WO2001095227A2

WO2001095227A2 - Transfer of funds in a networking environment

Info

Publication number: WO2001095227A2
Application number: PCT/US2001/040864
Authority: WO
Inventors: Jean-Noel Lebrun
Original assignee: Ezlogin.Com, Inc.
Priority date: 2000-06-06
Filing date: 2001-06-06
Publication date: 2001-12-13
Also published as: JP2003536147A; AU2001267036A1

Description

TRANSFER OF FUNDS IN A NETWORKING ENVIRONMENT

Background of the Invention

1. Field of the Invention

This invention relates to electronic transfer of funds in a networking environment.

2. Related Art

One aspect of the Internet that has become popular involves electronic transfer of funds.

A first form of electronic fund transfer involves using a communication link to transfer funds between different accounts at the same financial institution. For example, an individual user can access the web site of his bank and transfer money from the user's checking account to the user's savings account. Likewise, an individual can access the web site of his broker and transfer funds from one mutual fund to another.

A second form of electronic fund transfer involves using the Internet to pay bills. For example, an individual user can access a commercial web site such as a bill presentment service that is dedicated to automated bill paying. The user authorizes the bill presentment service to withdraw funds from his bank account and pay a specific creditor.

These forms of electronic fund transfer generally achieve the goal of transferring funds from one account to another. However, they are not without drawbacks.

A first drawback is that the process of electronic fund transfer is unnecessarily labor intensive. For example, if an individual wishes to keep 50% of his funds in a certain account, he cannot achieve this unless he repeatedly checks his balances and transfers funds. A second related drawback is that bill presentment services can be unnecessarily complex. The user must direct the bill presentment service to withdraw money from his account and pay a creditor. Generally, the bill presentment service withdraws the funds from the user's account and generates a check payable to the creditor. There is no way for a user to directly transfer funds from his account to a creditor's account.

Accordingly, it would be desirable to provide an improved technique for electronic transfer of funds. This is achieved in an embodiment of the invention in which a user can directly transfer funds from a bank account titled in the user's name to a different bank account that is titled either in his name or the name of another.

The invention provides an enabling technology for the electronic transfer of funds so as to include substantial advantages and capabilities that are novel and non-obvious in view of the known art. Examples described below relate to banks, but the invention is broadly applicable to the transfer of funds between any kind of account at a financial institution such as a credit union account or brokerage account.

Summary of the Invention

The invention provides an improved technique for electronic transfer of funds. The user can direct the transfer of funds from an account titled in his name to another account that is titled either in his name or another.

In a first aspect of the invention, a user provides information concerning accounts he may wish to transfer from and accounts he may wish to transfer to. In a preferred embodiment, this "set up" phase can be performed using form fill-in technology. Form fill-in technology is known in the art of data manipulation. This is the only time that the user will have to provide this information.

In a second aspect of the invention, the transfer of funds from one account to a different account is executed. The execution of the transfer may be in response to specific directions from the user or in response to a set of intelligent rules specified by the user.

Brief Description of the Drawings

Figure 1 shows a block diagram of a system for electronic transfer of funds from first account to a second account.

Figure 2 shows a process flow diagram for a method of using a system for electronically transferring funds from a first account to a second account.

Detailed Description of the Preferred Embodiment

In the following description, a preferred embodiment of the invention is described with regard to preferred process steps and data structures. Those skilled in the art would recognize after perusal of this application that embodiments of the invention can be implemented using one or more general purpose processors or special purpose processors or other circuits adapted to particular process steps and data structures described herein, and that implementation of the process steps and data structures described herein would not require undue experimentation or further invention. Related Applications

Inventions described herein can be used in conjunction with inventions described in the following applications:

• International Application Serial No. PCT/US00/03790, filed 11 February 2000, in the name of Ezlogin.com, Inc., formerly ezlogin.com, entitled "Personalized Access to Web Sites," published under International Publication Number WO 00/48110 on 17 August 2000.

