Automated cash flow management system and method

Abstract

The present invention provides a system and method for managing cash flow, wherein user input, such as a cash flow pattern, is entered into a computer program. The system comprises a user platform, which includes a user interface module and a cash flow management module. The cash flow management module facilitates a temporary hold instruction on funds from a specified main account of the user, temporarily debiting or holding funds, and releasing them at a specified time into the user's account, or that of a third-party, such as a merchant. The system utilizes a secure protocol via an application programming interface (API) to interface with the user's bank. The system supports various spending and savings processes and objectives, including authorizing holds, executing spending plans, automating saving or investment processes. The invention further facilitates third-party authorizations for deviations from the cash flow pattern, such as early access to funds.

Description

[0001] AUTOMATED CASH FLOW MANAGEMENT SYSTEM AND METHOD

[0002] FIELD OF THE INVENTION

[0003] THIS invention relates to a computer program-based system and method for managing the cash flow of a user, enabling the user to set aside money according to a predetermined plan or pattern, including for a specific goal, and to spend the money set aside accordingly.

[0004] BACKGROUND OF THE INVENTION

[0005] Cashflow management is an important aspect of personal finance, as it affects the ability of a user to meet their financial obligations, goals, and aspirations. However, many people face challenges in managing their cashflows effectively and efficiently. People generally struggle with building a positive spending pattern and general stamina for saving. This is particularly difficult for lower income market segments where there is a higher weighting of spending allocated to baskets of goods with typically higher rates of inflation as compared to the headline inflation rate, such as food, fuel, schooling, medical expenses. Countries with large middle-income and lower-income segments are a great example of the impact of such pressure on saving patterns. For instance, South Africa, a developing economy with a resilient middle-class, known for its high unequal income, wealth and consumption distribution has one of the lowest savings rates in the world, with current rates below zero percent, the lowest being a recorded value of -2%.

[0006] Poor saving rates are further exacerbated by key behavioural biases, including present bias, i.e. the tendency to give stronger weighting or preference to payoffs or rewards that are closer to the present time than rewards to be received at a later period; optimism, i.e. overestimating the probability of positive events due to perceived control over budget over a shorter period, e.g. 2-4 days, than over a required longer period e.g. 25-30 days; and lack of commitment to desired spending plan and budget, impulsive spending and over-indulging.

[0007] Various budgeting methods have been developed across the world since time immemorial to enable and support good spending habits, including the so-called “envelope method”, savings accounts provided by banks and recently, pocket bank accounts introduced by various banks and financial technology companies to enable the setting aside of monies for specific goals, e.g. a holiday trip, large appliance purchase etc.

[0008] In recent years, digital and automated solutions have been developed with the aim to assist people with budgeting, tracking spending, providing insights on spending patterns and saving for future desires. Some of these mechanisms include: a. Spreadsheet based templates to mobile / web applications for creating budgets; b. Data aggregation applications that collate information across banking accounts, categorising the user’s spending and expenses; c. Sub-account mechanism to create various dedicated ‘sub-accounts’ (some applications refer to ‘vaults’, ‘envelopes’ etc.) for user-defined spendings; d. Auto saving and / or bank account debiting schemes including rounding-off purchases; e. Scheduled payments (could also be referred to a ‘bill payments’) which includes start dates, discrete payment frequencies (e.g., daily, weekly etc.); with payments limited to bank accounts only and / or associated with an approved or validated vendor; and f. Auto allocation of new cash inflows into predetermined amounts into sub-accounts.

[0009] However, existing systems for managing cashflow are either limited in scope or functionality or rely on external factors or interventions that may not be effective or convenient for the user. For example:

[0010] Some systems only focus on tracking or monitoring the user’s spending habits, but do not provide any guidance or assistance on how to improve them; • Some systems only focus on saving money for a specific goal, but do not take into account the user’s overall cashflow situation or other spending needs;

[0011] • Some systems require the user to manually input or update their financial information, which may be tedious or prone to errors;

[0012] • Some systems require the user to access multiple accounts or platforms, which may be inconvenient or unsecure.

