CA2300042A1 - An electronic banking method - Google Patents
An electronic banking method Download PDFInfo
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- CA2300042A1 CA2300042A1 CA 2300042 CA2300042A CA2300042A1 CA 2300042 A1 CA2300042 A1 CA 2300042A1 CA 2300042 CA2300042 CA 2300042 CA 2300042 A CA2300042 A CA 2300042A CA 2300042 A1 CA2300042 A1 CA 2300042A1
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- Prior art keywords
- account
- data
- financial
- depositor
- tender
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Classifications
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- G—PHYSICS
- G06—COMPUTING; CALCULATING OR COUNTING
- 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
- G06Q40/00—Finance; Insurance; Tax strategies; Processing of corporate or income taxes
- G06Q40/02—Banking, e.g. interest calculation or account maintenance
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- G—PHYSICS
- G06—COMPUTING; CALCULATING OR COUNTING
- 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
- G06Q20/00—Payment architectures, schemes or protocols
- G06Q20/04—Payment circuits
-
- G—PHYSICS
- G06—COMPUTING; CALCULATING OR COUNTING
- 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
- G06Q20/00—Payment architectures, schemes or protocols
- G06Q20/08—Payment architectures
- G06Q20/10—Payment architectures specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
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- G—PHYSICS
- G07—CHECKING-DEVICES
- G07F—COIN-FREED OR LIKE APPARATUS
- G07F19/00—Complete banking systems; Coded card-freed arrangements adapted for dispensing or receiving monies or the like and posting such transactions to existing accounts, e.g. automatic teller machines
- G07F19/20—Automatic teller machines [ATMs]
- G07F19/211—Software architecture within ATMs or in relation to the ATM network
Abstract
A method for electronic retail banking, specifically the method is permitting a client (typically an individual or small business) to perform banking activity by or through any suitable terminal, including the transfer of a financial tender into a virtual bank account automatically defined and opened for this transaction, through a communication network. The method involves the debiting of an existing client associated account, for the amount of the financial tender, against crediting the virtual bank account. At the termination time of the financial instrument the virtual account is debited and terminated and the client existing associated account is credited.
Description
-I-AN ELECTRONIC BANKING METHOD
FIELD OF THE INVENTION
The present invention is generally in the field of banking. More specifically, the present invention concerns an electronic banking method for depositing a financial tender, "tender" refers to any financial value which can be transmitted electronically over communication networks, for the purpose of purchasing a financial instrument.
BACKGROUND OF THE INVENTION
The use and the variety of types of transactions over computerized networks are advancing and expanding very rapidly. Such transactions include electronic 1 o commerce (E-commerce) wherein products or services are purchased in return for an electronic payment order transmitted to the goods or service provider, through the computerized network, particularly the Internet.
With the development of the Internet, banking activity through the Internet has also become available to some extent and is increasing in its volume.
While 1 s inter bank activity has long been carried out through computerized networks, private banking activity has somewhat been limited by virtue of problems in unequivocal identification of the account holder. Thus, while some limited retail banking activity has been made available through the Internet, such as giving transaction orders within a client's account, money transfer to and from an account zo through Internet orders, has practically not been available.
FIELD OF THE INVENTION
The present invention is generally in the field of banking. More specifically, the present invention concerns an electronic banking method for depositing a financial tender, "tender" refers to any financial value which can be transmitted electronically over communication networks, for the purpose of purchasing a financial instrument.
BACKGROUND OF THE INVENTION
The use and the variety of types of transactions over computerized networks are advancing and expanding very rapidly. Such transactions include electronic 1 o commerce (E-commerce) wherein products or services are purchased in return for an electronic payment order transmitted to the goods or service provider, through the computerized network, particularly the Internet.
With the development of the Internet, banking activity through the Internet has also become available to some extent and is increasing in its volume.
While 1 s inter bank activity has long been carried out through computerized networks, private banking activity has somewhat been limited by virtue of problems in unequivocal identification of the account holder. Thus, while some limited retail banking activity has been made available through the Internet, such as giving transaction orders within a client's account, money transfer to and from an account zo through Internet orders, has practically not been available.
SUMMARY OF THE INVENTION
The object of the invention to provide a new retail banking method permitting a client (typically an individual or small business) to perform banking activity including transfer of a financial tender into a bank account, through a s communication network.