• International Application Serial No. PCT/USO 1/40019, filed January 31 , 2001 , in the name of Ezlogin.com, Inc., entitled "Clipping and Manipulating Elements Contained in a Web Page."

These applications are hereby incorporated by reference as if fully set forth herein.

Lexicography

As used herein, use of the following terms refer or relate to aspects of the invention as described below.

• personal data server - as used herein, the phrase "personal data server" includes a server device which has access to a database of information concerning individual users

• individual user - as used herein, the phrase "individual user" includes any person who acts either on behalf of themselves or an entity and manipulates a web client in such a way as to gain access to the Internet and who manipulates that web client so as to set up or execute the transfer of funds • transfer of funds - as used herein, the phrase "transfer of funds" includes moving money, stocks, bonds, shares in a mutual fund, and other instruments of value from a first account to a second account

• financial institution - as used herein, the phrase "financial institution" includes banks, credit unions, brokerage houses and other entities involved in the safeguarding or transfer of personal or institutional assets

• web site - As used herein, the phrase "web site" includes any combination of devices or software taking on the role of a server in a client-server environment in the

Internet, the world wide web, or an equivalent or extension thereof. There is no particular requirement that the web sites must be individual devices. They can each be a single device, a set of cooperating devices, a portion of a device, or some combination thereof

• e-commerce or electronic commerce - As used herein, the phrase "ecommerce" or "electronic commerce" includes all commercial, business, professional and investment activities conducted over the Internet, an intranet or any type of network

• client and server - in general, "client" and "server" refer to a relationship between two devices, particularly to their relationship as client and server, not necessarily to any particular physical devices

• client device and server device - in general, the phrase "client device" includes any device taking on the role of a client in a client-server relationship (such as an HTTP web client and web server). There is no particular requirement that any client devices must be individual physical devices; they can each be a single device, a set of cooperating devices, a portion of a device, or some combination thereof. As used herein, the phrase "server device" includes any device taking on the role of a server in a client-server relationship. There is no particular requirement that server devices must be individual physical devices; they can each be a single device, a set of cooperating devices, a portion of a device, or some combination thereof. These descriptions of general meanings of these terms are not intended to be limiting, only illustrative. Other and further applications of the invention, including extensions of these terms and concepts, would be clear to those of ordinary skill on the art after perusing this application. These other and further applications are part of the scope and spirit of the invention, and would be clear to those of ordinary skill in the art, without further invention or undue experimentation.

System Elements

Figure 1 shows a block diagram of a system for electronic transfer of funds from a first account to a second account.

A system 100 includes at least one client device 110 under the control of an individual user 115, a communication network 120, at least one financial institution 130 containing a first account 135, a second account 136 at the same or different financial institution 130 and a personal data server 140.

Each client device 110 includes an input element 111, a presentation element 112, a local memory 113, and software 114 disposed for communicating with the personal data server 140. Each client device 110 is under the control of an individual user 115 who wishes to transfer funds from a first account 135 to a second account 136.

In a preferred embodiment, each client device 110 includes a general-purpose computer, such as a laptop or workstation. However, a client device 110 can also include (either alone or in conjunction with a laptop or workstation), a hand-held calendar (such as a "Palm Pilot" or other hand-held device), a portable computer, a special purpose computer, a cellular telephone or other telephonic device, a web server acting as the agent for a user, or other information appliance. In alternative embodiments, a client device 110 may also include any other device disposed for performing all or some functions described herein.

The communication network 120 is disposed for communicating data between the client device 110 and the personal data server 140. In a preferred embodiment, the communication network 120 includes a packet switched network such as the Internet, as well as (in conjunction with or instead of) an intranet, an enterprise network, an extranet, a virtual private network or a virtual switched network. In alternative embodiments, the communication network 120 may include any other set of communication links that couple the client device 110 and the personal data server 140.

