Future value attrition for life-time value financial processing in a relational database management system

1. A method of performing financial processing, comprising:

(a) selecting, in one or more computers, accounts, amounts and rates from account data stored in a database using selection criteria specified by one or more rules; and

(b) performing, in one or more computers, one or more Future Value (FV) calculations on the selected accounts by applying one or more FV propensity rules to the selected accounts and applying one or more FV attrition rules to results of the FV propensity rules using the selected amounts and rates, wherein the FV calculations determine a possible future profitability value of products that may be purchased in the future;

(c) wherein applying the FV attrition rules comprises matching the FV attrition rule to the selected accounts, matching the results of the FV propensity rule to the matched accounts, obtaining an attrition rate for the matched accounts, calculating an effective attrition rate for each of one or more forecast periods from the attrition rate and a net change rate defined in the FV attrition rule for each forecast period, performing the FV attrition rule to calculate an FV expected value from the effective attrition rate and a propensity rule amount defined in the FV attrition rule, and storing the FV amount in the database; and

(d) wherein the FV attrition rule is selected from a plurality of methods comprising Constant (no compounding), Constant (with compounding), Additive (no compounding), Additive (with compounding), Manual (no compounding), Manual (with compounding), Constant and Negative Compounding methods.

2. The method of claim 1 , wherein the selected accounts contain current profitability values.

3. The method of claim 2 , wherein the current profitability values are aggregated to provide an initial amount for the FV calculations.

4. The method of claim 1 , wherein the selected amounts are forecast amounts.

5. The method of claim 1 , wherein the selected rates are FV attrition rates.

6. The method of claim 1 , wherein a user specifies one or more forecast periods over which the FV calculations are performed.

7. The method of claim 6 , wherein a user specifies one or more rates for the forecast periods.

8. The method of claim 1 , wherein the FV attrition rule comprises a Constant (no compounding) method according to:

Amount i =Amount 0 *(1 +R 0 )*(( k−j+ 1)/12)

Amount i =calculated amount by forecast period,

Amount 0 =initial amount,

R 0 =initial rate,

i=forecast period,

j=first month in a forecast period, and

k=last month in a forecast period.

9. The method of claim 1 , wherein the FV attrition rule comprises a Constant (with compounding) method according to:

Amount i =Amount 0 *(1 +R m ) i *(( k−j+ 1)/12)

Amount i =calculated amount by forecast period,

Amount 0 =initial amount,

R m =monthly rate,

i=forecast period,

j=first month in a forecast period, and

k=last month in a forecast period.

10. The method of claim 1 , wherein the FV attrition rule comprises an Additive (no compounding) method according to:

Amount i =Amount 0 *(1 +i *( R 0 /12))*(( k−j+ 1)/12)

Amount i =calculated amount by forecast period,

Amount 0 =initial amount,

R 0 =initial rate,

i=forecast period,

j=first month in a forecast period, and

k=last month in a forecast period.

11. The method of claim 1 , wherein the FV attrition rule comprises an Additive (with compounding) method according to:

Amount i =Amount 0 *(1+Compounded_Rate)*(( k−j+ 1)/12)

Amount i =calculated amount by forecast period,

Amount 0 =initial amount,

i=forecast period,

j=first month in a forecast period,

k=last month in a forecast period, and

Compounded_Rate=Rate 1 *Rate 2 * . . . *Rate i .

12. The method of claim 1 , wherein the FV attrition rule comprises a Manual (no compounding) method according to:

Amount i =Amount 0 *(1 +R man )*(( k−j+ 1)/12)

Amount i =calculated amount by forecast period,

Amount 0 =initial amount,

R man =manual rate,

i=forecast period,

j=first month in a forecast period, and

k=last month in a forecast period.

13. The method of claim 1 , wherein the FV attrition rule comprises a Manual (with compounding) method according to:

Amount i =Amount 0 *(1+Compounded_Rate)*(( k−j+ 1)/12)

Amount i =calculated amount by forecast period,

Amount 0 =initial amount,

i=forecast period,

j=first month in a forecast period,

k=last month in a forecast period, and

Compounded_Rate=Rate 1 *Rate 2 * . . . *Rate i .

14. The method of claim 1 , wherein the FV attrition rule comprises a Constant method according to:

Amount i =Amount 0

Amount i =calculated amount by forecast period, and

Amount 0 =initial amount.

15. The method of claim 1 , wherein the FV attrition rule comprises a Negative Compounding method according to:

Amount i =Initial Forecast Amount*(Attrition Rate*(1−Attrition Rate) n )

Amount i =calculated amount by forecast period,

Amount 0 =initial amount,

i=forecast period, and

n=amortization term.

