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

• US 8,571,984 B1
• Filed: 03/13/2013
• Issued: 10/29/2013
• 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:
  US13/801,501
• Time in Patent Office: 230 Days
• Field of Search: 705/35, 705/39
• 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

Method, system and program product, the method , comprising: generating by first banking institution file comprising transaction information for funds of client transaction accounts to be transferred to or from aggregated accounts in other banking institutions in an interchange program comprising plurality of FDIC-insured and interest-bearing aggregated deposit accounts; determining/receiving a total amount of funds to be held in first banking institution in its aggregated deposit account; generating transaction information for funds to be transferred to or from the aggregated accounts in other banking institutions; determining difference between an amount comprising total of funds from the client transaction accounts of the first banking institution held in the aggregated deposit accounts in the other banking institutions and total of funds held in the aggregated deposit account in the first banking institution; determining transfer information to deposit or to withdraw funds, based at least in part on the difference.

Claims

1. A method for operating an interchange program, comprising:

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

aggregated deposit account information for a plurality of Federal Deposit Insurance Corporation (FDIC)-insured and interest-bearing aggregated deposit accounts used in an interchange program with a first plurality of financial entities participating therein, wherein the aggregated deposit accounts are held in a second plurality of financial entities that are banks participating in the interchange program, each of the banks holding at least one of the aggregated deposit accounts, wherein source funds from a third plurality of the financial entities participating in the interchange program are aggregated in the plurality of the aggregated deposit accounts, wherein non-penalized withdrawal of funds may be made from the aggregated deposit accounts, the aggregated deposit account information for each of the second plurality of the respective financial entities that is a bank, comprising;

(i) a balance of funds held in the respective aggregated deposit account; and

(ii) a balance of source funds from the respective bank, held in one or more of the aggregated deposit accounts in one or more of the other banks in the interchange program holding source funds of the respective bank, the source funds of a respective one of the banks comprising funds where the respective bank is a source of the funds into the interchange program;

receiving via an internet interface, using the one or more computers that are operably connected to the one or more databases, at least information on a respective amount of source funds from each of a first bank, a second bank, and a third bank, that are financial entities participating in the interchange program, to be deposited in one or more aggregated deposit accounts in one or more of the other of the banks participating in the interchange program;

allocating, using the one or more computers, respective amounts from the source funds of the first bank to one or more of the aggregated deposit accounts held in at least the second bank and the third bank;

allocating, using the one or more computers, respective amounts from the source funds of the second bank to one or more of the aggregated deposit accounts held in multiple banks including at least the first bank and the third bank;

allocating, using the one or more computers, respective amounts from the source funds of the third bank to one or more of the aggregated deposit accounts held in multiple banks including at least first bank and the second bank;

allocating, using the one or more computers and using the balance of funds of the one or more aggregated deposit accounts held in the first bank and the balance of the source funds of the first bank, a respective offset amount of funds from the source funds of multiple of the banks including the second bank and the third bank, to one or more of the one or more aggregated deposit accounts held in the first bank, with the amount of offset funds to the first bank, based, at least in part, on a difference between the balance of source funds of the first bank held in other of the banks participating in the interchange program and a sum of the respective one or more balances of funds held in the one or more aggregated deposit accounts held in the first bank;

allocating, using the one or more computers and using the balance of funds of the one or more aggregated deposit accounts held in the second bank and the balance of the source funds of the second bank, a respective offset amount of funds from the source funds of multiple of the banks including the first bank and the third bank, to one or more of the one or more aggregated deposit accounts held in the second bank, with the amount of offset funds to the second bank, based, at least in part, on a difference between the balance of source funds of the second bank held in other of the banks participating in the interchange program and a sum of the respective one or more balances of funds held in the one or more aggregated deposit accounts held in the second bank;

allocating, using the one or more computers and using the balance of funds of the one or more aggregated deposit accounts held in the third bank and the balance of the source funds of the third bank, a respective offset amount of funds from the source funds of multiple of the banks including the first bank and the second bank, to one or more of the one or more aggregated deposit accounts held in the third bank, with the amount of offset funds to the third bank, based, at least in part, on a difference between the balance of source funds of the third bank held in other of the banks participating in the interchange program and a sum of the respective one or more balances of funds held in the one or more aggregated deposit accounts held in the third bank;

generating one or more fund amounts, using the one or more computers, to transfer to and/or from at least one of the aggregated deposit accounts based at least in part on the allocations;

determining, using the one or more computers, for the aggregated deposit accounts, on a periodic basis, interest earned, wherein the interest for each of the banks participating in the program is at an interest rate specified by the respective bank to its customers, regardless of which other of the banks in the program hold funds of the customers of the respective bank; and

updating or having updated, using the one or more computers, in the one or more electronic databases, the respective balance of source funds of multiple of the banks including the first bank, the second bank, and the third bank held in the one or more aggregated deposit accounts in one or more of the other banks in the interchange program, and the respective balance of funds held in the one or more aggregated deposit accounts in the multiple banks including the first bank, the second bank, and the third bank.