[0013] Further, these systems do not address certain core behavioural issues that lead to failures in adhering to budgeting strategies or objectives. In particular, most of these systems are focused on the input side of the budgeting or savings process, e.g., savings in general, or goal setting and allocating funds towards the goal, and not on spending side of the process. These systems are based on the presumption that once the user has set a savings target or a specific goal, then the user should have sufficient self-discipline not only to be able to allocate the required and / or committed funds towards the target or goal, but that the user will be able to control their spending patterns in relation to the savings target, set goal or in general. However, users often do not reach their targets or goals in part due to early withdrawals of the funds allocated towards the saving target or spending goal, e.g., giving in to spending pressures or giving up on the target or goal. In certain instances, users are not able to reach their targets or goals due to spending pressures related to their “day to day” activities, e.g., grocery shopping, fuel or transportation costs, unplanned incidental costs. Users tend to withdraw from funds allocated to their targets or goals in order to fund these activities. Some systems have tried to address this by restricting access to the saved or set aside funds. Whereas the above systems aim to control access to the funds allocated towards a specific savings target or a goal, they focus on controlling the allocated funds, through restricting access to the intermediary account or requiring a user selected third-party approval, as opposed to managing the overall flow of cash of the user and curbing the causes of the user’s need to access the allocated funds in the first instance.

[0014] There is a need for a holistic system that executes an end-to-end automated cashflow management process based on a user income, savings and spending plan which may be selfgenerated by the user or generated by a computer-program e.g., using artificial intelligence (Al). The system should be configured to run on a device accessible to the user such as a cellphone, a smart personal device, a smart appliance, a laptop, tablet, or a spatial computing device.

[0015] The system should allow for commitment to desired spending pattern requirement with a focus on the consumer. Given the focus on controlling spending, there is a further need to ensure that a consumer can save for a desired future spending by aggregating online shopping carts and in-person shopping / spending desires.

[0016] It is the objective of this invention to provide a computer program-based system and method that enables the holistic management of the flow of the user’s cash, thus enabling the user to allocate funds for a targeted spending pattern, including towards a specific savings target or a goal as well as to ensure availability of cashflow at the relevant time for non-savings related day-to-day spending requirements.

[0017] SUMMARY OF THE INVENTION

[0018] According to a first aspect of the invention there is provided a computer program-based system for managing the cash flow of a user, comprising: a. at least one specified bank account of the user, wherein the user receives an income; b. a user platform that enables the user to access the at least one specified bank account and perform various actions thereon, comprising: i. a user interface configured to enable the user to insert input or authorise input to be inserted into the platform; ii. a computer program configured to: i. receive input regarding the user cash flow pattern; ii. create an authorization hold request for one or more specified amounts from the at least one specified bank account of the user in accordance with the user cash flow pattern and send the authorization hold request to the bank with which the at least one specified bank account of the user is held, (the nominated bank); and iii. an application programming interface (API), configured to interface with a payment gateway of the nominated bank, to enable the computer program to access the at least one specified bank account of the user and perform various actions in accordance with input inserted by the user into the program, including performing transactions such as the authorization hold request. wherein the authorization hold request is channelled to the nominated bank of the user, for example, via the API and through the payment gateway of the nominated bank, in a manner that enables the nominated bank to verify the identity of the user, classify the request as an authorization hold request, approve or reject the request, and if approved, temporarily debit funds from the at least one specified bank account of the user, resulting in a reduced available balance and release the debited funds in accordance with the user cashflow pattern.

[0019] The term “user cash flow pattern” as used in this specification means the cash outflow requirements of the user using the system of the present invention over a predetermined future period from the cash balance available in, or cash inflows anticipated within a future period into, the least one specified bank account of the user. Thus, the user cash flow pattern may comprise a single cash outflow requirement at a single time in the future or a multiple of cash outflow requirements, at a single time or over a predetermined period in the future The term “authorisation hold” is elaborated further in the detailed description.

[0020] Preferably, the user platform is a digital platform, such a web-based platform or mobile application platform.

[0021] Preferably, the authorisation hold request is initiated through the presentation of credentials required by the nominated bank to identify and / or verify the user, such as a bank card issued by the nominated bank to the user, banking credentials of the user, and / or biometric information of the user.

[0022] Preferably, the authorisation hold request includes an instruction for the release of the one or more specified amounts on a predetermined date in accordance with the user cash flow pattern. More preferably, the instruction in the authorisation hold request is a delayed instruction.

[0023] Preferably the authorisation hold request includes details of at least one account, whether that of the user or of a third party, into which the one or more specified amounts are to deposited when released, which may be the at least one specified bank account of the user, or at least one other account specified by the user, such as another bank account, investment account or such other account of the user, or an account of a third party, such as a third-party merchant or service provider account.