The financial institution 130 includes a bank, credit union, brokerage house or similar entity where the user 115 has an account. It may also include a bank, credit union, brokerage house and similar entities where the user 115 does not have an account.

In a preferred embodiment, the user can transfer funds, including stocks, bonds, shares in a mutual fund, and other instruments of value from a first account 135 that is titled in the user's name or otherwise under their control to a second account 136. The second account 136 may be located in the same financial institution 130 or a different financial institution 130. The second account 136 need not necessarily be titled in the user's name or under the user' s control.

The personal data server 140 is similar to the client device 110 in that it includes an input element 141, a presentation element 142 and a local memory 143. However, the personal data server 140 also includes web server software 144, a database 145, a software package 146 that sets up and executes the transfer of funds, a web site 147, and an agent 148.

Similar to the client device, 110, a preferred embodiment of the personal data server 140 includes a general-purpose computer, such as a laptop or workstation. However, a personal data server 140 can also include (either alone or in conjunction with a laptop or workstation), a hand-held calendar (such as a "Palm Pilot" or other hand-held device), a portable computer, a special purpose computer, a cellular telephone or other telephonic device, a web server acting as the agent for a user, or another device. In alternative embodiments, a personal data server 140 may also include any other device disposed for performing all or some of the functions described herein.

The database 145 includes information regarding a set of users 115, such as their security codes, bank account numbers, bank addresses, authorization codes, intelligent rules sets set up by a user 115, lists of web sites associated with financial institutions 130 and other information as is necessary to facilitate the transfer of funds.

The software package 146 allows a user to accomplish some or all of the following:

• transfer funds from a first account 135 under his control to a second account 136 under his control

• transfer funds from a first account 135 under his control to a second account 136 that is not under his control

• transfer stocks, bonds, shares in a mutual fund, and other instruments of value from a first account 135 under his control to second account 136 under his control

• transfer stocks, bonds, shares in a mutual fund, and other instruments of value funds from a first account 135 under his control to a second account 136 that is not under his control.

In a preferred embodiment, the software package 146 includes a set of intelligent rules that can be individually tailored by a user 115. These intelligent rules cause the automatic transfer of funds from a first account 135 to a second account 136 without instruction from the user 115. For example, the user may wish to keep some percentage of his total funds invested in the stock market. An automated schedule of transfers can be set up so that this is achieved without further intervention on the part of the user 115. Similarly, the user 115 can choose to pre-authorize all or of some subset of transfers having a certain characteristic. For example, a user 115 may wish to authorize all transfers involving more than $1000.

The agent 148 is an additional piece of software on the personal data server

140. The agent simulates the actions taken by the browser of the client device 110. In a preferred embodiment, the personal data server 140 also includes software for the aggregation and summarization of personal information, form fill-in and automated log-in. This software is used to create a "library" of personalized information pertaining to a user that can be accessed so as to automatically respond to requests for registration information or security codes. Such software is known in the art of data manipulation.

Method of Operation

A method 200 is performed by the system 100. Although the method 200 is described serially, the steps of the method 200 can be performed by separate elements in conjunction or in parallel, whether asynchronously, in a pipelined manner, or otherwise.

There is no particular requirement that the method 200 be performed in the same order in which this description lists the steps, except where so indicated.

At a step 205, the user 115 manipulates a client device 11 to gain access to the communication network 120 and establish a connection with a web site 147 associated with the personal data server 140.

Set-up of a system for transferring funds

At a step 210, the personal data server 140 identifies and authenticates the user 115.