The following is a glossary of some terms, which will be used in the description below:
The term "financial tender" denotes a quantity, which can be transmitted over computerized communication networks. Such financial tender include for to example cash, bonds, shares, or any other securities, certificate of deposits, etc., all of which primarily exist in modern financial environments in a virtual, electronic form, without a real physical entity. In general, the term " anancial tender"
relates to any such quantity which can be represented and can be transmitted over a computerized communication network, by debiting one account and crediting t s another.
The term "bank" refers to any financial institute providing financing services for and managing of clients accounts, which includes at least the service of providing the client with a "bank account ".
The term "bank account" refers to an account associated with a client and 2o to which said financial tender is being deposited. In the context of the present invention, the bank account is a virtual account created automatically at the time of the financial transaction in accordance with the invention. Unlike normal bank accounts, the opening of a bank account in accordance with the invention does not require a bank account opening procedure as is routinely the case in the banking 2s industry but rather is automatically formed as mentioned above. It should be noted that the bank account of the invention can be opened in any financial institution that provides financial services to clients.
The term "financial instrument" is used to denote a certain instrument of value, which is purchased by the financial tender. For example, this may be a time deposit, a security account with a certain defined investment policy; it may be an interest bearing securing, etc.
The term "communication network" relates to any network, which permits communication between a client and a bank computer. This includes a telephone s network by which a user contacts a computer and can perform a transaction by following electronic voice instructions and by keying numbers through his digits available in his telephone. Such a telephone network may particularly be a cellular telephone network where each cellular telephone is identified with a specific user.
In addition, the communication network may include various analog and digital to computerized networks, particularly the Internet. As will also be appreciated, the communication network may at times include a combination of a telephone, e.g.
a cellular telephone network and a computerized network, e.g. the Internet.
The term "bank computer" refers to a computer which is linked to the communication network through which the communication is established and 1 s which serves as an interface of the bank to the communication network and thus permits the performance of the financial transaction in accordance with the invention.
The term "first data" is used to denote data, which identifies the depositor and a certain existing account associated therewith. Such first data may for example 2o be credit card, or a debit card, or smart card particulars, may be a cellular telephone identifier, may be a certain code defined by the client's computer hardware or software, or by a communication device of client, etc.
In accordance with the invention a client communicates with a bank computer through a communication network, by transmitting to the bank computer 2s first data which identifies the depositor and an existing depositor-associated account, and second data defining a deposited amount of said financial tender.
The bank computer then defines (and thus creates) a new, virtual depositor account, the existing account of the client is debited while the virtual account is credited with the transfer financial tender and the financial instrument is thus purchased.
At the end of a certain defined deposit time period, a financial tender from the account is then transmitted to said existing account.
In accordance with the invention there is thus provided a method for depositing a financial tender into a bank account for buying a financial instrument, s comprising:
(a) through a communication network transmitting to a bank computer account opening data including at least:
(i) first data identifying the depositor and an existing, depositor-associated account; and i o (ii) second data defining an amount of a financial tender to be deposited;
(b) defining a new, virtual depositor account;
(c) debiting the existing account and crediting the virtual account with said amount and employing said amount to purchase said financial t s instrument; and (d) storing an account data comprising said first data in a manner so that said account data is associated with said virtual account, to permit, at the end of a deposit time period, to transmit said financial tender to said existing account.
2o In accordance with another aspect of the invention there is provided a method for performing a financial transaction, comprising:
(a) through a communication network transmitting to a bank computer account open data including at least (i) first data identifying the depositor and an existing, depositor-2s associated account, and (ii) second data defining an amount of a financial tender intended to be deposited for purchasing a financial instrument;
(b) in said bank computer, defining a new, virtual depositor account;
The object of the invention to provide a new retail banking method permitting a client (typically an individual or small business) to perform banking activity including transfer of a financial tender into a bank account, through a s communication network.
The following is a glossary of some terms, which will be used in the description below:
The term "financial tender" denotes a quantity, which can be transmitted over computerized communication networks. Such financial tender include for to example cash, bonds, shares, or any other securities, certificate of deposits, etc., all of which primarily exist in modern financial environments in a virtual, electronic form, without a real physical entity. In general, the term " anancial tender"
relates to any such quantity which can be represented and can be transmitted over a computerized communication network, by debiting one account and crediting t s another.
The term "bank" refers to any financial institute providing financing services for and managing of clients accounts, which includes at least the service of providing the client with a "bank account ".