[0024] In an embodiment of the first aspect of the invention, the system further comprises at least one custodian bank account, which is not accessible to the user, wherein the funds debited from the at least one specified bank account of the user are temporarily deposited for a predetermined period in accordance with the authorisation hold request. The at least one custodian bank account may be separate from or linked to the at least one specified bank account of the user. In a preferred embodiment of the first aspect of the invention, the funds held in authorisationhold or debited funds are not visible or accessible to the user from the at least one specified bank account of the user until the funds are released in accordance with the user cashflow pattern or on the different date as may be specified by the user.

[0025] Where specified in the user cash flow pattern, the funds held in accordance with the authorisation hold request may be released back into the at least one specified bank account of the user. The amounts may be released in discreet amounts to be accessed by the user for “day-to-day” expenses in accordance with the user’s cashflow pattern. Alternatively, the amount held may be deposited into the at least one other account specified by the user, such as another bank or investment account of the user, a third-party account, such a third party merchant account, or mobile wallet of the user or a third party in accordance with the user input.

[0026] The user cashflow pattern may include an instruction to allocate at least a portion of funds from the at least one specified bank account of the user for a predetermined goal and time, and may include information regarding the user’s income, expenses, savings or investment goals, and spending plan.

[0027] The user cashflow pattern may include an instruction to allocate a portion of the user’s income towards a specific spending goal with varying periodicity and frequency, such as a holiday trip anticipated to occur within a certain future period, dinner or shopping anticipated to occur within a day or more.

[0028] In an even more preferred embodiment of the first aspect of the invention, the system further enables the user to specify or select a transaction type which captures the purchasing intent (expenditure intent) of the user within a particular category of goods and services at a specific date in a future period. The purchasing intent being a function of the payment intent, possible discount negotiation mechanism with merchants by the computer program determined by an algorithm, and the user’s commitment rating level.

[0029] The cash flow pattern of the user may be generated and inserted into the platform by the user. Notwithstanding, in a preferred embodiment of the first aspect of the invention, the system further comprises a computer program module configured to determine and recommend an optimized cash flow pattern for the user based on aggregation and analysis of earlier cash flow transactions from the at least one specified bank account of the user. The analysis may take into account specified utility factors, cashflow risk factors and desired optimisations factors. The utility factors may include non-user specified factors such as the timing of a specific transaction from the date of the last deposit of income into the specified user account, as well as the percentage of the transaction in relation to the last deposit. The system may then recommend an optimal cash flow pattern that will result in longer duration of a positive bank balance, minimal credit utilisation, an increase in excess cash balance etc. Preferably, the user is able to approve or amend the computer program generated user input prior to its insertion into the computer program and automated execution by the system.

[0030] In a preferred embodiment of the first aspect of the present invention, the system includes a requirement to appoint at least one third party user for authorising any input from the user into the user platform to deviate from the user cashflow pattern (“third party authoriser”), for example by specifying a date different from the predetermined date for the release of the specified amount held or to be held in authorisation hold, or a different amount to be released or a different account into which the specified amount is to be released. Preferably, the system is configured to send a request to the third party authoriser to authorise the deviation. The third party authoriser may be a person with whom the user may be acquainted prior to using the system. Preferably, the system is configured to approve or reject a third-party authorizer selected by a user by conducting an assessment of the suitability of the third party to act as an authorizer. The assessment may be carried out using a computer program contained as a separate module within the system. Alternatively, the computer program includes a third party authoriser discovery module for capturing information related to and creating a database of third party authoriser candidates, preferably not acquainted to the user, that may be selected by the user, through a discovery mechanism. The third party authoriser candidates may be assessed, rated and recommended to the user through the use of various parameters such as commitment rating, i.e. the ability of the candidate to commit to their desired cashflow pattern and savings goals, authorization rating, i.e. the ability of the candidate, as an authorizer, to ensure a user’s commitment to their own desired cashflow pattern and savings goals, and the certification of candidates with regulatory accreditation, such as FSCA and PAIS accreditation in South Africa, or any other such recognised and acceptable financial intermediary accreditation for the specific jurisdiction.

[0031] Preferably, the system is further configured to enable or permit the user to rate third party authorisers in terms of their ability to assist another user to commit to their cash flow patterns, and vice versa, the requesting user’s ability to commit to planned spending patterns.

