CA2260348A1 - A method and apparatus for generating segmentation scorecards for evaluating credit risk of bank card applicants - Google Patents
A method and apparatus for generating segmentation scorecards for evaluating credit risk of bank card applicants Download PDFInfo
- Publication number
- CA2260348A1 CA2260348A1 CA002260348A CA2260348A CA2260348A1 CA 2260348 A1 CA2260348 A1 CA 2260348A1 CA 002260348 A CA002260348 A CA 002260348A CA 2260348 A CA2260348 A CA 2260348A CA 2260348 A1 CA2260348 A1 CA 2260348A1
- Authority
- CA
- Canada
- Prior art keywords
- ion
- credit
- applicants
- ihe
- bank card
- Prior art date
- Legal status (The legal status is an assumption and is not a legal conclusion. Google has not performed a legal analysis and makes no representation as to the accuracy of the status listed.)
- Abandoned
Links
Classifications
-
- G—PHYSICS
- G06—COMPUTING; CALCULATING OR COUNTING
- G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
- G06Q40/00—Finance; Insurance; Tax strategies; Processing of corporate or income taxes
- G06Q40/08—Insurance
-
- G—PHYSICS
- G06—COMPUTING; CALCULATING OR COUNTING
- G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
- G06Q20/00—Payment architectures, schemes or protocols
- G06Q20/08—Payment architectures
- G06Q20/10—Payment architectures specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
-
- G—PHYSICS
- G06—COMPUTING; CALCULATING OR COUNTING
- G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
- G06Q40/00—Finance; Insurance; Tax strategies; Processing of corporate or income taxes
- G06Q40/03—Credit; Loans; Processing thereof
Abstract
The present invention is a method and apparatus that uses a plurality of predetermined segments to group credit applicants to evaluate each applicant's credit risk. The segments are based on at least one of reported trades, reported delinquency, bank card utilization, and length of said credit history. A score is generated for each applicant based on a unique scorecard designed for each segment. The unique scorecards allow more accurate credit risk assessment by evaluating each applicant in view of that segment's tendency to be bad credit risks.
Description
Jan-25-~ 02:03pm From-HUNTON & WILLIA~S 2027782201 T-526 P.05/31 F-35~
_ Field of the InveD~io~
..
Th~ in~/~nlion r~lates lo a melhod an~ apparan~7 for ass~ssing ~he credi~ risL; of banl; card applicqnts. Specifically, th~ rnethod and appararus rela~c ~o de~/eloping a scgn.~n~ion tree to groL5~ bank card applicants inlo similar sub-pop~ .ions and then bl~ildino a custom sco~cald for each .~f the su~popularions.
Bac~ioround of the Invention lndivit-lals see};ing ~anl; cards from a fin~ l ins~ tion typicall~ fill ou~ applications pro~"~ling infonnation an~ re~s~ino a bar~; card Fin~ncial in~ u~ions lcnd credil ~o indi~dduals based on ~h~ inforrnalion pro~ided in the applica~ions and ~heir credil history. The financial ins~ ion review~7 the ~rplir~rion providet b~ ~he applicanl and r~vie~-C7 Ihe app~ican~7s cr~dlr histor~ goal of ~h~ fin~nri~l ins~ ion is w asses ~hc credi~ ris~; of each individ banl; .ard applicanl so Ihe~ ~~ill nol e end credit ~o an individual ~ha~ is a poor cr~dil risl;.
To ass~ss t~e credi~ risl; of eacb individual, Ihe financial institulion will develop a scor~
for each applican~ based on cer~ain information. The applican~ rec~ives points for each il~m o~
ir~fomlation analyzet b~ fimancial ins~ isn. ~e arnount of poin~; a~varded for ~ach i~em, ~he ilcms acnlally ar~aly~ed, and ~he scores nece~s~ry for appro~/al vary from financial instinl~ion 2~ to fin;~ncial insb~u~ion.
ln toda~'s marke~, financial insrirulioni are approving more and more b~; card~ and are e.~pe~ l~ncing incr~ased compelition from o~her financisl ins~ ions for rhe applican~s. Financial inslitutiOns ~ -ould a~n~rall~ ,orant the applican~ a banl; card pro~ided ~he applican~ has an accep~ble sourc~ of income ~d is no~ 1~0 days or more past due ~i~h another acconn~.
Jan-25-99 02:03Pm From-HUNTON L WILLIA~IS 2027782201 T-526 P 06/31 F-35 -I he decision ~o approv e or ~n~ ~he applicant's r~qu~s; t'Or a barL~; card wa~ b~d on 2 ;corin~, ;ystem. The financial in;~ ion àcored ~ach ban}; card app~ican~ ba,~d on source and 1 ot income as w~ll as ~vh~lh2r Ih~ applicant ~ cv~r I~û da~s pasl du~. Th~ sconn ~ sysr~m us~d t~. e~aluale each applican~ and the minim~n score r~quired for approval was applied unifor~nly by a fin~n~ ins~ ion lo all i~s 8ppliCarll~. Each u~s~ ion had a single sco~ecard and apF~roval score wiTb which lo assess ~c creti~ nsk of all its ban~; card applicanls. The probl~m fac2d by many financial ins~ ions is thal a si~rLifican~ num~er of bar~; card applican~s appro~,ed become 90 days pasl due in ~he firsl ru-o year5 or ~ven declare ban~;ruplc~. The financial i~C~inlrion is faced wi~h ~he choice of increasino the score required for approval or closel~ moni~oring dle approved applican~'s ~e of ~he bas~k card. Increa-cina Ihe score would resul~ in declining a large n~nber of Ihe applicams. 17~is choice ~~ould callse a lo~ of ~he pO~Cnlia[ cllc~om~ors ~o be driverl ~o ~he financial instiNtion's compe~i~ors. Moni~oring ~ie approvcd applican~'s use would require ani increase in ~he cos~ Io Ihe financial ins~i~ulion for mainl~nino the ban~; card.
Sumulan of the In~ention In accordance wi~h a broad7 gcncral fean~re of this inv~nliOn, a me~iod for ~ s~jsing credil risk and appararus adap~ed for pe.r~".i.ing the me~,iod i~ provided. Thie melhod ir,ivol~/es 2 ~ d~veloprrig a segmema~ion Iree, building a cuslom sco~ecar~i for each s~gm~nt teveloped by ~ie s~,~n~ ion ~ee, ~ouping applican~s into su~popi,la~ion~ coi~Tesponding ~o each segmient, and appl~,lu, ~he cus~on~i scorecard Io ~he applicants ~ithin Ihe corresponting se~snen~.
- Jan-25-99 02:04Pm From-HUNTON ~ WILLIA~S 2021782201 T-526 P 07/31 F-35~
The appara~; includ~i a c~n~l proc~ssor ~ iTh a dala ban~; into ~hich da~a i, ~iTl~n and firom ~hich dala is r~ad, a ~vo~k sla~ion ~or processino applicalions, and a corrun~nica~ions l for pr~ iding acc~ss ~o cen~ral p~oc~ssors ou~side the fir~n~;~l institL~tion.
Th~ m~hod lowers the risk of a financial ir~ liOn approving a poor risk application.
By d_~ eloping cllslom scorecarts for different sub-populPtions of applican~s7 a financial institu~ion is able to more accuraîely assess Ihe credi~ risk of each applic~ A c Is~om scorecard la~ nlO acco~ irlformaliOn ~hal ha; b~n del~rfnined 10 b~ Th~ mos~ r~lcvan~ for Ih~ applicants in ~ha~ ~popl~la~ion. This allo~s th~ financial jnClin~ion to ~Ise a scor~card desi~d for a paniclllar oroup of applicams based on tha~ groups ~endency lo bc a poor credi~ risk.
Use of an au~orna~d s~s~ern ~o implement ~ genera~ion of Ih~ cus~om scorecards and scorina ~he appiica~ions fiL~her lo~ers Ih~ cOsl ~o the financial insliru~ion of a~ssing crrdil nsk.
Automa~ion of the credi~ risl; ~ss~ssm~nT allows ~h~ fin~nri~l insIirulion lO guickly, effecti~ely, and inc.~ipensively proccss a larg~ n~rnb~r of applica~ions .~ orn~ion also allows accurale a;ics;rnenl of cach applicarion gcneraling r~liable uniformi~ ~o ~he proc~;s l~e method and appan~lus lower the ris}; ant cost to the financial institution in approving7 or d~nying ban}; card applic~lions.
Orher obj~cts and feanur~s of ~h~ invcn~lon will ~com~ apparen~ he descriplion p~OC~C~.-77 especially ~ hen ~al;en in conj~lncrion wi~h ~he arro~T~pAnyin~7 d~awino7s ill~slraling Ihe in~ntion, of which lhere are sev~n sh2e~s and Ihr~~. ~mbo~iTn~nrs 7,, Brief !~escription of the D-a~ in~s Fio7ure 1 illus~ra~s a scoreca~d segTn2nT~ion scheme according IO onc em~odimen~ of th~
in~ennon;
CA 02260348 1999-01-2~7 - Jan-25-99 02:û4Pm From-HUNTON L WILLIA~S 20277~2201 T-526 P.08/31 F-95~
Figur~ ~ illus~ es a segm~mation sch~m~ accordino ~o one embodimen~ of thc in~emion h i,lb-popullation ~oupin,s for a represenlative sample;
Fioure; ~ trale3 a segm~nlalion chart in--olving r el~e nodes incllldin~ sample da~a accor;~ino ~o a second cmbo~iim~n~ of ~he in~en~ion;
Fig~r~ 1 is a lable s~mm~rizina Ih~ sample resulls for a m~hod ~lrili7ing ei ,h s2gnlcnla~ion ~o-~ps according to one e~ odime-l~ of ~he inven~ion;
Fia~re ~ is a tabl~ illuslrating the credil bureau match rales for Ihe sampl~ analyzed accor~ling ~o one embodim~n~ of ~he inveMion;
Figus~ 6 illustrates a segrnen~ation scheme according lo a ~hird embo~limcn~ of ~he ' o inver,tion; and Figurc 7 illus~ a sc~m~n~ n schcm~ according to the third embod~ r-~ of th~
inV~n~iOn wilh su~population ~roupinoC for a represemalive s~nple.
De~ailed Descriplion of Preferred Embodimen~s ~ 11 of the appli~n~s who request bank cards ~e ~o~lp2d in~o a to~al popula~ion. The ~otal pop-~lalion is bro~;en down into se~.~n~c usin~ t ;~ rllr~ior~ rree. The Se~.C~lr~TiOn Ir~
~ener~ s a plur2LIiry of se nTs in~o which similarly sin2aled applica~ls can be &uu~d. Each O ;e~nlent of ~he se~ en~a~ion Iree defin2s a group based on infonnation related tO credi~ his~o~.
Sub-popula~ione of the applicams are defined based on Ihe segmen~s generated by t~
;egn~cntation tre~.
Fi~ure I illuslrales a Se~mentaliOntreel~ accordin~ lO one embodiment of Ihe invenlion.
c,r,l~nTalion ~ree 1~ brea~ do~n a tolal populalion 1~ inw ei~hl set~m2nl~ ~he se~nents ~; are gcnera~ed based on fo~r piec~s of credit history infon~alion. lbe se~nent~ti~n [re2 14 Jan-25-99 02:04Pm From-HUNTON ~ WILLIA~S 20277~2201 T-526 P 09/31 F-35 incl~ a firsl br~ch 16, a second branch 18, a ~urd branch ~0, a founh branch 72, a fi~h brarlch ~ d a ~ h branch 76.
Th~ first br~ch 16 is de~ ~loped ~sin~ Ihe amourlt of de~ail in ~he credit hls~o~. The firss ~rancl~ 16 crrates rwo ~ouping;, one ~roup creases a firs~ s~gment ~8 and a second aroup ;o con~inLes for ~nher se~nen~ion. The firsl s~ n~ ~8 defines a su~popL~lation ~ has a shin credi~ tile. .~ ~hin credi~ file encomr~sses creti~ his~ories of people ~ have no~ h~d a bar~; card or ~oo jhor~ of a credit hiss~ry. .~n applicant wish a thin file generall~ re~crs ~o an applicans ~i~h fe~er ~han three Iradej The group ;~ includes credi~ his~ories ~ith ~hick credit files. Thic~;
credis files rneans Ihe hislory has da~a on shr~e or more trades ' G nle second branch 18 fi~hcr se~nen~ gtoup 30. 1 1~ second branch 18 i5 dc-/clop~d usin~ ~he delinquency reporsed in ~he c~edit }~stosy. Tte second branch 18 creales n~o groupings ;~ a nt 3~ uhich are se~mrn~d ~her by the se~P~A~ion ~ree 1~ e gro~p 3~ includes cr~di~ his~ories ~ h no RC~nt delinquencies and only minor délinquencies in Ihe en~re history.
.~lino; delinq~enci~s ar~ wher2 ~he acco~nt ~ -as no~ 60 or more days drlinqLIen~. Recen~
delin~ encies are ones that occurred within ~e lasl si.Y mon~hs. ~he ~roup 34 in~lut~s cr~dit his~ones wilh rec~nt and/or scvert delinquencies. Applir~r~C wi~h no d~linq~enci~s or very old minor delinql~encies ~e generally ref~reed ~o a3 having a clean credit histor~. T hose wi~h lnod, qte or scvere and recem delinquenci~s are generally re~rred IO as havin, a di~y credi~
hislory. The s~veriry index used ~o de~e~mine ~vheth~r a cr~dil hislory is clean or dir~y is ~aken as 2C a combina~ion of severity a~d r~ctmness of ~h~ delinquenc~ Ln one ~mbotimenr. a clean crtti~
his~ol ~ ~ ould ha~ 3 severi~ index value smaller ~ fo lr.
Thc Ihird branch ~0 fiJrther segmems ~oup 3~. Thc ~hird branch '70 is de~feloped usino the b~; card utiliza~ion reponet in ~h~ credit hislory The ~ird bran~h ~0 creates three Jan-25-99 02:04Pm From-HUNTON L WILLIA~IS 2027782201 T-526 P 10/31 F-35 grouo" gs, one oroup defincs a second se~rnen~ ;6, on~ oroup d~fLnes a Ihird segm~n~ ;~ and Ih~
la3l d~;ines a gro-lp 40 ~ch is se~mented fi~her. The ~cond s~grnen~ ;6 defines a sub-pop,ll ",on ha- in~ cr~di~ hiil~nes with low bar~; card ulili~lion. Bar~; card utili~ion is a p~rc~nla~c ~f Ihe raliO of balance ~o limi~ on revolving and nalional ~rades. Low utilization for ~he sc~:ond se~n~nl ;6 is a ~ arion of 2~% or less. The ~hird segmenl ;8 defines a sub-populalion having credit hislories ~ ith medi~n ba~ card urili7~ion- Th~ mediurn urili~tion of ~hc ~hl~d scgmem ~8 is a u~ili2alion o~% ~o 70%. The g~o~lp ~0 includes cr~dil his~orics with hi~h b~ni; card u~ili2a~ion of at l~ 70%
~h~ founh branch 2~ fu~her seg2m~ms group 40. The four~h br~ch ~ is te~velopcd O L~ing ~he time span of ~he cr~dil hislory. The fo~r~ branch '~'7 cr~ares a four~h Se~l~nt 4') and a fifth sc~nen~ ~ The four~h se~ncnl ~ defines a sub-popul~-ion having credil hislones goir~o baci; More ~han ~en ~ears. Th~ fif~h se~ nl 4~ d~fines a su~popL~lation havir~g credi~ hislori~s goin~ bacl; t~n year~ or less. Applican~s with credi~ hislories tba~ span more than ~én y~ars aee aenel~lly r~ferr~d ~o as ha~ing old cr~di~ hislori~s and arplic~nrc ~ h credil hislories spannina i ~ ~en ~c~rs or less are o~n~rally referr~d ~o ~ havir~ new credi~ his~ories The fifth branch ~4 ~rther se~ments group ;~. The fifth branch 7S iS devcloped using Ih~ bc~; cart uliliation reponed in the credi~ hislory. Th~ fil~h branch 74 crea~es a si~c~h s~gmcnt 46 and a group ~8 which is segmen~ed funher. l~~ si~lh seamen~ S6 defines a sub-pop~ tion having cr~dil his~ories wilh low bas~lc card utilizalion of ~0% or less. The group 48 ~ inclu~ies credi~ his~ories wilh bar~; card u~ilizalion of grea~er ~han 40%.
11 e sixlh bra~ch '26 ~r~h~r se~mcn~s group S~. Thc si?~h brarlch 76 is developed using the ~l~n~ span of the credil histories. The si:cth branch ~6 creates a sevemh se~n~nl ~ and an ei~h~h segmcn~ ~2. The seve~h s2gment ~0 defines a sub-pop~lalion havino old cRdit his~ori~i Jan-25-~ 02:05Pm From-HUNTON & WILLIA~S 2027782201 T-526 P.11/31 F-358 spar~alno more ~han ten ~-~ars. l~c ei~h~h se~nen~ ;~ defines a su~population ha~ in~ new cr-dit histor~e~ spanrlino ~n years or less.
~ separa~e 3corecard ii de~ eloped for eac~ of th~ eigh~ s~ n~i d~fined by Ihe segmentaliOn ~ree 1~ Each scorecard can b~ dc~/~lopcd lo accuralely score simila~ly sin1,ated S appl iean~ in each of the ei,hl def~n~d s~b-pop~ tio~c~ As can be seen in fioure ~, each of the defill~d sub-populaTions has a differenl bad accoun~ pcrc~n.~ In adtilion, ~he cri~eria indic:~ino whelher an account is lil;ely lo bccorn~ bad ~aries from sub-populalion to sub-popula~ion.
