Note: Descriptions are shown in the official language in which they were submitted.
CA 02287691 1999-10-28
SYSTEMS AND METHODS FOR FINANCIAL MODELING
Field of the Invention
The present invention relates generally to the field of electronic
commerce. More particularly, the present invention relates to systems and
methods for financial modeling using the Internet.
The Internet has become a tremendous information resource tool. Even
more, the Internet is a powerful agent which is transforming the way nearly
every product and service is sold or provided. With countless Internet service
providers proliferating at an extremely rapid rate, the competition to develop
consumer loyalty and hold the consumer's attention for repeat business is
critical. Service and accessibility is also critical.
On-line financial services are becoming numerous such as on-line
trading, on-line banking, and on-line mortgage services. Organizations needing
to manage financial portfolios, e.g. lending institutions, private
corporations,
insurance companies, municipal organizations, and charitable groups are
looking
more and more to on-line mechanisms which can assist in providing on-line
services and aid in financial decision making. For example, between banks, the
effort to attract and retain deposits has become increasingly difficult in
view of
the number of competing services and resources, thus many banks have begun to
offer on-line transactions. To date on-line services can facilitate on-line
transactions for a customer of the organization, but lack the ability to offer
the
organization with a customized, or personalized, resource analysis tool for
its
own financial data. Banks, by way of example and not by way of limitation,
need to be able to evaluate their current products and services as well as to
analyze offering new products and services in order to promote growth,
strengthen their current financial position, and diversify their portfolios.
One conventional manner in which banks perform the above is to submit
call reports to service bureaus which then externally perform analyses for the
bank. Traditionally banks submitted such call reports in hard copy, e.g.
paper,
form. The service bureau would then use the paper reports and go through data
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entry to key in the data from those reports into the service bureaus data
analysis
software. In this method, a time delay is involved in obtaining the analyses
back
from the service bureau such that real time integration of new strategies or
formulae is not possible. Also, the data submitted as call reports does not
accurately isolate individual optionality features on the bank's various
product so
that the return analysis does not provide a true cash flow based report.
More recently, organizations wishing to perform financial analyses have
been able to purchase software packages from different service bureaus to
install
on their own systems. However, such software packages are expensive and
require a great deal of on-site technical support which can prove too costly
for
smaller organizations. Still other service bureaus have begun providing the
means through which organizations can electronically transmit data files to
the
service bureau. However, this requires that the organization submit the file
data
in a compatible format for the system employed by the service bureau.
Numerous service bureaus are adapted to perform isolated industry
financial analyses for specific organizations from amongst the wide range of
organizations mentioned above. However, no single service bureau can
accommodate the financial modeling needs across this broad spectrum of
organizations. Moreover, the mechanisms employed by such different industry
specific service bureaus all suffer similar drawbacks to those outlined in the
banking scenario, e.g. timeliness, accuracy, and cost.
For the reasons stated above, and for other reasons stated below which
will become apparent to those skilled in the art upon reading and
understanding
the present specification, it is desirable to develop systems and methods
which
can afford greater flexibility in analyzing financial holdings and more timely
forecasting and analysis of new strategies and formulae.
The above mentioned problems associated with financial modeling and
analysis and other problems are addressed by the present invention and will be
understood by reading and studying the following specification. Systems and
methods are described which afford organizations greater flexibility and
accuracy in analyzing current financial holdings and better forecasting and
implementation of proposed strategies and financial changes.
CA 02287691 1999-10-28
In particular, an illustrative embodiment of the present invention includes
a system and method for facilitating Internet financial modeling. The system
includes a server coupled to the Internet. A website is stored on the server.
Further software means are included which are operative on the website. The
software means allows a user running a client program at a remote client
coupled
to the Internet to electronically transmit on-line a data file from the user
in a non-
aggregate format, e.g. in an ASCII format, and perform a number of financial
analyses on the data file. In one embodiment, the software means operative on
the website for performing a number of financial analyses on the data file
includes modifying a return rate, or interest rate, for a balance sheet
liability or
asset. In one embodiment, the software means operative on the website for
performing a number of financial analyses on the data file includes entering a
new product into a simulation file. In one embodiment, the software means
operative on the website for performing a number of financial analyses on the
data file includes performing an income at risk analysis using a beta factor.
These and other embodiments, aspects, advantages, and features of the
present invention will be set forth in part in the description which follows,
and in
part will become apparent to those skilled in the art by reference to the
following
description of the invention and referenced drawings or by practice of the
invention. The aspects, advantages, and features of the invention are realized
and attained by means of the instrumentalities, procedures, and combinations
particularly pointed out in the appended claims.
Figure 1 is an illustration of a system according to the teachings of the
present invention.
Figure 2 is a diagram of a hardware and operating environment in
conjunction with which embodiments of the invention may be practiced.
Figure 3 is a more detailed diagram of the system of Figure 1 according
to the teachings of the present invention.