[0032] Preferably, the system is configured to limit access to monetary details by the authorizer, for example, by rebasing values to a common denominator and applying any other such manners to limit full information on the specificality of the amounts etc. According to a second aspect of the invention there is provided a method of managing the cashflow of a user using the abovementioned computer program-based system, comprising: a. inserting a user cash flow pattern into the computer program of the user platform; b. the computer program processing the user cash flow pattern and: i. creating and sending an authorization hold request to the nominated bank of the user for one or specified amounts in accordance with the user cashflow pattern through the application programming Interface (API) linked to the banking system of the nominated bank; c. the API channeling the authorization hold request through the payment gateway of the nominated bank; wherein the authorisation hold request is initiated through the presentation of credentials required by the nominate bank to identify and / or verify the user, such as a bank card issued by the nominated bank to the user, banking credentials of the user, and / or biometric information of the user, and wherein the authorization hold request is channelled to the nominated bank of the user, for example, through the payment gateway, in a manner that enables the nominated bank to verify the identity of the user, classify the request as an authorization hold request, approve or reject the request, and if approved, temporarily debit funds from the at least one specified bank account of the user, thereby reducing the balance of available cash in the at least one specified bank account of the user and release the debited funds in accordance with the user cashflow pattern.

[0033] Preferably, once the authorisation hold request is approved or rejected, a notification is sent from the nominated bank to the user platform, through the payment gateway and API, confirming the decision.

[0034] Preferably, the authorisation hold request includes an instruction for the release of the specified amount on a predetermined date in accordance with the user cash flow pattern.

[0035] Preferably the authorisation hold request includes details of the account into which the specified amounts are to deposited when released, which may be the at least one specified bank account of the user, or at least one other account specified by the user, such as another bank account, investment account or such other account of the user, or an account of a third party, such as a third-party merchant or service provider account, or to a mobile wallet platform of the user or a third party. In a preferred embodiment of the first aspect of the invention, the funds held in authorisationhold or debited funds are not visible or accessible to the user from the at least one specified bank account of the user until the funds are released in accordance with the user cashflow pattern or on the different date as may be specified by the user.

[0036] The API may require the user to enter their banking credentials or card details, such as online banking credentials, and may include the completion of an authentication step, such as the completion of two-factor authentication process, as well as other forms of verification required by the banking institution.

[0037] In an embodiment of the second aspect of the invention, the method further comprises depositing the temporarily debited funds into a custodian bank account not visible or accessible to the user, for a predetermined period in accordance with the authorisation hold request. The at least one custodian bank account may be separate from or linked to the at least one specified bank account of the user.

[0038] In a preferred embodiment of the second aspect of the invention, the method further comprises obtaining an optimized saving pattern or spending pattern using the computer program based on aggregation and analysis of cashflow transactions from the at least one specified bank account of the user. The optimized spending pattern may further be determined based on the user’s utility factor rating for each transaction.

[0039] In a yet preferred embodiment of the second aspect of the invention, the amounts held in accordance with the authorisation hold request may be released back into the at least one specified bank account of the user. The amounts may be released in discreet amounts to be accessed by the user for “day-to-day” expenses in accordance with the user’s cashflow pattern. Alternatively, the amount held may be deposited into the at least one other account specified by the user, such as another bank or investment account of the user, a third-party account such a third party merchant account or mobile wallet platform of the user or a third party in accordance with the user input.

[0040] In an even more preferred embodiment of the second aspect of the invention, the method further includes the user to specifying, selecting or capturing a transaction type which captures the purchasing intent (expenditure intent) of the user within a particular category of goods and services at a specific date in a future period. The purchasing intent being a function of the payment intent, possible discount negotiation mechanism with merchants by the computer program determined by an algorithm, and the user’s commitment rating level. The user cashflow pattern, may include instructions to allocate at least a portion of funds from the specified bank account of said user for a predetermined goal or time, and may include information regarding the user’s income, expenses, savings or investment goal, and spending plan.

[0041] The method may include configuring the system to allocate a portion of the user's income towards a specific spending goal and pattern, such as a holiday trip, a dinner, shopping, nonlinear frequent expense.

[0042] The user input may be generated from a computer program-based analysis of transactions from the at least one specified bank account of the user, taking into account specified risk factors. Preferably, the computer program-based analysis includes sorting the transactions into various categories, such as investments, groceries, entertainment etc., and may require the user to rate the transactions and / or the categories of transactions in terms of their importance to the user.

[0043] The risk factors may include the timing of a specific transaction from the date of the last deposit of income into the specified user account, as well as the size of the transaction in relation to the last deposit.