In orter lo test the validiTy of Ihe defined sub-populatio~c, a r~ x,.lalive sample of pac~
0 appll~arl s ~~-er~ rescorcd wi~ ~he ne~ methodology and compar~d ~ilh ~heir ac~ual crcdil hislol y. Th~ ooal wa_ to ~SIiTn~ he probabiliry ~ha~ a~ account wo~ld be 90 or more da~s pa_t due in the firsl n o ~cars. Bad accounts we~e dcfined as aCcounls ~hal wer~ 90 or morc days past due ~nd Ih~ resl were ~ermed ,ood. Fi~ur~ ~ sho~ -s the brca~do~vn of ~he perc~nragc of ~he ;lmple ~ h ~ percen~aJe of accoun~s for each of Ihe ~i ,ht se~en~ de~eloped using Ihe i5 ,~ n~alion 1~.
Thetotalpopulation 1~ inrlu~l~d 100percentofther~ s~ ivesampleanthadafive percc~l~ b~d accolml rate. 1~ f~s~ segmcn~ ~8 in~lurl~ Ihe ponion of the sampl~ Iha~ had ~in credi~ filcs or no bankcarts. Il~is r~pr~s~n~ed 6.~ percent of Ihe lolal sample and ~he sub-pop~Jlarion defined by the segmen~ ~8 had a 6.7 percent bad accoum ra~e. ~e rest of ~e lolal 2~ popula~ion 1~ h ~hick c~eti~ files including ban~;cards ~vere placcd in th~ group 30. Those in grou~ ~0 were spli~ ne.~ inlO ~hc r-vo 7roups ;~ and ;~. This spli~ ~as based on Ihe severi~y and rece~Lne;s of any delinquencies. Group ~7 included Ihose applicams in ~he sample urilh Ihic~
credl~ filcs and no or old delinql-encirs (clean) in Iheir file hiswry. The group ~7jn Jan-25-~.P. 02 05Pm From-HUNTON ~ WILLIA~S 20277~2201 T-526 P 12/31 F-35 por~ioni ol ~he samplc ~ hic~; credil f~les and moderate or rec-n~ d~linquencic, (dir~y). Th~
pO~liOI~ of the lo~al populalion l~ that fit in~o ~roup ;~ ~Irere fi r~er split bas~d on ban~;card utilizanon Thc s_cond se~rnen~ ~6 defined a su~populalion of ~ne sarnple with Thick, cle~
credl~ rlles ~here the barlkcard u~ilization ~as 1~ percent or less. The su~popul~ion defined by lhe s2cond seom~n~ ~6 inclLlded 79.9 percent of ~he rc~.~se~ sarnple and had a 1.4 "ercenr bad ac~:oun~ rale. The ~hird se~T ~nr 38 d~fined a su~populaTion ~ilh thicl;, clcan cr~dil hislories and a barlkcard ~lTili~rion of ~5 to 70 perccn~. The sub-populalion defin~d b~ ~h~ ~hird ~egment ;~ incllJded 77.9 percent of ~he sarnple and had a 4 7 percem bad accoun~ ra~e.
The ~ro~p 40 inr~ r~l portiolls of ~he loul populalion 1~ hick, clean credi~ hislo ies 0 and a l~anL; ulili2alion of more Ihan 10 lxrCenl ~he group ~0 inclu~ed 1 1 .1 perceM of ~he r~prcjcntalive sarnple and had a 9 1 p~rcen~ bad accoum ralc. Based on Ih~ high ~a~e, she group ~0 ~aj filrther s~men~ed inlo Ih~ founh s~e~rnen~ 4~ and Ihe fif~h s~ n~ 4~ based on the ~im~
span o~ rhe credil his~ory. The old credi~ hislories (more ~han lO !e~s) ~here grouped in Ihe ~our~ e~Tnenl ~ and ~h~ n~w cr~di~ hislones (lO ~eals or less repor~ h~re grouped in ~he f~f~h Se~m~nl ~.
The ,roup 3 l ;r~cllld~ Ihos~ m~ml~trs of Ihe s~nple wi~h thick. dirry credi~ his~ories.
Th~ gr~up; 1 waS also split based on banl;cart usilizalion. The si.YIh sesm~em ~6 defined a sub-popula~ion ~i~h shic~;, di~y credit hislories and a banl~card uTi~ rion of ~0 p~rcent or less. The si.~rh ~c3menl 16 included 13.4 percenr of ~hc sample and had a ~.l percenl W accounr rare.
'' The aroup 18 included ~hose rn~nlkrs of the ~oral popularion l~ h ~hic~;. dir~y credit his~ories and a t~ kc3,rd urili~rion of 41 p~rcenl or çrealer. The group 48 ~~a~ splil fi~nher based on ~he lim~ i~;an of Ihe cr~dil histories. A seven~h seornen~ jO incl~ed Ihos~ memb~rs of ~h~
pop~la~lon 1~ hick, dLrly cr~dil files and ban~;c~d uTili7~rion of 4 l percent or higher wi~h Jan-25-99 02:05Pm From-HUNTON ~ WILLIA~S 20277~2201 T-526 P.13/31 F-358 old crclit historie,. 1~ seventh segmen~ ~0 included 4.6 percenl of ~he 5ample and had a 9.~
perc~rl~ bad accoun~ rale. The eigh~h se~rnen~ ~ included ~hose members of Ihe ~o~al popllla~ion h thic~;, dirt~ credi~ his~ori~s and ~ I percem or greater bankcard u~ilizalion ~ h ~ ne~
credit hlslory. The ei~hlh segrnenl ~ included 6.~ p~rcen~ of ~he sample and had a l7.8 percent bad a~:~ounl ra~e.
Fig~re 1 shows a brea~;down of the eigh~ defintd su~popul~ion~ wilh ~he nuu~ber g~d and ~hc number bad from ~he rcpreserl~a~i-e s~unple. A scor~card for each of the ei~h~ sub-popul~ons was developed ~;jna into accoun~ ~he lil;elihood an accoun~ ~ollld ever b~ 90 da~s or more pas~ due. The scorecards ~rere developed usino Ihe cri~ria v~lirl?te(l with he sampl~
O popula~ion. Each scorecard was lsilored lo accuratelv anal~sis Iht members in The sub-pop~ ion lo ~-hich i~ perlained.
~ 'exl, the sasnple population was analyzed Lsing the ne~ly crealed scoRcards .~ ~esT n-n of the sys~cm ~as conduc~ed lo indical~ which of the sarnpl~ popul~rion applica~ions ~ ould k acc~y~cd ard ~hich would bc rejecled. Th~ applicaiions rejecled ~-ere ~he ones Ihat ~he scorecard : 5 indic~ d ~o~ld li~;ely be 90 days or more pa~l du~ e credit bur~a-l files were Ihen analyz~d lo de~ermine th~ acrual credit hislory of Ihe s~unpl~ popula~ion ~o dc~ermine Ihc accurac~ of Ih~
jcore;~rds. ~i~ure ~ sum~ar.iz~s ~h~ credi~ b~ a ~ ch ra~- for ~he sampl~ popula~ion scor~t bv ~h~ custom scorecards.
Fi~re 3 illustra~es a sccond embodim~nl according ~o ~h~ in~en~ion using a cl~isificalion O and t~ression ~ree (CART) 100 ~o breal; a lolal popula~ion I l ~ in~o su~-pop~ 7inn~ o~ nodes.
The C ~RT 100 includes 1~ nod~s. As Ih~ ~o~al pop~lalion is di~ided, s~para~c sub-popul~ionj or gro.lps ar~ defined. Each nod~ defin~s a sub-population and each ~roup is fi~her divid~d by Ihe C-~RT 100.
Jan-25-~ 02:06Pm From-HUNTON ~ WILLIA~IS 2027782201 T-526 P 14/31 F-35~
_ Th~ ~o~al populalion I 1~ is firs~ ipli~ by determinino ~helher th~ credi~ his~ory ha~ a sa~i;F_~-tory cradc ra~io. Th~ first nodc 11 1 defines a sub-popula~ion ~rith a Ic,s Ihan 71 pCrCenl ;ali;t..~ory crade ra~io. The po~ion of ~he to~al pop~lalion l 1~ h a grea~2r than 71 perc~nl sa~isth-ror~ ~rade ratio are incl-lded in group 116. Group 116 is fur~her broken do~ into n~o oroup, 1 18 and l~O based on bar~;card u~ili7~ion Those members of group 1 16 wi~h a bar~;c;~rd u~ili7~rion of less ~han 40 percen~ arc included in ~,roup 118 Thos~ members o~ group 116 ~-ith a banl;card u~ilization grea~er ~han 40 percen~ a~e includcd in group 1~0~
Group 1 18 i~ f~nher divided based on the number of banl;cards currently reporTed as ac~ in lhe credit hisw~. ~ second node 1'~ dcfin~s a s~b-pop~ rion ~th a greatcr ~han 71 3 pcrcrn~ ~icfac~ory tradc raliO, less Ihan 40 pcrcerll banl;card utiliza~ion, ant no currenlly ac~ive ban~ rds Thc group 1~1 includes thc r~m~i~tina memb~rs ofthe group 118. The arol-p 1~1 inclu~lcs m~mbers of 118 ~ h a~ leasI one cu~renlly aclive banl;card in the~r credil hs~or~
aro~p 1~4 is fiar~her di~id~d based on ~e dclin4uency sevent~ and r~cen~n~ss A Ihird node 1~6 defines a sub-pop~la~ion ~ h a grea~er Ihan 71 percenI Irade ra~io, less i ~ Ih~ ~l~ perc~n~ bar~;card u~ ion a~ Icasl one currently acIive banl;c~rd, and no se~1ere or recen~ delinquencies. A group 128 in~ hc rem~ d~r of Ihe aroup 1'~1 w}~ch bave one or morc ;ever~ or recen~ delinqu~ncies.
Group 1~8 is fiurlher di~ ided based on Ihc nu~nber of d21inq~lencies for every ~0 trades. A, foun~, node 130 defines a su~popula~ion having a saIisfac~ory ~rade ~tio grea~r ~han 71 percenl, ss ~han 40 ba~l;card ~lrili7~ion~ one or more c~ rrently acliv~ bankcarts, a~ leasl one recen~ or s~--erc delinquency, and onc or less delinquencv ~v~ 0 ~rades. A fifth node I ;~ d~fines a sub-pop-lla~ion ~vith a ,realcr ~han 71 percenI sa~isfacIory ~rade ratio~ l~ss ~ 0 perccm banl;card Jan-25-99 02:06Pm From-HUNTON L WILLIA~IS 2027782201 T-526 P.15/31 F-35~
~ ilizalio;l, a~ leas~ on~ currenIly ac~ive ban~;card, one or more recen~ or se~ere delinquerlciei, ~d ~o or laore delinquencies c~-ery 30 lrades.
I~c ~o~p 1~0 includei ~he ponion of ~he toral pop~llalion I I ~ ~ha~ has a ,r~alcr Ihan 11 perc~n~ ~atisfaclory trade raliO and a greaIer ~han 40 percem bar~;card ~liliza~ion. The grollp l ~0 is divided inlo r ~o groups 134 and 1;6 based on the ume span of Ihe credit his~ory. l~e group 1;~ includes ~hoS2 members of group l~0 that have l9~ or less months reported in ~heir crcdi~
hislor~ l~e ~ro~p l~6 includes n~embers of the ~oup l ~0 ~ ilh l 93 or mor~ mond~s repon~d in ~h~ crc;lll hislor~.
I h~ oroup 1;6 is fi~her divided based on the r~~n~n~Cs ~d se~erily of telinquencies 0 ~epor~ed in ~he credi~ his~ory. A si.YIh node 138 defines a su~popula~ion wilh a grea~er than 7 l p~rcel~ sa~isfactory rrade ratio, g~ea~er than 40 percem bar~kcard u~ilizalion, 193 or mor~ mon~hs report~d in Ihe cr~dil histor~, and a n~o or less seven~y inde.~. A sevenlh node 110 defines a su~
papulation of the tolal popul~Tion 117 ~ilh a grea~er ~han 7l p~rc~nr salisfac~ory llade ratio7 arealcl Ih~n ~0 percen~ curren~ u~ilizalion, 193 or more months reponed in Ihe credi~ his~orS, and i ~ a sev~r1~ ind~:< of more Ihan n,~o.
~ he grollp 1;4 is divided b~;ed on banlcca~d uliJiza~ion An eighth node 147 defincs membcrs of to~al population 117 ~vilh greater ~han 71 perc~m salisfa~ory srate ratio, grea~er Ih3n ~0 per;~nt ban~;card u~ilizalion~ 197 or less monlhs reporred in thr hisso~, and grea~r ~an 7û
perc~n~ bankcard Illilization The aroup 1~ includes those members of g.roup 131 ui~h less ~han '' 70 p~r.en~ bankcard miliz~ion. n~ercfore, aroup 1~4 is ~oina lo includc credit histories ~~ilh a bar~;c~rd !lTili7~rion b~ween 40 and 70 percenl.
The oroup 141 is fi~rlher divided based orl ~he severily and recenrnrs~ of delinquencies reporl~d in ~he creti~ history. A ninth node defines a su~population having a greaTer Ihan 71 Jan-25-99 02:06Pm From-HUNTON ~ WILLIAUS 20277~2201 T-526 P 16/31 F-358 perc~n~ isfactory ~rade raliO, greal-r ~han 40 percen~ ban~;card u~ili2alion, less ~an l 9~ mon~hs r~por~c~ le,s Ihan 70 percent bankcard u~ ion and a severi~ indc~c of more ~han ~hree. A
~rou? 1~8 lnclud~s l~.osc m~mbers of ~h- oroup l$~ havino a se~ri~y inde.Y of Ihree or l~sj T~ group 118 is dividcd fi~nher b~ed on ~he Timesp~n of l~h~ reponed credi~ hislory. A
~mh nod~ l ~0 define~ ~n~mh~rs of ~he ~otal population l 17 ~ ilh a 71 percent or gr~aler sa~is~ tory ~ate ralio, a baru~;card ulili7~ior~ w~n 40 ~d 70 percenl7 a severi~y index of ~hrce or less, and less ~han 170 momhs r~pon~d in ~he credll his~ory. ~ grO-lp l ~2 includes Ih~
membcrs of Ihe ,roup 118 wilh ~reat~ than l 70 mon~ reporLed in Ihe ctedit hislot~. rne group l ~2 ~heKfore includ~s members of the lo~al population wi~h a c~tjSf~rrnry ~rade ra~io of grea~er han / I percenI, bar~;card u~ 7~ion ber~een 40 and 70 perc~n~7 and a crediI hisIory grea~r ~han 170 nlonths bUI 19'7 or less mon hs repo~2d The ~oup I ~ is splil imo an el~venth node I ~ 1 and a t velf~h node l S6. The el~ven~h node l ~1 includcs m~mbers of Ihe group 1~7 wilh a banl;card u~ili7~ion ~erwe2n S0 and 6;
pcrcc,lt. Th~ elf~h node 1~6 includ-s members of ~he ~roup 1~7 ~ 'ilh a ban~card utilization gr~a;cr Ihan 63 perc~nt but less ~han 70 percent.
Figur~ 6 illu;~ es a segmentation ~ree ~ l ~ accordino ~o a ~hird embodimenI of ~e in~el1non. The s~ ~ n enra~ion ~re~ ~ 1 1 breal;s doun a Iolal populalion 71 7 into se~en se~n~nr~.
The ~c~ments ar~ g~neral~d based on thre~ pieces of credil hislory inforrnalion. The segnlcn~aIion ~ree ~1~ includes a firs~ b~nch 716, a second branch ~18, a Ihird branch ~ 70, and a ' fourlh br~ch ~
nl~ firs~ branch ~ l 6 is developet usin, Ihe arnoun~ of detail in Ihe credir hisIo~y. The filrsl ~ranch ~ l 6 crea~e~ n o gro~rin~s, one group creaIes a firsl segm~n~ and a second group ~6 con~in~l~s for fiurther se~"~nr~ion. l~e firs~ sc~ .,t ~4 defines a s-lb-population ~ha~ has Jan-25-99 02:06Pm From-HUNTON L WILLIA~S 20211~2201 T-526 P.11/31 F-358 a ~hin c.~di~ Ille~ hin cr~dil file ~nComr~cses cr~di~ hii~ories of people Iha~ hav~ not had a ba~ c rd or ~oo shorl o~ a crcdil hi;lory. .~n applicam w~th a ~hin f~le .,enerally r~ers lo an applic~lm ~ e-~er Ihan three Irade, Th~ oroup ~76 includcs cr~dil hislories w~th -.hick cRd fil~s. I hick credi~ files means ~he history has dala on Ihree or ~nore Irades.
The second branch 7 18 fi~rther se~n~nts group ~6. Ihc s~cond branch '~1~ is developed usino ~~e delinquency rcpol ~et in the cr~di~ hislor~. The second branch ~18 cr~ales ~o ~rouplllgs 7 7 8 and ~;0 which are s~ nted fur~h~r by Ih~ seomen~Tion Iree 7 1 ~. The group 2~8 in~lud~s credi~ hislories ~ ith no recen~ delinquencies and only minor delinquencies in Ihe entire hislory ;~inor delinquenci~s are ~ h~r~ the accoun~ ~s no~ 60 or more days d~linquen~.