Figures 4A and 4B are flow charts illustrating one method embodiment
according to the teachings of the present invention.
Figure 5 is a flow chart illustrating another method embodiment
according to the teachings of the present invention.
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4
Figures 6-13C are screen shots illustrating an embodiment of the
functionality of the systems and methods according to the teachings of the
present invention.
In the following detailed description, reference is made to the
accompanying drawings which form a part hereof, and in which is shown by way
of illustration specific illustrative embodiments in which the invention may
be
practiced. These embodiments are described in sufficient detail to enable
those
skilled in the art to practice the invention, and it is to be understood that
other
embodiments may be utilized and that logical, mechanical and electrical
changes
may be made without departing from the spirit and scope of the present
invention. The following detailed description is, therefore, not to be taken
in a
limiting sense.
Figure 1 is an illustration of a system 100 according to the teachings of
1 S the present invention. The system 100 includes an Internet network system
100.
In Figure 1, the system 100 includes a server 102. Server 102 includes a
processor 105 coupled to a data storage device 107. The system 100 further
includes a number of remote clients 104-1, 104-2, . . ., 104-N each including
a
client program, or software means, which is operatively or communicatively
coupled to the server 102. In one embodiment, the number of remote clients
104-1, 104-2, . . ., 104-N are operatively coupled to the server 102 through a
first
security layer 109-1, or secure data network 109-1. In another embodiment, the
number of remote clients 104-1, 104-2, . . ., 104-N each including a client
program, or software means, include software which provide security at the
number of remote clients 104-1, 104-2, . . ., 104-N. In one embodiment the
number of remote clients 104-1, 104-2, . . ., 104-N are coupled to the server
102
over a local area network (LAN), e.g. an Ethernet network. In an alternative
embodiment, the number of remote clients 104-1, 104-2, . . ., 104-N are
coupled
to the server 102 over a wide area network (WAN). Also the number of remote
clients 104-1, 104-2, . . ., 104-N can be coupled to the server 102 over the
public
switched telephone network (PSTN) and/or the Internet. In one embodiment, by
way of example and not by way of limitation, the number of remote clients 104-
CA 02287691 1999-10-28
1, 104-2, . . ., 104-N can communicate with one another and the server 102
using
transmission control protocol/Internet protocol (TCP/IP).
The system 100 can further include coupling, as described above to
additional servers and systems 106, such as servers and systems 106 maintained
by other organizations. Such systems are known and understood by one of
ordinary skill in the art. In one embodiment, the additional servers and
systems
106 include core databases accessible by the server 102. For example, the
additional servers and systems 106 can include databases and executable
instructions which operate on the file data of third party or outside
organizations
and/or possess PSTN processing and routing capabilities. In one embodiment,
the additional servers and systems 106 include proprietary databases and data
modules maintained by third party or outside organizations. In one embodiment,
the additional servers and systems 106 are similarly coupled to the server 102
through a second security layer 109-2, or secure data network 109-2 such that
file data from the additional servers and systems 106 can be exported to
server
102. In one embodiment, the additional servers and systems 106 are coupled to
the server 102 over a local area network (LAN), e.g. an Ethernet network. In
an
alternative embodiment, the additional servers and systems 106 are coupled to
the server 102 over a wide area network (WAN). Also the additional servers and
systems 106 can be coupled to the server 102 over the public switched
telephone
network (PSTN) and/or the Internet. In one embodiment, by way of example
and not by way of limitation, the additional servers and systems 106 can
communicate with one another and the server 102 using transmission control
protocol/Internet protocol (TCP/IP).
The server 102 can be coupled to third party or outside organizations and
the additional servers and systems 106 in a direct hardwired fashion, e.g.
hybrid
fiber-coax connection and/or indirectly in a wireless fashion using remote
electromagnetic signal transmission in the radio or microwave frequencies. In
Figure 1, the server 102, the number of remote clients 104-1, 104-2, . . .,
104-N,
and the additional servers and systems 106 all include computer readable
medium having computer-executable instructions. These computer readable
medium include such devices as a disk drive for reading data storage media,
e.g.
a compact disc, and/or computer readable medium such as random access
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memory (RAM) and read only memory (ROM). Similarly, the server 102, the
number of remote clients 104-1, 104-2, . . ., 104-N, and the additional
servers
and systems 106 can all include a processor coupled to a data storage device.
Figure 2 is a diagram of a hardware and operating environment in
conjunction with which embodiments of the invention may be practiced for the
server 102, the number of remote clients 104-1, 104-2, . . ., 104-N, and the
additional servers and systems 106 from Figure 1. The description of Figure 2
is
intended to provide a brief, general description of suitable computer hardware
and a suitable computing environment in conjunction with which the invention
may be implemented. The invention is described in the general context of
computer-executable instructions, such as program modules, being executed by a
computer, such as a personal computer. Generally, program modules include
routines, programs, objects, components, data structures, etc., that perform
particular tasks or implement particular abstract data types.