[0044] Preferably, the method includes the user approving or amending the computer program generated user input prior to its insertion into the computer program of the system.

[0045] In a preferred embodiment of the second aspect of the invention, the method includes the user identifying a third party as an authorizer in the case that the user wishes to deviate from the savings or spending allocation goal, wherein the system is configured to send a request to the third party to authorize the deviation and the third party being able to approve or reject the authorisation.

[0046] In another preferred embodiment of the second aspect of the invention, the method further comprises enabling or permitting the user to rate third party users in terms of their commitment ability and their ability to assist another user to commit to their spending patterns and savings goals.

[0047] Preferably, the method comprises using the system to approve or reject the third-party authorizer selected by a user by conducting an assessment of the suitability of the third party to act as an authorizer. The assessment may be carried out using a computer program contained as a separate module within the system. The assessment may be carried out using parameters such as commitment rating, rating of a previously approved third-party authorizer and certification of third party(ies) with regulatory accreditation of the specific jurisdiction, such as FSCA and FAIS accreditation in South Africa, for example.

[0048] BRIEF DESCRIPTION OF THE DRAWINGS

[0049] Figure 1 shows a block (sequence) diagram illustrating the system of the present invention, wherein a user profile is created, user input is entered into the computer program and funds are debited or held from the user specified account and released at a specified time or allocated into another account either belonging to the user or a third party, including a third party merchant.

[0050] Figure 1A shows a cross-functional flowchart illustrating the systematic programming and actioning of the authorization-hold mechanism of the present invention.

[0051] Figure 2 shows a cross-functional flowchart illustrating the method of managing cash flow using the system of the present invention.

[0052] Figure 3 shows a block diagram illustrating the system of the present invention, wherein a user requests authorisation from a third party authoriser.

[0053] Figure 3A shows a cross-functional flowchart illustrating the use of the commitment rating of a user in respect of a payment intent with a third party merchant and the feedback to the system based on the actions of the user in relation to the payment intent.

[0054] Figure 4 shows a block diagram illustrating the system of the present invention, wherein a user accesses funds previously debited or held from the user specified account and released at a specified time to the user or a third-party merchant for the benefit of the user.

[0055] DESCRIPTION OF PREFERRED EMBODIMENTS OF THE INVENTION

[0056] The present invention is described hereinbelow with reference to the accompanying drawings.

[0057] Figure 1 shows a block diagram illustrating an embodiment of the system of the present invention, wherein a user profile is created, user input, such as a cash flow pattern, is entered into the computer program and funds are temporarily debited or held from the user specified account and released at a specified time and / or allocated into another account either belonging to the user or a third party, including a third-party merchant. The system of the present invention comprises a user platform including at least an application module, a user interface module, and a cashflow management module. The system utilizes a secure protocol via Application Programming Interface (API) that may require the user to enter their banking credentials, such as online bank card or banking credentials, including the completion of two- factor authentication and other forms of verification that may be required by the banking institution, such as biometric credentials. The cash flow management module may further comprise a spending module and a saving module. The application module is configured to run on a device accessible to a user, such as a cellphone, a smart personal device, a smart appliance, a laptop, special computing device, or a tablet. The user interface module is configured to provide an interactive platform for the user to input, view, and modify information related to the user’s cashflow pattern including income, expenses, savings goals, spending plans, and cashflow status, as well as for the user to request access to funds. Alternatively, the cashflow pattern input may be generated using artificial intelligence based on the transaction history of the user’s main account. The interface module is also configured to enable a third-party authoriser to receive and view requests from a user for early-access to funds and to authorise or deny the request. The cashflow management module is configured to coordinate the withdrawal of funds from a specified main account of the user, or a multiple of user specified accounts, wherein the user receives a portion of or all their income periodically. The cashflow management module may be configured to generate and send an authorisation hold request through a secure API which is in turn communicated through the payment gateway of the nominated bank, with which the bank account in question is held. The nominated bank categorises the request as an authorisation hold request, and if approved, it debits the specified account(s) or perform an authorization hold over the main account(s) of the user, thereby reducing the available cash balance in the user’s account. The debited amount a temporarily debited from the account of the user for release back into the account or another specified account of the user at a specified future time or for payment to a specified account of a third party, including mobile wallet payment, an investment account, a third party merchant, e.g. a restaurant, or for allocation or transfer of the funds to the appropriate account, either belonging to the owner or a third party, for purposes of investing the funds or saving. The debited funds are not visible or accessible to the user for a predetermined time or until the predetermined date or goal has been reached.