O ~c~n~ dclinqLIencies arc on~s Ihal occurrcd within the lai~ si:c month~ group ~30 includcs credi~ t~istorics ~ h recent andlor SCVeR delinql~encies. Applir~n~c with no delinquencics or very old rninor delinq~lencie~ are gener,ally refereed ~o ai havina a clean crcdil his~oly. Those h ~noderal~ or scv~re and ~cen~ delinquencies are generally referred ~o ~c havin, a dirTy cr~di~
histor~ e sev~ y inde:c ui~d to delerrnine whelher a credi~ hislory is clean or di~y is ~;en as . _ a comt,~narion of s~verir~ and reC~nln~cc of rh~ delin4uenc,v. In one embodim~n~, a clean credi~
his~or~ ~-ould have a severi~y indeY va~ue smaller ~an four The third branch '~0 fimher segrnen~C ~oup ~8 ~ased on the ra~c of acc~mL~ ino re~ol~ lno debt. The ~hird branch ~0 is d~veloped ~Isino thc revol~in, balance accel~ralion rcponcd in ~he crcdi~ h-s~or~ e third branch '~0 cr~a~es ~hree ,~roupings~ C)ne gro~pino d~fincj a second segrn~n~ ~J~, one grouping defin~; a ~hird s~_m~nt ~3~, and anolher groupina defin i a founh segment ~36 ll~e second sc~menr 73~ dcfines a sub-population having credi his~orl~s ~vi~h lo-v revolvin, balance acceleralion. Re~rol- ing balanc~ acceleralion is a dollar fi,ur~ calculale~ by taLcino Ih~ ~olal currcn~ revolvin, balance shD~ ~ in a cr~til hislo~ and Jan-25-99 02:07Pm From-HUNTON ~ WILLIA~S 2027782201 T-526 P 1~/31 F-35~
_ di~ n~ th3~ ~otal by ~h~ nurnb~r of months Ihe credi~ hislory has becn on file wilh ~he credil bureal. The lo~ r~volvino bal~ce ~ccel~ra~ion for Ihe second s~n~nr 7~2 ii an acceleralion ot S~j ~J~ I~;s rhe Ihird segm-nl ~3~ dcfin~s a su~pop~ ion having credi~ hislories Wilh m~diurn r~ol ~ -ng balance accclera ion nle mediurn acceleralion of Ihe third segm~nt ~34 is an acc~lc ra~ion of S~ 6 IO S 13 ~ four~h s~.e..t '~36 defines a sub-pop~lalion havin_ credit nis~o~ ies wilh hi~h revolvin, balance acc~leralion lbe high accel~ra~ion of ~he fou~h segn~cnt 2~6 ij an scc~ ion of gr~al~r than S 13~.
1~ e four~h branch 222 fiLrlher s~gmems group 230. The fourth bra~ch 22~ is d~veloped usin~, ~h~ revol~in, balance accelera~ion .~poned ul dle credi~ his~ory The third branch cre3~c~ Ihrcc groupinos. On~ ~roupina defines a fif~h se~7nen~ 2~8, one ~roupin~7 d~finej a si.
segmcnI ~0, and ano~h~r groupin, dcfines a se~enlh s~rn~n~ ~2. l~c fifi h segmc-n~ 2;8 defincj a sut~populaTion having credi~ his~orie~s wi~h low revolving balance accelera~ion. Thc lo~v rc~ol~, ing balance acceleration for ~h~ fif~h s~grnent ~38 is an accel~.~,tion of S~0 or less The s,~th seomen~ 740 dcfinc; a sub-popula~ion havin~o credi~ his~ories ~ ilh mcdi~rn revolving balan~c acceleraIion. Th~ medillm acceleR71ion of 1he si.YIh segm~nl ~o is an accel~ration of S40 IO Sl 10. The sev~nlh Scgrncnl ~1~ defules a su~population havino credit his~ories wi~h hi~h rcvolvin, bala~ce accclcralion. The high acc~leration of ~hc s~vcnth s~om~nT ~4~ is an accelclation of reaI~r Ihan Sl 10.
A separa~c sco.e~d is de~r~lopcd for each of Ihe seven segrncnts defined b~ ~h~
se~mcn~a~ior~ 2 ~14. Each scorec~d can be de~/eloped to acc~ely scor~ similarly si~Ted applic~s in each of Ih2 seYen defin~d sub-pop~lla~ions ~s can b~ seen in figure 67 ~ach of Ihe deI;nc~ sllb-pop~ Tion~ has dif~renl charac~ri~ics. In atdi~ion7 ~h~ critena in~ir~ino whe~h~r , Jan-25-9~ 02:07Pm From-HUNTON L WILLIA~S 2021782201 T-526 P.19/31 F-35 an acccleration i; low, medium, or ~oh van~s fiom sub-pop~llation ~o ;ub-popula~ion as shou b~ s~g~ nls ~ )7 ~1 artd ~6 ~ersus i~gmen~s 738~ ~0, and ~
.~ icp~ale scorecard i; de~ eloped for each of Ihe sev~n sc~en~, derJned by the se~mcl~lalion tree ~14. Each scorecard can be developed ~o accurately score similarl~ sirua~ed S applican~s in each o~ the seven defined sub-popul~ri~-ns. As can be scen in fioure 7, each of ~he define~l ;u~popul~ior.c has a differem bad accoun~ p~rcen~ . In addi~ion, ~he cnteria indicaung ~he~er an accoum is lil;el~ ~o become bad vancs from sl-b-populaIion ~o S
popul~ion.
lrl order ~o test ~he validi~y of ~e defined s~ pop~ tion~, a .ct"~ e sample of pas~
10 applic ~r~ r~ rescored wi~h ~he new melhodolo~ and compared w~lh Iheir acrual credit hisIor~ The goal w~ to est~ he probabiliry tha~ an accounl uould be 90 or more days pasl due in ~h~ firs~ ~u-o years. Bad ~rCo!~nSc were definet as accoun~s Ihal were 90 or more days p~t due an~ Ihe reSI ~ ere termed good. ~i~ure 1 sho~ s Ihe breakdo--~n of rhe p~ercens~e of lhe 5~1pl~-ilh ~he percen~age of accounls for each of Ihe se~en segments developrd using Ihc 5 se,m~ alion 71~
The loIal popl laIioQ ~1~ inclllted l O0 perc~n~ of Ihe ~ ,uui~e sample and was Splil inlO Ihe firs~ segmeM 77~ d Ihe group 776. l~lc firsl se~nr ~7~ included ~he por~ion of ~he sarnpk ~hat had Ihin ~redil files or no ban};cards. This ,e~"esen~ed ~7.6 percen~ ofth~ wlal ;ampk and ~he su~populalion defined b~ ~he segment 77;~ had a 7.83 percen~ bad accoun~ rale.
2 0 The rcj~ of ~hc ~olal popul~Sion ~ h ~ic~ credi~ fil~s includino ~ ;cards ~~ere placed in the group '76.
Tho;e in gro~p 7~6 were splil ne.~ in~o ~he rwo ~roup; )78and ~30. ~is spli~ ~as b~d on ~hc se~eri~y and recP~tness of any delinque~ciei. Group 778 incll~ded those applicants in Ih2 Jan-25-99 02:07pm From-HUNTON L WILLIA~S 2021782201 T-526 P.20/31 F-35~
s~n~,le ~ hic~; cr~dil file3 and no or old delinquencic3 (clean) in ~hcir l~le hi;~or~. The ~ro~ p ~30 iilcluded portions of ~he sarnple ~ hic~; credit files and modera~e or recen~ dclin~uenci~;
(dim ) rh~ porlion of Ihe ~olal populalion 717 ~hal fil inlo group ~8 ~r~ fiurlher split based on re~ol \. ing balance acc~leration. T~e secorld se~ne-lt 732 defined 8 sub-popula~ion of th~ samplc ~ ilh thick, cl~an cr~tit file~ ~ here ~he r~volving balar~ce accel~ra~ion was S3~ or less. l'he sl~b-popu~ ion defined by ~he second segn~enl 7~7 includcd 9.9 p~rCenl of Ihe representati~e sarnpl~
and ~ d a 0 37 percent bad acco~ e. The Ihird se~n~n~ 7;4 defined a sub-pop~llalion with ~hic~;. clean credi~ hislories and a reYolvino balaslce acceleration of S36 lo 51~;. The su~
pOpu~liorl defined by ~c ~hird segrnen~ 7i~ included 17.4 p~rcen~ of the sarnple and had a 1.0 perceu~ bad acco~nt rale. I~e fourth se~nent ~6 defined a su~populalion w~lh Ihick7 clcan credi~ hislories snd a revolvirl~ balance accelera~ion of more Ihan Sl3;. Th~ s~ popula~ion d~finct by the ~ounh seoTrlPnr ~;6 included 6.1 percent of ~he sarnple and had a 2.7~ p~rcem bad acco-ull ralc.
e pO~ion of the lol;al popula~ion ~1~ Iha~ fi~ in~o group ~ er~ fiurther splil bas~d on rc~, ol~ ing balance acc~leration. l~e fi~h se~T cnr ~8 tefined a sub-pop~lla~ion of Ihe sarnpl~
h Lhick, dir~ crcdi~ fil~s wh~re Ihe re~,olvirlg balanc~ accel~ralion was ~40 or less. l~e su~
populalion defined by Ihe fifch s~orn~nl ~8 includ~d ~.9 p~rcent of ~he represenlati~e sampl~
and hJd a 1.i1 perc~n~ bad account rale. The si~clh segm~n~ ~û d~fined a su~popula~ion with ~ ~ ~hicl~ Y credit hislori~s and a r~ol~-ing balance acceleration of S~ I IO S I l 0. The sub-popul~lion defined by the sixlh s~ nt ~10 included 1;.~ percen~ of ~he sarnple and had a ~.9 perccnt bad accoL~nr ra~e. The seven~h scgrnent ~4~ defined a su~pop-llalion wi~h Ihic~;, dirr~
credil hisrories and a revol~rino bala~c~ acceleralion of more than S 1 10. lbe sub-pop~l~rion Jan-25-99 02:07Pm From-HUNTON 8 WILLIAUS 20271~2201 T-526 P 21/3t F-358 .
def,ne" b~ ~he s~en~h icgment ~4~ included 9.~ pcrcen~ of the ,arnple and had a 3 . j~ pcrcen bad account ra~e.
~ ile ~~ ha~e ll~usr~a~d and described pr~ferred ~mbodin-ems o. my inV~nliOn,it is underc l~)od tha~ they are capabl~ of modificalion ar~d ~ ~herefore do no~ ~ish ~o b~ limitet w th~
precijc de~ails se~ forth, bul desire to avo~v myself of such ch~n~s and al~erauons as fall witbir~
~h~ p~lr~ iew of ~he following claims.
_ Field of the InveD~io~
..
Th~ in~/~nlion r~lates lo a melhod an~ apparan~7 for ass~ssing ~he credi~ risL; of banl; card applicqnts. Specifically, th~ rnethod and appararus rela~c ~o de~/eloping a scgn.~n~ion tree to groL5~ bank card applicants inlo similar sub-pop~ .ions and then bl~ildino a custom sco~cald for each .~f the su~popularions.
Bac~ioround of the Invention lndivit-lals see};ing ~anl; cards from a fin~ l ins~ tion typicall~ fill ou~ applications pro~"~ling infonnation an~ re~s~ino a bar~; card Fin~ncial in~ u~ions lcnd credil ~o indi~dduals based on ~h~ inforrnalion pro~ided in the applica~ions and ~heir credil history. The financial ins~ ion review~7 the ~rplir~rion providet b~ ~he applicanl and r~vie~-C7 Ihe app~ican~7s cr~dlr histor~ goal of ~h~ fin~nri~l ins~ ion is w asses ~hc credi~ ris~; of each individ banl; .ard applicanl so Ihe~ ~~ill nol e end credit ~o an individual ~ha~ is a poor cr~dil risl;.
To ass~ss t~e credi~ risl; of eacb individual, Ihe financial institulion will develop a scor~
for each applican~ based on cer~ain information. The applican~ rec~ives points for each il~m o~
ir~fomlation analyzet b~ fimancial ins~ isn. ~e arnount of poin~; a~varded for ~ach i~em, ~he ilcms acnlally ar~aly~ed, and ~he scores nece~s~ry for appro~/al vary from financial instinl~ion 2~ to fin;~ncial insb~u~ion.
ln toda~'s marke~, financial insrirulioni are approving more and more b~; card~ and are e.~pe~ l~ncing incr~ased compelition from o~her financisl ins~ ions for rhe applican~s. Financial inslitutiOns ~ -ould a~n~rall~ ,orant the applican~ a banl; card pro~ided ~he applican~ has an accep~ble sourc~ of income ~d is no~ 1~0 days or more past due ~i~h another acconn~.
Jan-25-99 02:03Pm From-HUNTON L WILLIA~IS 2027782201 T-526 P 06/31 F-35 -I he decision ~o approv e or ~n~ ~he applicant's r~qu~s; t'Or a barL~; card wa~ b~d on 2 ;corin~, ;ystem. The financial in;~ ion àcored ~ach ban}; card app~ican~ ba,~d on source and 1 ot income as w~ll as ~vh~lh2r Ih~ applicant ~ cv~r I~û da~s pasl du~. Th~ sconn ~ sysr~m us~d t~. e~aluale each applican~ and the minim~n score r~quired for approval was applied unifor~nly by a fin~n~ ins~ ion lo all i~s 8ppliCarll~. Each u~s~ ion had a single sco~ecard and apF~roval score wiTb which lo assess ~c creti~ nsk of all its ban~; card applicanls. The probl~m fac2d by many financial ins~ ions is thal a si~rLifican~ num~er of bar~; card applican~s appro~,ed become 90 days pasl due in ~he firsl ru-o year5 or ~ven declare ban~;ruplc~. The financial i~C~inlrion is faced wi~h ~he choice of increasino the score required for approval or closel~ moni~oring dle approved applican~'s ~e of ~he bas~k card. Increa-cina Ihe score would resul~ in declining a large n~nber of Ihe applicams. 17~is choice ~~ould callse a lo~ of ~he pO~Cnlia[ cllc~om~ors ~o be driverl ~o ~he financial instiNtion's compe~i~ors. Moni~oring ~ie approvcd applican~'s use would require ani increase in ~he cos~ Io Ihe financial ins~i~ulion for mainl~nino the ban~; card.
Sumulan of the In~ention In accordance wi~h a broad7 gcncral fean~re of this inv~nliOn, a me~iod for ~ s~jsing credil risk and appararus adap~ed for pe.r~".i.ing the me~,iod i~ provided. Thie melhod ir,ivol~/es 2 ~ d~veloprrig a segmema~ion Iree, building a cuslom sco~ecar~i for each s~gm~nt teveloped by ~ie s~,~n~ ion ~ee, ~ouping applican~s into su~popi,la~ion~ coi~Tesponding ~o each segmient, and appl~,lu, ~he cus~on~i scorecard Io ~he applicants ~ithin Ihe corresponting se~snen~.
- Jan-25-99 02:04Pm From-HUNTON ~ WILLIA~S 2021782201 T-526 P 07/31 F-35~
The appara~; includ~i a c~n~l proc~ssor ~ iTh a dala ban~; into ~hich da~a i, ~iTl~n and firom ~hich dala is r~ad, a ~vo~k sla~ion ~or processino applicalions, and a corrun~nica~ions l for pr~ iding acc~ss ~o cen~ral p~oc~ssors ou~side the fir~n~;~l institL~tion.
Th~ m~hod lowers the risk of a financial ir~ liOn approving a poor risk application.
By d_~ eloping cllslom scorecarts for different sub-populPtions of applican~s7 a financial institu~ion is able to more accuraîely assess Ihe credi~ risk of each applic~ A c Is~om scorecard la~ nlO acco~ irlformaliOn ~hal ha; b~n del~rfnined 10 b~ Th~ mos~ r~lcvan~ for Ih~ applicants in ~ha~ ~popl~la~ion. This allo~s th~ financial jnClin~ion to ~Ise a scor~card desi~d for a paniclllar oroup of applicams based on tha~ groups ~endency lo bc a poor credi~ risk.
Use of an au~orna~d s~s~ern ~o implement ~ genera~ion of Ih~ cus~om scorecards and scorina ~he appiica~ions fiL~her lo~ers Ih~ cOsl ~o the financial insliru~ion of a~ssing crrdil nsk.
Automa~ion of the credi~ risl; ~ss~ssm~nT allows ~h~ fin~nri~l insIirulion lO guickly, effecti~ely, and inc.~ipensively proccss a larg~ n~rnb~r of applica~ions .~ orn~ion also allows accurale a;ics;rnenl of cach applicarion gcneraling r~liable uniformi~ ~o ~he proc~;s l~e method and appan~lus lower the ris}; ant cost to the financial institution in approving7 or d~nying ban}; card applic~lions.
