Centralized Financial Product Optimization Tool
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Solution Overview
Problem
Financial services institutions face challenges in optimizing multiple key performance indicators (KPIs) for their diverse financial products due to the lack of a centralized modeling and optimization tool, leading to inefficient resource allocation and reduced profitability.
Innovation Solution
A computer-implemented method and system for a centralized modeling and optimization tool that collects transactional data to predict customer responses to changes in financial product attributes, optimizing these attributes based on selected KPIs and business rules, and transmitting the optimized values to control the movement and utilization of financial products within the financial commerce system.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If dedicated or specialized modeling resources are maintained for each product manager, then each product manager can have customized modeling support, but the costs increase and profitability decreases due to lack of coordination
Solution Approach 1:
The patent consolidates multiple dedicated modeling resources into a single centralized modeling resource that serves all product managers. This centralized resource pools expertise and coordinates across product categories, eliminating redundant costs while maintaining customized support through configurable parameters and collaborative workflows.
Solution Approach 2:
The centralized modeling resource is designed to be multi-functional, capable of supporting diverse product categories (consumer loans, commercial loans, deposits, credit cards, investments, insurance) through a unified platform. This universal resource adapts to different product needs through configurable parameters rather than requiring separate specialized resources for each product type.
2Manufacturing precision
If each product manager develops independent strategies with dedicated resources, then product-specific optimization is achieved, but cross-product coordination and overall profitability are reduced
Solution Approach 1:
The patent segments the modeling process into product-specific analysis components handled by the centralized resource. Each product category receives tailored optimization through configurable parameters and models, while the centralized coordination ensures these segments work together to maximize overall profitability rather than operating in silos.
Solution Approach 2:
The centralized modeling resource implements feedback loops that coordinate across product categories. Optimization decisions for one product category consider impacts on other categories, and performance data from all products feeds back into the centralized model to refine strategies and improve overall institutional profitability.
3Adaptability or versatility
If multiple specialized modeling resources are used, then comprehensive product coverage is provided, but resource allocation efficiency and profitability are reduced
Solution Approach 1:
The patent merges multiple specialized modeling resources into one centralized resource that handles the entire product portfolio. This consolidation eliminates resource duplication and improves allocation efficiency while maintaining comprehensive product coverage through the centralized resource's ability to configure and optimize across all product categories.
Data Source
AI summary
A computer-implemented method controls commercial transactions involving a portfolio of financial products by conducting business operations related to commercial transactions between a bank and consumer involving purchase and utilization of the financial products, collecting transactional data related to the financial products, and providing a centralized modeling and optimization tool to predict customer response to changes in an attribute of a financial product under evaluation based on the transactional data and to optimize the variable of the financial product under evaluation. The modeling and optimization tool is configurable to evaluate the financial products in the portfolio under KPIs and business rules selected according to the financial product under evaluation. The optimized variable is transmitted to the bank. The movement and utilization of the financial products between the customer and bank is controlled in accordance with the predicted customer response to changes in the optimized variable of the financial product.