[0058] The term “authorisation hold” is readily understood by those skilled in the art, and generally refers to a mechanism that allows for a specific amount of funds or specific amounts of funds to be temporarily reserved on or from a user’s account, without any form of immediate settlement intent. Upon approval of the authorisation hold request by the user’s bank, the bank creates a temporary debit adjustment on the user’s account and the requested amount is segregated the balance that is available on the user’s account, thereby decreasing the balance that is available to the user on their account. The user’s bank proceeds to send an authorization response message back through the payment gateway or card network to the user platform, which is then updated to indicate whether the hold was successful or not. It may also be that upon approval of the authorisation hold request the bank debits the specified amount from the user’s bank account and transfers it into a separate account, which is not accessible to the user to be later transferred to the at least one specified bank account of the user or the at least one other account specified by the user, such as a bank or investment account of the user or an account of a third party, such as a third-party merchant account.

[0059] This is illustrated in Figure 1A, which depicts an embodiment of the system, wherein the implementation of an authorization hold with multiple releases is depicted. This figure provides a detailed representation of the internal processes and communication flow between the application and the user's bank account via the payment gateway.

[0060] The cash flow management module may be configured to include a spending module and a saving module, ensuring that the user has sufficient funds for both saving and spending at any given time. The spending module is configured to execute an end-to-end automated funds allocation process based on the user’s cashflow pattern, which may be self-generated by the user or generated by an artificial intelligence program based on the user’s transaction history. The spending process may include aggregating online shopping carts and in-person shopping or spending desires, allocating funds for future spending, and allocating funds for day-to-day spending. The saving or investment module is configured to execute an end-to-end automated saving or investment process based on the user’s savings goal, which may be a specific amount of money or a specific item or service that the user wants to purchase or obtain in the future. The saving process may include creating a savings account, transferring funds from the user’s main account to the savings account, restricting access to the savings account, and monitoring the progress of the savings goal. The cashflow management module may also provide feedback and suggestions to the user on how to optimize their cashflow and achieve their savings goal faster.

[0061] Figure 2 shows a cash flow management method using the system of the present invention. The method comprises the steps of the system receiving input from the user regarding their income, expenses, savings or investment goal, and spending plan; generating or updating a cashflow model based on the input; the system withdrawing the funds to be allocated to expenses, savings or investment goal from the user main account to another account belonging to the user or a third party, such as a third party merchant, either by way of a debit or purchase transaction and / or the system performing an authorization hold over the funds to be allocated in the user main account; the system executing the spending process based on the spending plan and the saving process based on the savings or investment goal; coordinating the spending process and the saving process according to the cashflow model; providing non-monetary output to the user regarding their cashflow status and progress of their savings goal; and receiving feedback from the user and modifying the cashflow model accordingly. The debited funds are not visible or accessible to the user for a predetermined time or until the predetermined goal has been reached. The system may be configured to release discreet amounts of the user’s income back into the specified bank account of the user or into another account of the user in accordance with the input provided by the user. The discreet amounts may be used by the user for “day-to-day” expenses in accordance with input provided by the user.

[0062] The user cashflow pattern may be generated from a computer program-based analysis of transactions from the at least one specified bank account of the user, taking into account specified risk factors and the utility-maximisation objective of the user (e.g. positive bank balance in between particular cash inflows such as wages, salary, commission etc.). The computer program-based analysis may sort the transactions into various categories, such as investments, groceries, entertainment etc., and require the user to rate the transactions and / or the categories of transactions in terms of their relative significance to the user.

[0063] The risk factors used in the analysis of transactions include the timing of a specific transaction from the date of the last deposit of income into the specified user account, as well as the percentage of the transaction in relation to the last deposit. The system should be configured such that the user is able to approve or amend the computer program generated input prior to its insertion into the computer program of the system.

[0064] The system may be used to allocate a portion of the user’s income towards investment or savings, or a specific spending goal, such as a holiday trip, a dinner, shopping.

[0065] The system is configured to allow a third party authorized by the user to approve any deviation from the savings or allocation goal, including early access to funds, as illustrated in Figure 3. The system sends a request to the third party for authorization in such cases, who may either approve or reject the request. The system will limit access to monetary details by the authorizer by rebasing values to a common denominator.