Orher obj~cts and feanur~s of ~h~ invcn~lon will ~com~ apparen~ he descriplion p~OC~C~.-77 especially ~ hen ~al;en in conj~lncrion wi~h ~he arro~T~pAnyin~7 d~awino7s ill~slraling Ihe in~ntion, of which lhere are sev~n sh2e~s and Ihr~~. ~mbo~iTn~nrs 7,, Brief !~escription of the D-a~ in~s Fio7ure 1 illus~ra~s a scoreca~d segTn2nT~ion scheme according IO onc em~odimen~ of th~
in~ennon;
CA 02260348 1999-01-2~7 - Jan-25-99 02:û4Pm From-HUNTON L WILLIA~S 20277~2201 T-526 P.08/31 F-95~
Figur~ ~ illus~ es a segm~mation sch~m~ accordino ~o one embodimen~ of thc in~emion h i,lb-popullation ~oupin,s for a represenlative sample;
Fioure; ~ trale3 a segm~nlalion chart in--olving r el~e nodes incllldin~ sample da~a accor;~ino ~o a second cmbo~iim~n~ of ~he in~en~ion;
Fig~r~ 1 is a lable s~mm~rizina Ih~ sample resulls for a m~hod ~lrili7ing ei ,h s2gnlcnla~ion ~o-~ps according to one e~ odime-l~ of ~he inven~ion;
Fia~re ~ is a tabl~ illuslrating the credil bureau match rales for Ihe sampl~ analyzed accor~ling ~o one embodim~n~ of ~he inveMion;
Figus~ 6 illustrates a segrnen~ation scheme according lo a ~hird embo~limcn~ of ~he ' o inver,tion; and Figurc 7 illus~ a sc~m~n~ n schcm~ according to the third embod~ r-~ of th~
inV~n~iOn wilh su~population ~roupinoC for a represemalive s~nple.
De~ailed Descriplion of Preferred Embodimen~s ~ 11 of the appli~n~s who request bank cards ~e ~o~lp2d in~o a to~al popula~ion. The ~otal pop-~lalion is bro~;en down into se~.~n~c usin~ t ;~ rllr~ior~ rree. The Se~.C~lr~TiOn Ir~
~ener~ s a plur2LIiry of se nTs in~o which similarly sin2aled applica~ls can be &uu~d. Each O ;e~nlent of ~he se~ en~a~ion Iree defin2s a group based on infonnation related tO credi~ his~o~.
Sub-popula~ione of the applicams are defined based on Ihe segmen~s generated by t~
;egn~cntation tre~.
Fi~ure I illuslrales a Se~mentaliOntreel~ accordin~ lO one embodiment of Ihe invenlion.
c,r,l~nTalion ~ree 1~ brea~ do~n a tolal populalion 1~ inw ei~hl set~m2nl~ ~he se~nents ~; are gcnera~ed based on fo~r piec~s of credit history infon~alion. lbe se~nent~ti~n [re2 14 Jan-25-99 02:04Pm From-HUNTON ~ WILLIA~S 20277~2201 T-526 P 09/31 F-35 incl~ a firsl br~ch 16, a second branch 18, a ~urd branch ~0, a founh branch 72, a fi~h brarlch ~ d a ~ h branch 76.
Th~ first br~ch 16 is de~ ~loped ~sin~ Ihe amourlt of de~ail in ~he credit hls~o~. The firss ~rancl~ 16 crrates rwo ~ouping;, one ~roup creases a firs~ s~gment ~8 and a second aroup ;o con~inLes for ~nher se~nen~ion. The firsl s~ n~ ~8 defines a su~popL~lation ~ has a shin credi~ tile. .~ ~hin credi~ file encomr~sses creti~ his~ories of people ~ have no~ h~d a bar~; card or ~oo jhor~ of a credit hiss~ry. .~n applicant wish a thin file generall~ re~crs ~o an applicans ~i~h fe~er ~han three Iradej The group ;~ includes credi~ his~ories ~ith ~hick credit files. Thic~;
credis files rneans Ihe hislory has da~a on shr~e or more trades ' G nle second branch 18 fi~hcr se~nen~ gtoup 30. 1 1~ second branch 18 i5 dc-/clop~d usin~ ~he delinquency reporsed in ~he c~edit }~stosy. Tte second branch 18 creales n~o groupings ;~ a nt 3~ uhich are se~mrn~d ~her by the se~P~A~ion ~ree 1~ e gro~p 3~ includes cr~di~ his~ories ~ h no RC~nt delinquencies and only minor délinquencies in Ihe en~re history.
.~lino; delinq~enci~s ar~ wher2 ~he acco~nt ~ -as no~ 60 or more days drlinqLIen~. Recen~
delin~ encies are ones that occurred within ~e lasl si.Y mon~hs. ~he ~roup 34 in~lut~s cr~dit his~ones wilh rec~nt and/or scvert delinquencies. Applir~r~C wi~h no d~linq~enci~s or very old minor delinql~encies ~e generally ref~reed ~o a3 having a clean credit histor~. T hose wi~h lnod, qte or scvere and recem delinquenci~s are generally re~rred IO as havin, a di~y credi~
hislory. The s~veriry index used ~o de~e~mine ~vheth~r a cr~dil hislory is clean or dir~y is ~aken as 2C a combina~ion of severity a~d r~ctmness of ~h~ delinquenc~ Ln one ~mbotimenr. a clean crtti~
his~ol ~ ~ ould ha~ 3 severi~ index value smaller ~ fo lr.
Thc Ihird branch ~0 fiJrther segmems ~oup 3~. Thc ~hird branch '70 is de~feloped usino the b~; card utiliza~ion reponet in ~h~ credit hislory The ~ird bran~h ~0 creates three Jan-25-99 02:04Pm From-HUNTON L WILLIA~IS 2027782201 T-526 P 10/31 F-35 grouo" gs, one oroup defincs a second se~rnen~ ;6, on~ oroup d~fLnes a Ihird segm~n~ ;~ and Ih~
la3l d~;ines a gro-lp 40 ~ch is se~mented fi~her. The ~cond s~grnen~ ;6 defines a sub-pop,ll ",on ha- in~ cr~di~ hiil~nes with low bar~; card ulili~lion. Bar~; card utili~ion is a p~rc~nla~c ~f Ihe raliO of balance ~o limi~ on revolving and nalional ~rades. Low utilization for ~he sc~:ond se~n~nl ;6 is a ~ arion of 2~% or less. The ~hird segmenl ;8 defines a sub-populalion having credit hislories ~ ith medi~n ba~ card urili7~ion- Th~ mediurn urili~tion of ~hc ~hl~d scgmem ~8 is a u~ili2alion o~% ~o 70%. The g~o~lp ~0 includes cr~dil his~orics with hi~h b~ni; card u~ili2a~ion of at l~ 70%
~h~ founh branch 2~ fu~her seg2m~ms group 40. The four~h br~ch ~ is te~velopcd O L~ing ~he time span of ~he cr~dil hislory. The fo~r~ branch '~'7 cr~ares a four~h Se~l~nt 4') and a fifth sc~nen~ ~ The four~h se~ncnl ~ defines a sub-popul~-ion having credil hislones goir~o baci; More ~han ~en ~ears. Th~ fif~h se~ nl 4~ d~fines a su~popL~lation havir~g credi~ hislori~s goin~ bacl; t~n year~ or less. Applican~s with credi~ hislories tba~ span more than ~én y~ars aee aenel~lly r~ferr~d ~o as ha~ing old cr~di~ hislori~s and arplic~nrc ~ h credil hislories spannina i ~ ~en ~c~rs or less are o~n~rally referr~d ~o ~ havir~ new credi~ his~ories The fifth branch ~4 ~rther se~ments group ;~. The fifth branch 7S iS devcloped using Ih~ bc~; cart uliliation reponed in the credi~ hislory. Th~ fil~h branch 74 crea~es a si~c~h s~gmcnt 46 and a group ~8 which is segmen~ed funher. l~~ si~lh seamen~ S6 defines a sub-pop~ tion having cr~dil his~ories wilh low bas~lc card utilizalion of ~0% or less. The group 48 ~ inclu~ies credi~ his~ories wilh bar~; card u~ilizalion of grea~er ~han 40%.
11 e sixlh bra~ch '26 ~r~h~r se~mcn~s group S~. Thc si?~h brarlch 76 is developed using the ~l~n~ span of the credil histories. The si:cth branch ~6 creates a sevemh se~n~nl ~ and an ei~h~h segmcn~ ~2. The seve~h s2gment ~0 defines a sub-pop~lalion havino old cRdit his~ori~i Jan-25-~ 02:05Pm From-HUNTON & WILLIA~S 2027782201 T-526 P.11/31 F-358 spar~alno more ~han ten ~-~ars. l~c ei~h~h se~nen~ ;~ defines a su~population ha~ in~ new cr-dit histor~e~ spanrlino ~n years or less.
~ separa~e 3corecard ii de~ eloped for eac~ of th~ eigh~ s~ n~i d~fined by Ihe segmentaliOn ~ree 1~ Each scorecard can b~ dc~/~lopcd lo accuralely score simila~ly sin1,ated S appl iean~ in each of the ei,hl def~n~d s~b-pop~ tio~c~ As can be seen in fioure ~, each of the defill~d sub-populaTions has a differenl bad accoun~ pcrc~n.~ In adtilion, ~he cri~eria indic:~ino whelher an account is lil;ely lo bccorn~ bad ~aries from sub-populalion to sub-popula~ion.
In orter lo test the validiTy of Ihe defined sub-populatio~c, a r~ x,.lalive sample of pac~
0 appll~arl s ~~-er~ rescorcd wi~ ~he ne~ methodology and compar~d ~ilh ~heir ac~ual crcdil hislol y. Th~ ooal wa_ to ~SIiTn~ he probabiliry ~ha~ a~ account wo~ld be 90 or more da~s pa_t due in the firsl n o ~cars. Bad accounts we~e dcfined as aCcounls ~hal wer~ 90 or morc days past due ~nd Ih~ resl were ~ermed ,ood. Fi~ur~ ~ sho~ -s the brca~do~vn of ~he perc~nragc of ~he ;lmple ~ h ~ percen~aJe of accoun~s for each of Ihe ~i ,ht se~en~ de~eloped using Ihe i5 ,~ n~alion 1~.
Thetotalpopulation 1~ inrlu~l~d 100percentofther~ s~ ivesampleanthadafive percc~l~ b~d accolml rate. 1~ f~s~ segmcn~ ~8 in~lurl~ Ihe ponion of the sampl~ Iha~ had ~in credi~ filcs or no bankcarts. Il~is r~pr~s~n~ed 6.~ percent of Ihe lolal sample and ~he sub-pop~Jlarion defined by the segmen~ ~8 had a 6.7 percent bad accoum ra~e. ~e rest of ~e lolal 2~ popula~ion 1~ h ~hick c~eti~ files including ban~;cards ~vere placcd in th~ group 30. Those in grou~ ~0 were spli~ ne.~ inlO ~hc r-vo 7roups ;~ and ;~. This spli~ ~as based on Ihe severi~y and rece~Lne;s of any delinquencies. Group ~7 included Ihose applicams in ~he sample urilh Ihic~
credl~ filcs and no or old delinql-encirs (clean) in Iheir file hiswry. The group ~7jn Jan-25-~.P. 02 05Pm From-HUNTON ~ WILLIA~S 20277~2201 T-526 P 12/31 F-35 por~ioni ol ~he samplc ~ hic~; credil f~les and moderate or rec-n~ d~linquencic, (dir~y). Th~
pO~liOI~ of the lo~al populalion l~ that fit in~o ~roup ;~ ~Irere fi r~er split bas~d on ban~;card utilizanon Thc s_cond se~rnen~ ~6 defined a su~populalion of ~ne sarnple with Thick, cle~
credl~ rlles ~here the barlkcard u~ilization ~as 1~ percent or less. The su~popul~ion defined by lhe s2cond seom~n~ ~6 inclLlded 79.9 percent of ~he rc~.~se~ sarnple and had a 1.4 "ercenr bad ac~:oun~ rale. The ~hird se~T ~nr 38 d~fined a su~populaTion ~ilh thicl;, clcan cr~dil hislories and a barlkcard ~lTili~rion of ~5 to 70 perccn~. The sub-populalion defin~d b~ ~h~ ~hird ~egment ;~ incllJded 77.9 percent of ~he sarnple and had a 4 7 percem bad accoun~ ra~e.
The ~ro~p 40 inr~ r~l portiolls of ~he loul populalion 1~ hick, clean credi~ hislo ies 0 and a l~anL; ulili2alion of more Ihan 10 lxrCenl ~he group ~0 inclu~ed 1 1 .1 perceM of ~he r~prcjcntalive sarnple and had a 9 1 p~rcen~ bad accoum ralc. Based on Ih~ high ~a~e, she group ~0 ~aj filrther s~men~ed inlo Ih~ founh s~e~rnen~ 4~ and Ihe fif~h s~ n~ 4~ based on the ~im~
span o~ rhe credil his~ory. The old credi~ hislories (more ~han lO !e~s) ~here grouped in Ihe ~our~ e~Tnenl ~ and ~h~ n~w cr~di~ hislones (lO ~eals or less repor~ h~re grouped in ~he f~f~h Se~m~nl ~.
The ,roup 3 l ;r~cllld~ Ihos~ m~ml~trs of Ihe s~nple wi~h thick. dirry credi~ his~ories.
Th~ gr~up; 1 waS also split based on banl;cart usilizalion. The si.YIh sesm~em ~6 defined a sub-popula~ion ~i~h shic~;, di~y credit hislories and a banl~card uTi~ rion of ~0 p~rcent or less. The si.~rh ~c3menl 16 included 13.4 percenr of ~hc sample and had a ~.l percenl W accounr rare.
'' The aroup 18 included ~hose rn~nlkrs of the ~oral popularion l~ h ~hic~;. dir~y credit his~ories and a t~ kc3,rd urili~rion of 41 p~rcenl or çrealer. The group 48 ~~a~ splil fi~nher based on ~he lim~ i~;an of Ihe cr~dil histories. A seven~h seornen~ jO incl~ed Ihos~ memb~rs of ~h~
pop~la~lon 1~ hick, dLrly cr~dil files and ban~;c~d uTili7~rion of 4 l percent or higher wi~h Jan-25-99 02:05Pm From-HUNTON ~ WILLIA~S 20277~2201 T-526 P.13/31 F-358 old crclit historie,. 1~ seventh segmen~ ~0 included 4.6 percenl of ~he 5ample and had a 9.~
perc~rl~ bad accoun~ rale. The eigh~h se~rnen~ ~ included ~hose members of Ihe ~o~al popllla~ion h thic~;, dirt~ credi~ his~ori~s and ~ I percem or greater bankcard u~ilizalion ~ h ~ ne~
credit hlslory. The ei~hlh segrnenl ~ included 6.~ p~rcen~ of ~he sample and had a l7.8 percent bad a~:~ounl ra~e.
Fig~re 1 shows a brea~;down of the eigh~ defintd su~popul~ion~ wilh ~he nuu~ber g~d and ~hc number bad from ~he rcpreserl~a~i-e s~unple. A scor~card for each of the ei~h~ sub-popul~ons was developed ~;jna into accoun~ ~he lil;elihood an accoun~ ~ollld ever b~ 90 da~s or more pas~ due. The scorecards ~rere developed usino Ihe cri~ria v~lirl?te(l with he sampl~
O popula~ion. Each scorecard was lsilored lo accuratelv anal~sis Iht members in The sub-pop~ ion lo ~-hich i~ perlained.
~ 'exl, the sasnple population was analyzed Lsing the ne~ly crealed scoRcards .~ ~esT n-n of the sys~cm ~as conduc~ed lo indical~ which of the sarnpl~ popul~rion applica~ions ~ ould k acc~y~cd ard ~hich would bc rejecled. Th~ applicaiions rejecled ~-ere ~he ones Ihat ~he scorecard : 5 indic~ d ~o~ld li~;ely be 90 days or more pa~l du~ e credit bur~a-l files were Ihen analyz~d lo de~ermine th~ acrual credit hislory of Ihe s~unpl~ popula~ion ~o dc~ermine Ihc accurac~ of Ih~
jcore;~rds. ~i~ure ~ sum~ar.iz~s ~h~ credi~ b~ a ~ ch ra~- for ~he sampl~ popula~ion scor~t bv ~h~ custom scorecards.
Fi~re 3 illustra~es a sccond embodim~nl according ~o ~h~ in~en~ion using a cl~isificalion O and t~ression ~ree (CART) 100 ~o breal; a lolal popula~ion I l ~ in~o su~-pop~ 7inn~ o~ nodes.
The C ~RT 100 includes 1~ nod~s. As Ih~ ~o~al pop~lalion is di~ided, s~para~c sub-popul~ionj or gro.lps ar~ defined. Each nod~ defin~s a sub-population and each ~roup is fi~her divid~d by Ihe C-~RT 100.
Jan-25-~ 02:06Pm From-HUNTON ~ WILLIA~IS 2027782201 T-526 P 14/31 F-35~
_ Th~ ~o~al populalion I 1~ is firs~ ipli~ by determinino ~helher th~ credi~ his~ory ha~ a sa~i;F_~-tory cradc ra~io. Th~ first nodc 11 1 defines a sub-popula~ion ~rith a Ic,s Ihan 71 pCrCenl ;ali;t..~ory crade ra~io. The po~ion of ~he to~al pop~lalion l 1~ h a grea~2r than 71 perc~nl sa~isth-ror~ ~rade ratio are incl-lded in group 116. Group 116 is fur~her broken do~ into n~o oroup, 1 18 and l~O based on bar~;card u~ili7~ion Those members of group 1 16 wi~h a bar~;c;~rd u~ili7~rion of less ~han 40 percen~ arc included in ~,roup 118 Thos~ members o~ group 116 ~-ith a banl;card u~ilization grea~er ~han 40 percen~ a~e includcd in group 1~0~
Group 1 18 i~ f~nher divided based on the number of banl;cards currently reporTed as ac~ in lhe credit hisw~. ~ second node 1'~ dcfin~s a s~b-pop~ rion ~th a greatcr ~han 71 3 pcrcrn~ ~icfac~ory tradc raliO, less Ihan 40 pcrcerll banl;card utiliza~ion, ant no currenlly ac~ive ban~ rds Thc group 1~1 includes thc r~m~i~tina memb~rs ofthe group 118. The arol-p 1~1 inclu~lcs m~mbers of 118 ~ h a~ leasI one cu~renlly aclive banl;card in the~r credil hs~or~
aro~p 1~4 is fiar~her di~id~d based on ~e dclin4uency sevent~ and r~cen~n~ss A Ihird node 1~6 defines a sub-pop~la~ion ~ h a grea~er Ihan 71 percenI Irade ra~io, less i ~ Ih~ ~l~ perc~n~ bar~;card u~ ion a~ Icasl one currently acIive banl;c~rd, and no se~1ere or recen~ delinquencies. A group 128 in~ hc rem~ d~r of Ihe aroup 1'~1 w}~ch bave one or morc ;ever~ or recen~ delinqu~ncies.