Moreover, those skilled in the art will appreciate that the invention may
be practiced with other computer system configurations, including hand-held
devices, multi processor systems, microprocessor-based or programmable
consumer electronics, network PCS, minicomputers, mainframe computers, and
the like. The invention may also be practiced in distributed computer
environments where tasks are performed by remote processing devices that are
linked through a communications network. In a distributed computing
enmronment, program modules may be located in both local and remote memory
storage devices.
In the embodiment shown in Figure 2, the hardware and operating
environment of the server 102 and/or the remote client 104 from Figure 1
includes a general purpose computing device in the form of a personal computer
20, or a server 20, including a processing unit 21, a system memory 22, and a
system bus 23 that operatively couples various system components including the
system memory 22 to the processing unit 21. There may be only one or there
may be more than one processing unit 21, such that the processor of computer
20
comprises a single central-processing unit (CPU), or a plurality of processing
units, commonly referred to as a parallel processing environment. The computer
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20 may be a conventional computer, a distributed computer, or any other type
of
computer; the invention is not so limited.
The system bus 23 can be any of several types of bus structures including
a memory bus or memory controller, a peripheral bus, and a local bus using any
of a variety of bus architectures. The system memory can also be referred to
as
simply the memory, and includes read only memory (ROM) 24 and random
access memory (RAM) 25. A basic input/output system (BIOS) 26, containing
the basic routines that help to transfer information between elements within
the
computer 20, or a server 20, such as during start-up, may be stored in ROM 24.
The computer 20, or a server 20 further includes a hard disk drive 27 for
reading
from and writing to a hard disk, not shown, a magnetic disk drive 28 for
reading
from or writing to a removable magnetic disk 29, and an optical disk drive 30
for
reading from or writing to a removable optical disk 31 such as a CD ROM or
other optical media.
The hard disk drive 27, magnetic disk drive 28, and optical disk drive 30
couple with a hard disk drive interface 32, a magnetic disk drive interface
33,
and an optical disk drive interface 34, respectively. The drives and their
associated computer-readable media provide non volatile storage of computer-
readable instructions, data structures, program modules and other data for the
computer 20, or a server 20. It should be appreciated by those skilled in the
art
that any type of computer-readable media which can store data that is
accessible
by a computer, such as magnetic cassettes, flash memory cards, digital video
disks, Bernoulli cartridges, random access memories (RAMs), read only
memories (ROMs), and the like, can be used in the exemplary operating
environment.
A number of program modules can be stored on the hard disk, magnetic
disk 29, optical disk 31, ROM 24, or RAM 25, including an operating system 35,
one or more application programs 36, other program modules 37, and program
data 38. A plug in containing a search engine for the present invention can be
resident on any one or number of these computer-readable media.
A user may enter commands and information into the personal computer
20, or server 20 through input devices such as a keyboard 40 and pointing
device
42. Other input devices (not shown) can include a microphone, joystick, game
CA 02287691 1999-10-28
g
pad, satellite dish, scanner, or the like. These other input devices are often
connected to the processing unit 21 through a serial port interface 46 that is
coupled to the system bus 23, but can be connected by other interfaces, such
as a
parallel port, game port, or a universal serial bus (USB). A monitor 47 or
other
type of display device can also be connected to the system bus 23 via an
interface, such as a video adapter 48. The monitor 40 can display a graphical
user interface for the user. In addition to the monitor 40, computers
typically
include other peripheral output devices (not shown), such as speakers and
punters.
As explained in connection with Figure 1, the computer 20, or server 20
may operate in a networked environment using logical connections to one or
more remote computers or servers, such as remote computer 49. These logical
connections are achieved by a communication device coupled to or a part of the
computer 20, or server 20; the invention is not limited to a particular type
of
communications device. The remote computer 49 can be another computer, a
server, a muter, a network PC, a client, a peer device or other common network
node, and typically includes many or all of the elements described above
relative
to the computer 20, or server 20, although only a memory storage device 50 has
been illustrated in Figure 2. The logical connections depicted in Figure 2
include
a local area network (LAN) 51 and a wide area network (WAN) 52. Such
networking environments are commonplace in office networks, enterprise-wide
computer networks, intranets and the Internet, which are all types of
networks.
When used in a LAN-networking environment, the computer 20, or
server 20, is connected to the LAN 51 through a network interface or adapter
53,
which is one type of communications device. When used in a WAN-networking
environment, the computer 20, or server 20, typically includes a modem 54, a
type of communications device, or any other type of communications device,
e.g. a wireless transceiver, for establishing communications over the wide
area
network 52, such as the Internet; the invention is not so limited. The modem
54,
which may be internal or external, is connected to the system bus 23 via the
serial port interface 46. In a networked envirornnent, program modules
depicted
relative to the personal computer 20, or portions thereof, can be stored in
the
remote memory storage device 50 of remote computer, or server 49. It is
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9
appreciated that the network connections shown are exemplary and other means
of and communications devices for establishing a communications link between
the computers may be used.