16. A system for performing financial processing, comprising:

one or more computers;

logic, performed by the one or more computers, for:

(a) selecting accounts, amounts and rates from account data stored in a database using selection criteria specified by one or more rules; and

(b) performing one or more Future Value (FV) calculations on the selected accounts by applying one or more FV propensity rules to the selected accounts and applying one or more FV attrition rules to results of the FV propensity rules using the selected amounts and rates, wherein the FV calculations determine a possible future profitability value of products that may be purchased in the future;

(c) wherein applying the FV attrition rules comprises logic for matching the FV attrition rule to the selected accounts, for matching the results of the FV propensity rule to the matched accounts, for obtaining an attrition rate for the matched accounts, for calculating an effective attrition rate for each of one or more forecast periods from the attrition rate and a net change rate defined in the FV attrition rule for each forecast period, for performing the FV attrition rule to calculate an FV expected value from the effective attrition rate and a propensity rule amount defined in the FV attrition rule, and for storing the FV amount in the database; and

(d) wherein the FV attrition rule is selected from a plurality of methods comprising Constant (no compounding), Constant (with compounding), Additive (no compounding), Additive (with compounding), Manual (no compounding), Manual (with compounding), Constant and Negative Compounding methods.

17. The system of claim 16 , wherein the selected accounts contain current profitability values.

18. The system of claim 17 , wherein the current profitability values are aggregated to provide an initial amount for the FV calculations.

19. The system of claim 16 , wherein the selected amounts are forecast amounts.

20. The system of claim 16 , wherein the selected rates are FV attrition rates.

21. The system of claim 16 , wherein a user specifies one or more forecast periods over which the FV calculations are performed.

22. The system of claim 21 , wherein a user specifies one or more rates for the forecast periods.

23. The system of claim 16 , wherein the FV attrition rule comprises a Constant (no compounding) method according to:

Amount i =Amount 0 *(1 +R 0 )*(( k−j+ 1)/12)

Amount i =calculated amount by forecast period,

Amount 0 =initial amount,

R 0 =initial rate,

i=forecast period,

j=first month in a forecast period, and

k=last month in a forecast period.

24. The system of claim 16 , wherein the FV attrition rule comprises a Constant (with compounding) method according to:

Amount i =Amount 0 *(1 +R m ) i *(( k−j+ 1)/12)

Amount i =calculated amount by forecast period,

Amount 0 =initial amount,

R m =monthly rate,

i=forecast period,

j=first month in a forecast period, and

k=last month in a forecast period.

25. The system of claim 16 , wherein the FV attrition rule comprises an Additive (no compounding) method according to:

Amount i =Amount 0 *(1 +i *( R 0 /12))*(( k−j+ 1)/12)

Amount i =calculated amount by forecast period,

Amount 0 =initial amount,

R 0 =initial rate,

i=forecast period,

j=first month in a forecast period, and

k=last month in a forecast period.

26. The system of claim 16 , wherein the FV attrition rule comprises an Additive (with compounding) method according to:

Amount i =Amount 0 *(1+Compounded_Rate)*(( k−j+ 1)/12)

Amount i =calculated amount by forecast period,

Amount 0 =initial amount,

i=forecast period,

j=first month in a forecast period,

k=last month in a forecast period, and

Compounded_Rate=Rate 1 *Rate 2 * . . . *Rate i .

27. The system of claim 16 , wherein the FV attrition rule comprises a Manual (no compounding) method according to:

Amount i =Amount 0 *(1 +R man )*(( k−j+ 1)/12)

Amount i =calculated amount by forecast period,

Amount 0 =initial amount,

R man =manual rate,

i=forecast period,

j=first month in a forecast period, and

k=last month in a forecast period.

28. The system of claim 16 , wherein the FV attrition rule comprises a Manual (with compounding) method according to:

Amount i =Amount 0 *(1+Compounded_Rate)*(( k−j+ 1)/12)

Amount i =calculated amount by forecast period,

Amount 0 =initial amount,

i=forecast period,

j=first month in a forecast period,

k=last month in a forecast period, and

Compounded_Rate=Rate 1 *Rate 2 * . . . *Rate i .

29. The system of claim 19 , wherein the FV attrition rule comprises a Constant method according to:

Amount i =Amount 0

Amount i =calculated amount by forecast period, and

Amount 0 =initial amount.

30. The system of claim 16 , wherein the FV attrition rule comprises a Negative Compounding method according to:

Amount i =Initial Forecast Amount*(Attrition Rate*(1−Attrition Rate) n )

Amount i =calculated amount by forecast period,

Amount 0 =initial amount,

i=forecast period, and

n=amortization term.