Group 1~8 is fiurlher di~ ided based on Ihc nu~nber of d21inq~lencies for every ~0 trades. A, foun~, node 130 defines a su~popula~ion having a saIisfac~ory ~rade ~tio grea~r ~han 71 percenl, ss ~han 40 ba~l;card ~lrili7~ion~ one or more c~ rrently acliv~ bankcarts, a~ leasl one recen~ or s~--erc delinquency, and onc or less delinquencv ~v~ 0 ~rades. A fifth node I ;~ d~fines a sub-pop-lla~ion ~vith a ,realcr ~han 71 percenI sa~isfacIory ~rade ratio~ l~ss ~ 0 perccm banl;card Jan-25-99 02:06Pm From-HUNTON L WILLIA~IS 2027782201 T-526 P.15/31 F-35~
~ ilizalio;l, a~ leas~ on~ currenIly ac~ive ban~;card, one or more recen~ or se~ere delinquerlciei, ~d ~o or laore delinquencies c~-ery 30 lrades.
I~c ~o~p 1~0 includei ~he ponion of ~he toral pop~llalion I I ~ ~ha~ has a ,r~alcr Ihan 11 perc~n~ ~atisfaclory trade raliO and a greaIer ~han 40 percem bar~;card ~liliza~ion. The grollp l ~0 is divided inlo r ~o groups 134 and 1;6 based on the ume span of Ihe credit his~ory. l~e group 1;~ includes ~hoS2 members of group l~0 that have l9~ or less months reported in ~heir crcdi~
hislor~ l~e ~ro~p l~6 includes n~embers of the ~oup l ~0 ~ ilh l 93 or mor~ mond~s repon~d in ~h~ crc;lll hislor~.
I h~ oroup 1;6 is fi~her divided based on the r~~n~n~Cs ~d se~erily of telinquencies 0 ~epor~ed in ~he credi~ his~ory. A si.YIh node 138 defines a su~popula~ion wilh a grea~er than 7 l p~rcel~ sa~isfactory rrade ratio, g~ea~er than 40 percem bar~kcard u~ilizalion, 193 or mor~ mon~hs report~d in Ihe cr~dil histor~, and a n~o or less seven~y inde.~. A sevenlh node 110 defines a su~
papulation of the tolal popul~Tion 117 ~ilh a grea~er ~han 7l p~rc~nr salisfac~ory llade ratio7 arealcl Ih~n ~0 percen~ curren~ u~ilizalion, 193 or more months reponed in Ihe credi~ his~orS, and i ~ a sev~r1~ ind~:< of more Ihan n,~o.
~ he grollp 1;4 is divided b~;ed on banlcca~d uliJiza~ion An eighth node 147 defincs membcrs of to~al population 117 ~vilh greater ~han 71 perc~m salisfa~ory srate ratio, grea~er Ih3n ~0 per;~nt ban~;card u~ilizalion~ 197 or less monlhs reporred in thr hisso~, and grea~r ~an 7û
perc~n~ bankcard Illilization The aroup 1~ includes those members of g.roup 131 ui~h less ~han '' 70 p~r.en~ bankcard miliz~ion. n~ercfore, aroup 1~4 is ~oina lo includc credit histories ~~ilh a bar~;c~rd !lTili7~rion b~ween 40 and 70 percenl.
The oroup 141 is fi~rlher divided based orl ~he severily and recenrnrs~ of delinquencies reporl~d in ~he creti~ history. A ninth node defines a su~population having a greaTer Ihan 71 Jan-25-99 02:06Pm From-HUNTON ~ WILLIAUS 20277~2201 T-526 P 16/31 F-358 perc~n~ isfactory ~rade raliO, greal-r ~han 40 percen~ ban~;card u~ili2alion, less ~an l 9~ mon~hs r~por~c~ le,s Ihan 70 percent bankcard u~ ion and a severi~ indc~c of more ~han ~hree. A
~rou? 1~8 lnclud~s l~.osc m~mbers of ~h- oroup l$~ havino a se~ri~y inde.Y of Ihree or l~sj T~ group 118 is dividcd fi~nher b~ed on ~he Timesp~n of l~h~ reponed credi~ hislory. A
~mh nod~ l ~0 define~ ~n~mh~rs of ~he ~otal population l 17 ~ ilh a 71 percent or gr~aler sa~is~ tory ~ate ralio, a baru~;card ulili7~ior~ w~n 40 ~d 70 percenl7 a severi~y index of ~hrce or less, and less ~han 170 momhs r~pon~d in ~he credll his~ory. ~ grO-lp l ~2 includes Ih~
membcrs of Ihe ,roup 118 wilh ~reat~ than l 70 mon~ reporLed in Ihe ctedit hislot~. rne group l ~2 ~heKfore includ~s members of the lo~al population wi~h a c~tjSf~rrnry ~rade ra~io of grea~er han / I percenI, bar~;card u~ 7~ion ber~een 40 and 70 perc~n~7 and a crediI hisIory grea~r ~han 170 nlonths bUI 19'7 or less mon hs repo~2d The ~oup I ~ is splil imo an el~venth node I ~ 1 and a t velf~h node l S6. The el~ven~h node l ~1 includcs m~mbers of Ihe group 1~7 wilh a banl;card u~ili7~ion ~erwe2n S0 and 6;
pcrcc,lt. Th~ elf~h node 1~6 includ-s members of ~he ~roup 1~7 ~ 'ilh a ban~card utilization gr~a;cr Ihan 63 perc~nt but less ~han 70 percent.
Figur~ 6 illu;~ es a segmentation ~ree ~ l ~ accordino ~o a ~hird embodimenI of ~e in~el1non. The s~ ~ n enra~ion ~re~ ~ 1 1 breal;s doun a Iolal populalion 71 7 into se~en se~n~nr~.
The ~c~ments ar~ g~neral~d based on thre~ pieces of credil hislory inforrnalion. The segnlcn~aIion ~ree ~1~ includes a firs~ b~nch 716, a second branch ~18, a Ihird branch ~ 70, and a ' fourlh br~ch ~
nl~ firs~ branch ~ l 6 is developet usin, Ihe arnoun~ of detail in Ihe credir hisIo~y. The filrsl ~ranch ~ l 6 crea~e~ n o gro~rin~s, one group creaIes a firsl segm~n~ and a second group ~6 con~in~l~s for fiurther se~"~nr~ion. l~e firs~ sc~ .,t ~4 defines a s-lb-population ~ha~ has Jan-25-99 02:06Pm From-HUNTON L WILLIA~S 20211~2201 T-526 P.11/31 F-358 a ~hin c.~di~ Ille~ hin cr~dil file ~nComr~cses cr~di~ hii~ories of people Iha~ hav~ not had a ba~ c rd or ~oo shorl o~ a crcdil hi;lory. .~n applicam w~th a ~hin f~le .,enerally r~ers lo an applic~lm ~ e-~er Ihan three Irade, Th~ oroup ~76 includcs cr~dil hislories w~th -.hick cRd fil~s. I hick credi~ files means ~he history has dala on Ihree or ~nore Irades.
The second branch 7 18 fi~rther se~n~nts group ~6. Ihc s~cond branch '~1~ is developed usino ~~e delinquency rcpol ~et in the cr~di~ hislor~. The second branch ~18 cr~ales ~o ~rouplllgs 7 7 8 and ~;0 which are s~ nted fur~h~r by Ih~ seomen~Tion Iree 7 1 ~. The group 2~8 in~lud~s credi~ hislories ~ ith no recen~ delinquencies and only minor delinquencies in Ihe entire hislory ;~inor delinquenci~s are ~ h~r~ the accoun~ ~s no~ 60 or more days d~linquen~.
O ~c~n~ dclinqLIencies arc on~s Ihal occurrcd within the lai~ si:c month~ group ~30 includcs credi~ t~istorics ~ h recent andlor SCVeR delinql~encies. Applir~n~c with no delinquencics or very old rninor delinq~lencie~ are gener,ally refereed ~o ai havina a clean crcdil his~oly. Those h ~noderal~ or scv~re and ~cen~ delinquencies are generally referred ~o ~c havin, a dirTy cr~di~
histor~ e sev~ y inde:c ui~d to delerrnine whelher a credi~ hislory is clean or di~y is ~;en as . _ a comt,~narion of s~verir~ and reC~nln~cc of rh~ delin4uenc,v. In one embodim~n~, a clean credi~
his~or~ ~-ould have a severi~y indeY va~ue smaller ~an four The third branch '~0 fimher segrnen~C ~oup ~8 ~ased on the ra~c of acc~mL~ ino re~ol~ lno debt. The ~hird branch ~0 is d~veloped ~Isino thc revol~in, balance accel~ralion rcponcd in ~he crcdi~ h-s~or~ e third branch '~0 cr~a~es ~hree ,~roupings~ C)ne gro~pino d~fincj a second segrn~n~ ~J~, one grouping defin~; a ~hird s~_m~nt ~3~, and anolher groupina defin i a founh segment ~36 ll~e second sc~menr 73~ dcfines a sub-population having credi his~orl~s ~vi~h lo-v revolvin, balance acceleralion. Re~rol- ing balanc~ acceleralion is a dollar fi,ur~ calculale~ by taLcino Ih~ ~olal currcn~ revolvin, balance shD~ ~ in a cr~til hislo~ and Jan-25-99 02:07Pm From-HUNTON ~ WILLIA~S 2027782201 T-526 P 1~/31 F-35~
_ di~ n~ th3~ ~otal by ~h~ nurnb~r of months Ihe credi~ hislory has becn on file wilh ~he credil bureal. The lo~ r~volvino bal~ce ~ccel~ra~ion for Ihe second s~n~nr 7~2 ii an acceleralion ot S~j ~J~ I~;s rhe Ihird segm-nl ~3~ dcfin~s a su~pop~ ion having credi~ hislories Wilh m~diurn r~ol ~ -ng balance accclera ion nle mediurn acceleralion of Ihe third segm~nt ~34 is an acc~lc ra~ion of S~ 6 IO S 13 ~ four~h s~.e..t '~36 defines a sub-pop~lalion havin_ credit nis~o~ ies wilh hi~h revolvin, balance acc~leralion lbe high accel~ra~ion of ~he fou~h segn~cnt 2~6 ij an scc~ ion of gr~al~r than S 13~.
1~ e four~h branch 222 fiLrlher s~gmems group 230. The fourth bra~ch 22~ is d~veloped usin~, ~h~ revol~in, balance accelera~ion .~poned ul dle credi~ his~ory The third branch cre3~c~ Ihrcc groupinos. On~ ~roupina defines a fif~h se~7nen~ 2~8, one ~roupin~7 d~finej a si.
segmcnI ~0, and ano~h~r groupin, dcfines a se~enlh s~rn~n~ ~2. l~c fifi h segmc-n~ 2;8 defincj a sut~populaTion having credi~ his~orie~s wi~h low revolving balance accelera~ion. Thc lo~v rc~ol~, ing balance acceleration for ~h~ fif~h s~grnent ~38 is an accel~.~,tion of S~0 or less The s,~th seomen~ 740 dcfinc; a sub-popula~ion havin~o credi~ his~ories ~ ilh mcdi~rn revolving balan~c acceleraIion. Th~ medillm acceleR71ion of 1he si.YIh segm~nl ~o is an accel~ration of S40 IO Sl 10. The sev~nlh Scgrncnl ~1~ defules a su~population havino credit his~ories wi~h hi~h rcvolvin, bala~ce accclcralion. The high acc~leration of ~hc s~vcnth s~om~nT ~4~ is an accelclation of reaI~r Ihan Sl 10.
A separa~c sco.e~d is de~r~lopcd for each of Ihe seven segrncnts defined b~ ~h~
se~mcn~a~ior~ 2 ~14. Each scorec~d can be de~/eloped to acc~ely scor~ similarly si~Ted applic~s in each of Ih2 seYen defin~d sub-pop~lla~ions ~s can b~ seen in figure 67 ~ach of Ihe deI;nc~ sllb-pop~ Tion~ has dif~renl charac~ri~ics. In atdi~ion7 ~h~ critena in~ir~ino whe~h~r , Jan-25-9~ 02:07Pm From-HUNTON L WILLIA~S 2021782201 T-526 P.19/31 F-35 an acccleration i; low, medium, or ~oh van~s fiom sub-pop~llation ~o ;ub-popula~ion as shou b~ s~g~ nls ~ )7 ~1 artd ~6 ~ersus i~gmen~s 738~ ~0, and ~
.~ icp~ale scorecard i; de~ eloped for each of Ihe sev~n sc~en~, derJned by the se~mcl~lalion tree ~14. Each scorecard can be developed ~o accurately score similarl~ sirua~ed S applican~s in each o~ the seven defined sub-popul~ri~-ns. As can be scen in fioure 7, each of ~he define~l ;u~popul~ior.c has a differem bad accoun~ p~rcen~ . In addi~ion, ~he cnteria indicaung ~he~er an accoum is lil;el~ ~o become bad vancs from sl-b-populaIion ~o S
popul~ion.
lrl order ~o test ~he validi~y of ~e defined s~ pop~ tion~, a .ct"~ e sample of pas~
10 applic ~r~ r~ rescored wi~h ~he new melhodolo~ and compared w~lh Iheir acrual credit hisIor~ The goal w~ to est~ he probabiliry tha~ an accounl uould be 90 or more days pasl due in ~h~ firs~ ~u-o years. Bad ~rCo!~nSc were definet as accoun~s Ihal were 90 or more days p~t due an~ Ihe reSI ~ ere termed good. ~i~ure 1 sho~ s Ihe breakdo--~n of rhe p~ercens~e of lhe 5~1pl~-ilh ~he percen~age of accounls for each of Ihe se~en segments developrd using Ihc 5 se,m~ alion 71~
The loIal popl laIioQ ~1~ inclllted l O0 perc~n~ of Ihe ~ ,uui~e sample and was Splil inlO Ihe firs~ segmeM 77~ d Ihe group 776. l~lc firsl se~nr ~7~ included ~he por~ion of ~he sarnpk ~hat had Ihin ~redil files or no ban};cards. This ,e~"esen~ed ~7.6 percen~ ofth~ wlal ;ampk and ~he su~populalion defined b~ ~he segment 77;~ had a 7.83 percen~ bad accoun~ rale.
2 0 The rcj~ of ~hc ~olal popul~Sion ~ h ~ic~ credi~ fil~s includino ~ ;cards ~~ere placed in the group '76.
Tho;e in gro~p 7~6 were splil ne.~ in~o ~he rwo ~roup; )78and ~30. ~is spli~ ~as b~d on ~hc se~eri~y and recP~tness of any delinque~ciei. Group 778 incll~ded those applicants in Ih2 Jan-25-99 02:07pm From-HUNTON L WILLIA~S 2021782201 T-526 P.20/31 F-35~
s~n~,le ~ hic~; cr~dil file3 and no or old delinquencic3 (clean) in ~hcir l~le hi;~or~. The ~ro~ p ~30 iilcluded portions of ~he sarnple ~ hic~; credit files and modera~e or recen~ dclin~uenci~;
(dim ) rh~ porlion of Ihe ~olal populalion 717 ~hal fil inlo group ~8 ~r~ fiurlher split based on re~ol \. ing balance acc~leration. T~e secorld se~ne-lt 732 defined 8 sub-popula~ion of th~ samplc ~ ilh thick, cl~an cr~tit file~ ~ here ~he r~volving balar~ce accel~ra~ion was S3~ or less. l'he sl~b-popu~ ion defined by ~he second segn~enl 7~7 includcd 9.9 p~rCenl of Ihe representati~e sarnpl~
and ~ d a 0 37 percent bad acco~ e. The Ihird se~n~n~ 7;4 defined a sub-pop~llalion with ~hic~;. clean credi~ hislories and a reYolvino balaslce acceleration of S36 lo 51~;. The su~
pOpu~liorl defined by ~c ~hird segrnen~ 7i~ included 17.4 p~rcen~ of the sarnple and had a 1.0 perceu~ bad acco~nt rale. I~e fourth se~nent ~6 defined a su~populalion w~lh Ihick7 clcan credi~ hislories snd a revolvirl~ balance accelera~ion of more Ihan Sl3;. Th~ s~ popula~ion d~finct by the ~ounh seoTrlPnr ~;6 included 6.1 percent of ~he sarnple and had a 2.7~ p~rcem bad acco-ull ralc.
e pO~ion of the lol;al popula~ion ~1~ Iha~ fi~ in~o group ~ er~ fiurther splil bas~d on rc~, ol~ ing balance acc~leration. l~e fi~h se~T cnr ~8 tefined a sub-pop~lla~ion of Ihe sarnpl~
h Lhick, dir~ crcdi~ fil~s wh~re Ihe re~,olvirlg balanc~ accel~ralion was ~40 or less. l~e su~
populalion defined by Ihe fifch s~orn~nl ~8 includ~d ~.9 p~rcent of ~he represenlati~e sampl~
and hJd a 1.i1 perc~n~ bad account rale. The si~clh segm~n~ ~û d~fined a su~popula~ion with ~ ~ ~hicl~ Y credit hislori~s and a r~ol~-ing balance acceleration of S~ I IO S I l 0. The sub-popul~lion defined by the sixlh s~ nt ~10 included 1;.~ percen~ of ~he sarnple and had a ~.9 perccnt bad accoL~nr ra~e. The seven~h scgrnent ~4~ defined a su~pop-llalion wi~h Ihic~;, dirr~
credil hisrories and a revol~rino bala~c~ acceleralion of more than S 1 10. lbe sub-pop~l~rion Jan-25-99 02:07Pm From-HUNTON 8 WILLIAUS 20271~2201 T-526 P 21/3t F-358 .
def,ne" b~ ~he s~en~h icgment ~4~ included 9.~ pcrcen~ of the ,arnple and had a 3 . j~ pcrcen bad account ra~e.