2. The method as defined in claim 1, wherein the source funds of the first bank to be transferred to at least one of the aggregated deposit accounts are from government entity funds held by the first bank.

3. The method as defined in claim 1, wherein the source funds of the first bank to be transferred to at least one of the aggregated deposit accounts are from primary client accounts of individual persons maintained by the first bank.

4. The method as defined in claim 1, wherein the source funds of the first bank to be transferred to at least one of the aggregated deposit accounts are from primary client accounts of corporate entities maintained by the first bank.

5. The method as defined in claim 1,

wherein multiple of the primary client accounts are client transaction accounts, and

further comprising:

receiving, using the one or more computers, withdrawal information on funds to be withdrawn from one or more of the aggregated deposit accounts in one or more of the banks participating in the interchange program based at least in part on withdrawals from one or more of the client transaction accounts;

selecting, using the one or more computers, one or more banks for withdrawals from one or more aggregated deposit accounts held therein based at least in part on the withdrawal information;

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

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

sweeping, using the one or more computers, source funds of one of the financial entities for allocation to one or more aggregated deposit accounts in one or more of the banks participating in the interchange program, by automatically sweeping funds from primary client accounts of the respective financial entity.

7. The method as defined in claim 1, wherein the financial entities are selected from the group of a bank, a broker-dealer, an insurance company, and an investment advisor.

8. The method as defined in claim 1, wherein the amount of the offset funds allocated to the first bank is determined so that the difference between the balance of source funds of the first bank held in one or more other of the banks participating in the interchange program in one or more aggregated deposit accounts therein is equal to a sum of the respective one or more balances of funds held in the one or more aggregated deposit accounts held in the first bank.

9. The method as defined in claim 1, wherein the amount of the offset funds allocated to the first bank is such that the balance of the source funds of the first bank held in one or more other of the banks participating in the interchange program in one or more aggregated deposit accounts therein is greater than a sum of the respective one or more balances of funds held in the one or more aggregated deposit accounts held in the first bank

10. The method as defined in claim 1, wherein the amount of the offset funds allocated to the first bank is such that the balance of the source funds of the first bank held in one or more other of the banks participating in the interchange program in one or more aggregated deposit accounts therein is less than a sum of the respective one or more balances of funds held in the one or more aggregated deposit accounts held in the first bank.

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

receiving, using the one or more computers, data for deposit transactions to primary client accounts maintained by a given one of the banks in the interchange program, and/or data for withdrawal transactions to primary client accounts maintained by the given bank;

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

selecting, using the one or more computers, one or more of the banks participating in the interchange program; and

allocating, using the one or more computers, the net of the deposit and withdrawal transactions from the primary client accounts of the given bank to or among these selected one or more banks.

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

wherein the one or more databases further comprise information on primary client account funds held in each of one or more or the banks holding funds of the respective primary client account;

allocating, using the one or more computers, funds of respective of the primary client accounts so as to match the amounts allocated to at least the first bank, to the second bank, and to the third bank; and

determining or having determined or receiving electronically for each of multiple of the primary client accounts, an updated balance of funds in the respective primary client account held in each of the one or more or the banks holding funds of the respective primary client account.

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

allocating, using the one or more computers, new deposits from one of the respective primary client accounts of a given one of the banks participating in the interchange program to one of more of the aggregated deposit accounts in the given bank, unless an amount of funds of the respective primary client account in the given bank equals or exceeds a specified amount.

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

transferring or having transferred or arranging for transfer, using the one or more computers, of the one or more fund amounts to or from one or more of the respective aggregated deposit accounts in the respective banks participating in the program.

15. A system for operating an interchange program, comprising:

one or more computers comprising memory, wherein the memory stores computer-readable program code that, when executed, causes the one or more computers to perform the steps;

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

aggregated deposit account information for a plurality of Federal Deposit Insurance Corporation (FDIC)-insured and interest-bearing aggregated deposit accounts used in an interchange program with a first plurality of financial entities participating therein, wherein the aggregated deposit accounts are held in a second plurality of financial entities that are banks participating in the interchange program, each of the banks holding at least one of the aggregated deposit accounts, wherein source funds from a third plurality of the financial entities participating in the interchange program are aggregated in the plurality of the aggregated deposit accounts, wherein non-penalized withdrawal of funds may be made from the aggregated deposit accounts, the aggregated deposit account information for each of the second plurality of the respective financial entities that is a bank, comprising;