The hardware and operating environment in conjunction with which
S embodiments of the invention may be practiced has been described. The
computer 20, or server 20, in conjunction with which embodiments of the
invention can be practiced can be a conventional computer, a distributed
computer, or any other type of computer; the invention is not so limited. Such
a
computer 20, or server 20, typically includes one or more processing units as
its
processor, and a computer-readable medium such as a memory. The computer
20, or server 20, can also include a communications device such as a network
adapter or a modem, so that it is able to communicatively couple to other
computers, servers, or devices.
Figure 3 is a more detailed diagram of the system 100 interaction of
Figure 1 according to the teachings of the present invention. In Figure 3, the
system 300 includes server 301. The server 301 in the system 300 includes a
processor 302 coupled to a storage device 304. The system further includes
software means 303 operative on the processor 302, the remote client 312
having
a client program, and the additional servers and systems 306-1, 306-2, etc.,
to
perform methods according to the teachings of the present invention. The
software means 303 includes a novel software program, including interface
protocols, application programs, and program modules for carrying out the
methods of the present invention. According to the teachings of the present
invention, the software means includes a financial analysis module 305
suitable
for implementing changes to and performing analyses on any number of client
data files. Also, according to the teachings of the present invention, the
software
program includes a filter module 307 suitable for reading a parsed data file
such
as a data file parsed from an ASCII format, organizing that parsed data file
into
an organized, customizable client data file, and making that organized,
customizable client data file accessible to a remote client over the Internet.
According to the teachings of the present invention, the filter module 307 and
the
financial analysis module 305 contain application programs, and/or make up
portions of application programs, which can be stored in the storage device.
CA 02287691 1999-10-28
Similarly, the organized, customizable client data file can be stored in
storage
device 304 on server 301. The novel software program according to the
teachings of the present invention can be executed on system 300. The software
means 303 can be resident on the server as shown in Figure 3, or
alternatively,
5 the software means can be resident on any number of the storage devices,
e.g.
computer readable medium, coupled in system 300. One of ordinary skill in the
art will understand the manner in which a software program can be launched
from a computer readable medium in a computer based system to execute the
functions defined in the software program. One of ordinary skill in the art
will
10 further understand the various programming languages which may be employed
to create a software program designed to implement and perform the methods of
the present invention. In one embodiment, much of the application software is
implemented using object oriented programming, hyper-text mark-up language
(HTML) and the like. However, the teachings of the present invention are not
limited to a system using object oriented programming and no embodiment of
the invention is limited to a particular programming language or environment.
System 300 facilitates Internet financial modeling services for any
number of organizational clients. Server 301 includes a database, or first
database 308 having a set of resident data in various data structures, and
another
database, or second database 310, having a number of linked web pages 310 in
the storage device which are downloadable and displayable to a client program
at
a remote client 312 having a graphical user interface, e.g. computer 20 and
monitor 47. In one embodiment of Figure 3, the database 308 in server 301
includes a database of a number of client files, e.g. the organized,
customizable
client data files. The number of linked web pages 310 can be used to download
and display a particular client's organized, customizable data file at a
remote
client 312 having a graphical user interface. In one embodiment, as will be
understood by one of ordinary skill in the art upon reading this disclosure,
each
client file can include a number of different or similar client data files. In
one
embodiment, by way of illustration and not by way of limitation, each client
file
is an organized system data file including assets, liabilities and return
rates.
Also, in one embodiment, a client file can include an organized system data
file
including equity holding or another number of data fields particular to a
given
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industry or organization. In one embodiment, by way of illustration and not by
limitation, the assets can include loan products maintained by a bank and/or
investments such as an investment portfolio maintained by an organization. In
one embodiment, by way of illustration and not by limitation, the liabilities
can
S include non-maturity based demand deposit accounts and/or time based deposit
accounts, such as certificates of deposits maintained by a bank. In one
embodiment, by way of illustration and not by limitation, the return rates can
include payable interest rates or offering rates and/or receivable interest
rates
such as those which would be paid to an organization on investments.
According to the teachings of the present invention, the organized system
data file, or organized, customizable client data file, in the database
includes a
cash flow based organized system data file which is organized to identify a
number of optionality features for the assets, liabilities and return rates.
For
example, the identification of a number of optionality features can be
explained
as follows. On a number of loan assets held in a particular bank client data
file,
the organized system data file identifies and accounts for the individualized
loans to more accurately reflect the full range of optional features for
different
types of loan assets. That is, the organized system data file accounts for
loans
which have certain caps, certain floors, particular call or maturity features,
and
loans that do not have certain caps, certain floors, particular call or
maturity
features and the like. In operation the financial analysis module 305 suitable
for
implementing changes to and performing analyses on the client data file
recognizes and accounts for these optionality features when performing
analyses
on the client data file. In other words, the software means 303 reflects these
variable factors in performing any simulation or cash flow type analysis on a
given data file. Similarly, as one of ordinary skill in the art will
understand upon
reading this disclosure, the cash flow based organized system data file which
is
organized to identify a number of optionality features can reflect a number of
optionality features or a range in features in a number of products offered in
industries other than banking. Here too, the software means reflects these
variable factors in performing any simulation or cash flow type analysis on
the
particular data file. Conventional software analysis programs do not isolate
these individualized features within a given class of products and thus are
not
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able to provide a true cash flow based analysis, but instead provide only a
more
generalized financial picture.
