Patent Grant
8423456
In the usual course of opening a financial account, and particularly a demand deposit account, a consumer physically visits a bank, savings and loan, or credit union (i.e., a financial institution) of choice and provides account application information (e.g., personal information) that meets the financial institution's requirements for risk assessment and identity verification (e.g., name; address; social security number; an identification card, such as a driver's license; etc.). The consumer also provides funds to be used in opening the account. The consumer is then presented with and chooses between various account options. The account is then “opened” using the consumer's account application information, funds presented by the customer are placed in the account, and the consumer signs a signature card to be used to confirm later transactions.
With the growing use of the Internet and online services, such as online banking services, customers desire mechanisms and services for opening and funding a new account remotely in order to avoid having to physically visit a financial institution. In response, financial institutions have created a number of online account opening services. Using an online account opening service, a customer can provide account application information and can provide account information of an existing account (e.g., a checking account) that is to be used as a funding source for the new account. Since the customer is physically remote from the financial institution and cannot provide physical account verification or authorization (e.g., a paper check, a credit or debit card, or other paper documents), the financial institution must attempt to verify the customer and/or the funding source.
In many existing online account opening services, verifying the funding source of the customer can be intrusive and time-consuming. For example, in order to verify a funding source, a customer may be required to provide a username and a password or other security mechanisms for the funding source that can be used to access the funding source remotely (e.g., online). The financial institution associated with the online account opening service uses the supplied username and password to attempt to remotely access the funding source. If the financial institution can access the funding source, the financial institution can verify that the customer owns the funding source. Many customers, however, may be unwilling to provide access information for a funding source to a third-party. In addition, many customers may not have remotely-accessible funding sources.
Another method of verifying a funding source for a new account opened through an online account opening service involves making a small or micro payment of a random amount to a funding source of the customer. If the customer can verify the amount of money deposited in the funding source, the financial institution can verify that the customer owns the funding source. The process of making a micro payment to a funding source, however, can take several days to complete, and does not allow the customer to apply and open a new account within a single online session.
Embodiments of the invention provide methods and systems for opening an account with a financial institution. One method can include electronically storing at least one rule for opening an account with a financial institution. The method can also include electronically receiving account application information from a remote device over at least one network, wherein the account application information includes personal information of a customer requesting to open an account. In addition, the method can include generating at least one risk score based on the account application information and applying the at least one rule to the at least one risk score in order to determine a decision regarding the account application information and to determine at least one funding constraint associated with the account.
Additional embodiments provide an account management system for opening an account with a financial institution. The account management system can include a memory module that stores at least one rule for opening an account with a financial institution and a rules engine application. The system can also include a processor and an input/output interface that receives account application information from at least one remote device over at least one network. The processor generates at least one risk score based on the account application information, the at least one risk score specifying a risk to the financial institution of opening the account for the customer and executes the rules engine application to apply the at least one rule to the at least one risk score in order to determine a decision regarding the account application information and to determine at least one funding constraint associated with the account.
Further embodiments provide a system for opening an account with a financial institution. The system can include an account management system, at least one network, and at least one remote device. The at least one remote device electronically transmits account application information to the account management system over the at least one network. The account management system generates at least one risk score based on the account application information, applies the at least one rule to the at least one risk score in order to determine a decision regarding the account application information and to determine at least one funding constraint associated with the account, and electronically transmits the decision and the at least one funding constraint to the at least one remote device over the at least one network.
Before any embodiments of the invention are explained in detail, it is to be understood that the invention is not limited in its application to the details of construction and the arrangement of components set forth in the following description or illustrated in the following drawings. The invention is capable of other embodiments and of being practiced or of being carried out in various ways. Also, it is to be understood that the phraseology and terminology used herein is for the purpose of description and should not be regarded as limited. The use of “including,” “comprising” or “having” and variations thereof herein is meant to encompass the items listed thereafter and equivalents thereof as well as additional items. The terms “mounted,” “connected” and “coupled” are used broadly and encompass both direct and indirect mounting, connecting and coupling. Further, “connected” and “coupled” are not restricted to physical or mechanical connections or couplings, and can include electrical connections or couplings, whether direct or indirect. Also, electronic communications and notifications may be performed using any known means including direct connections, wireless connections, etc.
It should also be noted that a plurality of hardware and software based devices, as well as a plurality of different structural components, may be utilized to implement the invention. Furthermore, and as described in subsequent paragraphs, the specific configurations illustrated in the drawings are intended to exemplify embodiments of the invention and that other alternative configurations are possible.