The term "bank account" refers to an account associated with a client and 2o to which said financial tender is being deposited. In the context of the present invention, the bank account is a virtual account created automatically at the time of the financial transaction in accordance with the invention. Unlike normal bank accounts, the opening of a bank account in accordance with the invention does not require a bank account opening procedure as is routinely the case in the banking 2s industry but rather is automatically formed as mentioned above. It should be noted that the bank account of the invention can be opened in any financial institution that provides financial services to clients.
The term "financial instrument" is used to denote a certain instrument of value, which is purchased by the financial tender. For example, this may be a time deposit, a security account with a certain defined investment policy; it may be an interest bearing securing, etc.
The term "communication network" relates to any network, which permits communication between a client and a bank computer. This includes a telephone s network by which a user contacts a computer and can perform a transaction by following electronic voice instructions and by keying numbers through his digits available in his telephone. Such a telephone network may particularly be a cellular telephone network where each cellular telephone is identified with a specific user.
In addition, the communication network may include various analog and digital to computerized networks, particularly the Internet. As will also be appreciated, the communication network may at times include a combination of a telephone, e.g.
a cellular telephone network and a computerized network, e.g. the Internet.
The term "bank computer" refers to a computer which is linked to the communication network through which the communication is established and 1 s which serves as an interface of the bank to the communication network and thus permits the performance of the financial transaction in accordance with the invention.
The term "first data" is used to denote data, which identifies the depositor and a certain existing account associated therewith. Such first data may for example 2o be credit card, or a debit card, or smart card particulars, may be a cellular telephone identifier, may be a certain code defined by the client's computer hardware or software, or by a communication device of client, etc.
In accordance with the invention a client communicates with a bank computer through a communication network, by transmitting to the bank computer 2s first data which identifies the depositor and an existing depositor-associated account, and second data defining a deposited amount of said financial tender.
The bank computer then defines (and thus creates) a new, virtual depositor account, the existing account of the client is debited while the virtual account is credited with the transfer financial tender and the financial instrument is thus purchased.
At the end of a certain defined deposit time period, a financial tender from the account is then transmitted to said existing account.
In accordance with the invention there is thus provided a method for depositing a financial tender into a bank account for buying a financial instrument, s comprising:
(a) through a communication network transmitting to a bank computer account opening data including at least:
(i) first data identifying the depositor and an existing, depositor-associated account; and i o (ii) second data defining an amount of a financial tender to be deposited;
(b) defining a new, virtual depositor account;
(c) debiting the existing account and crediting the virtual account with said amount and employing said amount to purchase said financial t s instrument; and (d) storing an account data comprising said first data in a manner so that said account data is associated with said virtual account, to permit, at the end of a deposit time period, to transmit said financial tender to said existing account.
2o In accordance with another aspect of the invention there is provided a method for performing a financial transaction, comprising:
(a) through a communication network transmitting to a bank computer account open data including at least (i) first data identifying the depositor and an existing, depositor-2s associated account, and (ii) second data defining an amount of a financial tender intended to be deposited for purchasing a financial instrument;
(b) in said bank computer, defining a new, virtual depositor account;
(c) debiting the existing depositor-associated account and crediting said virtual account with said amount and employing said amount to purchase said financial instrument;
(d) storing an account data comprising said first data in a manner so that s said account data is associated with said virtual account; and (e) following a deposit time period, transmitting financial tender from said virtual account to said existing account.
In accordance with one embodiment of both aspects, the account opening data includes also a third data defining the financial instrument to be purchased t o with the financial tender. For example, such data may define the purchase of a time deposit (the term 'purchase" is used in a broad sense to define the exchange of one financial tender with another, the latter being termed for convenience as "
anancial instrument. Thus, for example, transferred money may be exchanged with a time deposit, a certificate of deposit, with securities, etc.
1 s In accordance with an embodiment of the invention, said second data includes data defining a time schedule for transfer of the financial tender from the existing account to the virtual account, e.g. periodical transfers over a certain period of time.
The account opening data may also include a fourth data defining the 2o deposit time period or the life of the account. In other words, after a certain time period defined by said fourth data, the virtual account will cease to exist.
The deposit time period may at times be arbitrarily chosen by the client (depositor) or may be selected from a list of several options predefined by the bank.
The deposit time period may be a fixed time period for the entire account or may be 2s a fractional period, namely different deposit time period applying for different fractions of the account.