~ ile ~~ ha~e ll~usr~a~d and described pr~ferred ~mbodin-ems o. my inV~nliOn,it is underc l~)od tha~ they are capabl~ of modificalion ar~d ~ ~herefore do no~ ~ish ~o b~ limitet w th~
precijc de~ails se~ forth, bul desire to avo~v myself of such ch~n~s and al~erauons as fall witbir~
~h~ p~lr~ iew of ~he following claims.
Claims (12)
1. A method for evaluating credit risk of bank card applicants comprising the steps of:
a) dividing a population of bank card applicants into a plurality of sub-populations;
b) developing a scorecard for each of said plurality of sub-populations;
c) applying one of said scorecards to a bank card application; and d) scoring said application based on said applied scorecard
a) dividing a population of bank card applicants into a plurality of sub-populations;
b) developing a scorecard for each of said plurality of sub-populations;
c) applying one of said scorecards to a bank card application; and d) scoring said application based on said applied scorecard
2. The method of claim 1 wherein the step of dividing includes dividing said population of bank card applicants based on credit information.
3. The method of claim 2 wherein the step of dividing is based on reported trades, reported delinquency, bank card utilization, and length of credit history.
4. The method of claim 2 wherein the step of dividing is based on number of reported trades, reported delinquency, and revolving credit acceleration.
5. A method for determining credit risk of applicants comprising the steps of:
segmenting applicants into a plurality of segments;
evaluating applicants in each of said plurality of segments; and determining a credit risk of each applicant.
segmenting applicants into a plurality of segments;
evaluating applicants in each of said plurality of segments; and determining a credit risk of each applicant.
6. The method of claim 5 wherein the step of segmenting incudes segmenting applicants into a plurality of segments based on a credit history.
7. The method of claim 6 wherein the step of segmenting is based on at least one of reported trades reported delinquency, bank card utilization, and length of said credit history.
8. The method of claim 7 wherein the step of evaluating includes generating a score for each applicant.
9. The method of claim 8 wherein said score is based on at least one of each applicant's of reported trades, reported delinquency, bank card utilization, and length of credit history.
10. The method of claim 9 wherein the step of determining said credit risk includes comparing said score to a predetermined score.
11. The method of claim 10 wherein said predetermined score is specific to each of said plurality of segments.
12. An apparatus for assessing credit risk of applicants comprising:
a first central processing unit;
a work station connected to said first central processing unit;
an second central processing unit;
a communication link connecting said first central processing unit and said second central processing unit.
a first central processing unit;
a work station connected to said first central processing unit;
an second central processing unit;
a communication link connecting said first central processing unit and said second central processing unit.
Applications Claiming Priority (2)
| Application Number | Priority Date | Filing Date | Title |
|---|---|---|---|
| US09/012,231 | 1998-01-23 | ||
| US09/012,231 US6202053B1 (en) | 1998-01-23 | 1998-01-23 | Method and apparatus for generating segmentation scorecards for evaluating credit risk of bank card applicants |
Publications (1)
| Publication Number | Publication Date |
|---|---|
| CA2260348A1 true CA2260348A1 (en) | 1999-07-23 |
Family
ID=21753977
Family Applications (1)
| Application Number | Title | Priority Date | Filing Date |
|---|---|---|---|
| CA002260348A Abandoned CA2260348A1 (en) | 1998-01-23 | 1999-01-25 | A method and apparatus for generating segmentation scorecards for evaluating credit risk of bank card applicants |
Country Status (2)
| Country | Link |
|---|---|
| US (1) | US6202053B1 (en) |
| CA (1) | CA2260348A1 (en) |
Families Citing this family (277)
| Publication number | Priority date | Publication date | Assignee | Title |
|---|---|---|---|---|
| EP0699731B1 (en) * | 1994-08-31 | 2000-10-04 | Rolic AG | Optically avtive smectic photo-curable liquid crystals |
| JP4426722B2 (en) * | 1998-05-19 | 2010-03-03 | ケルシウス，エルエルシー | Towel mat with frame member and removably attached membrane |
| US6615189B1 (en) * | 1998-06-22 | 2003-09-02 | Bank One, Delaware, National Association | Debit purchasing of stored value card for use by and/or delivery to others |
| US7809642B1 (en) | 1998-06-22 | 2010-10-05 | Jpmorgan Chase Bank, N.A. | Debit purchasing of stored value card for use by and/or delivery to others |
| JP2001303934A (en) * | 1998-06-23 | 2001-10-31 | Toyota Motor Corp | Exhaust emission control device for internal combustion engine |
| US6567791B2 (en) | 1998-11-03 | 2003-05-20 | Nextcard, Inc. | Method and apparatus for a verifiable on line rejection of an application for credit |
| US6405181B2 (en) * | 1998-11-03 | 2002-06-11 | Nextcard, Inc. | Method and apparatus for real time on line credit approval |
| US8010422B1 (en) | 1998-11-03 | 2011-08-30 | Nextcard, Llc | On-line balance transfers |
| US20050004864A1 (en) * | 2000-06-15 | 2005-01-06 | Nextcard Inc. | Implementing a counter offer for an on line credit card application |
| US6718313B1 (en) * | 1998-11-03 | 2004-04-06 | Next Card, Inc. | Integrating live chat into an online credit card application |
| US7660763B1 (en) | 1998-11-17 | 2010-02-09 | Jpmorgan Chase Bank, N.A. | Customer activated multi-value (CAM) card |
| US6032136A (en) | 1998-11-17 | 2000-02-29 | First Usa Bank, N.A. | Customer activated multi-value (CAM) card |
| US6882984B1 (en) | 1999-06-04 | 2005-04-19 | Bank One, Delaware, National Association | Credit instrument and system with automated payment of club, merchant, and service provider fees |
| US7062462B1 (en) | 1999-07-26 | 2006-06-13 | The Chase Manhattan Bank | On-line higher education financing system |
| US7409364B1 (en) | 1999-09-08 | 2008-08-05 | Jpmorgan Chase Bank, N.A. | Financial advice strategy system |
| US7542921B1 (en) | 1999-09-30 | 2009-06-02 | Jpmorgan Chase Bank, N.A. | Network-based financial planning system and method |
| US8793160B2 (en) | 1999-12-07 | 2014-07-29 | Steve Sorem | System and method for processing transactions |
| US6456983B1 (en) * | 1999-12-23 | 2002-09-24 | General Electric Company | Method for managing disposition of delinquent accounts |
| US6856973B1 (en) | 1999-12-29 | 2005-02-15 | General Electric Capital Corporation | Methods and systems for assessing creditworthiness of a country |
| US8036978B1 (en) * | 1999-12-31 | 2011-10-11 | Pitney Bowes Inc. | Method of upgrading third party functionality in an electronic fraud management system |
| US6615190B1 (en) * | 2000-02-09 | 2003-09-02 | Bank One, Delaware, National Association | Sponsor funded stored value card |
| US7702555B1 (en) | 2000-02-22 | 2010-04-20 | Strategic Analytics | Vintage maturation analytics for predicting behavior and projecting cash flow for customer communities and their responses to economic, competitive, or management changes |
| US7469227B2 (en) * | 2000-02-22 | 2008-12-23 | Strategic Analytics, Inc. | Retail lending risk related scenario generation |
| US6941279B1 (en) * | 2000-02-23 | 2005-09-06 | Banke One Corporation | Mutual fund card method and system |
| US7113914B1 (en) * | 2000-04-07 | 2006-09-26 | Jpmorgan Chase Bank, N.A. | Method and system for managing risks |
| US7212996B1 (en) * | 2000-04-20 | 2007-05-01 | Jpmorgan Chase Bank, N.A. | System and method for dynamic, multivariable comparison of financial products |
| US6988082B1 (en) | 2000-06-13 | 2006-01-17 | Fannie Mae | Computerized systems and methods for facilitating the flow of capital through the housing finance industry |
| US7702580B1 (en) | 2000-06-13 | 2010-04-20 | Fannie Mae | System and method for mortgage loan pricing, sale and funding |
| US7593893B1 (en) | 2000-06-13 | 2009-09-22 | Fannie Mae | Computerized systems and methods for facilitating the flow of capital through the housing finance industry |
| US7031935B1 (en) * | 2000-07-31 | 2006-04-18 | J.P. Morgan Advisory Services Inc. | Method and system for computing path dependent probabilities of attaining financial goals |
| US6873972B1 (en) | 2000-08-01 | 2005-03-29 | General Electric Company | Systems and methods for credit line monitoring |
| WO2002011019A1 (en) | 2000-08-01 | 2002-02-07 | First Usa Bank, N.A. | System and method for transponder-enabled account transactions |
| US7702522B1 (en) * | 2000-09-01 | 2010-04-20 | Sholem Steven L | Method and apparatus for tracking the relative value of medical services |
| EP1332457A4 (en) * | 2000-10-06 | 2006-02-08 | Argus Information & Advisory S | System and method for monitoring, managing and valuing credit accounts |
| US8868448B2 (en) | 2000-10-26 | 2014-10-21 | Liveperson, Inc. | Systems and methods to facilitate selling of products and services |
| US20060015390A1 (en) * | 2000-10-26 | 2006-01-19 | Vikas Rijsinghani | System and method for identifying and approaching browsers most likely to transact business based upon real-time data mining |
| US9819561B2 (en) | 2000-10-26 | 2017-11-14 | Liveperson, Inc. | System and methods for facilitating object assignments |
| US7991688B2 (en) * | 2000-11-14 | 2011-08-02 | Knowledge Works Inc. | Methods and apparatus for automatically exchanging credit information |
| US7295999B1 (en) * | 2000-12-20 | 2007-11-13 | Jpmorgan Chase Bank, N.A. | System and method for determining eligibility and enrolling members in various programs |
| US20020128858A1 (en) * | 2001-01-06 | 2002-09-12 | Fuller Douglas Neal | Method and system for population classification |
| US6985873B2 (en) | 2001-01-18 | 2006-01-10 | First Usa Bank, N.A. | System and method for administering a brokerage rebate card program |
| US7113932B2 (en) * | 2001-02-07 | 2006-09-26 | Mci, Llc | Artificial intelligence trending system |
| US7895098B2 (en) | 2001-03-01 | 2011-02-22 | Jpmorgan Chase Bank, N.A. | System and method for measuring and utilizing pooling analytics |
| US7552080B1 (en) | 2001-03-09 | 2009-06-23 | Nextcard, Llc | Customized credit offer strategy based on terms specified by an applicant |
| US20110131136A1 (en) * | 2001-03-20 | 2011-06-02 | David Lawrence | Risk Management Customer Registry |
| US20030233319A1 (en) * | 2001-03-20 | 2003-12-18 | David Lawrence | Electronic fund transfer participant risk management clearing |
| US8121937B2 (en) | 2001-03-20 | 2012-02-21 | Goldman Sachs & Co. | Gaming industry risk management clearinghouse |
| US20040006532A1 (en) * | 2001-03-20 | 2004-01-08 | David Lawrence | Network access risk management |
| US7958027B2 (en) * | 2001-03-20 | 2011-06-07 | Goldman, Sachs & Co. | Systems and methods for managing risk associated with a geo-political area |
| US20040193532A1 (en) * | 2001-03-20 | 2004-09-30 | David Lawrence | Insider trading risk management |
| US20040143446A1 (en) * | 2001-03-20 | 2004-07-22 | David Lawrence | Long term care risk management clearinghouse |
| US8527400B2 (en) * | 2001-03-20 | 2013-09-03 | Goldman, Sachs & Co. | Automated account risk management |
| US20030225687A1 (en) * | 2001-03-20 | 2003-12-04 | David Lawrence | Travel related risk management clearinghouse |
| US7899722B1 (en) * | 2001-03-20 | 2011-03-01 | Goldman Sachs & Co. | Correspondent bank registry |
| US20020143562A1 (en) * | 2001-04-02 | 2002-10-03 | David Lawrence | Automated legal action risk management |
| US7313546B2 (en) | 2001-05-23 | 2007-12-25 | Jp Morgan Chase Bank, N.A. | System and method for currency selectable stored value instrument |
| US7428526B2 (en) * | 2001-05-29 | 2008-09-23 | Claritas, Inc. | Household level segmentation method and system |
| AU2002312381A1 (en) | 2001-06-07 | 2002-12-16 | First Usa Bank, N.A. | System and method for rapid updating of credit information |
| US20030074298A1 (en) * | 2001-07-09 | 2003-04-17 | Wolfgang Daum | Information product market system and method |
| WO2003010701A1 (en) | 2001-07-24 | 2003-02-06 | First Usa Bank, N.A. | Multiple account card and transaction routing |
| US7809641B2 (en) | 2001-07-26 | 2010-10-05 | Jpmorgan Chase Bank, National Association | System and method for funding a collective account |
| US7660735B1 (en) | 2001-08-09 | 2010-02-09 | Strategic Analytics Inc. | Method and system for creation of consumer segmentations using maturation and exogenous curves |
| US8800857B1 (en) | 2001-08-13 | 2014-08-12 | Jpmorgan Chase Bank, N.A. | System and method for crediting loyalty program points and providing loyalty rewards by use of an electronic tag |
| US8020754B2 (en) | 2001-08-13 | 2011-09-20 | Jpmorgan Chase Bank, N.A. | System and method for funding a collective account by use of an electronic tag |
| US7311244B1 (en) | 2001-08-13 | 2007-12-25 | Jpmorgan Chase Bank, N.A. | System and method for funding a collective account by use of an electronic tag |
| WO2003034309A1 (en) * | 2001-10-16 | 2003-04-24 | Australia And New Zeland Banking Group Limited | System and method for analyzing risk and profitability of non-recourse loans |
| US7370044B2 (en) | 2001-11-19 | 2008-05-06 | Equifax, Inc. | System and method for managing and updating information relating to economic entities |
| US7415471B1 (en) | 2001-11-30 | 2008-08-19 | Midland Loan Services, Inc. | Methods and systems for automated data collection and analysis for use in association with asset securitization |
| US20100030675A1 (en) * | 2001-12-06 | 2010-02-04 | Hanan Christopher C | Payor focused business to business electronic invoice presentment and accounts payable reconciliation system and method |
| WO2003050654A2 (en) * | 2001-12-10 | 2003-06-19 | Bank One, Delaware, N.A. | Methods and system for adding liquidity to alternative investment transactions |
| US7937305B1 (en) | 2001-12-28 | 2011-05-03 | The Pnc Financial Services Group, Inc. | Methods and systems for analyzing the status of an entity and its financial transactions |
| US7729963B1 (en) | 2001-12-28 | 2010-06-01 | The Pnc Financial Services Group, Inc. | Methods and systems for processing and communicating financial transaction data |
| US20030144933A1 (en) * | 2001-12-31 | 2003-07-31 | Xiao-Ming Huang | Method and apparatus for determining a customer's likelihood of reusing a financial account |
| US20030130933A1 (en) * | 2001-12-31 | 2003-07-10 | Xiao-Ming Huang | Method and apparatus for determining a customer's likelihood of paying off a financial account |
| US7890393B2 (en) * | 2002-02-07 | 2011-02-15 | Ebay, Inc. | Method and system for completing a transaction between a customer and a merchant |
| US7756896B1 (en) | 2002-03-11 | 2010-07-13 | Jp Morgan Chase Bank | System and method for multi-dimensional risk analysis |
| US7899753B1 (en) | 2002-03-25 | 2011-03-01 | Jpmorgan Chase Bank, N.A | Systems and methods for time variable financial authentication |
| US20180165441A1 (en) | 2002-03-25 | 2018-06-14 | Glenn Cobourn Everhart | Systems and methods for multifactor authentication |
| US20030195840A1 (en) * | 2002-03-26 | 2003-10-16 | Tianwei Xu | Methods and apparatus for determining credit limit extensions for financial accounts |
| US8751391B2 (en) | 2002-03-29 | 2014-06-10 | Jpmorgan Chase Bank, N.A. | System and process for performing purchase transactions using tokens |
| US20040210498A1 (en) | 2002-03-29 | 2004-10-21 | Bank One, National Association | Method and system for performing purchase and other transactions using tokens with multiple chips |
| US20030208362A1 (en) * | 2002-05-03 | 2003-11-06 | Resident Data, Inc. | Integrated screening system and method for tenants and rental applicants |
| US7593891B2 (en) | 2003-05-30 | 2009-09-22 | Experian Scorex Llc | Credit score simulation |
| US7610229B1 (en) | 2002-05-30 | 2009-10-27 | Experian Information Solutions, Inc. | System and method for interactively simulating a credit-worthiness score |
