Daylight Overdraft Tracking via Minute-by-Minute Balance Aggregation
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Solution Overview
Problem
Existing systems, such as the Federal Reserve's Reporting and Pricing System, struggle to accurately calculate and customize intraday negative balance fees for commercial customers, as they typically incur negative balances throughout the day and are unable to capture minute-by-minute transactions, leading to inefficiencies and higher fees for customers.
Innovation Solution
A system that monitors negative balance activity at a customer account level, aggregates deposit account amounts by unique identifiers, and calculates daylight negative balance charges on a minute-by-minute basis, providing reports and invoices on a periodic basis, while giving customers the benefit of the doubt in fee calculations and handling ACH activity uniquely.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Measurement precision
If the Federal Reserve's Reporting and Pricing System is used to monitor negative balance activity, then real-time access to intra-day account balance information is provided, but minute-by-minute transaction capture is not achieved leading to inaccurate fee calculations
Solution Approach 1:
The system segments the monitoring process into minute-by-minute intervals, capturing individual transactions at each time point. This segmentation allows precise tracking of when negative balances occur and for how long, enabling accurate fee calculations based on actual minute-by-minute balance states rather than aggregated end-of-minute snapshots.
2Measurement precision
If aggregated account monitoring is used, then overall negative balance tracking is achieved, but customer-specific minute-by-minute balance tracking is lost
Solution Approach 1:
The system implements feedback mechanisms where minute-by-minute balance information is continuously captured, aggregated by customer identifier, and fed back into the calculation engine. This feedback loop ensures that fee calculations are based on precise, granular data while maintaining organized aggregation by customer, balancing precision with manageable complexity through structured data flow.
3Ease of manufacture
If end-of-minute account balances are calculated, then daily reporting is simplified, but daylight negative balance charges cannot be accurately assessed
Solution Approach 1:
The system performs preliminary action by capturing and timestamping each transaction as it occurs, recording the exact time when balances become negative. This preliminary capture of minute-by-minute data enables accurate calculation of daylight negative balance charges, while the system later aggregates this detailed data into simplified reports, achieving both precision in calculation and simplicity in reporting presentation.
Data Source
AI summary
Techniques and systems are disclosed for calculating daylight negative balance fees charged to a user associated with a plurality of deposit account. The daylight negative balance fees may be customized (or adjusted) to the amount of time the user's aggregate accounts maintained a negative balance. As such, those users that spend more time with a negative balance during a business day may be charged higher fees than other users. Moreover, multiple deposit platforms may provide account data through feeds. As such a user with multiple accounts may be charged according to its aggregate negative balance amount rather than simply on each account individually. Additionally, enhanced reporting and billing features are disclosed.