# US 10,769,722 B1 · Heuristic credit risk assessment engine

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- Number: US 10,769,722 B1
- Document ID: US10769722B1
- Status: Granted
- Kind: B1
- Application number: 15/495,621
- Filed: 2017-04-24
- Granted: 2020-09-08
- Earliest claimed: 2016-05-12
- Assignees: State Farm Mutual Automobile Insurance Company
- Applicants: State Farm Mutual Automobile Insurance Company
- Inventors: Elizabeth Flowers; Puneit Dua; Eric Balota; Shanna L. Phillips
- Web page: https://patentgrep.com/patent/US10769722B1

## CPC

- G06Q 30/0631: {Recommending goods or services}
- G06F 40/30: Semantic analysis
- G06N 3/006: based on simulated virtual individual or collective life forms, e.g. social simulations or particle swarm optimisation [PSO]
- G06N 5/01: Dynamic search techniques; Heuristics; Dynamic trees; Branch-and-bound
- G06N 5/04: Inference or reasoning models
- G06N 20/00: Machine learning
- G06Q 10/06315: {Needs-based resource requirements planning or analysis}
- G06Q 10/06316: {Sequencing of tasks or work}
- G06Q 20/042: {characterized in that the payment protocol involves at least one cheque}
- G06Q 20/24: Credit schemes, i.e. "pay after"
- G06Q 20/4016: {involving fraud or risk level assessment in transaction processing}
- G06Q 30/01: Customer relationship services
- G06Q 30/015: Providing customer assistance, e.g. assisting a customer within a business location or via helpdesk
- G06Q 30/018: Certifying business or products
- G06Q 40/02: Banking, e.g. interest calculation or account maintenance (credit or loans G06Q40/03)
- G06Q 40/03: Credit; Loans; Processing thereof
- G06Q 40/12: Accounting
- H04M 3/2218: {Call detail recording}
- H04M 3/5175: {Call or contact centers supervision arrangements}
- H04M 3/5191: {interacting with the Internet}
- H04W 12/08: Access security
- G06Q 30/016: After-sales
- H04M 2203/403: Agent or workforce training
- G06Q: INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
- G06F: ELECTRIC DIGITAL DATA PROCESSING (computer systems based on specific computational models G06N)
- G06N: COMPUTING ARRANGEMENTS BASED ON SPECIFIC COMPUTATIONAL MODELS
- H04M: TELEPHONIC COMMUNICATION (circuits for controlling other apparatus via a telephone cable and not involving telephone switching apparatus G08)
- H04W: WIRELESS COMMUNICATION NETWORKS (broadcast communication H04H; communication systems using wireless links for non-selective communication, e.g. wireless extensions H04M1/72)

## Abstract

A heuristic engine includes capabilities to collect an unstructured data set and a current business context to calculate a credit worthiness score. Providing a heuristic algorithm, executing within the engine, with the data set and the context may allow determination of predicted future contexts and recommend subsequent actions, such as assessing a credit risk of a customer transaction and reducing the risk of customer transactions by processing the available data. Such heuristic algorithms may learn from past data transactions and appropriate correlations with events and available data.

## Claims

### Claim 1

A computer-implemented method, executed by one or more computer processors, to generate a credit score, comprising:
retrieving, by the one or more computer processors and from a first memory, an unstructured data set comprising an aggregated transaction set for a plurality of users, the aggregated transaction set including at least a first correlation between a user of the plurality of users and a first credit score;
receiving, by the one or more computer processors and from a network interface device, unstructured background data related to the aggregated transaction set and a plurality of pending transactions;
encoding, by the one or more computer processors, the unstructured background data to create encoded background data;
accessing, by the one or more computer processors, a heuristic algorithm stored in a second memory;
generating, by the one or more computer processors, a second credit score by executing the heuristic algorithm using the aggregated transaction set, the first correlation, and the encoded background data;
generating, by the one or more computer processors, a second correlation between the second credit score and a subset of the encoded background data associated with a pending transaction of the plurality of pending transactions;
determining, by the one or more computer processors, that the second correlation exceeds a predefined credit score threshold; and
executing, by the one or more computer processors and based at least in part on the determining, the pending transaction.

