System for automated origination of capital client engagement based on default probability derived from point-of-sale data

A system for automated origination of capital client engagement, the system comprising:

• a payment processor, configured to process credit card transactions for subscribers of a point-of-sale (POS) subscription service;
• and
• a capital origination processor, comprising:
• a logistic regression engine, configured to perform a binary logistic regression on subscriber data and metrics that are derived exclusively from historical POS data corresponding to all of said subscribers to generate logistic regression coefficients that are used to calculate probability of default (PD) values for each of said subscribers, and configured to employ new subscriber data and metrics that are derived exclusively from new POS data to generate updated PD values for said each of said subscribers;
• a revenue forecaster, coupled to said rate processor, configured to exclusively employ said historical POS data to predict future POS data for restaurants corresponding to said each of said subscribers, and to exclusively employ said future POS data to generate predicted total revenues corresponding to said each of said subscribers over a payback period, and configured to employ new POS data to generate updated predicted total revenues corresponding to said each of said subscribers, said revenue forecaster comprising:
• a recurrent neural network that is trained on an older first half of said historical POS data to predict a younger second half of said historical POS data, and that is executed using said younger second half of said historical POS data to generate said future POS data;
• and
• an offer processor, configured to compare said updated predicted total revenues with said predicted total revenues and said updated PD values with said PD values, and configured to automatically generate and transmit engagement instructions over the internet cloud to representatives for restaurants that have received a capital product offer and whose updated PD has increased by more than a threshold over said PD, and configured to direct said payment processor to retain holdback amounts of processed credit card transactions at corresponding holdback rates for each of said subscribers that have accepted disbursements of said capital product offers, and configured to direct said payment processor to vary said corresponding holdback rates and holdback amounts based exclusively on said processed credit card transactions.

A method for automated origination of capital client engagement, the method comprising:

• processing credit card transactions for subscribers of a point-of-sale (POS) subscription service;
• performing a binary logistic regression on subscriber data and metrics that are derived exclusively from historical POS data corresponding to all of said subscribers to generate logistic regression coefficients that are used to calculate probability of default (PD) values for each of the subscribers, and employing new subscriber data and metrics that are derived exclusively from new POS data to generate updated PD values for the each of the subscribers;
• exclusively employing the historical POS data to predict future POS data for establishments corresponding to the each of the subscribers, and using the future POS data to generate predicted total revenues corresponding to the each of the subscribers over a payback period, and exclusively employing new POS data to generate updated predicted total revenues corresponding to the each of the subscribers, wherein said exclusively employing comprises:
• training a recurrent neural network using an older first half of said historical POS data to predict a younger second half of said historical POS data;
• and
• executing the trained recurrent neural network using the younger second half of said historical POS data to predict the future POS data;
• comparing the updated predicted total revenues with the predicted total revenues and the updated PD values with the PD values, and automatically generating and transmitting engagement instructions over the internet cloud to representatives for establishments that have received a capital product offer and whose updated PD has increased by more than a threshold amount over the PD;
• and
• retaining holdback amounts of processed credit card transactions at corresponding holdback rates for each of the subscribers that have accepted disbursements of the capital product offers, varying the corresponding holdback rates and holdback amounts based exclusively on the processed credit card transactions.