In Figure 3, the number of linked web pages 310 in the storage device
304 of server 302 includes at least one web page/website, or first web page,
which has a data field for entering a beta factor, or a number of beta
factors, for
performing an analysis of a client file using the financial analysis module
305.
Figure 6 is a screen shot illustrating an embodiment of such a first web page
according to the teachings of the present invention. In one embodiment, the
number of linked web pages 310 in the storage device 304 of server 302
includes
at least one web page/website, or second web page, as shown and further
illustrated in Figure 7, which includes a listing of input file balances, or
balance
sheet composition for a client file. According to the teachings of the present
invention, the financial analysis module 305 is operable on the listing of
input
file balances, and can be instructed with computer-executable instructions,
e.g.
from the remote client, to make changes and/or new entries to the balance
sheet
composition of a particular client file. In one embodiment, the number of
linked
web pages 310 in the storage device 304 of server 302 includes at least one
web
page/website, or third web page, as shown and further illustrated in Figure 8,
which includes an income at risk report preview for a client file which is
premised on the data contained in the client file, e.g. assets, liabilities
and
various, modifiable interest rates as well as beta variables on those interest
rates.
According to the teachings of the present invention, the financial analysis
module 305 is operable on the income at risk report preview, and can be
instructed from the remote client, to make changes and/or new entries to the
income at risk report preview of a particular client file. In one embodiment,
the
number of linked web pages 310 in the storage device 304 of server 302
includes
at least one web page/website, or fourth web page, as shown and further
illustrated in Figure 9, which includes a market value at risk report preview
for a
client file which is premised on the data contained in the client file, e.g. a
current
market value for assets and liabilities in the client file as well as beta
variable
simulations and analysis on those market values. According to the teachings of
the present invention, the financial analysis module 305 is operable on the
market value at risk report preview, and can be instructed from the remote
client,
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to make changes and/or new entries to the market value at risk report preview
of
a particular client file. In one embodiment, the number of linked web pages
310
in the storage device 304 of server 302 includes at least one web
page/website, or
fifth web page, as shown and further illustrated in Figure 10, which includes
a
historical performance analysis for a client file which is premised on the
data
contained in the client file, e.g. a historical performance analysis based on
data
representing the client's assets, liabilities and various, modifiable interest
rates to
illustrate a current financial performance vis-a-vis previous historical
performances. According to the teachings of the present invention, the
financial
analysis module 305 is operable on the historical performance analysis web
page, and can be instructed from the remote client, to make changes and/or new
entries to the historical performance analysis of a particular client file. In
one
embodiment, the number of linked web pages 310 in the storage device 304 of
server 302 includes at least one web page/website, or sixth web page, as shown
and further illustrated in Figure 11, which includes a historical interest
income
analysis for a client file which is premised on the data contained in the
client file,
e.g. a historical interest income analysis based on data representing the
client's
assets, liabilities and various, modifiable interest rates to illustrate a
current
interest income analysis vis-a-vis previous interest income performances.
According to the teachings of the present invention, the financial analysis
module 305 is operable on the historical interest income analysis web page,
and
can be instructed from the remote client, to make changes and/or new entries
to
the historical interest income analysis of a particular client file. In one
embodiment, the number of linked web pages 310 in the storage device 304 of
server 302 includes at least one web page/website, or seventh web page, as
shown and further illustrated in Figure 12, which includes a simulation status
report preview based on data representing the client's file representing
submitted
simulations, completed simulations, and simulations which have been created,
or
built, but not executed. In one embodiment, the number of linked web pages 310
in the storage device 304 of server 302 includes at least one web
page/website, or
eighth web page, as shown and further illustrated in Figures 13A-13C, which
includes a number of data fields for entering a new product and/or deleting a
product, adding and/or deleting an expected return rate or interest rate and a
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number of optionality features as described earlier, into a simulation file.
According to the teachings of the present invention, the financial analysis
module 305 is operable on the simulation file, and can be instructed from the
remote client, to read and implement data entered into the number of data
fields
shown in Figures 13A-13C for a particular client file.
