Method and apparatus for consumer interaction based on spend capacity

• US 20060242046A1
• Filed: 06/30/2005
• Published: 10/26/2006
• Est. Priority Date: 10/29/2004
• Status: Active Grant

• Current Assignee: American Express Travel Related Services Company, Inc. (American Express Company)
• Original Assignee: American Express Travel Related Services Company, Inc. (American Express Company)
• Inventors: Williamson, Peter L., Haggerty, Kathleen, Yuan, Chao M., Okoh, Benedict O.
• Granted Patent: US 7,912,770 B2
• Time in Patent Office: Days
• 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 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof

Abstract

Share of Wallet (“SoW”) is a modeling approach that utilizes various data sources to provide outputs that describe a consumer'"'"'s spending capability, tradeline history including balance transfers, and balance information. These outputs can be appended to data profiles of customers and prospects and can be utilized to support decisions involving prospecting, new applicant evaluation, and customer management across the lifecycle. In addition to credit card companies, SoW outputs may be useful to companies issuing, for example: private label cards, life insurance, on-line brokerages, mutual funds, car sales/leases, hospitals, and home equity lines of credit or loans. “Best customer” models can correlate SoW outputs with various customer groups. A SoW score focusing on a consumer'"'"'s spending capacity can be used in the same manner as a credit bureau score.

Claims

1. A method of managing a consumer lifecycle in a credit-related industry, comprising:

(a) modeling consumer spending patterns using individual and aggregate consumer data, including tradeline data, internal customer data, and consumer panel data;

(b) estimating a spend capacity of an individual consumer based on tradeline data of the individual consumer, balance transfers of the individual consumer, and the model of consumer spending patterns; and

(c) determining a strategy to interact with the consumer based on the estimated spend capacity of the consumer.

2. The method of claim 1, wherein the credit-related industry is at least one of the following:

banking, lending, mutual fund industry, lease and sales industry, life insurance industry, brokerage industry, asset-backed security issuance industry, loan buyer industry, credit card industry, and private label card industry.

3. The method of claim 1, wherein the credit-related industry is at least one of the following:

online retail industry and mail order industry.

4. The method of claim 1, wherein the credit-related industry is at least one of the following:

gaming industry, charity fundraising, university fundrasing, communications provider industry, hospital industry, and travel industry.

5. The method of claim 1, wherein said step (b) comprises estimating a spend capacity of an individual customer solely for the credit-related industry.

6. The method of claim 1, wherein said step (c) comprises determining when the consumer is nearing default on a loan.

7. The method of claim 6, wherein said step (c) further comprises determining whether the consumer is likely to accept a settlement offer.

8. The method of claim 1, wherein said step (c) comprises developing a strategy to collect from the consumer an amount owed.

9. An apparatus for managing a consumer lifecycle in a credit-related industry, comprising:

a processor; and

a memory in communication with the processor, wherein the memory stores a plurality of processing instructions for directing the processor to;

model consumer spending patterns using individual and aggregate consumer data, including tradeline data, internal customer data, and consumer panel data;

estimate a spend capacity of an individual consumer based on tradeline data of the individual consumer, balance transfers of the individual consumer, and the model of consumer spending patterns; and

determine a strategy for interacting with the consumer based on the estimated spend capacity of the consumer.

10. The apparatus of claim 9, wherein the credit-related industry is at least one of the following:

banking, lending, mutual fund industry, lease and sales industry, life insurance industry, brokerage industry, asset-backed security issuance industry, loan buyer industry, credit card industry, and private label card industry.

11. The apparatus of claim 9, wherein the credit-related industry is at least one of the following:

online retail industry and mail order industry.

12. The apparatus of claim 9, wherein the credit-related industry is at least one of the following:

gaming industry, charity fundraising, university fundraising, communications provider industry, hospital industry, and travel industry.

13. The apparatus of claim 9, wherein the processing instructions for directing the processor to estimate a spend capacity of an individual customer include instructions for directing the processor to estimate a spend capacity of the individual consumer solely for the credit-related industry.

