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US 10,762,560 B1Granted
Systems and computer-implemented processes for model-based underwriting
AssigneeCapital One Services, LLC
InventorsAntonello Loddo, Lu Su, Leonard Roseman, Ram Narayan
Life of this patent
Estimating the term…
Abstract
Systems and methods are disclosed for determining one or more credit lines based on statistical approximations of credit line optimization models. By approximating the results of the optimization model, the disclosed embodiments may provide real-time account level credit line determinations based on fewer criteria than used in the optimization models. Other aspects of the disclosed embodiments are described herein.
Claims18
A financial service account system for determining optimal credit limits, comprising:
- a memory storing instructions;
- and
- a processor configured to execute the instructions to perform operations comprising:
- receiving account data associated with a customer account;
- performing real-time calculations providing optimal underwriting criteria at an account level, wherein the real-time calculations comprise:
- generating an optimization model based on a plurality of account criteria, the plurality of account criteria comprising data from a set of financial service accounts;
- applying the optimization model to the account data to model likely outcomes associated with a plurality of underwriting criteria, wherein the underwriting criteria comprise data required for risk assessment;
- determining an estimated optimal credit line for a customer account based on a comparison of one or more underwriting criteria associated with the customer account;
- comparing the estimated optimal credit line for the customer account with a current credit line of the customer account;
- refining an estimated optimal credit line for a customer account based on a comparison of one or more account data values associated with the customer account and a statistical approximation;
- comparing the refined optimal credit line for the customer account with a current credit line of the customer account;
- generating a plurality of statistical approximations based on a percentage of customers associated with the underwriting criteria of the estimated optimal credit line;
- selecting a statistical approximation based on a confidence level for the selected approximation, associated with the one or more account criteria from the plurality of account criteria, the one or more account criteria having a minimum amount of data available;
- performing a regression analysis of the account data based on the selected statistical approximation to determine an optimal credit line for the customer account;
- comparing the determined optimal credit line for the customer account with the current credit line of the customer account;
- and
- designating best of the determined optimal credit line, the current credit line, and the estimated optimal credit line as the optimal credit line;
- and
- applying, based on a result of the real-time calculations, the optimal credit line to the customer account in response to a request from a customer for a credit line adjustment for the customer account.
16 more elements
A financial service account system comprising:
- a non-transitory memory storing instructions;
- and
- a processor configured to execute the instructions to implement modules comprising:
- a data miner module configured to receive account data associated with a customer account,
- an optimization model module configured to:
- generate an optimization model, based on a plurality of account criteria, the plurality of account criteria comprising data from a set of financial service accounts,
- apply the optimization model to the account data to model likely outcomes associated with a plurality of credit limits and select a subset of the credit limits based on one or more of the outcomes,
- determine an estimated optimal credit line for a customer account based on a comparison of one or more underwriting criteria associated with the customer account,
- compare the estimated optimal credit line for the customer account with a current credit line of the customer account,
- refine the estimated optimal credit line for a customer account based on a comparison of one or more account data values associated with the customer account and a statistical approximation,
- compare the refined optimal credit line for the customer account with a current credit line of the customer account,
- compare the determined optimal credit line for the customer account with the current credit line of the customer account, and
- designate best of the current credit line and the estimated optimal credit line as the optimal credit line;
- and
- a statistical approximation module configured to:
- generate a plurality of statistical approximations based on a percentage of customers associated with the underwriting criteria of the estimated optimal credit line,
- provide a particular level of confidence based on the plurality of account criteria,
- select a statistical approximation based on a confidence level for the selected approximation, associated with one or more account criteria from the plurality of account criteria, the one or more account criteria having a minimum amount of data available,
- perform regression analysis based on the one or more account criteria to determine an optimal credit limit, and
- send the determined optimal credit limit to a financial service account system for updating the credit limit.
17 more elements
Dependencies are inferred from the claim text.