[0066] The user may opt for an acquainted third-party authorizer, but preferably, the system will allow for enhanced discovery of suitable authorizers through the use of parameters such as commitment rating (i.e. an authoriser’s ability to commit to their desired cashflow pattern and savings goals), authorization rating (i.e. an authorizer’s ability, to ensure commitment to their own desired cashflow pattern and savings goals), and a manner of disclosing certification of third party(ies) with regulatory accreditation, such as FSCA and FAIS accreditation in South Africa.

[0067] The system is therefore configured to assess the suitability of a third-party authorizer selected by a user and either, only approve and rate them or reject them. The assessment may be carried out using a computer program contained as a separate module within the system. The program uses parameters such as commitment rating, rating of a previously approved third- party authorizer, and certification of third parties with regulatory accreditation, such as FSCA and FAIS accreditation in South Africa.

[0068] Figure 3A further showcases the use of the commitment rating of the user for a payment intent with a 3rdparty merchant and the feedback to the system based on the actions of the user in relation to the forementioned payment intent.

[0069] In another aspect, the invention provides a method for enabling a consumer to commit to a desired spending pattern requirement and to save for a desired future spending by aggregating online and in-person shopping / spending desires, as illustrated in Figure 4. The method comprises receiving a prepayment amount from the consumer and allocating the prepayment amount to one or more spending categories according to the desired spending pattern requirement. The method further comprises aggregating one or more online shopping carts and in-person shopping / spending desires of the consumer and determining a total spending amount for the aggregated shopping carts and desires. The method further comprises comparing the total spending amount with the prepayment amount and saving the difference between the prepayment amount and the total spending amount for the desired future spending of the consumer.

[0070] The invention has been described above with reference to specific embodiments. The invention is not limited by any particular implementation, configuration, or application. The invention is intended to cover various modifications and equivalent arrangements, which will be apparent to those skilled in the art, included within the spirit and scope of the summary of the invention.

Claims

CLAIMS1 . A computer program-based system for managing the cash flow of a user, comprising: a. at least one specified bank account of the user, wherein the user receives an income; b. a user platform that enables the user to access the at least one specified bank account and perform various actions thereon, comprising: i. a computer program configured to a) receive input regarding the desired cash flow pattern of the user (user cash flow pattern), which includes cash outflow requirements of the user over a predetermined future period from the cash balance available in or cash inflows anticipated within a future period into the at least one specified bank account of the user, and b) create an authorization hold request for a specified amount from the at least one specified bank account of the user in accordance with the user cash flow pattern and send the authorization hold request to the bank with which the at least one specified bank account of the user is held (the nominated bank); and ii. an application programming interface (API) configured to interface with the payment gateway of the nominated bank, to enable the computer program to access the at least one specified bank account of the user and perform various actions in accordance with input inserted by the user into the program, including performing transactions such as the authorization hold request, wherein the authorization hold request is channelled to the nominated bank of the user, in a manner that enables the nominated bank to verify the identity of the user, classify the request as an authorization hold request, approve or reject the request, and if approved, temporarily withhold funds from the at least one specified bank account of the user, and release the previously withheld funds in accordance with the user cash flow pattern.

2. The system according to claim 1 , wherein the user platform is a digital platform, such as a web-based platform or mobile application platform.

3. The system according to claim 1 or 2, wherein the authorization hold request is initiated through the presentation of credentials required to identify and / or verify the user, includinga bank card issued by the nominated bank to the user, banking credentials of the user, and / or biometric information of the user.

4. The system according to any one of claims 1 to 3, wherein the authorization hold request is channeled through the API to the nominated bank through the payment gateway.

5. The system according to any one of claims 1 to 4, wherein the authorization hold request includes an instruction for the release of the specified amount on a predetermined date in accordance with the user cash flow pattern.

6. The system according to any one of claims 1 to 5, wherein the authorization hold request includes details of the account into which the specified amount is to be released, including the at least one specified bank account of the user, or at least one other account specified by the user.

7. The system according to claim 6, wherein the at least one other account specified by the user includes another bank account, investment account, or such other account of the user, or an account of a third party, including a third-party merchant or service provider account.

8. The system according to any one of claims 1 to 7, further comprising at least one custodian bank account, which is not accessible to the user, wherein the funds debited from the at least one specified bank account of the user are temporarily deposited in the custodian bank account for a predetermined period in accordance with the authorization hold request.

9. The system according to any one of claims 1 to 8, wherein the funds held in authorizationhold or debited funds are not visible or accessible to the user from the at least one specified bank account of the user until the funds are released in accordance with the user cash flow pattern.