| US9569797B1 (en) | 2002-05-30 | 2017-02-14 | Consumerinfo.Com, Inc. | Systems and methods of presenting simulated credit score information |
| US9400589B1 (en) | 2002-05-30 | 2016-07-26 | Consumerinfo.Com, Inc. | Circular rotational interface for display of consumer credit information |
| US9710852B1 (en) | 2002-05-30 | 2017-07-18 | Consumerinfo.Com, Inc. | Credit report timeline user interface |
| US7386528B2 (en) * | 2002-05-31 | 2008-06-10 | American Express Travel Related Services Company, Inc. | System and method for acquisition, assimilation and storage of information |
| US20040010458A1 (en) * | 2002-07-10 | 2004-01-15 | First Data Corporation | Methods and systems for organizing information from multiple sources |
| US8239304B1 (en) | 2002-07-29 | 2012-08-07 | Jpmorgan Chase Bank, N.A. | Method and system for providing pre-approved targeted products |
| US7606756B2 (en) | 2002-08-02 | 2009-10-20 | Jpmorgan Chase Bank, N.A. | Synthetic funds having structured notes |
| US20040044615A1 (en) * | 2002-09-03 | 2004-03-04 | Xue Xun Sean | Multiple severity and urgency risk events credit scoring system |
| US7809595B2 (en) | 2002-09-17 | 2010-10-05 | Jpmorgan Chase Bank, Na | System and method for managing risks associated with outside service providers |
| US20040122736A1 (en) | 2002-10-11 | 2004-06-24 | Bank One, Delaware, N.A. | System and method for granting promotional rewards to credit account holders |
| US7937302B1 (en) | 2002-11-20 | 2011-05-03 | The Pnc Financial Services Group, Inc. | Methods and systems for monitoring, analyzing and reporting information in association with collateralized financial instruments |
| AU2003295787A1 (en) * | 2002-12-30 | 2004-07-29 | Fannie Mae | System and method for facilitating delivery of a loan to a secondary mortgage market purchaser |
| US7885889B2 (en) | 2002-12-30 | 2011-02-08 | Fannie Mae | System and method for processing data pertaining to financial assets |
| WO2004061565A2 (en) * | 2002-12-30 | 2004-07-22 | Fannie Mae | System and method for facilitating sale of a loan to a secondary market purchaser |
| AU2003295771A1 (en) * | 2002-12-30 | 2004-07-29 | Fannie Mae | System and method for defining loan products |
| US7593889B2 (en) * | 2002-12-30 | 2009-09-22 | Fannie Mae | System and method for processing data pertaining to financial assets |
| US20050102226A1 (en) * | 2002-12-30 | 2005-05-12 | Dror Oppenheimer | System and method of accounting for mortgage related transactions |
| AU2003298688A1 (en) * | 2002-12-30 | 2004-07-29 | Fannie Mae | System and method for pricing loans in the secondary mortgage market |
| US8666879B1 (en) | 2002-12-30 | 2014-03-04 | Fannie Mae | Method and system for pricing forward commitments for mortgage loans and for buying committed loans |
| AU2003297296A1 (en) * | 2002-12-30 | 2004-07-29 | Fannie Mae | System and method for creating and tracking agreements for selling loans to a secondary market purchaser |
| US20040128230A1 (en) | 2002-12-30 | 2004-07-01 | Fannie Mae | System and method for modifying attribute data pertaining to financial assets in a data processing system |
| AU2003297295A1 (en) | 2002-12-30 | 2004-07-29 | Fannie Mae | System and method of processing data pertaining to financial assets |
| US7742981B2 (en) * | 2002-12-30 | 2010-06-22 | Fannie Mae | Mortgage loan commitment system and method |
| US20040148566A1 (en) * | 2003-01-24 | 2004-07-29 | Jp Morgan Chase Bank | Method to evaluate project viability |
| US20040148241A1 (en) * | 2003-01-24 | 2004-07-29 | Qi Thomas J. | Method of evaluating a portfolio of leased items |
| US9307884B1 (en) | 2003-01-27 | 2016-04-12 | The Pnc Financial Services Group, Inc. | Visual asset structuring tool |
| US7966254B2 (en) * | 2003-01-29 | 2011-06-21 | Bank Of America Corporation | Method and system for credit decisioning using activity based costing and compartmental modeling |
| US20040225545A1 (en) * | 2003-05-08 | 2004-11-11 | Turner James E. | System and method for offering unsecured consumer credit transactions |
| US20040225620A1 (en) * | 2003-05-09 | 2004-11-11 | Faustino Alfred L. | Systems and methods for valuing professional services |
| EP1625543A4 (en) * | 2003-05-22 | 2008-03-12 | Pershing Investments Llc | Method and system for predicting attrition customers |
| US20040236647A1 (en) * | 2003-05-23 | 2004-11-25 | Ravi Acharya | Electronic checkbook register |
| US8930263B1 (en) | 2003-05-30 | 2015-01-06 | Consumerinfo.Com, Inc. | Credit data analysis |
| US8306907B2 (en) | 2003-05-30 | 2012-11-06 | Jpmorgan Chase Bank N.A. | System and method for offering risk-based interest rates in a credit instrument |
| US8046298B1 (en) | 2003-07-21 | 2011-10-25 | Fannie Mae | Systems and methods for facilitating the flow of capital through the housing finance industry |
| US7668777B2 (en) | 2003-07-25 | 2010-02-23 | Jp Morgan Chase Bank | System and method for providing instant-decision, financial network-based payment cards |
| US7624068B1 (en) * | 2003-08-18 | 2009-11-24 | Jpmorgan Chase Bank, N.A. | Method and system for dynamically adjusting discount rates for a card transaction |
| US7953663B1 (en) | 2003-09-04 | 2011-05-31 | Jpmorgan Chase Bank, N.A. | System and method for financial instrument pre-qualification and offering |
| US20050060252A1 (en) * | 2003-09-11 | 2005-03-17 | Andrew Doddington | Graphical software tool for modeling financial products |
| US8533084B2 (en) | 2003-09-12 | 2013-09-10 | Moebs $ervices, Inc. | Risk identification system and methods |
| US7676408B2 (en) * | 2003-09-12 | 2010-03-09 | Moebs Services, Inc. | Risk identification system and methods |
| US8239323B2 (en) | 2003-09-23 | 2012-08-07 | Jpmorgan Chase Bank, N.A. | Method and system for distribution of unactivated bank account cards |
| US20050182713A1 (en) * | 2003-10-01 | 2005-08-18 | Giancarlo Marchesi | Methods and systems for the auto reconsideration of credit card applications |
| US7925579B1 (en) | 2003-12-01 | 2011-04-12 | Fannie Mae | System and method for processing a loan |
| US7657475B1 (en) | 2003-12-31 | 2010-02-02 | Fannie Mae | Property investment rating system and method |
| US7822680B1 (en) | 2003-12-31 | 2010-10-26 | Fannie Mae | System and method for managing data pertaining to a plurality of financial assets for multifamily and housing developments |
| US20090313163A1 (en) * | 2004-02-13 | 2009-12-17 | Wang ming-huan | Credit line optimization |
| US7756779B1 (en) | 2004-02-13 | 2010-07-13 | Fannie Mae | System and method for determining compliance with a delegated underwriting and servicing agreement |
| US8571972B2 (en) * | 2004-02-23 | 2013-10-29 | Bill Me Later, Inc. | Computer-implemented method, system and apparatus for the dynamic verification of a consumer engaged in a transaction with a merchant and authorization of the transaction |
| US20050240462A1 (en) * | 2004-04-21 | 2005-10-27 | Inman Kenneth L | Method and apparatus for population segmentation |
| US20050240468A1 (en) * | 2004-04-21 | 2005-10-27 | Claritas, Inc. | Method and apparatus for population segmentation |
| US7761351B2 (en) * | 2004-04-29 | 2010-07-20 | Ford Motor Company | Method and system for assessing the risk of a vehicle dealership defaulting on a financial obligation |
| US20050261926A1 (en) * | 2004-05-24 | 2005-11-24 | Hartridge Andrew J | System and method for quantifying and communicating a quality of a subject entity between entities |
| US8429006B1 (en) | 2004-06-18 | 2013-04-23 | Jpmorgan Chase Bank, N.A. | System and method for offer targeting |
| US8346593B2 (en) | 2004-06-30 | 2013-01-01 | Experian Marketing Solutions, Inc. | System, method, and software for prediction of attitudinal and message responsiveness |
| US8996481B2 (en) * | 2004-07-02 | 2015-03-31 | Goldman, Sach & Co. | Method, system, apparatus, program code and means for identifying and extracting information |
| US8442953B2 (en) | 2004-07-02 | 2013-05-14 | Goldman, Sachs & Co. | Method, system, apparatus, program code and means for determining a redundancy of information |
| US8762191B2 (en) * | 2004-07-02 | 2014-06-24 | Goldman, Sachs & Co. | Systems, methods, apparatus, and schema for storing, managing and retrieving information |
| US8510300B2 (en) | 2004-07-02 | 2013-08-13 | Goldman, Sachs & Co. | Systems and methods for managing information associated with legal, compliance and regulatory risk |
| US7974895B1 (en) | 2004-07-16 | 2011-07-05 | Jp Morgan Chase Bank | System and method for developing finance rate information |
| US7392222B1 (en) | 2004-08-03 | 2008-06-24 | Jpmorgan Chase Bank, N.A. | System and method for providing promotional pricing |
| US20060041499A1 (en) * | 2004-08-23 | 2006-02-23 | Transaxtions Llc | Obtaining A Need With Guiding Information And Credit Worthiness Using A Competitive Process |
| US7904306B2 (en) | 2004-09-01 | 2011-03-08 | Search America, Inc. | Method and apparatus for assessing credit for healthcare patients |
| US8732004B1 (en) | 2004-09-22 | 2014-05-20 | Experian Information Solutions, Inc. | Automated analysis of data to generate prospect notifications based on trigger events |
| US8447686B1 (en) * | 2004-09-22 | 2013-05-21 | American Express Travel Related Services Company, Inc. | System and method for mitigating merchant debit balances |
| WO2006036150A1 (en) | 2004-09-28 | 2006-04-06 | Nielsen Media Research, Inc | Data classification methods and apparatus for use with data fusion |
| US8204774B2 (en) | 2004-10-29 | 2012-06-19 | American Express Travel Related Services Company, Inc. | Estimating the spend capacity of consumer households |
| US7774248B1 (en) | 2004-11-30 | 2010-08-10 | Jp Morgan Chase Bank | Method and apparatus for managing risk |
| US7480631B1 (en) | 2004-12-15 | 2009-01-20 | Jpmorgan Chase Bank, N.A. | System and method for detecting and processing fraud and credit abuse |
| US20110161958A1 (en) * | 2005-01-03 | 2011-06-30 | Jp Morgan Chase Bank | Method and system for managing business calculations using multi-dimensional data |
| US7890343B1 (en) | 2005-01-11 | 2011-02-15 | Jp Morgan Chase Bank | System and method for generating risk management curves |
| US20060161487A1 (en) * | 2005-01-18 | 2006-07-20 | Hsbc North America Holdings Inc. | Method for establishing lines of credit |
| AU2005325726B2 (en) | 2005-01-25 | 2011-10-27 | I4 Commerce Inc. | Computer-implemented method and system for dynamic consumer rating in a transaction |
| US8630898B1 (en) | 2005-02-22 | 2014-01-14 | Jpmorgan Chase Bank, N.A. | Stored value card provided with merchandise as rebate |
| US20060233332A1 (en) * | 2005-03-24 | 2006-10-19 | Toms Alvin D | Credit worthiness rating method |
| US20060229974A1 (en) * | 2005-04-11 | 2006-10-12 | I4 Licensing Llc | Method of extending credit to at least one consumer and method of processing a transaction between a consumer and a merchant |
| US8756099B2 (en) * | 2005-04-11 | 2014-06-17 | Bill Me Later, Inc. | Consumer processing system and method |
| US7527195B2 (en) * | 2005-04-11 | 2009-05-05 | Bill Me Later, Inc. | Method and system for risk management in a transaction |
| US7401731B1 (en) | 2005-05-27 | 2008-07-22 | Jpmorgan Chase Bank, Na | Method and system for implementing a card product with multiple customized relationships |
| US20070276750A1 (en) * | 2005-06-10 | 2007-11-29 | Robert Stuart | Method and system for credit status calculation, monitoring, and maintenance |
| US7801809B1 (en) | 2005-06-24 | 2010-09-21 | Fannie Mae | System and method for management of delegated real estate project reviews |
| US7925578B1 (en) | 2005-08-26 | 2011-04-12 | Jpmorgan Chase Bank, N.A. | Systems and methods for performing scoring optimization |
| US8738732B2 (en) | 2005-09-14 | 2014-05-27 | Liveperson, Inc. | System and method for performing follow up based on user interactions |
| US9432468B2 (en) | 2005-09-14 | 2016-08-30 | Liveperson, Inc. | System and method for design and dynamic generation of a web page |
| US7774237B1 (en) | 2005-12-22 | 2010-08-10 | At&T Intellectual Property Ii, L.P. | Methods for identifying and revising high-risk orders based on identified errors |
| US8280805B1 (en) * | 2006-01-10 | 2012-10-02 | Sas Institute Inc. | Computer-implemented risk evaluation systems and methods |
| US8489497B1 (en) | 2006-01-27 | 2013-07-16 | Jpmorgan Chase Bank, N.A. | Online interactive and partner-enhanced credit card |
| US7962396B1 (en) | 2006-02-03 | 2011-06-14 | Jpmorgan Chase Bank, N.A. | System and method for managing risk |
| US8408455B1 (en) | 2006-02-08 | 2013-04-02 | Jpmorgan Chase Bank, N.A. | System and method for granting promotional rewards to both customers and non-customers |
| US7784682B2 (en) | 2006-02-08 | 2010-08-31 | Jpmorgan Chase Bank, N.A. | System and method for granting promotional rewards to both customers and non-customers |
| US7711636B2 (en) | 2006-03-10 | 2010-05-04 | Experian Information Solutions, Inc. | Systems and methods for analyzing data |
| WO2007106785A2 (en) * | 2006-03-10 | 2007-09-20 | Vantagescore Solutions, Llc | Methods and systems for segmentation using multiple dependent variables |
| US7912773B1 (en) * | 2006-03-24 | 2011-03-22 | Sas Institute Inc. | Computer-implemented data storage systems and methods for use with predictive model systems |
| US7747526B1 (en) | 2006-03-27 | 2010-06-29 | Fannie Mae | System and method for transferring mortgage loan servicing rights |
| US7753259B1 (en) | 2006-04-13 | 2010-07-13 | Jpmorgan Chase Bank, N.A. | System and method for granting promotional rewards to both customers and non-customers |
| US7707192B1 (en) | 2006-05-23 | 2010-04-27 | Jp Morgan Chase Bank, N.A. | Confidence index for assets |
| EP2074572A4 (en) | 2006-08-17 | 2011-02-23 | Experian Inf Solutions Inc | System and method for providing a score for a used vehicle |
| US8036979B1 (en) | 2006-10-05 | 2011-10-11 | Experian Information Solutions, Inc. | System and method for generating a finance attribute from tradeline data |
| US20080109348A1 (en) * | 2006-11-02 | 2008-05-08 | Hsbc Finance Corporation | Credit System with Over-Limit Analysis |
| US8239250B2 (en) * | 2006-12-01 | 2012-08-07 | American Express Travel Related Services Company, Inc. | Industry size of wallet |
| US8554669B2 (en) | 2007-01-09 | 2013-10-08 | Bill Me Later, Inc. | Method and system for offering a credit product by a credit issuer to a consumer at a point-of sale |
| US8606626B1 (en) | 2007-01-31 | 2013-12-10 | Experian Information Solutions, Inc. | Systems and methods for providing a direct marketing campaign planning environment |
| US8606666B1 (en) | 2007-01-31 | 2013-12-10 | Experian Information Solutions, Inc. | System and method for providing an aggregation tool |
| US8433648B2 (en) * | 2007-02-26 | 2013-04-30 | Bill Me Later, Inc. | Method and system for engaging in a transaction between a consumer and a merchant |
| US20080215640A1 (en) * | 2007-03-01 | 2008-09-04 | Rent Bureau, Llc | Method of processing apartment tenant status information |
| US20140019333A1 (en) * | 2007-03-12 | 2014-01-16 | Vantagescore Solutions, Llc | Methods and Systems for Segmentation Using Multiple Dependent Variables |
| US8285656B1 (en) | 2007-03-30 | 2012-10-09 | Consumerinfo.Com, Inc. | Systems and methods for data verification |
| WO2008127288A1 (en) | 2007-04-12 | 2008-10-23 | Experian Information Solutions, Inc. | Systems and methods for determining thin-file records and determining thin-file risk levels |
| US20080272188A1 (en) | 2007-05-02 | 2008-11-06 | I4 Commerce Inc. | Distributed system for commerce |
| US20080294540A1 (en) | 2007-05-25 | 2008-11-27 | Celka Christopher J | System and method for automated detection of never-pay data sets |
| US8676642B1 (en) | 2007-07-05 | 2014-03-18 | Jpmorgan Chase Bank, N.A. | System and method for granting promotional rewards to financial account holders |
| US8641327B2 (en) * | 2007-07-30 | 2014-02-04 | Kellogg Brown & Root Llc | Methods and apparatus for protecting offshore structures |
| US9690820B1 (en) | 2007-09-27 | 2017-06-27 | Experian Information Solutions, Inc. | Database system for triggering event notifications based on updates to database records |