(i) a balance of funds held in the respective aggregated deposit account; and

(ii) a balance of source funds from the respective bank, held in one or more of the aggregated deposit accounts in one or more of the other banks in the interchange program holding source funds of the respective bank, the source funds of a respective one of the banks comprising funds where the respective bank is a source of the funds into the interchange program;

receiving via an internet interface, using the one or more computers, at least information on a respective amount of source funds from each of a first bank, a second bank, and a third bank, that are financial entities participating in the interchange program, to be deposited in one or more aggregated deposit accounts in one or more of the other of the banks participating in the interchange program;

allocating, using the one or more computers, respective amounts from the source funds of the first bank to one or more of the aggregated deposit accounts held in at least the second bank and the third bank;

allocating, using the one or more computers, respective amounts from the source funds of the second bank to one or more of the aggregated deposit accounts held in multiple banks including at least the first bank and the third bank;

allocating, using the one or more computers, respective amounts from the source funds of the third bank to one or more of the aggregated deposit accounts held in multiple banks including at least first bank and the second bank;

allocating, using the one or more computers and using the balance of funds of the one or more aggregated deposit accounts held in the first bank and the balance of the source funds of the first bank, a respective offset amount of funds from the source funds of multiple of the banks including the second bank and the third bank, to one or more of the one or more aggregated deposit accounts held in the first bank, with the amount of offset funds to the first bank, based, at least in part, on a difference between the balance of source funds of the first bank held in other of the banks participating in the interchange program and a sum of the respective one or more balances of funds held in the one or more aggregated deposit accounts held in the first bank;

allocating, using the one or more computers and using the balance of funds of the one or more aggregated deposit accounts held in the second bank and the balance of the source funds of the second bank, a respective offset amount of funds from the source funds of multiple of the banks including the first bank and the third bank, to one or more of the one or more aggregated deposit accounts held in the second bank, with the amount of offset funds to the second bank, based, at least in part, on a difference between the balance of source funds of the second bank held in other of the banks participating in the interchange program and a sum of the respective one or more balances of funds held in the one or more aggregated deposit accounts held in the second bank;

allocating, using the one or more computers and using the balance of funds of the one or more aggregated deposit accounts held in the third bank and the balance of the source funds of the third bank, a respective offset amount of funds from the source funds of multiple of the banks including the first bank and the second bank, to one or more of the one or more aggregated deposit accounts held in the third bank, with the amount of offset funds to the third bank, based, at least in part, on a difference between the balance of source funds of the third bank held in other of the banks participating in the interchange program and a sum of the respective one or more balances of funds held in the one or more aggregated deposit accounts held in the third bank;

generating one or more fund amounts, using the one or more computers, to transfer to and/or from at least one of the aggregated deposit accounts based at least in part on the allocations;

determining, using the one or more computers, for the aggregated deposit accounts, on a periodic basis, interest earned, wherein the interest for each of the banks participating in the program is at an interest rate specified by the respective bank to its customers, regardless of which other of the banks in the program hold funds of the customers of the respective bank; and

updating or having updated, using the one or more computers, in the one or more electronic databases, the respective balance of source funds of multiple of the banks including the first bank, the second bank, and the third bank held in the one or more aggregated deposit accounts in one or more of the other banks in the interchange program, and the respective balance of funds held in the one or more aggregated deposit accounts in the multiple banks including the first bank, the second bank, and the third bank.

16. The system as defined in claim 15,

wherein multiple of the primary client accounts are client transaction accounts, and

wherein the memory further comprises program code that, when executed, causes the one or more computers to perform the steps:

receiving, using the one or more computers, withdrawal information on funds to be withdrawn from one or more of the aggregated deposit accounts in one or more of the banks participating in the interchange program based at least in part on withdrawals from one or more of the client transaction accounts;

selecting, using the one or more computers, one or more banks for withdrawals from one or more aggregated deposit accounts held therein based at least in part on the withdrawal information;

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

17. The system as defined in claim 15, wherein the memory further comprises program code that, when executed, causes the one or more computers to perform the step:

sweeping, using the one or more computers, source funds of one of the financial entities for allocation to one or more aggregated deposit accounts in one or more of the banks participating in the interchange program, by automatically sweeping funds from primary client accounts of the respective financial entity.

18. The system as defined in claim 15, wherein the memory further comprises program code that, when executed, causes the one or more computers to perform the steps:

receiving, using the one or more computers, data for deposit transactions to primary client accounts maintained by a given one of the banks in the interchange program, and/or data for withdrawal transactions to primary client accounts maintained by the given bank;

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

selecting, using the one or more computers, one or more of the banks participating in the interchange program; and

allocating, using the one or more computers, the net of the deposit and withdrawal transactions from the primary client accounts of the given bank to these selected one or more banks.

19. The system as defined in claim 15,

wherein the one or more databases further comprise information on primary client account funds held in each of one or more or the banks holding funds of the respective primary client account, and

wherein the memory further comprises program code that, when executed, causes the one or more computers to perform the steps:

allocating, using the one or more computers, funds of respective of the primary client accounts so as to match the amounts allocated to at least the first bank, the second bank, and the third bank; and

determining or having determined or receiving electronically for each of multiple of the primary client accounts, an updated balance of funds in the respective primary client account held in each of the one or more or the banks holding funds of the respective primary client account.

20. The system as defined in claim 15, wherein the memory further comprises program code that, when executed, causes the one or more computers to perform the step:

transferring or having transferred or arranging for transfer, using the one or more computers, of the one or more fund amounts to or from one or more of the respective aggregated deposit accounts in the respective banks in the program.