### Claim 2 (depends on 1)

The computer-implemented method of claim 1, wherein the second credit score complies with a credit reporting standard.

### Claim 3 (depends on 1)

The computer-implemented method of claim 1, wherein the aggregated transaction set comprises a plurality of recent transactions.

### Claim 4 (depends on 1)

The computer-implemented method of claim 1, wherein the aggregated transaction set comprises transactions related to at least one account.

### Claim 5 (depends on 1)

The computer-implemented method of claim 1, wherein the first memory comprises an external transaction server.

### Claim 6 (depends on 1)

The computer-implemented method of claim 1, wherein the second memory comprises an external heuristic server.

### Claim 7 (depends on 1)

The computer-implemented method of claim 1, wherein the second credit score complies with a standard measure of credit worthiness issued by a regulatory authority.

### Claim 8

A computer system configured to generate a credit score, the computer system comprising at least one of one or more processors or one or more transceivers configured to:
retrieve an unstructured data set from a first memory, the unstructured data set comprising an aggregated transaction set for a plurality of users, the aggregated transaction set including at least a first correlation between a user of the plurality of users and a first credit score;
receive, from a network interface device, unstructured background data related to the aggregated transaction set and a plurality of pending transactions;
encode the unstructured background data to create encoded background data;
access a heuristic algorithm stored in a second memory;
generate a second credit score by executing the heuristic algorithm using the aggregated transaction set, the first correlation, and the encoded background data;
generate a second correlation between the second credit score and a subset of the encoded background data, the subset including at least one pending transaction of the plurality of pending transactions;
determine that the second correlation exceeds a predefined credit score threshold; and
execute, based at least in part on the determining, the at least one pending transaction.

### Claim 9 (depends on 8)

The computer system of claim 8, wherein the second credit score complies with a credit reporting standard.

### Claim 10 (depends on 8)

The computer system of claim 8, wherein the aggregated transaction set comprises a plurality of recent transactions.

### Claim 11 (depends on 8)

The computer system of claim 8, wherein the aggregated transaction set comprises transactions related to at least one account.

### Claim 12 (depends on 8)

The computer system of claim 8, wherein the first memory comprises an external transaction server.

### Claim 13 (depends on 8)

The computer system of claim 8, wherein the second memory comprises an external heuristic server.

### Claim 14

A non-transitory computer readable medium, comprising computer readable instructions that, when executed, cause one or more computer processors to:
retrieve, by the one or more computer processors and from a first memory, an unstructured data set comprising an aggregated transaction set for a plurality of users, the aggregated transaction set including at least a first correlation between a user of the plurality of users and a first credit score;
receive, by the one or more computer processors and from a network interface device, unstructured background data related to the aggregated transaction set and a plurality of pending transactions;
encode, by the one or more computer processors, the unstructured background data to create encoded background data;
access, by the one or more computer processors, a heuristic algorithm stored in a second memory; and
generate, by the one or more computer processors, a second credit score by executing the heuristic algorithm using the aggregated transaction set, the first correlation, and the encoded background data;
generate, by the one or more computer processors, a second correlation between the second credit score and a subset of the encoded background data;
determine, by the one or more computer processors, that the second correlation exceeds a predefined credit score threshold; and
execute, by the one or more computer processors and based at least in part on the determining, a pending transaction in the subset of the encoded background data.

### Claim 15 (depends on 14)

The non-transitory computer readable medium of claim 14, wherein the second credit score complies with a credit reporting standard.

### Claim 16 (depends on 14)

The non-transitory computer readable medium of claim 14, wherein the aggregated transaction set comprises a plurality of recent transactions.

### Claim 17 (depends on 14)

The non-transitory computer readable medium of claim 14, wherein the aggregated transaction set comprises transactions related to at least one account.

### Claim 18 (depends on 14)

The non-transitory computer readable medium of claim 14, wherein the first memory comprises an external transaction server.

### Claim 19 (depends on 14)

The non-transitory computer readable medium of claim 14, wherein the second memory comprises an external heuristic server.

### Claim 20 (depends on 14)

The non-transitory computer readable medium of claim 14, wherein the second credit score complies with a standard measure of credit worthiness issued by a regulatory authority.