Typically, the financial instrument, which may be purchased in the account, may be one of a number of predefined financial instruments. Alternatively, said financial instrument may also be a depositor geared investment portfolio (e.g.
a portfolio consisting of a certain percentage of security, a certain percentage of cash in time deposits, a certain percentage of bonds, etc.).
A financial instrument being a time deposit is a currently preferred embodiment of the invention.
s In accordance with one currently preferred embodiment, said first data is data of particulars of a credit card, a debit card, or a smart card account of the depositor. In accordance with this preferred embodiment, this account is debited with a deposited cash and eventually credited at the end of the deposit time period.
The credit card or debit card particulars may be transmitted to the bank computer I o from a dedicated terminal or may be keyed in, after assuming communication with the bank computer, through a telephone or a computer key word.
Such a credit card or a debit card number unequivocally identifies a depositor account and even if such a number is used by an unauthorized user, he will not be able to enjoy the fruits of the deposited tender as the transferred tender is will be credited in the name of the card owner and not in the name of the unauthorized user. Similarly, the payback will be made to the existing account of the card owner.
Another preferred embodiment is the use of a device, which automatically transmits a user-defining authentication code. A specific and currently preferred 2o embodiment is the use of a cellular telephone. Every cellular telephone has a specific-associated authentication code, which identifies the cellular telephone to the cellular telephone company. Furthermore, typically each cellular telephone account holds data of an account, which is debited with the bill relating to the uses of the cellular telephone. Thus, when initiating the deposits through a cellular 2s telephone, the account opening data may be automatically transmitted to the bank computer.
(d) storing an account data comprising said first data in a manner so that s said account data is associated with said virtual account; and (e) following a deposit time period, transmitting financial tender from said virtual account to said existing account.
In accordance with one embodiment of both aspects, the account opening data includes also a third data defining the financial instrument to be purchased t o with the financial tender. For example, such data may define the purchase of a time deposit (the term 'purchase" is used in a broad sense to define the exchange of one financial tender with another, the latter being termed for convenience as "
anancial instrument. Thus, for example, transferred money may be exchanged with a time deposit, a certificate of deposit, with securities, etc.
1 s In accordance with an embodiment of the invention, said second data includes data defining a time schedule for transfer of the financial tender from the existing account to the virtual account, e.g. periodical transfers over a certain period of time.
The account opening data may also include a fourth data defining the 2o deposit time period or the life of the account. In other words, after a certain time period defined by said fourth data, the virtual account will cease to exist.
The deposit time period may at times be arbitrarily chosen by the client (depositor) or may be selected from a list of several options predefined by the bank.
The deposit time period may be a fixed time period for the entire account or may be 2s a fractional period, namely different deposit time period applying for different fractions of the account.
Typically, the financial instrument, which may be purchased in the account, may be one of a number of predefined financial instruments. Alternatively, said financial instrument may also be a depositor geared investment portfolio (e.g.
a portfolio consisting of a certain percentage of security, a certain percentage of cash in time deposits, a certain percentage of bonds, etc.).
A financial instrument being a time deposit is a currently preferred embodiment of the invention.
s In accordance with one currently preferred embodiment, said first data is data of particulars of a credit card, a debit card, or a smart card account of the depositor. In accordance with this preferred embodiment, this account is debited with a deposited cash and eventually credited at the end of the deposit time period.
The credit card or debit card particulars may be transmitted to the bank computer I o from a dedicated terminal or may be keyed in, after assuming communication with the bank computer, through a telephone or a computer key word.
Such a credit card or a debit card number unequivocally identifies a depositor account and even if such a number is used by an unauthorized user, he will not be able to enjoy the fruits of the deposited tender as the transferred tender is will be credited in the name of the card owner and not in the name of the unauthorized user. Similarly, the payback will be made to the existing account of the card owner.
Another preferred embodiment is the use of a device, which automatically transmits a user-defining authentication code. A specific and currently preferred 2o embodiment is the use of a cellular telephone. Every cellular telephone has a specific-associated authentication code, which identifies the cellular telephone to the cellular telephone company. Furthermore, typically each cellular telephone account holds data of an account, which is debited with the bill relating to the uses of the cellular telephone. Thus, when initiating the deposits through a cellular 2s telephone, the account opening data may be automatically transmitted to the bank computer.
