Multi-Institution Deposit Allocation for Interest or Insurance Coverage

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Solution Overview

Problem

Existing cash management systems lack technological mechanisms for customers to control how their funds are stored in depository institutions, failing to optimize for maximum interest or maximum insurance coverage, and often require manual checking of statements for fund allocation details.

Innovation Solution

A system that allows customers to select maximum interest or maximum insurance coverage preferences, determining optimal allocations across multiple depository institutions while ensuring that each institution does not exceed its capacity for funds with similar preferences, and prioritizing higher-interest accounts for maximum interest selections.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Use of energy by moving object

If funds are allocated to maximize interest by sweeping into higher-interest accounts, then interest income is improved, but insurance coverage is reduced because funds exceed insurance limits at those institutions

Engineering Contradiction:

Improveinterest incomeVSAvoidinsurance coverage

Core Design Contradiction:

Use of energy by moving objectVSReliability

Solution Approach 1:

The patent segments the allocation process by creating separate allocation paths for customers based on their preferences (maximum interest vs. maximum insurance). The system divides the customer base and applies different allocation strategies to different segments, allowing high-interest accounts to be filled for those prioritizing interest while ensuring adequate insurance coverage for those prioritizing protection.

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

The patent implements dynamic allocation that adjusts in real-time based on account preferences, available capacity at depository institutions, and current insurance coverage limits. The system continuously monitors and reallocates funds to maintain optimal balance between interest income and insurance coverage as conditions change.

Inventive Principle:

Principle #15Dynamics

2Adaptability or versatility

If customers are given control over fund allocation preferences, then customer satisfaction is improved, but system complexity increases due to multiple allocation parameters to manage

Engineering Contradiction:

Improvecustomer controlVSAvoidallocation system

Core Design Contradiction:

Adaptability or versatilityVSDevice complexity

Solution Approach 1:

The patent enables customers to self-determine their allocation preferences through the interface, where they can select whether to prioritize maximum interest or maximum insurance coverage. The system then automatically processes their selection without requiring manual intervention from operators, simplifying the user experience while maintaining complex allocation logic in the background.

Inventive Principle:

Principle #25Self-service

Solution Approach 2:

The patent manages complexity by changing key parameters dynamically - specifically by using customer preference selections as the primary control parameter that drives the entire allocation process. The system adjusts allocation behavior based on this single customer-chosen parameter rather than requiring customers to manage multiple complex settings simultaneously.

Inventive Principle:

Principle #35Parameter changes

3Use of energy by moving object

If higher-interest accounts are filled with customer funds, then interest income is improved, but availability of those accounts for other customers is reduced

Engineering Contradiction:

Improveinterest incomeVSAvoidaccount availability

Core Design Contradiction:

Use of energy by moving objectVSAdaptability or versatility

Solution Approach 1:

The patent performs preliminary actions by pre-establishing allocation rules and capacity limits for each depository institution before funds are swept. The system determines maximum interest-bearing account capacities in advance and uses this information to guide allocation decisions, ensuring that high-interest accounts are filled systematically while preserving availability for other customers according to their preferences.

Inventive Principle:

Principle #10Preliminary action

Data Source

PatentUS12373885B1Systems, methods and program products for allocation to maximize insurance or maximize interest for client accounts

Publication Date: 2025.07.29 ISLAND INTELLECTUAL PROPERTY LLC

AI summary

Systems, methods, and program products of performing a deposit transaction in which allocations to depository accounts are made in accordance with customer selection of maximum interest coverage or maximum interest rate. Maximum balances associated with maximum interest customers and maximum insurance customers are taken into account at each depository institution to determine an optimal allocation that meets customer's preferences without exceeding the maximum balances.