31. An article of manufacture comprising a storage device embodying instructions that, when read and executed by one or more computers, result in the one or more computers performing a method for financial processing, comprising:

(a) selecting, in one or more computers, accounts, amounts and rates from account data stored in a database using selection criteria specified by one or more rules; and

(b) performing, in one or more computers, one or more Future Value (FV) calculations on the selected accounts by applying one or more FV propensity rules to the selected accounts and applying one or more FV attrition rules to results of the FV propensity rules using the selected amounts and rates, wherein the FV calculations determine a possible future profitability value of products that may be purchased in the future;

(c) wherein applying the FV attrition rules comprises matching the FV attrition rule to the selected accounts, matching the results of the FV propensity rule to the matched accounts, obtaining an attrition rate for the matched accounts, calculating an effective attrition rate for each of one or more forecast periods from the attrition rate and a net change rate defined in the FV attrition rule for each forecast period, performing the FV attrition rule to calculate an FV expected value from the effective attrition rate and a propensity rule amount defined in the FV attrition rule, and storing the FV amount in the database; and

(d) wherein the FV attrition rule is selected from a plurality of methods comprising Constant (no compounding), Constant (with compounding), Additive (no compounding), Additive (with compounding), Manual (no compounding), Manual (with compounding), Constant and Negative Compounding methods.

32. The article of claim 31 , wherein the selected accounts contain current profitability values.

33. The article of claim 32 , wherein the current profitability values are aggregated to provide an initial amount for the FV calculations.

34. The article of claim 31 , wherein the selected amounts are forecast amounts.

35. The article of claim 31 , wherein the selected rates are FV attrition rates.

36. The article of claim 31 , wherein a user specifies one or more forecast periods over which the FV calculations are performed.

37. The article of claim 36 , wherein a user specifies one or more rates for the forecast periods.

38. The article of claim 31 , wherein the FV attrition rule comprises a Constant (no compounding) method according to:

Amount i =Amount 0 *(1 +R 0 )*(( k−j+ 1)/12)

Amount i =calculated amount by forecast period,

Amount 0 =initial amount,

R 0 =initial rate,

i=forecast period,

j=first month in a forecast period, and

k=last month in a forecast period.

39. The article of claim 31 , wherein the FV attrition rule comprises a Constant (with compounding) method according to:

Amount i =Amount 0 *(1 +R m ) i *(( k−j+ 1)/12)

Amount i =calculated amount by forecast period,

Amount 0 =initial amount,

R m =monthly rate,

i=forecast period,

j=first month in a forecast period, and

k=last month in a forecast period.

40. The article of claim 31 , wherein the FV attrition rule comprises an Additive (no compounding) method according to:

Amount i =Amount 0 *(1 +i *( R 0 /12))*(( k−j+ 1)/12)

Amount i =calculated amount by forecast period,

Amount 0 =initial amount,

R 0 =initial rate,

i=forecast period,

j=first month in a forecast period, and

k=last month in a forecast period.

41. The article of claim 31 , wherein the FV attrition rule comprises an Additive (with compounding) method according to:

Amount i =Amount 0 *(1+Compounded_Rate)*(( k−j+ 1)/12)

Amount i =calculated amount by forecast period,

Amount 0 =initial amount,

i=forecast period,

j=first month in a forecast period,

k=last month in a forecast period, and

Compounded_Rate=Rate 1 *Rate 2 * . . . *Rate i .

42. The article of claim 31 , wherein the FV attrition rule comprises a Manual (no compounding) method according to:

Amount i =Amount 0 *(1 +R man )*(( k−j+ 1)/12)

Amount i =calculated amount by forecast period,

Amount 0 =initial amount,

R man =manual rate,

i=forecast period,

j=first month in a forecast period, and

k=last month in a forecast period.

43. The article of claim 31 , wherein the FV attrition rule comprises a Manual (with compounding) method according to:

Amount i =Amount 0 *(1+Compounded_Rate)*(( k−j+ 1)/12)

Amount i =calculated amount by forecast period,

Amount 0 =initial amount,

i=forecast period,

j=first month in a forecast period,

k=last month in a forecast period, and

Compounded_Rate=Rate 1 *Rate 2 * . . . *Rate i .

44. The article of claim 31 , wherein the FV attrition rule comprises a Constant method according to:

Amount i =Amount 0

Amount i =calculated amount by forecast period, and

Amount 0 =initial amount.

45. The article of claim 31 , wherein the FV attrition rule comprises a Negative Compounding method according to:

Amount i =Initial Forecast Amount*(Attrition Rate*1−Attrition Rate) n )

Amount i =calculated amount by forecast period,

Amount 0 =initial amount,

i=forecast period, and

n=amortization term.