BRIEF DESCRIPTION OF THE DRAWINGS
In order to understand the invention and to see how it may be carried out in practice, a preferred embodiment will now be described, by way of non-limiting example only, with reference to the accompanying drawings, in which:
Fig. 1 shows in a block diagram form, a communication system including a client (a depositor), a bank computer, a financial entity hosting the depositor existing associated account and an optional credit card company computer, through which the associated account debiting process might be conducted.
FIG. 2 shows an overall flow diagram of the entire process of a depositor to (client) depositing a financial tender, purchasing a financial instrument, being credited at the end of the period in his associated account, according to the present invention.
is DETAILED DESCRIPTION OF A PREFERRED EMBODIMENT
The present invention relates to a method for electronic retail banking.
Specifically the present invention method is permitting a client (typically an individual or small business) to perform banking activity by, or through, any suitable terminal, including the transfer of a financial tender into a virtual bank 2o account which is automatically opened and credited during the transaction, through a communication network. The method involves the debiting of an existing client associated account, for the amount of the financial tender, against crediting the virtual bank account. At the termination time of the financial instrument the virtual account is debited and terminated and the client existing associated account is 2s credited.
The principles and operation of the method for depositing a financial tender into a bank account for buying a financial instrument according to the _g-present invention may be better understood with reference to the drawings and the accompanying description.
Referring now to the drawings, Figure 1 illustrates in a block diagram form a system 1 for performing electronic financial transactions in accordance with the s present invention. The system is structured from several units; a schematic client terminal 12 which may by any kind of voice and or data communication terminal, or a computer terminal, an associated account hosting entity 14, a bank computer 16 and a credit card company computer 18. All the system 1 units are connected to and communicating through, the communication network 10. In the present to invention preferred embodiments, of which the client terminal is connected to the communication network through a communication service provider, such as a cellular telephone company, the communication service provider can replace the credit card company computer 18, or act as an intermediate entity between the client terminal 12 and the credit card company computer 18. In most of such cases 1 s the communication service provider has all the client's associated account hosting entity 14 details in its computer memory and can directly, or indirectly through the credit card company computer 18, debit the client account for the purchased financial instrument, in the associated account hosting entity 14.
The client (depositor) terminal 12 has a bi-directional communication 2o interface with the communication network 10. Client terminal 12 has an associated input UI of the depositor's personal identification data which may include the depositors name, identity card, passport, or driving license number. In cellular or other mobile terminal related embodiments of the present invention the ID
number of the mobile terminal or phone will serve as the associated client terminal 2s input, LJI may also include a secret code sent by the client through the terminal. UI
also includes the depositor's associated existing account number for debiting the transaction amount, in most cases this will be the credit, the smart card, or the debit card number and or the card secret code number, with the identification data relating to the client's associated card service provider company. The client (depositor) terminal 12 has also an associated output UO data message indicating details of the transaction or financial instrument purchase completion. The bank computer 16 has a bi-directional communication interface with the communication network 10 through which he gets from the client terminal 12 all the data related to the deposition of the financial tender and the buying of the financial instrument.
Bank computer 16 has an associated input BI of the relevant bank offered financial instruments. Bank computer 16 has also an associated output data BO of the accomplished financial transactions and the purchasing deals of financial instruments, each transaction and deal data file has all the data associated with the to specific client existing account details and the issued virtual account details.
The associated account hosting entity 14 has also a bi-directional communication interface with the communication network 10 through which it gets from the credit card company computer, or directly from the bank computer 16, all the data related to the deposition of the financial tender and the buying of the financial instrument I s and consequently electronically transfer to bank computer 16 the money required for the coverage of the purchasing of the financial instrument. Associated account hosting entity 14 has an associated input AI of the financial resources required to be deposited by the client in the existing account to cover the debtor transaction created by the client while purchasing a financial instrument from the bank 2o computer 16, through the client terminal 12 Associated account hosting entity 14 has also an associated output data AO of the creditorial and debitorial financial reports, related to accomplished financial transactions and the purchasing deals of financial instruments.
The credit card company computer 18 has also a bi-directional 2s communication interface with the communication network 10 through which it gets from the bank computer 16 all the data related to the deposition of the financial tender and the buying of the financial instrument and consequently electronically transfer a credit or a debit note to the associated accounting hosting entity 14 and to the bank computer 16, crediting one side and debiting the other side for the amount - l~ -of money involved for the coverage of the purchasing of the financial instrument or the completion of the financial transaction.