10. The system according to any one of claims 1 to 9, wherein the funds held in accordance with the authorisation hold request are released back into the at least one specified bank account of the user in accordance with the instructions in the authorisation hold request.1 1. The system according to any one of claims 1 to 10, wherein the user cash flow pattern includes an instruction to allocate at least a portion of funds from the at least one specified bank account of the user for a predetermined goal and time.

12. The system according to claim 1 1 , wherein the user cash flow pattern includes an instruction to allocate a portion of the user’s income towards a specific spending goal with varying periodicity and frequency.

13. The system according any one of claims 1 to 12, wherein the computer program further comprises a module configured to determine and recommend an optimized cash flow pattern for the user based on aggregation and analysis of cash flow transactions from the at least one specified bank account of the user.

14. The system according to any one of claims 1 to 13, wherein the system further enables the user to specify or select a transaction type which captures the purchasing intent of the user within a particular category of goods and services at a specific date in a future period.

15. The system according to claim 14, wherein the purchasing intent is a function of the payment intent, possible discount negotiation mechanism with merchants determined by an algorithm, and the user’s commitment rating level.

16. The system according to any one of claims 1 to 15, wherein the system includes a requirement to appoint at least one third party authorizer for authorizing any input from the user into the user platform to deviate from the user cash flow pattern inserted into the computer program.

17. The system according to claim 16, wherein the system is configured to send a request to the third party authoriser to authorise the deviation.

18. The system according to any one of claims 1 to 17, wherein the computer program includes a third party authoriser discovery module for capturing information related to and creating a database of third party authoriser candidates, not acquainted to the user, that may be selected by the user, through a discovery mechanism.

19. The system of claim 18, wherein the third party authoriser candidates are assessed, rated and recommended to the user through the use of suitable parameters, includingcommitment rating, authorization rating, and the certification of candidates with regulatory accreditation, including FSCA and PAIS accreditation in South Africa, or any other such recognised and acceptable financial intermediary accreditation for the specific jurisdiction.

20. The system of any one of claims 1 to 19, wherein the computer program is further configured to enable the release of discreet amounts of income back into the user’s specified bank account or another account of the user for day-to-day expenses in accordance with the user cashflow pattern.21 . A method of managing the cash flow of a user using the computer program-based system of any one of claims 1 to 20, comprising: a. inserting a user cash flow pattern into the computer program of a user platform; b. the computer program processing the user cash flow pattern and creating and sending an authorization hold request to the nominated bank of the user for a specified amount in accordance with the user cash flow pattern through a secure application programming interface (API) linked to the banking system of the nominated bank; and c. the API channeling the authorization hold request through the payment gateway of the nominated bank; wherein the authorization hold request is initiated through the presentation of credentials required to identify and / or verify the user, including a bank card issued by the nominated bank to the user, banking credentials of the user, and / or biometric information of the user.

22. The method according to claim 21 , wherein upon approval or rejection of the authorization hold, a notification is sent from the nominated bank to the user platform, through the payment gateway and API, confirming the decision.

23. The method according to claim 21 or 22, wherein the authorization hold request includes an instruction for the release of the specified amount on a predetermined date in accordance with the user cash flow pattern.

24. The method according to any one of claims 21 to 23, wherein the authorization hold request includes details of the account into which the specified amounts are to be deposited when released.

25. The method according to any one of claims 21 to 24, further comprising depositing the temporarily debited funds into a custodian bank account not visible or accessible to the user, for a predetermined period in accordance with the authorization hold request.

26. The method according to any one of claims 21 to 25, wherein the cashflow pattern is generated by the user or from a module of the computer program using computer programbased analysis of transactions from the at least one specified bank account of the user, taking into account specified utility factors and desired optimisation factors.

27. The method according to claim 26, wherein the computer program recommends an optimal cash flow pattern that will result in an improved cash flow position for the user, including longer duration of positive bank balance, minimal credit utilisation, and an increase in excess cash balance.

28. The method according to claim 26 or 27, wherein the user is prompted to approve or amend the computer program generated user input prior to its insertion into the computer program of the system.

29. The method according to any one of claims 21 to 28, wherein a third-party authorizer is selected by the user to approve or deny deviations from the user’s saving goals and spending plans or from the user approved saving and spending patterns.

30. The method according to any one of claims 21 to 29, wherein the specified amounts held in authorization hold is released back into the at least one specified bank account of the user or another account specified by the user for day-to-day expenses in accordance with the user cashflow pattern, or towards investment or savings.

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