As shown in
The account management system 11 can include an input/output interface 11a, one or more processors 11b, and one or more memory modules 11c. The input/output interface 11a can be configured to receive information from the remote devices 12 and can be configured to transmit information to the remote devices 12 (e.g., over the network 13). The input/output interface 11a can be configured to store information received from the remote devices 12 to the memory module 12c.
The memory module 12c can also store one or more software modules and/or applications and data that the processor 12a can fetch and execute in order to perform account opening services and/or other account management services. For example, as described below with respect to
It should be understood that the systems and devices illustrated in
As shown in
In some embodiments, the remote device 12 executes a browser application to request, access, view, and provide input to screens (e.g., web pages) of the online account opening service 15. The remote device 12 can be located at the location of the customer applying for a new account (e.g., at a customer's home), at a physical location of a branch of a financial institution, or at a call center of a financial institution. If the remote device 12 is located at a call center of a financial institution, a customer service representative may operate the remote device 12 on behalf of a customer who calls in a new account request. In some embodiments, the online account opening service 15 tracks and manages customers or users connected to the service 15 (e.g., through the Internet or through an integrated system of a financial institution). For example, the service 15 can limit how many times a user connected from a particular network or system can be connected to the service 15 (e.g., within a predetermined amount of time, at one time, etc.).
In some embodiments, as shown in
The screens (e.g., web pages 17b) of the online account opening service 15 can also be customized and/or branded based on the financial institution managing or operating the service 15. For example, screens 17b of the service 15 can be branded with the financial institution's logo, standards, and/or with a format consistent with other web pages of the financial institution. In some embodiments, a financial institution configures the screens and/or functionality of the online account opening service 15 using an automated configuration application 16 (e.g., a web-based configuration wizard) (see
As shown in
The automated configuration application 16 can provide a financial institution with an easy (e.g., online) process that aligns the accounts, products, options, pricing, policies, rules, etc. offered by the financial institution through the service 15 with the financial institution's existing policies and procedures. Using the automated configuration application 16, a financial institution 16 can self-direct the look, feel, and functionality of the service 15 without having to physically contact the creator or provider of the service 15 in order to have the service 15 rewritten or redesigned. The automated configuration application 16 can walk a user through available configurations and can allow a financial institution to configure and change the look, feel, and functionality of the online account opening service 15 as needed in an automated fashion with minimal effort and time. In some embodiments, financial institutions can also customize the online account opening service 15 by providing unique content within screens of the service 15 and/or by adding additional screens not part of the standard process flow provided by the service 15.
The service 15 can provide a series of screens (e.g., web pages 17b) that automate an account opening and funding process for customers. In some embodiments, customer presentation screens of the online account opening service 15 are driven by a customer's input and selections in previous screens plus business rules and policies provided by a financial institution (e.g., via the automated configuration application 16). By customizing the screens, the online account opening service 15 can ensure that customers are presented with only the necessary process steps for completing an application for particular products selected by the customer.
The online account opening service 15 can also save and resume a new account application prior to its completion at any point during the application process. By allowing a customer to save a new account application, a customer or a customer service representative can review, revise, or reconstitute an application prior to its completion.
In addition, the online account opening service 15 can provide additional services. For example, the service 15 can display product information and options and associated selection tools, can provide electronic signature tools, can provide email confirmation services, can provide instant access to a newly funded account, and/or can provide online banking services.
Returning to
Using the account application information 18, the online account opening service 15 can attempt to authenticate and verify the customer (e.g., in order to prevent identity theft). For example, the online account opening service 15 can verify an identity of a customer using a verification service 20. One commercially operational example of a network embodying a customer verification service 20 is the ID Verification™ brand network and service operated and offered by Penley. The verification service 20 can include a web-based anti-money laundering tool, which helps financial institutions meet compliance burdens (e.g., USA PATRIOT 326, 314(a), OFAC, etc.), and an identity fraud prevention program. For example, the verification service 20 can verify the identity of individuals and businesses by cross-checking aggregated records (e.g., billions of aggregated records) from multiple independent sources. In some embodiments, the verification service 20 provides substantially real-time results and provides a “pass” or “fail” answer and/or an intermediate verification score. The verification service 20 can also provide options for adding “out of wallet” or preset question/answer sets that must be answered by the customer in order to verify the customer's identity.