FIG. 2 illustrates in a logical steps flow diagram form 2, a preferred embodiment according to the present invention of the entire process of a depositor (client) depositing a financial tender, purchasing a financial instrument, debited by the bank computer through the associated account and credited at the end of the financial instrument period in his associated account. Block 20 to describes the first step of the client loading to his terminal the ID data required by the system to identify the client, in a preferred embodiment of the present invention the ID data is the client credit, debit card or the smart card full serial number, with or without the client's associated secret code. Block 22 describes the second step of the client loading to his terminal the associated account data is including the existing bank account details. Block 24 describes the third step of the client loading to his terminal the amount and terms of the selected financial tender. Block 26 describes the step of the client terminal transferring to the bank computer all the data accumulated in the steps of block 20,22 and 24. Block 28 describe the step of the bank computer receiving all the client's financial tender 2o details and processing the related data, by the end of which step, a virtual credit account 30 is created at the bank computer, the virtual account is credited in the step described by block 32 and a debit note creation operation step is described by block 34. Debit note creation operation step is executed by the associated account hosting entity to cover the financing credit requirements of the virtual account 32, purchasing financial instrument 36. Block 38 describes the step of the bank computer storing, for future transaction completion and for other future client account management steps, the data of the specific client's existing associated account together with the data of the virtual account. Block number describes the final transaction step, under which the bank computer is terminating the virtual account in the event of the completion of a financial transaction, or under the termination of a financial instrument and translating into cash the results of the financial instrument, at the end of the financial instrument duration to period. Block 42 describes the step of the bank computer crediting the associated account with the financial end results of the completed financial transaction.
In order to understand the invention and to see how it may be carried out in practice, a preferred embodiment will now be described, by way of non-limiting example only, with reference to the accompanying drawings, in which:
Fig. 1 shows in a block diagram form, a communication system including a client (a depositor), a bank computer, a financial entity hosting the depositor existing associated account and an optional credit card company computer, through which the associated account debiting process might be conducted.
FIG. 2 shows an overall flow diagram of the entire process of a depositor to (client) depositing a financial tender, purchasing a financial instrument, being credited at the end of the period in his associated account, according to the present invention.
is DETAILED DESCRIPTION OF A PREFERRED EMBODIMENT
The present invention relates to a method for electronic retail banking.
Specifically the present invention method is permitting a client (typically an individual or small business) to perform banking activity by, or through, any suitable terminal, including the transfer of a financial tender into a virtual bank 2o account which is automatically opened and credited during the transaction, through a communication network. The method involves the debiting of an existing client associated account, for the amount of the financial tender, against crediting the virtual bank account. At the termination time of the financial instrument the virtual account is debited and terminated and the client existing associated account is 2s credited.
The principles and operation of the method for depositing a financial tender into a bank account for buying a financial instrument according to the _g-present invention may be better understood with reference to the drawings and the accompanying description.
Referring now to the drawings, Figure 1 illustrates in a block diagram form a system 1 for performing electronic financial transactions in accordance with the s present invention. The system is structured from several units; a schematic client terminal 12 which may by any kind of voice and or data communication terminal, or a computer terminal, an associated account hosting entity 14, a bank computer 16 and a credit card company computer 18. All the system 1 units are connected to and communicating through, the communication network 10. In the present to invention preferred embodiments, of which the client terminal is connected to the communication network through a communication service provider, such as a cellular telephone company, the communication service provider can replace the credit card company computer 18, or act as an intermediate entity between the client terminal 12 and the credit card company computer 18. In most of such cases 1 s the communication service provider has all the client's associated account hosting entity 14 details in its computer memory and can directly, or indirectly through the credit card company computer 18, debit the client account for the purchased financial instrument, in the associated account hosting entity 14.
The client (depositor) terminal 12 has a bi-directional communication 2o interface with the communication network 10. Client terminal 12 has an associated input UI of the depositor's personal identification data which may include the depositors name, identity card, passport, or driving license number. In cellular or other mobile terminal related embodiments of the present invention the ID
number of the mobile terminal or phone will serve as the associated client terminal 2s input, LJI may also include a secret code sent by the client through the terminal. UI
also includes the depositor's associated existing account number for debiting the transaction amount, in most cases this will be the credit, the smart card, or the debit card number and or the card secret code number, with the identification data relating to the client's associated card service provider company. The client (depositor) terminal 12 has also an associated output UO data message indicating details of the transaction or financial instrument purchase completion. The bank computer 16 has a bi-directional communication interface with the communication network 10 through which he gets from the client terminal 12 all the data related to the deposition of the financial tender and the buying of the financial instrument.