14. The apparatus of claim 9, wherein the processing instructions for directing the processor to determine a strategy for interacting with the consumer include instructions for directing the processor to determine when the consumer is nearing default on a loan.

15. The apparatus of claim 14, wherein the processing instructions for directing the processor to determine a strategy for interacting with the consumer include instructions for directing the processor to determine whether the consumer is likely to accept a settlement offer.

16. The apparatus of claim 9, wherein the processing instructions for directing the processor to determine a strategy for interacting with the consumer include instructions for directing the processor to develop a strategy to collect from the consumer an amount owed.

17. The apparatus of claim 9, wherein the processing instructions further comprise:

processing instructions for directing the processor to estimate at least one of the following data types;

size of the consumer'"'"'s spending wallet over a particular time period, total number of the consumer'"'"'s revolving cards, the consumer'"'"'s revolving balance, the consumer'"'"'s average pay-down percentage for revolving cards, total number of the consumer'"'"'s transacting cards, the consumer'"'"'s transacting balance, a number of balance transfers transacted by the consumer, total amount of the consumer'"'"'s balance transfers, the consumer'"'"'s maximum revolving balance, the consumer'"'"'s maximum transacting balance, the consumer'"'"'s credit limit, size of the consumer'"'"'s revolving spending, and size of the consumer'"'"'s transacting spending.

18. A computer program product comprising a computer usable medium having control logic stored therein for causing a computer to manage consumer lifecycle in a credit-related industry, the control logic comprising,

first computer readable program code means for causing the computer to model consumer spending patterns using individual and aggregate consumer data, including tradeline data, internal customer data, and consumer panel data;

second computer readable program code means for causing the computer to estimate a spend capacity of an individual consumer based on tradeline data of the individual consumer, balance transfers of the individual consumer, and the model of consumer spending patterns; and

third computer readable program code means for causing the computer to determine a strategy for interacting with the consumer based on the estimated spend capacity of the consumer.

19. The computer program product of claim 18, wherein the credit-related industry is at least one of the following:

banking, lending, mutual fund industry, lease and sales industry, life insurance industry, brokerage industry, asset-backed security issuance industry, loan buyer industry, credit card industry, and private label card industry.

20. The computer program product of claim 18, wherein the credit-related industry is at least one of the following:

online retail industry and mail order industry.

21. The computer program product of claim 18, wherein the credit-related industry is at least one of the following:

gaming industry, charity fundraising, university fundrasing, communications provider industry, hospital industry, and travel industry.

22. The computer program product of claim 18, wherein the second computer readable program code means includes fourth computer readable program code means for causing the computer to estimate a spend capacity of the individual consumer solely for the credit-related industry.

23. The computer program product of claim 18, wherein the third computer readable program code means includes fourth computer readable program code means for causing the computer to determine when the consumer is nearing default on a loan.

24. The computer program product of claim 23, wherein the third computer readable program code means further includes fifth computer readable program code means for causing the computer to include determine whether the consumer is likely to accept a settlement offer.

25. The computer program product of claim 18, wherein the third computer readable program code means for causing the computer to develop a strategy to collect from the consumer an amount owed.

26. The apparatus of claim 18, wherein the control logic further comprises:

fourth computer readable program code means for causing the computer to estimate at least one of the following data types;

size of the consumer'"'"'s spending wallet over a particular time period, total number of the consumer'"'"'s revolving cards, the consumer'"'"'s revolving balance, the consumer'"'"'s average pay-down percentage for revolving cards, total number of the consumer'"'"'s transacting cards, the consumer'"'"'s transacting balance, a number of balance transfers transacted by the consumer, total amount of the consumer'"'"'s balance transfers, the consumer'"'"'s maximum revolving balance, the consumer'"'"'s maximum transacting balance, the consumer'"'"'s credit limit, size of the consumer'"'"'s revolving spending, and size of the consumer'"'"'s transacting spending.