| US8417601B1 (en) | 2007-10-18 | 2013-04-09 | Jpmorgan Chase Bank, N.A. | Variable rate payment card |
| US7653593B2 (en) * | 2007-11-08 | 2010-01-26 | Equifax, Inc. | Macroeconomic-adjusted credit risk score systems and methods |
| US7720753B1 (en) * | 2007-12-04 | 2010-05-18 | Bank Of America Corporation | Quantifying the output of credit research systems |
| US8127986B1 (en) | 2007-12-14 | 2012-03-06 | Consumerinfo.Com, Inc. | Card registry systems and methods |
| US9990674B1 (en) | 2007-12-14 | 2018-06-05 | Consumerinfo.Com, Inc. | Card registry systems and methods |
| US8055579B2 (en) * | 2008-02-06 | 2011-11-08 | Vantagescore Solutions, Llc | Methods and systems for score consistency |
| US8478637B1 (en) | 2008-04-08 | 2013-07-02 | Jpmorgan Chase Bank, N.A. | Index for assessing discount potential |
| US8255423B2 (en) * | 2008-04-25 | 2012-08-28 | Fair Isaac Corporation | Adaptive random trees integer non-linear programming |
| US8521631B2 (en) * | 2008-05-29 | 2013-08-27 | Sas Institute Inc. | Computer-implemented systems and methods for loan evaluation using a credit assessment framework |
| US8095443B2 (en) | 2008-06-18 | 2012-01-10 | Consumerinfo.Com, Inc. | Debt trending systems and methods |
| US8719164B2 (en) | 2008-06-19 | 2014-05-06 | Bill Me Later, Inc. | Method and system for engaging in a transaction between a business entity and a merchant |
| US8312033B1 (en) | 2008-06-26 | 2012-11-13 | Experian Marketing Solutions, Inc. | Systems and methods for providing an integrated identifier |
| US8260846B2 (en) | 2008-07-25 | 2012-09-04 | Liveperson, Inc. | Method and system for providing targeted content to a surfer |
| US8762313B2 (en) | 2008-07-25 | 2014-06-24 | Liveperson, Inc. | Method and system for creating a predictive model for targeting web-page to a surfer |
| US8805844B2 (en) | 2008-08-04 | 2014-08-12 | Liveperson, Inc. | Expert search |
| US9256904B1 (en) | 2008-08-14 | 2016-02-09 | Experian Information Solutions, Inc. | Multi-bureau credit file freeze and unfreeze |
| US9892417B2 (en) | 2008-10-29 | 2018-02-13 | Liveperson, Inc. | System and method for applying tracing tools for network locations |
| US20100205024A1 (en) * | 2008-10-29 | 2010-08-12 | Haggai Shachar | System and method for applying in-depth data mining tools for participating websites |
| US8060424B2 (en) | 2008-11-05 | 2011-11-15 | Consumerinfo.Com, Inc. | On-line method and system for monitoring and reporting unused available credit |
| US20100174638A1 (en) | 2009-01-06 | 2010-07-08 | ConsumerInfo.com | Report existence monitoring |
| WO2010132492A2 (en) | 2009-05-11 | 2010-11-18 | Experian Marketing Solutions, Inc. | Systems and methods for providing anonymized user profile data |
| US8289870B2 (en) * | 2009-09-23 | 2012-10-16 | Avaya Inc. | Priority-based, dynamic optimization of utilized bandwidth |
| US20110153480A1 (en) * | 2009-12-23 | 2011-06-23 | Rainer Zinow | Authenticating Financial Information of A Commercial Enterprise |
| US9652802B1 (en) | 2010-03-24 | 2017-05-16 | Consumerinfo.Com, Inc. | Indirect monitoring and reporting of a user's credit data |
| EP2556449A1 (en) | 2010-04-07 | 2013-02-13 | Liveperson Inc. | System and method for dynamically enabling customized web content and applications |
| US9152727B1 (en) | 2010-08-23 | 2015-10-06 | Experian Marketing Solutions, Inc. | Systems and methods for processing consumer information for targeted marketing applications |
| US8688477B1 (en) | 2010-09-17 | 2014-04-01 | National Assoc. Of Boards Of Pharmacy | Method, system, and computer program product for determining a narcotics use indicator |
| US8930262B1 (en) | 2010-11-02 | 2015-01-06 | Experian Technology Ltd. | Systems and methods of assisted strategy design |
| US9147042B1 (en) | 2010-11-22 | 2015-09-29 | Experian Information Solutions, Inc. | Systems and methods for data verification |
| US9350598B2 (en) | 2010-12-14 | 2016-05-24 | Liveperson, Inc. | Authentication of service requests using a communications initiation feature |
| US8918465B2 (en) | 2010-12-14 | 2014-12-23 | Liveperson, Inc. | Authentication of service requests initiated from a social networking site |
| US9558519B1 (en) | 2011-04-29 | 2017-01-31 | Consumerinfo.Com, Inc. | Exposing reporting cycle information |
| US9607336B1 (en) | 2011-06-16 | 2017-03-28 | Consumerinfo.Com, Inc. | Providing credit inquiry alerts |
| US9483606B1 (en) | 2011-07-08 | 2016-11-01 | Consumerinfo.Com, Inc. | Lifescore |
| US9106691B1 (en) | 2011-09-16 | 2015-08-11 | Consumerinfo.Com, Inc. | Systems and methods of identity protection and management |
| US8738516B1 (en) | 2011-10-13 | 2014-05-27 | Consumerinfo.Com, Inc. | Debt services candidate locator |
| US8943002B2 (en) | 2012-02-10 | 2015-01-27 | Liveperson, Inc. | Analytics driven engagement |
| US9477988B2 (en) | 2012-02-23 | 2016-10-25 | American Express Travel Related Services Company, Inc. | Systems and methods for identifying financial relationships |
| US8805941B2 (en) | 2012-03-06 | 2014-08-12 | Liveperson, Inc. | Occasionally-connected computing interface |
| US9563336B2 (en) | 2012-04-26 | 2017-02-07 | Liveperson, Inc. | Dynamic user interface customization |
| US9853959B1 (en) | 2012-05-07 | 2017-12-26 | Consumerinfo.Com, Inc. | Storage and maintenance of personal data |
| US9672196B2 (en) | 2012-05-15 | 2017-06-06 | Liveperson, Inc. | Methods and systems for presenting specialized content using campaign metrics |
| US9654541B1 (en) | 2012-11-12 | 2017-05-16 | Consumerinfo.Com, Inc. | Aggregating user web browsing data |
| US9916621B1 (en) | 2012-11-30 | 2018-03-13 | Consumerinfo.Com, Inc. | Presentation of credit score factors |
| US10255598B1 (en) | 2012-12-06 | 2019-04-09 | Consumerinfo.Com, Inc. | Credit card account data extraction |
| US9697263B1 (en) | 2013-03-04 | 2017-07-04 | Experian Information Solutions, Inc. | Consumer data request fulfillment system |
| US9406085B1 (en) | 2013-03-14 | 2016-08-02 | Consumerinfo.Com, Inc. | System and methods for credit dispute processing, resolution, and reporting |
| US9870589B1 (en) * | 2013-03-14 | 2018-01-16 | Consumerinfo.Com, Inc. | Credit utilization tracking and reporting |
| US10102570B1 (en) | 2013-03-14 | 2018-10-16 | Consumerinfo.Com, Inc. | Account vulnerability alerts |
| US10685398B1 (en) | 2013-04-23 | 2020-06-16 | Consumerinfo.Com, Inc. | Presenting credit score information |
| US9443268B1 (en) | 2013-08-16 | 2016-09-13 | Consumerinfo.Com, Inc. | Bill payment and reporting |
| US10102536B1 (en) | 2013-11-15 | 2018-10-16 | Experian Information Solutions, Inc. | Micro-geographic aggregation system |
| US10325314B1 (en) | 2013-11-15 | 2019-06-18 | Consumerinfo.Com, Inc. | Payment reporting systems |
| US9477737B1 (en) | 2013-11-20 | 2016-10-25 | Consumerinfo.Com, Inc. | Systems and user interfaces for dynamic access of multiple remote databases and synchronization of data based on user rules |
| US9529851B1 (en) | 2013-12-02 | 2016-12-27 | Experian Information Solutions, Inc. | Server architecture for electronic data quality processing |
| US10262362B1 (en) | 2014-02-14 | 2019-04-16 | Experian Information Solutions, Inc. | Automatic generation of code for attributes |
| US9974512B2 (en) | 2014-03-13 | 2018-05-22 | Convergence Medical, Llc | Method, system, and computer program product for determining a patient radiation and diagnostic study score |
| USD760256S1 (en) | 2014-03-25 | 2016-06-28 | Consumerinfo.Com, Inc. | Display screen or portion thereof with graphical user interface |
| USD759690S1 (en) | 2014-03-25 | 2016-06-21 | Consumerinfo.Com, Inc. | Display screen or portion thereof with graphical user interface |
| USD759689S1 (en) | 2014-03-25 | 2016-06-21 | Consumerinfo.Com, Inc. | Display screen or portion thereof with graphical user interface |
| US11386442B2 (en) | 2014-03-31 | 2022-07-12 | Liveperson, Inc. | Online behavioral predictor |
| US9892457B1 (en) | 2014-04-16 | 2018-02-13 | Consumerinfo.Com, Inc. | Providing credit data in search results |
| US9576030B1 (en) | 2014-05-07 | 2017-02-21 | Consumerinfo.Com, Inc. | Keeping up with the joneses |
| US11257117B1 (en) | 2014-06-25 | 2022-02-22 | Experian Information Solutions, Inc. | Mobile device sighting location analytics and profiling system |
| US10242019B1 (en) | 2014-12-19 | 2019-03-26 | Experian Information Solutions, Inc. | User behavior segmentation using latent topic detection |
| WO2016196806A1 (en) | 2015-06-02 | 2016-12-08 | Liveperson, Inc. | Dynamic communication routing based on consistency weighting and routing rules |
| US11410230B1 (en) | 2015-11-17 | 2022-08-09 | Consumerinfo.Com, Inc. | Realtime access and control of secure regulated data |
| US9767309B1 (en) | 2015-11-23 | 2017-09-19 | Experian Information Solutions, Inc. | Access control system for implementing access restrictions of regulated database records while identifying and providing indicators of regulated database records matching validation criteria |
| US10757154B1 (en) | 2015-11-24 | 2020-08-25 | Experian Information Solutions, Inc. | Real-time event-based notification system |
| EP3497560B1 (en) | 2016-08-14 | 2022-11-02 | Liveperson, Inc. | Systems and methods for real-time remote control of mobile applications |
| US20180060954A1 (en) | 2016-08-24 | 2018-03-01 | Experian Information Solutions, Inc. | Sensors and system for detection of device movement and authentication of device user based on messaging service data from service provider |
| BR112019015920A8 (en) | 2017-01-31 | 2020-04-28 | Experian Inf Solutions Inc | massive heterogeneous data ingestion and user resolution |
| US10880313B2 (en) | 2018-09-05 | 2020-12-29 | Consumerinfo.Com, Inc. | Database platform for realtime updating of user data from third party sources |
| US10963434B1 (en) | 2018-09-07 | 2021-03-30 | Experian Information Solutions, Inc. | Data architecture for supporting multiple search models |
| US11315179B1 (en) | 2018-11-16 | 2022-04-26 | Consumerinfo.Com, Inc. | Methods and apparatuses for customized card recommendations |
| US11238656B1 (en) | 2019-02-22 | 2022-02-01 | Consumerinfo.Com, Inc. | System and method for an augmented reality experience via an artificial intelligence bot |
| US10757597B1 (en) | 2019-07-08 | 2020-08-25 | Bank Of America Corporation | Resource stability indicator determination based on downstream network node-based resource health indicators |
| US11645344B2 (en) | 2019-08-26 | 2023-05-09 | Experian Health, Inc. | Entity mapping based on incongruent entity data |
| US11941065B1 (en) | 2019-09-13 | 2024-03-26 | Experian Information Solutions, Inc. | Single identifier platform for storing entity data |
| US11682041B1 (en) | 2020-01-13 | 2023-06-20 | Experian Marketing Solutions, Llc | Systems and methods of a tracking analytics platform |
| US11880377B1 (en) | 2021-03-26 | 2024-01-23 | Experian Information Solutions, Inc. | Systems and methods for entity resolution |
Family Cites Families (16)
| Publication number | Priority date | Publication date | Assignee | Title |
|---|---|---|---|---|
| US3316395A (en) | 1963-05-23 | 1967-04-25 | Credit Corp Comp | Credit risk computer |
| DE2257200A1 (en) | 1972-11-22 | 1974-06-20 | Norddeutsche Teilzahlungsbank | PROCEDURE FOR CALCULATING CREDIT RISK |
| US4774664A (en) | 1985-07-01 | 1988-09-27 | Chrysler First Information Technologies Inc. | Financial data processing system and method |
| US5227874A (en) | 1986-03-10 | 1993-07-13 | Kohorn H Von | Method for measuring the effectiveness of stimuli on decisions of shoppers |
| US4866634A (en) | 1987-08-10 | 1989-09-12 | Syntelligence | Data-driven, functional expert system shell |
| US5111395A (en) | 1989-11-03 | 1992-05-05 | Smith Rodney A | Automated fund collection system including means to eliminate duplicate entries from a mailing list |
| US5262941A (en) | 1990-03-30 | 1993-11-16 | Itt Corporation | Expert credit recommendation method and system |
| US5383113A (en) | 1991-07-25 | 1995-01-17 | Checkfree Corporation | System and method for electronically providing customer services including payment of bills, financial analysis and loans |
| US5611052A (en) * | 1993-11-01 | 1997-03-11 | The Golden 1 Credit Union | Lender direct credit evaluation and loan processing system |
| US5550734A (en) | 1993-12-23 | 1996-08-27 | The Pharmacy Fund, Inc. | Computerized healthcare accounts receivable purchasing collections securitization and management system |
| US5592590A (en) | 1994-07-01 | 1997-01-07 | General Electric Company | Method for efficiently detecting covered rules in a knowledge base |
| US5583778A (en) | 1994-09-21 | 1996-12-10 | Instasearch Corp. | Computer method for collecting on judgments |
| US5696907A (en) | 1995-02-27 | 1997-12-09 | General Electric Company | System and method for performing risk and credit analysis of financial service applications |
| WO1996030850A1 (en) * | 1995-03-30 | 1996-10-03 | Hogan Systems, Inc. | Method of and system for determining and assessing credit risks |
| US5878403A (en) * | 1995-09-12 | 1999-03-02 | Cmsi | Computer implemented automated credit application analysis and decision routing system |
| US6088686A (en) * | 1995-12-12 | 2000-07-11 | Citibank, N.A. | System and method to performing on-line credit reviews and approvals |
-
1998
- 1998-01-23 US US09/012,231 patent/US6202053B1/en not_active Expired - Lifetime
-
1999
- 1999-01-25 CA CA002260348A patent/CA2260348A1/en not_active Abandoned
Also Published As
| Publication number | Publication date |
|---|---|
| US6202053B1 (en) | 2001-03-13 |
Similar Documents
| Publication | Publication Date | Title |
|---|---|---|
| CA2260348A1 (en) | A method and apparatus for generating segmentation scorecards for evaluating credit risk of bank card applicants | |
| Erel et al. | Does fintech substitute for banks? evidence from the paycheck protection program | |
| Frick | Co‐determination and Personnel Turnover: The German Experience | |
| Carcello et al. | Changes in internal auditing during the time of the major US accounting scandals | |
| Barron et al. | Employer search: The interviewing and hiring of new employees | |
| Heywood et al. | Payment by results systems: British evidence | |
| Yagan | The enduring employment impact of your great recession location | |
| Rubery et al. | Payment structures and gender pay differentials: some societal effects | |
| Stevenson | State nonprofit almanac 1997: Profiles of charitable organizations | |
| Schumacher | What explains wage differences between union members and covered nonmembers? | |
| Lee et al. | An examination of variations in the nature of employee commitment: The case of paid and volunteer firefighters | |
| Anderson et al. | The implication of environmental turbulence for nursing-unit design in effective nursing homes. | |
| McGuckin et al. | On measuring the impact of ownership change on labor: evidence from US food-manufacturing plant-level data | |
| Fottler et al. | Evaluating nurse turnover: comparing attitude surveys and exit interviews | |
| Hutcheson Jr et al. | Ethnic self-help organizations in non-barrio settings: Community identity and voluntary action | |
| Laß et al. | Working from home, COVID-19 and job satisfaction | |
| Duan et al. | Beyond lost earnings: the long-term impact of job displacement on workers’ commuting behavior | |
| Samizadeh et al. | Retaining customers using clustering and association rules in insurance industry: A case study | |
| Hayghe | Survey of Employer Anti-Drug Programs Howard Hayghe Bureau of Labor Statistics | |
| Globerman et al. | GOVERNMENT-SPONSORED VENTURE-CAPITAL PROGRAMS: SURVEY RESULTS AND ANALYSIS | |
| Stonitsch | Knowledge assets and firm boundaries | |
| Cox et al. | The National Survey of Small Business Finances: Description and Preliminary Evaluation | |
| Stohs et al. | Irish managers' perceptions of business ethics | |
| Cocheo | Over the top | |
| Delgado | Use of key informants in assessing Hispanic mental health needs |
Legal Events
| Date | Code | Title | Description |
|---|---|---|---|
| EEER | Examination request | ||
| FZDE | Discontinued |