Bank computer 16 has an associated input BI of the relevant bank offered financial instruments. Bank computer 16 has also an associated output data BO of the accomplished financial transactions and the purchasing deals of financial instruments, each transaction and deal data file has all the data associated with the to specific client existing account details and the issued virtual account details.
The associated account hosting entity 14 has also a bi-directional communication interface with the communication network 10 through which it gets from the credit card company computer, or directly from the bank computer 16, all the data related to the deposition of the financial tender and the buying of the financial instrument I s and consequently electronically transfer to bank computer 16 the money required for the coverage of the purchasing of the financial instrument. Associated account hosting entity 14 has an associated input AI of the financial resources required to be deposited by the client in the existing account to cover the debtor transaction created by the client while purchasing a financial instrument from the bank 2o computer 16, through the client terminal 12 Associated account hosting entity 14 has also an associated output data AO of the creditorial and debitorial financial reports, related to accomplished financial transactions and the purchasing deals of financial instruments.
The credit card company computer 18 has also a bi-directional 2s communication interface with the communication network 10 through which it gets from the bank computer 16 all the data related to the deposition of the financial tender and the buying of the financial instrument and consequently electronically transfer a credit or a debit note to the associated accounting hosting entity 14 and to the bank computer 16, crediting one side and debiting the other side for the amount - l~ -of money involved for the coverage of the purchasing of the financial instrument or the completion of the financial transaction.
FIG. 2 illustrates in a logical steps flow diagram form 2, a preferred embodiment according to the present invention of the entire process of a depositor (client) depositing a financial tender, purchasing a financial instrument, debited by the bank computer through the associated account and credited at the end of the financial instrument period in his associated account. Block 20 to describes the first step of the client loading to his terminal the ID data required by the system to identify the client, in a preferred embodiment of the present invention the ID data is the client credit, debit card or the smart card full serial number, with or without the client's associated secret code. Block 22 describes the second step of the client loading to his terminal the associated account data is including the existing bank account details. Block 24 describes the third step of the client loading to his terminal the amount and terms of the selected financial tender. Block 26 describes the step of the client terminal transferring to the bank computer all the data accumulated in the steps of block 20,22 and 24. Block 28 describe the step of the bank computer receiving all the client's financial tender 2o details and processing the related data, by the end of which step, a virtual credit account 30 is created at the bank computer, the virtual account is credited in the step described by block 32 and a debit note creation operation step is described by block 34. Debit note creation operation step is executed by the associated account hosting entity to cover the financing credit requirements of the virtual account 32, purchasing financial instrument 36. Block 38 describes the step of the bank computer storing, for future transaction completion and for other future client account management steps, the data of the specific client's existing associated account together with the data of the virtual account. Block number describes the final transaction step, under which the bank computer is terminating the virtual account in the event of the completion of a financial transaction, or under the termination of a financial instrument and translating into cash the results of the financial instrument, at the end of the financial instrument duration to period. Block 42 describes the step of the bank computer crediting the associated account with the financial end results of the completed financial transaction.
Claims (18)
1. A method for depositing a financial tender into a bank account for buying a financial instrument, comprising:
(a) through a communication network transmitting to a bank computer account opening data including at least (i) first data identifying the depositor and an existing, depositor-associated account, and (ii) second data defining an amount of a financial tender to be deposited;
(b) defining a new, virtual depositor account;
(c) debiting the existing account and crediting the virtual account with said amount and employing said amount to purchase said financial instrument; and (d) storing an account data comprising said first data in a manner so that said account data is associated with said virtual account, to permit, at the end of a deposit time period, to transmit said financial tender to said existing account.
(a) through a communication network transmitting to a bank computer account opening data including at least (i) first data identifying the depositor and an existing, depositor-associated account, and (ii) second data defining an amount of a financial tender to be deposited;
(b) defining a new, virtual depositor account;
(c) debiting the existing account and crediting the virtual account with said amount and employing said amount to purchase said financial instrument; and (d) storing an account data comprising said first data in a manner so that said account data is associated with said virtual account, to permit, at the end of a deposit time period, to transmit said financial tender to said existing account.
