Claims:1. A method for performing a financial transaction comprising:
a. identifying a goal of a payer;
b. identifying a cost of using each of a plurality of payment options
c. assigning a first point value to the cost based on the first effect of the cost on the goal;
d. identifying a benefit of using each of the plurality of payment options
e. assigning a second point value to the benefit based on the second effect of the benefit on the goal; and
f. defining the selection criteria for a first specified type of financial transaction by the first point value and the second point value;
g. identifying, by a computing device, the plurality of payment options of the payer executing the financial transaction
h. gathering, by the computing device, cost data and benefit data for each of the plurality of payment options
i. selecting, by the computing device, a preferred payment option from the plurality of payment options for the financial transaction based on the cost data and the benefit data
j. detecting a violation of a rule by a payment option of the plurality of payment options
k. eliminating, in response to detecting the violation, the payment option from the initial contender group to create a revised contender group;
l. generating a score for each of the plurality of payment options in the revised contender group
m. selecting, as the preferred payment option, a payment option having an optimal score from the plurality of payment options in the revised contender group;
n. displaying the preferred payment option for the payer; and
o. processing the financial transaction using the preferred payment option to obtain a transaction confirmation
2. The method of claim 1, wherein processing the financial transaction comprises purchasing a product at a physical location of a payee.
3. The method of claim 1, further comprising generating the selection criteria by cost of using each of the plurality of payment options during a second specified type of financial transaction;
4. The method of claim 1, further comprising determining whether compliance with the rule is mandatory, and the payment option is performed when the compliance of the rule is mandatory
5. The method of claim 1, wherein the cost data and the benefit data comprise at least one selected from a group consisting of payer forecasted data, financial account specific data, and payee payment option data.
, Description:Technical Field of the Invention
The invention relates to a method and system for executing business transactions including financial transactions issuing new securities for buying, selling and trading previously issued securities by means of a communication medium.
Background of the Invention
There are four types of participants involved in a capital raising process through the issuance of securities: (1) issuers; (2) financial intermediaries; (3) end investors; and (4) other intermediaries. Issuers include corporations, municipalities, foreign and domestic governments and their agencies and investment trusts. Financial intermediaries typically include banks, savings and loan institutions, insurance companies and brokerage firms. End investors are the eventual holders of the securities being issued. Other intermediaries include lawyers, accountants, auditors, paying agents, fiscal agents, trustees, and other entities or professionals that provide a service to the issuers or intermediaries.
Issuers may be of different sizes. Small to medium-sized issuers generally are corporate or financial institutions that are typically less well known and require relatively small tranches to be raised. Often the costs for raising smaller amounts of capital do not justify a capital market transaction. These small to medium-sized issuers are thus normally restricted to local commercial banks, which sometimes results in transactions involving unfavourable terms, including fees and commissions. Small or medium-size boutique financial institutions may have the human resources and expertise but lack the well-established tools, processes, and marketing network that an institutional intermediary or investor has, to carry out efficient execution and distribution of new issues. Traditionally, due to limited physical presence and resources in local markets, these institutions have limited ability to service a wide variety of issuers and limited distribution capabilities. There are now an increasing number of such institutions. On the other hand, medium to large-sized issuers typically have a better brand presence, are better capitalized, and are more well known, at least within a regional investment community, and are familiar with the capital raising process. Such issuers typically can easily access the international capital markets.
This traditional procedure requires much wasted paper due to photocopying of the documents, as well as time and cost of distribution either by facsimile and/or courier services. The advent of the electronic mail system reduced distribution costs and time. However, drafting, revising and finalizing documents sent as email attachments raises issues concerning different versions created by different entities, incompatibility of word processing software as well as security of email communication.
Object of the Invention
The object of the present invention is a web-based application that facilitates business transactions, including the raising of capital in global financial markets via the Internet websites.
Summary of the Invention
The invention offers the ability to design, structure, analyze and execute transactions over the Internet. The invention also offers its users direct access to its community, which includes, but is not limited to, issuers, investors, intermediaries, and advisors such as law firms, consultanting firms, accounting firms, and translation agents. The invention provides a method for executing financial transactions, by designing and diagramming a structure for a transaction, assigning corresponding attributes to the structure design, creating and posting the transaction, wherein a user maintains the posting, identifying a transaction of interest to a user, and executing the transaction, including issuing new securities or buying or selling previously issued securities through an auction or trade process. New securities may also be issued through an on-line syndication. The invention is a method for executing transactions on a network of computer-based systems, including an Internet-based system by: providing a secure means including restricting and controlling access to the system to only qualified users; designing and diagramming a transaction structure; assigning corresponding attributes to the structure design; storing the structure design and corresponding attributes in a database; posting the transaction as a notice or interest onto the system, wherein the posting is maintained by a user; compiling and maintaining a database of user and transaction information; identifying transactions of interest to a user by comparing the user profile information with the posted transaction information; communicating the transaction information; and executing the transaction, including issuing new securities (e.g., through an on-line syndication) or buying or selling previously issued securities through an auction or trade process. The invention provides a network of computer-based systems, including an Internet-based system for executing financial transactions that includes: (a) workstations for receiving and displaying transaction information; (b) an operative database component of user and transaction information; (c) a storage device; (d) a processor programmed to maintain the database of user and transaction information, to compare the database of user profile information with respect to posted transactions and match the user's investment profile, and to communicate the transaction information to the user interested in the posted transaction; (e) a load-balancing mechanism to distribute load across the system; (f) a system, web or application server; (g) a system security means that controls and restricts access to the system to only qualified users of the system; and (h) a communication means (e.g., the Internet) that transmits communications between the users of the system and the system server, including transaction information to the user interested in the transaction.