In a preferred embodiment, the personal data server 140 can perform this step using a cookie stored at the web client 110. In other preferred embodiments, the personal data server 140 performs this step using a login identifier provided by the user 115. In another preferred embodiment, the user 115 can access all web sites associated with the respective financial institutions 130 and all of the protected information contained therein that is associated with a user 115 without having to register or enter security codes. At a step 215, the user 115 provides the personal data server 140 with data concerning financial institutions 130. At the very least, this information includes account identification numbers and authorization for automatic withdrawals. Other information provided by a user 115 may include some or all of the following: routing numbers, bank addresses, names of successors in interest and information concerning the nature of the financial institution and the accounts 135 that are under the user's control. The user 115 will only have to provide this data once for each financial institution 130. In a preferred embodiment, some relatively large part of the information is provided to the personal data server 140 by the financial institution 130. In another preferred embodiment, the information provided by the user 115 and the financial institution 130 is updated periodically by the financial institution 130. This updated information may include data on the nature of the account 135 or the funds contained therein, such as interest rate changes, new balance information, warning flags (for example, a flag that signals when the amount of money in an account is close to falling below a required balance), data on dividends, capitol gains, new shares that are acquired, ratings by outside entities such as Morningstar or information related to the nature of the account.

In a step 220, the information is stored in the database 145.

In a step 225, the personal data server 140 provides the user 115 with a set of intelligent rules that are appropriate to the nature of the accounts 135 that the user 115 has identified. Examples of intelligent rules include:

• siphoning off interest earned from a first account into a second account

• maintaining percentages of the user's total funds in specific accounts

• criteria for rolling over accounts that have matured

transferring funds to maintain minimum balances transferring funds so as to avoid service charges • posting BUY and/or SELL orders in response to certain market conditions.

• transactions that require pre-authorization. For example, a user 115 may want to pre- authorize every transaction involving more than $5,000 transaction.

In a step 230, user selects rules that he wishes applied to account(s) 135.

In a step 235, the user 115 provides the personal data server 140 with information on account(s) 136 that are not under his control. In a preferred embodiment, much of the information about an account 136 is acquired automatically from the financial institution 130 where the account 136 is located. Similar to step 215, this step need only be performed once for every financial institution 130 that the user 115 wishes to transfer assets into.

In a step 240, the information provided by the user 115 is stored in the database 145. When this step is completed, the set-up phase of the method is complete.

Execution of the transfer of funds

In a step 245, the user decides to transfer funds from a first account to a second account 136. This decision may be responsive to the need to pay a creditor, execute a purchase order, provide for another, manage finances or respond to a situation requiring the transfer of funds.

In a step 250, the user 115 accesses the web site 147 under the control of the personal data server 140. If this step has already been performed, the method 200 proceeds with step 255.

In a step 255, the user 115 indicates how much he wishes to transfer from a first account 135. This may be expressed as a monetary unit, a number of shares or whatever units are appropriate for the first account 135 he wishes to transfer from. In other embodiments, the amount the user 115 wishes to transfer may be expressed as a percentage of the total assets in account 135. In a step 260, the user identifies the second account 136. As noted earlier, this account may be in same financial institution 130 or a different financial institution as account 135.

In a step 265, the user 115 reviews the amount to be transferred and the account numbers or other identifiers of accounts 135 and 136. The user 115 may also review any other information relevant to the transaction.

In a step 270, the user executes the transfer. In a preferred embodiment, this is performed automatically by the personal data server without further input from the user 115.

In a step 275, the user 115 receives a confirmation of the transfer.

In a step 280, a record of the transfer is stored in database 145.

In a step 285, the transfer is responsive to the intelligent rules decided upon in steps 230 and 235. In a preferred embodiment, this step occurs automatically and does not require intervention or authorization on the part of a user 115 (unless the user 115 requested that some or all automatic transfers be cleared with him first). This step can occur any time after step 235.

In a step 290, the user 115 receives a confirmation of the transfer that occurred in step 285.

In a step 295, a record of the transfer executed in step 285 is stored in database 145.

In a step 299, the method 200 is at rest.

