal in value and less than a total credit limit, the plurality of demand accounts each being remote from the lending institution and controlled by an institution different from the lending institution;

determining, by the lending institution computer, whether to access funds from the plurality of line of credit accounts for a plurality of customer transactions responsive to a plurality of demands by the plurality of demand account owners for funds from the plurality of line of credit accounts for the plurality of customer transactions and the funds demanded being less than a line of credit balance available for each of the plurality of line of credit accounts;

determining, by the lending institution computer, a number of separate predetermined loan increments to be added to the plurality of the demand accounts responsive to the determination to access funds from the plurality of line of credits for the plurality of customer transaction;

loading, by the lending institution computer, the plurality of the demand accounts with at least one of the plurality of predetermined loan increments that corresponds with the number of separate predetermined loan increments to thereby define a micro-loan so that distributing the micro-loan does not exceed the line of credit balance available for each of the plurality of line of credits;

determining, by the lending institution computer, a total value of a predetermined loan advance fee for the micro-loan, the total value being equal to a predetermined loan advance fee multiplied by the number of separate predetermined loan increments, the total value of the predetermined loan advance fee being less than a value of the micro-loan; and

decrementing, by the lending institution computer, the line of credit balance available for each of the plurality of line of credits by the value of the micro-loan loaded to the plurality of demand accounts.

14. A computer-implemented method as define in claim 13, the method further includes:

continuing to monitor the direct deposit history of each of the plurality of demand account owners so that a determination of whether to access a second micro-loan from the plurality of line of credits accounts is made responsive to the continuous monitoring.

15. A computer-implemented method as define in claim 13, the method further includes:

determining whether to change terms associated with each of the plurality of line of credits responsive to a direct deposit history and prior to the determination to access funds from each of the plurality of the line of credit, the determination to change terms being made after establishing the line of credit accounts.

16. A computer-implemented method as define in claim 13, wherein the plurality of demand accounts are prepaid card accounts associated with a plurality of prepaid cards so that loading the plurality of prepaid card accounts with at least one of the plurality of predetermined loan increments enables the plurality of prepaid cards to be used for the plurality of customer transactions;

and wherein the plurality of prepaid cards are controlled by a plurality of prepaid card processors positioned remote from the lending institution.

17. A computer-implemented method as define in claim 14, the method further includes:

automatically enhancing borrowing options for the plurality of line of credit accounts over time responsive to one or more of the following;

positive repayment history, direct deposit history, and positive underwriting determination, and

wherein the borrowing options include the plurality of demand account owners receiving one or more of the following;

longer repayment terms, an option to repay over multiple predetermined periods, an increase in the total credit limit, and lower predetermined loan advance fee for each of the plurality of separate loan increments.

18. A computer-implemented method as define in claim 13, wherein the method further includes:

repaying, by the lending institution computer, at least a portion of the micro-loan responsive to a direct deposit received by the lending institution for at least one of the plurality of demand account owners'"'"' benefit so that the repayment of the at least a portion of the micro-loan is deducted from the direct deposit prior to the direct deposit being available to the at least one of the plurality of demand account owners.

19. A computer-implemented method as define in claim 13, wherein the method further includes:

decrementing, by the lending institution computer, a designated direct deposit received by the plurality of demand deposit accounts for repayment for at least a portion of the micro-loan.

20. A computer-implemented method as define in claim 13, wherein the plurality of demand accounts are prepaid card accounts associated with a plurality of prepaid cards so that loading the plurality of prepaid card accounts with at least one of the plurality of predetermined loan increments enables the plurality of prepaid cards to be used for the plurality of customer transactions;

wherein the plurality of prepaid cards are controlled by a plurality of prepaid card processors positioned remote from the lending institution; and

the method further includes;

continuing to monitor the direct deposit history of each of the plurality of prepaid card accounts so that a determination of whether to access a second micro-loan from the plurality of line of credits accounts is made responsive to the continuous monitoring.