As shown in
The risk assessment service 26 can be used to accommodate consumer authentication. The risk assessment service 26 can use a logistic-regression model to predict the likelihood of account-related abuse. For example, the risk assessment service 26 can use customer data to calculate a risk that an account will be closed for abuse at a later date and can deliver a recommendation to a financial institution regarding an action to take on a new account application. Potential recommendations include approval of a new account and rejection of the new account. In some embodiments, the risk assessment service 26 also calculates cross-selling opportunities for additional products for a consumer. For example, based on a credit score and key demographic variables determined by the risk assessment service 26, the risk assessment service 26 can recommend which other products, if any, a financial institution should offer a customer. In some embodiments, the online account opening service 15 forwards cross-selling opportunities determined by the risk assessment service 26 to the customer for consideration (e.g., via one or more screen of the service 15). In some embodiments, a financial institution associated with the online account opening service 15 can also set parameters (e.g., via the automated configuration application 16) that allow risk assessment alignment with or customization from other risk assessment application channels.
As shown in
In some embodiments, the online account opening service 15 provides several funding options. Therefore, the funding source information 30 can specify a credit card or debit card account, an ACH transfer, an ATM account, a wire transfer, etc. It should be understood that the service 15 can allow customers to electronically transfer funds to a new account from an existing account (e.g., a checking account) managed by the financial institution from which the customer is requesting a new account or can allow customers to electronically transfer funds to a new account from an existing account or source managed by another financial institution, such as a debit card or a credit card account. For example, in some embodiments, the online account opening service 15 accepts credit card information and/or debit card information, validates the card information, and enacts a series of electronic transactions to transfer funds from a credit card account or a debit card account to a new account.
As shown in
If the online account opening service 15 can match all or a portion of the customer's funding source information 30 with the customer's account application information 18 (or if a risk score associated with the funding source is equal to or above a predetermined threshold or value set by the financial institution) (step 34), the service 15 can proceed with approving the new account application and opening and funding the new account from the specified funding source. In some embodiments, the service 15 can open a new account by transmitting data and/or instructions to a separate application or system (e.g., managed by the financial institution), which “opens” the new account (e.g., stores a new database record in an account database managed by the financial institution).
After the account is “opened” or created, the service 15 can transfer funds to the account. In some embodiments, the service 15 can transfer funds by transmitting instructions to a separate application or system, which performs the transfer. As noted above, the service 15 can allow transfers from various funding sources. Therefore, the service 15 can perform various types of electronic fund transfers, such as a credit card transaction, an ACH transfer, a debit card or ATM transaction, or a wire transfer. The funds transfers can occur over various time periods. For example, the service 15 can perform a substantially real-time debit card or ATM transaction, can perform a next day ACH transfer, and/or can perform a multiple day (e.g., 3 day) wire transfer.
As shown in
In some embodiments, if a new account transaction is accepted and/or if a hold is placed on a new account, the account opening service 15 also determines one or more constraints for the funding of the new account. For example, as shown in
In some embodiments, the online account opening service 15 uses decision trees to segment a prospective customer base according to levels of business risk that the funding of a new account poses to the financial institution operating the online account opening service 15. Rules 40 supplied by the financial institution operating the online account opening service 15 (e.g., via the automated configuration application 16) can drive the flow and control of the decision trees. In some embodiments, the application and status of decision trees can be monitored via a management console application, as described below with respect to
The authentication/verification and risk assessment performed by the online account opening service 15 can provide a substantially instant, same session, independent verification of a funding source that is a less intrusive way of reducing risk of fraudulent funding. For example, the authentication/verification and risk assessment performed by the online account opening service 15 can provide customer verification, customer risk assessment, and account risk assessment, which can include matching the customer with the funding source specified by the customer. Therefore, the authentication/verification and risk assessment performed by the online account opening service 15 can provide a thorough assessment of a customer applying for a new account and a thorough assessment of a funding source specified by the customer, which can reduce fraud and losses experienced by a financial institution due to fraud and high risk customers.
The online account opening service 15 can be integrated with other services and/or systems of a financial institution (e.g., a core system). For example, a financial institution can integrate the online account opening service 15 in real-time with leading core systems. With support for messages such as New Account, New Sub-Account, Inquiry, Transaction, Lookup, Card, Warning, Hold, Password(s), Owner, etc., an integration module of the online account opening service 15 can map message types to proprietary host system formats for a generally seamless interface for automatically routing new account applications to a financial institution. In some embodiments, the online account opening service 15 routes new account applications to a financial institution system in substantially real-time or as a batch (e.g., overnight). The integration module of the service 15 can connect to an environment of a financial institution through an encrypted Internet- or virtual private network- (“VPN-”) based connection.
As shown in
If the online account opening service 15 approves a new account for a customer, the service 15 can provide fulfillment and integration services. For example, the service 15 can provide one or more forms to a customer for signing. As noted above, the service 15 can provide electronic signature tools that a customer can use to digitally sign the account forms. The forms can include standard forms or custom forms defined by the financial institution.