Generality of the Invention The invention has general applicability to various fields of use, not necessarily related to e-commerce as described above. For example, these fields of use can include one or more of, or some combination of, the following:

• automated payment of payroll expenses (transferring funds from an employer's payroll account to an employee's account, from a general operating account to a payroll account and from an employer account to an insurer account)

• automated payment of creditors (transferring funds from a debtor's account to a creditor' s account)

• automated payment of child support and other familial obligations

• automated money management (transfers are done so as to optimize the amount of interest or dividend payments, minimize the tax burden and perform other financial planning tasks).

Other and further applications of the invention in its most general form, would be clear to those skilled in the art after perusal of this application, and are within the scope and spirit of the invention.

Alternative Embodiments

Although preferred embodiments are disclosed herein, many variations are possible which remain within the concept, scope, and spirit of the invention, and these variations would become clear to those skilled in the art after perusal of this application.

Claims

1. An apparatus, including a client device, including a processor and a memory; a server device, including a processor, a memory and a database of financial transactions and software for making transfers of funds; a first finance account; a second finance account; and a communication link.

2. An apparatus as in claim 1 , wherein said software for making transfers includes a rule base so that said transfers can be made according to said rule base.

3. An apparatus as in claim 2, wherein said rule base can be modified by a user of said client device.

4. An apparatus as in claim 1, wherein said transfers can be made independently of said rule base.

5. An apparatus as in claim 1, wherein said database includes information concerning at least one user of said client device, such as a security code, bank account numbers, bank addresses, authorization codes, said intelligent rules set up by said user, lists of web sites associated with finance accounts and other information as is necessary to facilitate the transfer of funds.

6. An apparatus as in claim 1, including software on said server that simulates the actions taken by the browser of said client device 110.

7. An apparatus as in claim 1, wherein money or shares are transferred directly from said first finance account to said second finance account.

8. An apparatus as in claim 1, wherein said first finance account is a bank, credit union, brokerage house or similar entity.

9. An apparatus as in claim 1, wherein said second finance account is a bank, credit union, brokerage house or similar entity.

10. An apparatus as in claim 1, wherein said first finance account is at the same institution as said second finance account.

11. An apparatus as in claim 1 , wherein said first finance account is at a different institution than said second finance account.

12. An apparatus as in claim 1, wherein user of said client device is authenticated by said server device using a cookie.

13. A method for transferring funds, including steps of providing information concerning a particular transaction to the server device using the client device; executing the transfer of said funds; and storing a record of the transaction in a database on the server.

14. A method as in claim 13, also including the step of setting up a client file wherein said client file includes information about the user, finance accounts under the control of said user, finance accounts that said user may desire to transfer said funds into, passwords of said user's accounts and other demographic data.

15. A method as in claim 14, wherein the step of setting up said client file includes the step of establishing a rule base that governs subsequent transfers of funds.

16. A method as in claim 15, wherein the step of executing is responsive to software for making transfers, including said rule base so that said transfers can be made according to said rule base.

17. A method as in claim 15, wherein said rule base can be modified by a user of said client device.

18. A method as in claim 13, wherein said transfers can be made independently of said rule base.

19. A method as in claim 13, wherein the step of executing is responsive to information stored in a database, including information regarding at least one user of said client device, such as a security code, bank account numbers, bank addresses, authorization codes, said intelligent rules set up by said user, lists of web sites associated with finance accounts and other information as is necessary to facilitate the transfer of funds.

20. A method as in claim 13, wherein the step of executing includes the step of transferring funds from a first finance account directly to a second finance account.

21. A method as in claim 20, wherein said first finance account is a bank, credit union, brokerage house or similar entity.

22. A method as in claim 20, wherein said second finance account is a bank, credit union, brokerage house or similar entity.

23. A method as in claim 20, wherein said first finance account is at the same institution as said second finance account.

24. A method as in claim 20, wherein said first finance account is at a different institution from said second finance account.

25. A method as in claim 13, wherein the step of executing includes the step of authenticating user of said client device by said server device using a cookie.

26. A method as in claim 13, including the step of charging a fee for using said server to perform said method.