2. A method according to Claim 1, wherein said account opening data includes (iii) third data defining said financial instrument to be purchased with said financial tender.
3. A method according to Claim 1, wherein said second data defines a schedule of transfer of said financial over a period of time from the existing account to said virtual account.
4. A method according to Claim 1, wherein said deposit time period is defined based on change in or terms of said financial instrument.
5. account opening data includes (iv) fourth data defining a deposit time period and said account data comprises said fourth data.
6. A method according to Claim 5, wherein the deposit time period is selected by the depositor from several bank-determined options of deposit time periods.
7. A method according to Claim 5, wherein said fourth data consists of a single defined deposit time period.
8. A method according to Claim 5, wherein said fourth data consists of a plurality of deposit time periods, each one relating to a different fraction of the deposited financial tender.
9. A method according to Claim 1, wherein said financial instrument is one of one or more predefined financial instruments.
10. A method according to Claim 1, wherein said financial tender is selected from the group consisting of money, securities, financial derivatives and certificates of deposit, and said financial instrument is selected from the group consisting of predefined financial instruments and a depositor geared investment portfolio.
11. A method according to Claim 10, wherein said financial tender is money and said financial instrument is a time deposit.
12. A method according to Claim 11, wherein said first data includes particulars of credit card or a debit card account of the depositor which is debited with said amount and to which money is transferred at the end of said time period.
13. A method according to Claim 1, wherein said account opening data is transmitted to the bank computer from a computerized terminal.
14. A method according to Claim 13, wherein said first data includes particulars of credit card or a debit card account of the depositor which is debited with said amount and to which money is transferred at the end of said time period and said computerized terminal is dedicated terminal equipped with a reader to permit reading of particulars of the credit or debit card account from a depositor held card.
15. A method according to Claim 1, wherein said account opening data is transmitted to the bank computer from a communication device that automatically transmits a user-defining authentication code.
16. A method according to Claim 15, wherein said communication device is a cellular telephone.
17. A method according to Claim 15, wherein said account opening data is transmitted to the bank computer from a database of computer of the telephone vendor.
18. A method for performing a financial transaction, comprising:
(a) through a communication network transmitting to a bank computer account open data including at least (i) first data identifying the depositor and an existing, depositor-associated account, and (ii) second data defining an amount of a financial tender intended to be deposited for purchasing a financial instrument;
(b) in said bank computer, defining a new, virtual depositor account;
(c) debiting the existing depositor-associated account and crediting said virtual account with said amount and employing said amount to purchase said financial instrument;
(d) storing an account data comprising said first data in a manner so that said account data is associated with said virtual account; and (e) following a deposit time period, transmitting financial tender from said virtual account to said existing account.
(a) through a communication network transmitting to a bank computer account open data including at least (i) first data identifying the depositor and an existing, depositor-associated account, and (ii) second data defining an amount of a financial tender intended to be deposited for purchasing a financial instrument;
(b) in said bank computer, defining a new, virtual depositor account;
(c) debiting the existing depositor-associated account and crediting said virtual account with said amount and employing said amount to purchase said financial instrument;
(d) storing an account data comprising said first data in a manner so that said account data is associated with said virtual account; and (e) following a deposit time period, transmitting financial tender from said virtual account to said existing account.
Priority Applications (1)
| Application Number | Priority Date | Filing Date | Title |
|---|---|---|---|
| CA 2300042 CA2300042A1 (en) | 2000-03-03 | 2000-03-03 | An electronic banking method |
Applications Claiming Priority (1)
| Application Number | Priority Date | Filing Date | Title |
|---|---|---|---|
| CA 2300042 CA2300042A1 (en) | 2000-03-03 | 2000-03-03 | An electronic banking method |
Publications (1)
| Publication Number | Publication Date |
|---|---|
| CA2300042A1 true CA2300042A1 (en) | 2001-09-03 |
Family
ID=4165456
Family Applications (1)
| Application Number | Title | Priority Date | Filing Date |
|---|---|---|---|
| CA 2300042 Abandoned CA2300042A1 (en) | 2000-03-03 | 2000-03-03 | An electronic banking method |
Country Status (1)
| Country | Link |
|---|---|
| CA (1) | CA2300042A1 (en) |
-
2000
- 2000-03-03 CA CA 2300042 patent/CA2300042A1/en not_active Abandoned
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