As shown in
In some embodiments, when creating a new account, the service 15 can automatically create an account number, name, card, hold, and PIN associated with the new account. In addition, in some embodiments, a customer can use the online account opening service 15 to order checks, order a debit card, set up and/or order ATM card member information, set up and access online or telephone banking services, set up and access online bill payment services, configure overdraft options (e.g., set up savings overdraft protection to prime/membership savings), and/or configure certificate maturity and dividend options. The online account opening service 11 can also automate one or more of the above activities, such as by automatically ordering checks or a debit card for a customer and/or by setting up a default username and password that the customer can use to access online banking services and/or online bill payment services.
With continued reference to
As noted above, the online account opening service 15 can also use similar business rules to provide cross-selling options to customers. For example, additional products can be dynamically offered to a customer through the online account opening service 15 based on the decisions, scores, and recommendations determined by the service 15. A customer can also use interactive screens provided by the service 15 to accept or decline offered products and, in some embodiments, to set-up or manage accepted products
In some embodiments, the online account opening service 15 provides a management console that can provide monitoring (e.g., generally seamless reporting and exception management) of the account opening and/or funding process.
In some embodiments, the management console application 62 provides access to queues for manual and exception processes and can give an account opening process owner or manager a window into effectiveness and/or efficiency parameters of the account opening process. For example, the management console application 62 can display the number of new account requests accepted by the service 15, the number of new account requests rejected by the service 15, the percentage of new account requests accepted or declined by the service 15, the average or total amount of funds transferred to new accounts, the types and number of constraints associated with new accounts, etc. The parameters can be based on processes occurring with a predetermined time period, such as processes occurring over the past 24 hours, over the past week, over the past month, etc. The management console application 62 can allow an individual to modify the predetermined time period in order to view parameters over various time periods. In some embodiments, the management console application 62 can also display pending new account requests (e.g., new account requests requiring manual review). An individual can use the management console application 62 to route a pending request to a particular individual associated with the financial institution, to accept a pending request, to reject a pending request, to set funding constraints for a pending request, and/or to document information associated with a pending request.
The management console application 62 can be secure and can provide real-time, web-based transaction and activity reporting. Using the management console application 62, process owners, product managers, auditors, and compliance officers can have access to reports and documentation (e.g., standard or customized) that enable access and management of account opening processes, policies, and procedures. The management console application 62 can allow a user to manage open items, automatically assign and route tasks based on user roles, display a pending queue for tasks awaiting a review decision, and provide campaign management. The management console application 62 can also provide audit trails and can provide permissions-based access control. In some embodiments, the management console application 62 includes a modular design that is customizable by a financial institution (e.g., using a rules-driven strategy). In some embodiments, the management console application 62 also allows an individual to configure the system 15. For example, the management console can be combined with the functionality of the automated configuration application 16, as described above with respect to
The functionality of the online account opening service 15 can be governed by the Fair Credit Report Act (“FCRA”) and can provide a notification of an adverse action if the online account opening service 15 declines a customer's request for a new account. In some embodiments, the online account opening service 15 or the financial institution managing the service 15 provides a FCRA call center for directing customers to individuals or agencies for processing the notification. As noted above, the online account opening service 15 can also direct the declined customer to use an alternate funding source (e.g., a credit card or a debit card) in order to overcome a declination.
In some embodiments, in addition to providing account opening services to a financial institution, the online account opening service 15 also provides account funding services, ACH processing services, automated funding risk management strategies services, and/or professional consulting services for establishing a custom funding risk management strategy.
It should be understood that the funding source verification method described above can be used with various other financial products and service other than or in addition to new account opening and funding. For example, the funding source verification method described above can be performed to authenticate automated bill payments, to qualify funding accounts for stored value accounts, and/or to open mortgage accounts. It should also be understood that the funding source verification method described above can be combined with other verification methods, such as challenge deposits, in order to provide additional verification processes.
Various features and advantages of the invention are set forth in the following claims.
This is a continuation of application Ser. No. 11/796,561, filed Apr. 27, 2007 now U.S. Pat. No. 8,160,957 which claims priority to U.S. Provisional Patent Application Ser. No. 60/796,232 filed on Apr. 28, 2006, and claims priority to U.S. Provisional Patent Application Ser. No. 60/816,820 filed on Jun. 27, 2006, the entire content of each of which is incorporated herein by reference.
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| Number | Date | Country | |
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| 20120173415 A1 | Jul 2012 | US |
| Number | Date | Country | |
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| 60796232 | Apr 2006 | US | |
| 60816820 | Jun 2006 | US |
| Number | Date | Country | |
|---|---|---|---|
| Parent | 11796561 | Apr 2007 | US |
| Child | 13416785 | US |
