Classifications

• • 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
  • G06Q10/00—Administration; Management
  • G06Q10/06—Resources, workflows, human or project management; Enterprise or organisation planning; Enterprise or organisation modelling
• • 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
  • G06Q40/06—Asset management; Financial planning or analysis
• • 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

Definitions

• THIS invention relates to a financial practice management system and method.
• the direct cost allocation methodj direct costs in terms of a business offering, product or portfolio are allocated to the relevant clients.
• the costs not allocated is typically then distributed across all clients by dividing the unallocated expense amount by the client head count.
• the client servicing value will be dependent on the client's elected service offering level, as each service level would have different direct costs associated with it.
• the unallocated expense amount may be allocated across all clients using a ratio that is dependent on the direct and unallocated costs.
• a financial practice management system comprising
• a database storing client information and cost information relating to a financial advisory business
• an individual client earnings (ICE) ratio module configured to determine a client income value which is income derived from the client's business with the financial advisory business, the ICE ratio module further configured to determine an ICE ratio value for a particular client by dividing the difference between the client income value and the client servicing value with the client income value or the client servicing value, thereby to provide an indication of the profitability of the particular client.
• ICE individual client earnings
• the cost allocation module obtains the direct cost associated with the service offering of the client from the database.
• the cost allocation module in determining the client servicing value, may determine a total cost for ongoing business activities by adding the value for staff expenses spent on ongoing client business activities and the allocation of a total of staff expenses not related to client activities and other non-staff expenses.
• the cost allocation module may allocate the total of the staff expenses not related to client activities and other non-staff expenses between ongoing business activities and new business activities based on an ongoing business ratio.
• the cost allocation module may calculate the difference between the total costs for ongoing business activities and the total direct cost for service offerings to all clients, the difference being the value of the indirect ongoing business costs.
• the client service value of the client is determined by adding the direct cost associated with a service offering of the client and an allocation of indirect ongoing business costs together.
• the allocation of staff expenses not related to client activities and other non-staff expenses between ongoing business activities and new business activities are based on an ongoing business ratio.
• determining the client servicing value includes calculating the difference between the total costs for ongoing business activities and the total direct cost for service offerings to all clients, the difference being the value of the indirect ongoing business costs.
• a financial practice management system comprising
• the financial proxy module may determine a potential servicing revenue value from the potential new products for the client.
• the user terminals in the form of mobile or cellular telephones may communicate with the system 10 directly via a mobile telephone network 18, or indirectly through the mobile telephone network and Internet 12. It is to be appreciated that each user may communicate with the system 10 via multiple user devices.
• a user 14 typically accesses the system 10 through the user terminals 16 in order to obtain specific client information or to analyse client needs and potential new products to be sold to a new or existing client.
• Cost allocation module 34 in determining an accurate profitability indicator or ICE ratio to split costs thereby not to allocate costs associated with new business against existing clients. Costs, in particular unallocated or indirect practice costs, are rather split by allocating further expenses in relation to new business activities and ongoing business activities. This is done in accordance with an ongoing business ratio which is determined as an ongoing business cost value over a total cost value, described in more detail below.
• this total service cost value also called the client servicing value which is apportioned to a particular client is reflective of the real cost incurred with relation to a particular client as it is stripped from new business expenses and costs.
• the ICE ratio module 36 of the financial practice management system uses the earnings or client income value of a particular client to determine a measure of the profitability (an ICE ratio) of the client for a particular service package as a percentage.
• the income from the client is the income derived by the financial advisory firm from the client's business.
• the negative ICE ratios of the high package clients and the higher profitability of the normal service package clients are not necessarily representative of the true state of the business. It is for this reason that the present invention provides a more effective way of allocating cost by splitting the cost between ongoing business activities and new/future business activities.
• this module is configured to determine the typical products a client should have and is further configured to estimate the potential servicing revenue value that could be derived from new products sold to an existing client.
• the potential products that could be sold to an existing client may be calculated by the equation:
• an estimated household income per suburb may be determined from data relating to people living in a particular area. This information may, in one example embodiment, be associated with a residential code (e.g., the postal code for the area) and the average house price in the area. It will be appreciated that, as more actual data on people living in a particular area becomes available, the estimated household income for that suburb would become more accurate as the database will be updated.
• a residential code e.g., the postal code for the area
• the psychometric matching module 40 may then match clients with advisers based on predetermined psychometric rules, e.g., in order to match "like-with-like" personalities, to match a more receptive and patient adviser with a negative client or to match a more gentle adviser with an older sensitive client.
• the client would then post their needs on a web- page interface where advisers could bid for the business, or where the client could opt to invite pre-approved advisers to tender or negotiate on their business.
• the client may want to deal directly with financial service suppliers listed on the site. Feed-back forms and ratings could also be posted by these clients of the pre-approved financial advisers. In a way, this would provide a financial e-commerce interface, having the ability to estimate the value of the potential business.

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• Business, Economics & Management (AREA)
• Engineering & Computer Science (AREA)
• Accounting & Taxation (AREA)
• Development Economics (AREA)
• Finance (AREA)
• Economics (AREA)
• Strategic Management (AREA)
• Marketing (AREA)
• General Business, Economics & Management (AREA)
• Human Resources & Organizations (AREA)
• Theoretical Computer Science (AREA)
• Entrepreneurship & Innovation (AREA)
• General Physics & Mathematics (AREA)
• Physics & Mathematics (AREA)
• Operations Research (AREA)
• Technology Law (AREA)
• Game Theory and Decision Science (AREA)
• Educational Administration (AREA)
• Quality & Reliability (AREA)
• Tourism & Hospitality (AREA)
• Financial Or Insurance-Related Operations Such As Payment And Settlement (AREA)
• Management, Administration, Business Operations System, And Electronic Commerce (AREA)

Priority Applications (3)

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Publications (1)

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• 2009
  • 2009-11-18 CA CA2744087A patent/CA2744087A1/en not_active Abandoned
  • 2009-11-18 US US13/129,775 patent/US20110313947A1/en not_active Abandoned
  • 2009-11-18 AU AU2009318869A patent/AU2009318869A1/en not_active Abandoned
  • 2009-11-18 KR KR1020117014223A patent/KR20110100226A/ko not_active Application Discontinuation
  • 2009-11-18 WO PCT/IB2009/055136 patent/WO2010058347A1/en active Application Filing

Patent Citations (4)

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