The invention also provides a computer readable medium having computer executable instructions for performing a method that includes designing a structure for a transaction diagrammatically, assigning corresponding attributes to the structure design, creating and posting the transaction, the posting maintained by a user, identifying transactions of interest to a user and executing the transaction, including issuing new securities or buying or selling previously issued securities through an auction or trade process.
The invention provides a new and efficient way for all the conventional participants in a financial transaction to perform their roles over the Internet. Users of the invention include issuers of securities; financial institutions and intermediaries; end investors; and other professionals that play a role in a financial transaction, such as law firms, accounting firms, valuation firms, translation agents etc. The invention also assists issuers to design and analyze a financial transaction, create initial draft documents and assess market appetite for their security on an anonymous basis. The invention allows issuers to raise smaller amounts of capital, which may better suit their cash flow needs at lower transaction costs with faster and more efficient execution. The invention also allows financial institutions to better and more efficiently advise their subscribers on structuring deals. Use of the invention allows a user to realize a significant reduction in costs in the initial targeting of issuers as initial analyses of markets, credit and due diligence can be done economically and efficiently through an on-line platform. Additionally, some financial institutions service a specialized class of investors with specialized buying patterns. The invention's system enables such institutions to target specific issuer communities efficiently. The system's global community presents increased opportunities for investing in specific types of risk profiles.
Brief Description of the Drawings
FIG. 1 is a flow chart showing the sequence of operations of the Analysis function of the present invention.
Detailed Description of Invention
Embodiments of the invention provide a method and system for performing a financial transaction. The embodiments of the invention assist the payer in selecting the preferred payment option to pay a payee. In one or more embodiments of the invention, a payer or payee may initiate a financial transaction. Based on the initiation of the financial transaction, the possible payment options are identified. Cost data and benefit data are obtained for each of the possible payment options. Based on the cost data and benefit data, the preferred payment option is selected. The preferred payment option may optionally be also based on general data about the payer, such as purchasing patterns of the payer. Finally, the financial transaction is processed using the preferred payment option. FIG. 1 shows an example of how the preferred payment option may be selected in accordance with one or more embodiments of the invention. Specifically, FIG. 1 shows a rule-based approach for selecting the preferred payment option. Using a rule-based approach, the data repository may contain multiple rules. A rule is a statement that defines a component of an idealized preferred payment option. For example, a rule may require that the preferred payment option is accepted by payee. In another example, the rule may require the preferred payment option to have a transaction fee that is less than a certain threshold. In another example, the rule may be based on the payer's goal. An example of a rule based on a payer's goal is requiring that the preferred payment option has a rewards program with frequent flyer mile rewards. In another example, the rule may be based on the type of financial transaction, such as a payment option that provides some form of insurance. The rules may be defined by the user and/or a payment application. For example, while the payer is initializing the payment application, the payer may provide information (e.g., in the general payer data) resulting in the generation of the rule.
In one or more embodiments of the invention, rules are ranked. The ranking may be based on the degree in which compliance is required. For example, rules that require mandatory compliance may be ranked higher than rules in which compliance is strongly desired. Similarly, in the example, rules in which compliance is strongly desired may be higher than rules in which compliance is purely optional. The ranking of rules may be performed by the payer or by the payment application. As shown in FIG. 1, a contender group is identified from all available payment options. The contender group initially may include all of the payment options usable by the payer or some subset thereof.
Next, a rule is identified for the financial transaction and/or the preferred payment option(s). The rules that are identified may be a rule applicable to all financial transactions/preferred payment options or only to the financial transaction/preferred payment option. In one or more embodiments of the invention, rules are identified in the order in which the rules are ranked. Thus, payment options remaining in the contender group after a rule is applied are preferable over the payment options eliminated by the application of the rule.
Payment options that violate the rule are identified using the cost data and benefit data of the payment option. For example, if the rule requires that the payee accept the payment option, then payment options not accepted by the payee are identified. In another example, if the rule requires that the payment option provide frequent flyer miles, then payment options that do not provide frequent flyer miles are identified.
A determination is made whether compliance to the rule is mandatory. Compliance to the rule may be deemed necessary when the payer cannot pay with the payment option. For example, compliance to rules that requires that the payee accept the payment option, the payment option is usable at the type of payee, the balance of the financial account associated with the payment option with the total does not place the payer over the limit, and other such similar rules are mandatory. If the rule is mandatory, then payment option(s) that violate the rule are eliminated from the contender group.
A determination is made whether at least one payment option exists in the contender group that does not violate the rule. If a payment option exists in the contender group that does not violate the rule, then payment options that violate the rule are eliminated from the contender group. If all payment options remaining in the contender group violate the rule, then the rule is ignored, and no payment options are eliminated in accordance with one or more embodiments of the invention.
Continuing with FIG. 1, a determination is made whether another rule is identified for the financial transaction. If another rule is identified, then the method may repeat with Step for the next rule. In one or more embodiments of the invention, the next rule identified is in the order of the ranking of the rule.
Alternatively, if no more rules are identified, then the preferred payment option is selected from the contender group. In one or more embodiments of the invention, the preferred payment option is the payment option that maximizes the payer's goals. For example, if the payer's goal is to settle a debt, then the preferred payment option may be the payment option that provides the greatest cash back rewards and has the least amount of fees.