Using commercial share of wallet to rate investments

• US 8,694,403 B2
• Filed: 05/21/2013
• Issued: 04/08/2014
• 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: Haggerty, Kathleen, Lyon, Charles Christopher, Okoh, Benedict O., Phelan, Robert E., Ruterman, Jon Kevin, Turner, Geraldine A., Yuan, Chao M., Biswas, Arnab
• Primary Examiner(s): Subramanian, Narayanswamy
• Application Number:
  US13/899,438
• Publication Number:
  US 20130254135A1
• Time in Patent Office: 322 Days
• Field of Search: 705 35- 42, 707/609, 707705-706, 902/41
• US Class Current: 705/35
• 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

Commercial size of spending wallet (“CSoSW”) is the total business spend of a business including cash but excluding bartered items. Commercial share of wallet (“CSoW”) is the portion of the spending wallet that is captured by a particular financial company. A modeling approach utilizes various data sources to provide outputs that describe a company'"'"'s spend capacity. A mutual fund rating company can use this CSoW/CSoSW modeling approach to predict the performance of funds that invest in a particular industry or sector. In addition, since mutual funds often provide guidelines for selecting stocks, rating companies can use this modeling approach to predict the performance of companies in a fund'"'"'s portfolio.

Claims

1. A method comprising:

modeling, by a computer-based system for evaluation of business prospects of a business, industry spending patterns using individual corporate data and aggregate corporate data, including financial statement data, wherein the computer-based system comprises a processor and a tangible and non-transitory memory;

estimating, by the computer-based system, a commercial size of spending wallet for a business in a plurality of businesses, wherein the estimating is based on known financial statement data of the business, total known business spending of the business, and the model of industry spending patterns, wherein the commercial size of spending wallet is the total spending of the business that can be transacted using a transaction account, and wherein the model of industry spending patterns is used to infer financial statement data and spending data that is not known;

rating, by the computer-based system, an investment fund based on the commercial size of spending wallet for the plurality of businesses; and

displaying, by the computer-based system, the rating on a display interface.

2. The method of claim 1, further comprising, by the computer-based system, determining potential marketing targets in the plurality of businesses.

3. The method of claim 1, further comprising prioritizing potential marketing targets.

4. The method of claim 1, wherein the investment fund is an industry-specific fund.

5. The method of claim 1, wherein the investment fund invests in businesses from at least two industries.

6. The method of claim 1, further comprising generating a buy instruction based upon the commercial size of spending wallet of the business.

7. The method of claim 1, further comprising generating a sell instruction based upon the commercial size of spending wallet of the business.

8. The method of claim 1, further comprising generating a sell instruction based upon the commercial size of spending wallet of a customer of the business.

9. A system comprising:

a processor for evaluation of business prospects of a business,

a tangible, non-transitory memory configured to communicate with the processor,

the tangible, non-transitory memory having instructions stored thereon that, in response to execution by the processor, cause the processor to perform operations comprising;

modeling, by the processor, industry spending patterns using individual corporate data and aggregate corporate data, including financial statement data, wherein the computer-based system comprises a processor and a tangible and non-transitory memory;

estimating, by the processor, a commercial size of spending wallet for a business in a plurality of businesses, wherein the estimating is based on known financial statement data of the business, total known business spending of the business, and the model of industry spending patterns, wherein the commercial size of spending wallet is the total spending of the business that can be transacted using a transaction account, and wherein the model of industry spending patterns is used to infer financial statement data and spending data that is not known;

rating, by the processor, an investment fund based on the commercial size of spending wallet for the plurality of businesses; and

displaying, by the processor, the rating on a display interface.

10. The system of claim 9, further comprising, by the processor, determining potential marketing targets in the plurality of businesses.

11. The system of claim 9, further comprising prioritizing potential marketing targets.

12. The system of claim 9, wherein the investment fund is an industry-specific fund.

13. The system of claim 9, wherein the investment fund invests in businesses from at least two industries.

14. The system of claim 9, further comprising generating a buy instruction based upon the commercial size of spending wallet of the business.

15. The system of claim 9, further comprising generating a sell instruction based upon the commercial size of spending wallet of at least one of the business and a customer of the business.

16. An article of manufacture including a non-transitory, tangible computer readable storage medium having instructions stored thereon that, in response to execution by a computer-based system for evaluation of business prospects of a business, cause the computer-based system to perform operations comprising:

modeling, by the computer-based system, industry spending patterns using individual corporate data and aggregate corporate data, including financial statement data, wherein the computer-based system comprises a processor and a tangible and non-transitory memory;

estimating, by the computer-based system, a commercial size of spending wallet for a business in a plurality of businesses, wherein the estimating is based on known financial statement data of the business, total known business spending of the business, and the model of industry spending patterns, wherein the commercial size of spending wallet is the total spending of the business that can be transacted using a transaction account, and wherein the model of industry spending patterns is used to infer financial statement data and spending data that is not known;

rating, by the computer-based system, an investment fund based on the commercial size of spending wallet for the plurality of businesses; and

displaying, by the computer-based system, the rating on a display interface.