According to the teachings of the present invention, the software means
303 operable on the server 301 and the client program at the remote client 312
provides for inputting a beta factor and/or a number of beta factors or
simulation
variables (collectively "analysis variables") relating to a particular product
class
or category, and using the financial analysis module for simulating an income
at
risk analysis, and simulating a market value at risk analysis using data in
the
client's organized system data file representing the particular, return rates,
products in the data file, and the analysis variables. As one of ordinary
skill in
the art will understand upon reading this disclosure, the software means 303
operable on the server 301 and the client program at the remote client 312
further
provides for using the financial analysis module 305 for simulating any number
of other analysis variable changes, e.g. simulating the addition and/or
deletion of
products, and/or product optionality features, and/or modifying, adding, and
deleting expected return rates using newly entered data as well as previous
data
in the client's organized system data file representing the particular product
class
or category and the analysis variables.
As mention above, the server 301 further includes a filter module 307.
The software means 303 operable on the server 301 and the client program at
the
remote client 312 is further operable on the filter module 307. The filter
module
307 and software means 303 are operable for organizing a data file. The data
file
can be electronically transmitted, such as received on-line over the Internet,
or
received in any other storage medium, e.g. magnetic disk or CD. The data file
is
received in a non-aggregate format. As used in this specification, the term
non-
aggregate format is intended to mean a data file which is received as an ASCII
data file or as an equivalent to an ASCII data file. The filter module 307
uses a
customizable template to reformat and customize the data file into the
organized
system data file, e.g. an organized, customizable format for a particular
client's
needs, for storage in the database, or storage device 304 of the server 301.
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1S
In one exemplary embodiment, the filter module 307 includes a product
such as Data Junction, which is commercially available from Data Junction
Corporation. In this embodiment, the filter module 307 receives the data file,
either electronically transmitted on-line or read from another storage medium,
as
an input data file in non-aggregate format from any client system. The filter
module 307 operates on the input data file, e.g. an ASCII data file,
functioning to
parse out the input data file. The software means 303 and filter module 307,
according to the teachings of the present invention, is operable to read the
parsed
input data file and reformat/customize the electronically transmitted data
file into
the customizable, organized client data file, e.g. organized system data file
for
the particular client who is sending the data file. In this embodiment, the
software means 303 and filter module 307 reads the codes in the parsed input
data file, e.g. a Data Junction output format, to organize the data file into
the
organized system data file for the client. Further, the software means 303 and
filter module 307 operable on the server 301 and the client program at the
remote
client 312, in reformatting and customizing the input data file, provides for
setting up a base case using the organized system data file. The software
means
303, e.g. the financial analysis module 305, is further operable for entering
and/or deleting products in the client's organized system data file, and/or
entering and/or deleting product optionality features, e.g. changing a current
products features, and/or modifying, adding, and deleting expected return
rates
on the client's products using newly entered data, entered as computer-
executable instructions, as well as using previous data in the client's
organized
system data file and using any of the stated analysis variables.
In one embodiment, the software means 303, e.g. the financial analysis
module 305, is operable for performing a simulation, simulating a market value
at risk analysis using the base case, and taking into account any entered
and/or
deleted products in the client's organized system data file, and/or entered
and/or
deleted product optionality features, and/or any modified, added, and deleted
expected return rates on the client's products the new product, as well as
using
any of the stated analysis variables. In one embodiment, the software means
303, e.g. the financial analysis module 305, is operable for simulating an
income
at risk analysis using the base case, and taking into account any entered
and/or
CA 02287691 1999-10-28
16
deleted products in the client's organized system data file, and/or entered
and/or
deleted product optionality features, and/or any modified, added, and deleted
expected return rates on the client's products, the new product, as well as
using
any of the stated analysis variables.
In one embodiment, the beta factor, e.g. analysis variable or variables,
includes a beta factor for an increase and decrease in basis points for an
expected
return rate or interest rate. In one embodiment, entering a product into a
simulation file includes entering a balance sheet asset into the simulation
file.
For example, and not by way of limitation, entering a balance sheet asset into
the
simulation file includes entering a loan product or interest earning
investment
into the simulation file. In one embodiment, entering a new product into a
simulation file includes entering a balance sheet liability into the
simulation file.
For example, and not by way of limitation, entering a balance sheet liability
into
the simulation file includes entering an interest payable obligation, e.g. a
non-
maturity based demand deposit account with a particular interest rate, or
offering
rate, into the simulation file. As one of ordinary skill in the art will
understand
upon reading this disclosure, the same products listed above may similarly be
deleted from the client's organized system data file. In one embodiment, the
software means 303 is operable on the server 301 and the client program for
providing on-line system support, or server database support, and is operable
over a secure data network.
In one embodiment, the software means 303 operable on system 300 is
further operable on the server 301, the client program at the remote client
312,
and the additional servers and systems, e.g. 306-1, 306-2, etc., for comparing
financial models prepared for a particular client file in server 301 against
those
of a third party's or outside organization's financial analyses, and/or those
third
party's or outside organization's formulations for new financial holding
strategies. In this embodiment, a third party or outside organization located
at
server 306-1, 306-2, etc., can view the organized system data file of a
particular
client in the database 308 and offer a comparison from its own in-house
financial
analyses on its server, e.g. 306-1.
