Cent Portion Aggregation for Automatic Personal Savings
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Solution Overview
Problem
Personal savings rates are declining due to convenient consumer spending facilitated by abundant ATMs and digital banking, leading to a need for simplified and effective methods to encourage savings from a single primary bank account.
Innovation Solution
A system and method for automatic personal savings that aggregates cent amounts from transactions within a bank account over specified periods, transferring the aggregated amount to designated receiving accounts, which can include savings or investment accounts, with optional matching funds from financial services entities.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If automatic savings aggregation from transaction cent portions is implemented, then personal savings rate is improved, but transaction processing complexity increases
Solution Approach 1:
The system automatically identifies transactions with non-zero cent portions and aggregates them for savings transfer without requiring customer intervention. The banking system self-services the savings aggregation process by monitoring transactions, calculating eligible amounts, and executing transfers autonomously based on pre-configured rules.
Solution Approach 2:
The invention changes the parameter being saved from fixed amounts or percentages to the specific cent portion (non-zero fractional dollar amounts) of transactions. This parameter transformation identifies a previously overlooked savings source by focusing on the residual cent values that typically get discarded in conventional rounding or billing processes.
2Ease of operation
If manual savings setup and tracking is required, then transaction simplicity is maintained, but savings effectiveness decreases
Solution Approach 1:
Customers pre-configure their savings preferences, rules, and destination accounts in advance. The system then automatically executes the savings aggregation and transfer process without requiring ongoing manual setup or tracking, combining simplicity with effectiveness through advance preparation.
Solution Approach 2:
The system provides automated notifications and statements to customers about their savings activity, including the amount aggregated from cent portions and transfer confirmations. This feedback loop maintains transparency and customer awareness without requiring manual tracking, thereby preserving simplicity while enhancing savings effectiveness.
Data Source
AI summary
A computer-assisted method for an automatic savings plan. The method includes calculating a savings amount from a cent amount of each of a plurality of transactions. The method also includes transferring the savings amount from a first account to at least one receiving account.