According to the teachings of the present invention, the invention
includes a computer readable medium, e.g. memory 22 and/or storage device
CA 02287691 1999-10-28
17
304, having computer executable instructions to cause a computer, e.g. remote
client 312, server 301, and additional servers and systems 306-1, 306-2, . .
., 306-
N, to perform methods which include accessing on-line a server database, e.g.
storage device 304, which has a number of client files. Each client file is an
organized system data file, e.g. a customizable, organized client file
including
assets, liabilities and return rates, which is downloadable and displayable to
a
client program at the remote client 312 and can be operated upon by the
financial
analysis module 305. Each client file can contain a number of organized system
data files. The methods include inputting a beta factor into the client
program at
the remote client 312 for use by the financial analysis module 305 in
performing
an analysis on a portion or portions of a particular client file. The methods
further include using the financial analysis module 305 for simulating an
income
at risk analysis and simulating a market value at risk on a portion or
portions of a
particular client file using the client's organized system data file, the beta
factor,
and offering rates or return rates.
In one embodiment, the methods further include electronically receiving
on-line a data file as an input data file transmitted from a user in a non-
aggregate
format as described above. This method further involves filtering the data
file
using the filter module 307. In this embodiment filtering the data file
includes
reformatting, customizing and organizing the input data file received in the
non-
aggregate format from any number of different user platforms into an organized
system data file for the client. In one embodiment, by way of example and not
by way of limitation, the methods further include using the financial analysis
module for modifying a return rate for a demand deposit account liability for
a
client file.
The computer readable medium, e.g. memory 22 and/or storage device
304, having computer executable instructions includes instruction for causing
a
computer, e.g. remote client 312, server 301, and additional servers and
systems
306-1, 306-2, . . ., 306-N, to perform methods of maintaining a server
database
which has a number of client files. As described above, each client file is an
organized system data file, e.g. a customizable, organized client file
including
assets, liabilities and return rates, which is downloadable and displayable to
a
client program at a remote client 312. The methods include using the filter
CA 02287691 1999-10-28
1g
module 307 and the financial analysis module 305 for setting up a base case
using the organized system data file. And, the methods further include using
the
financial analysis module 305 for changing a number of features of an
organized
system data file or files, for a particular client, within a simulation file.
Using
the financial analysis module 305 for changing a number of features of an
organized system data file within a simulation file includes entering a new
product into a simulation file. In one embodiment the methods further include
inputting a beta factor into the simulation file for use by the financial
analysis
module 305 on a particular client file. In this embodiment, the methods
include
using the financial analysis module 305 for simulating a market value at risk
analysis on a particular client file using the base case, the new product, the
beta
factor, and an offering rate or return rate. As explained above, simulating a
market value at risk analysis using the base case, the new product, and the
beta
factor includes simulating a market value at risk analysis on a particular
client
file that accounts for a number of optionality features, e.g. optionality
features on
the assets, liabilities and return rates of a client file. Also in this
embodiment,
the methods further include using the financial analysis module 305 for
simulating an income at risk analysis on a particular client file using the
base
case, the new product, the beta factor, and an offering rate or return rate.
Inputting a beta factor into the simulation file includes inputting a beta
factor
representing an increase and decrease in basis points for an expected return
rate
on a product. Entering a new product into a simulation file includes entering
a
balance sheet asset into the simulation file. Entering a new product into a
simulation file can also include entering a balance sheet liability into the
simulation file. According to the teachings of the present invention, using
the
financial analysis module 305 for changing a number of features of an
organized
system data file within a simulation file similarly includes using the same
methods for deleting a product from the simulation file, changing optionality
features as described herein, and changing return rates. The software means
303
is further operable for taking a number of changes, e.g. the changed number of
features, made using the financial analysis module 305 on the simulation file
and
implementing these changes as a permanent file, such as an
CA 02287691 1999-10-28
19
additional/subsequent file or a replacement file, into the organized system
data
file or files of a particular client.
According to the teachings of the present invention, the invention
includes a system 300 which includes a server 301 coupled to the Internet, a
website 310 stored on the server 310, and software means 303 operative on the
website 310. According to the invention, the software means 303 allows a user
running a client program at a remote client 312 coupled to the Internet to
electronically transmit on-line a data file from the user in a non-aggregate
format. The software means receives the data file and performs a number of
financial analyses on the data file. In one embodiment, the software means 303
operative on the website which performs a number of financial analyses on the
data file includes modifying an offering rate for a balance sheet liability.
In one
embodiment, the software means 303 operative on the website which performs a
number of financial analyses on the data file includes entering a new product
into
a simulation file. And, in one embodiment according to the teachings of the
present invention, the software means 303 operative on the website which
performs a number of financial analyses on the data file includes performing
an
income at risk analysis using a beta factor.
As explained in connection with Figures 1, 2, and 3, the present invention
is implemented using computer based systems which have computer readable
medium for executing instructions from software means, e.g. programs, for
carrying out the above described embodiments. These embodiments include
methods for facilitating Internet financial modeling and forecasting for any
number of organizations having financial portfolios. These embodiments further
include methods for facilitating electronic commerce and providing associated
organizational services, e.g. providing financial reports and statistics which
the
organizational user can immediately use to implement new programs and
financial strategies. The scope of the present invention includes other method
embodiments which will be understood by one of ordinary skill in the art upon
reading this disclosure.
The system explained in connection with Figures l, 2, and 3, comprises a
processor, a storage device coupled to the processor, and so$ware means
CA 02287691 1999-10-28
operative on the processor, e.g. system collectively, for providing financial
modeling. The system more broadly includes the server 301, the client program
at the remote client 312, and the additional servers and systems, e.g. 306-1
with
the software means, e.g. software program, executing on the system. The
5 software program will implement the methods described above and well as
those
presented below.
Figures 4A and 4B are flow charts illustrating one method embodiment
according to the teachings of the present invention. Figure 4A and 4B
represent
one flow model according to the teachings of the present invention. However,
as
10 one of ordinary skill in the art will understand upon reading the present
disclosure, sequence provided in Figure 4B can equally precede the sequence of
steps shown in Figure 4A. The method embodiment provided in Figure 4A
incorporates the software means having computer executable instructions
described above. The software means are employed by a user at a remote client
15 for accessing on-line a server database which has a number of client files
at 410.
In one embodiment, accessing on-line a server database includes accessing on-
line the server database over a secure data network. Each client file is an
organized system data file, e.g. a customizable, organized data file including
assets, liabilities and return rates, as described earlier, which is
downloadable
20 and displayable to a client program at the remote client. The methods
further
include inputting a beta factor into the client program at the remote client
at 420.
The methods further include simulating an income at risk analysis using the
organized system data file and the beta factor at 430. This method includes
displaying the income at risk report on a graphical user interface at the
remote
client. In one embodiment, the method further includes simulating a market
value at risk using the organized system data file and the beta factor.
In one embodiment, the software means are operable on the server and
remote client for displaying a historical performance analysis on a graphical
user
interface at the remote client. Similarly, the software means are operable for
displaying a balance sheet composition on a graphical user interface at the
remote client.
Figure 4B, incorporates the software means having computer executable
instructions described above for electronically transmitting on-line a data
file
CA 02287691 1999-10-28
21
from a user in a non-aggregate format, as described previously, at 440. This
method includes filtering the data file at 450. This method further includes
organizing the data file into an organized system data file from the non-
aggregate format from any number of different user platforms at 460. In one
embodiment, the methods shown in Figure 4A and 4B further include modifying
a return rate for a liability in a client file.
Figure 5 is a flow chart illustrating another method embodiment
according to the teachings of the present invention. The method embodiment
provided in Figure 5, incorporates the software means having computer
executable instructions described above. The software means are employed for
maintaining a server database which has a number of client files which are
organized system data files at S 10. As stated above, each client file is an
organized system data file, e.g. a customizable, organized data file including
assets, liabilities and return rates, and which is downloadable and
displayable to
a client program at a remote client. The methods performed by the software
means include setting up a base case using the organized system data file at
520.
In one embodiment, this method further includes providing on-line system, or
server database, support. The methods performed by the software means further
include entering a new product into a simulation file and/or the organized
system
data file at 530. In one embodiment, entering a new product into a simulation
file includes entering a balance sheet asset, such as described earlier, into
the
simulation file. This embodiment, can further include entering a balance sheet
liability, such as described earlier, into the simulation file. The methods
performed by the software means can further include deleting a product from
the
simulation file and/or the organized system data file.
In one embodiment of the method shown in Figure S, the method further
includes inputting a beta factor into the simulation file. In this embodiment,
the
method includes performing a simulation, simulating a market value at risk
analysis using the base case, the new product, the beta factor, and offering
rates
or return rates. Here, simulating a market value at risk analysis using the
base
case, the new product, and the beta factor includes simulating a market value
at
risk analysis that accounts for a number of optionality features for the
assets,
liabilities and return rates. Further, simulating a market value at risk
analysis
CA 02287691 1999-10-28
22
that accounts for a number of optionality features for the assets, liabilities
and
return rates includes accessing the simulation on-line from a number of remote
clients.
In one embodiment, inputting a beta factor into the simulation file
includes inputting a beta factor representing an increase and decrease in
basis
points for an expected return rate on a product. The methods further include
performing a simulation, simulating an income at risk analysis using the base
case, the new product, the beta factor, and offering rates or return rates.
Thus, systems and methods have been described through which an
organization can perform more timely and accurate analysis of its current
financial holdings, perform better forecasting of proposed financial changes,
and
implement selected financial changes. The present invention allows an
organizational user to perform real-time financial modeling over a secure data
network.
