Method, system and computer program product for managing funds in custodial deposit accounts
A method, system and computer program product for managing aggregate funds held in custodial deposit accounts by a custodial agent on behalf of a plurality of individuals. According to the present invention, the custodial deposit accounts comprise an omnibus transaction account (“Omnibus TA”) and a Omnibus money market deposit account (“Omnibus MMDA”). A corresponding individual transaction account (“Individual TA”) and individual money market deposit account (“Individual MMDA”) are kept on the books and records of the custodial agent for each individual, representing the amount of the individual's funds deposited in the Omnibus TA and Omnibus MMDA, respectively. According to the present invention, limitations on transfers from the Omnibus MMDA to the Omnibus TA and limitations on transfers from the corresponding Individual MMDAs to the Individual TAs are managed by daily allocation of the funds in the Individual TAs and Individual MMDAs.
1. A computer-implemented method for managing funds in custodial accounts at a depository institution held by a custodial agent on behalf of a plurality of customers, wherein said funds of said customers are deposited in the aggregate in said custodial accounts, and wherein said custodial accounts comprise an omnibus transaction account (“Omnibus TA”) and an omnibus money market deposit account (“Omnibus MMDA”), comprising:
(a) receiving net daily transaction data for one or more of said plurality of customers representative of a net daily withdrawal from or a net daily deposit to said custodial accounts, and storing said net daily transaction data in a memory of said computer;
(b) deriving, with one or more processors, a net balance change data for said Omnibus MMDA from said net daily transaction data, and storing said derived net balance change data in said memory;
(c) comparing, with said one or more processors, said derived net balance change data to data representing the amount of funds in said Omnibus TA, and
(d) allocating funds belonging to one or more of said plurality of customers from said Omnibus TA to said Omnibus MMDA, to offset a negative net balance change not greater than the amount of funds in said Omnibus TA.
2. A computer-implemented method for managing, over a period of time, funds held in custodial accounts at a depository institution by a custodial agent on behalf of a plurality of customers, wherein said funds are deposited in the aggregate in said custodial accounts, and wherein said custodial accounts comprise an omnibus transaction account (“Omnibus TA”) and an omnibus money market deposit account (“Omnibus MMDA”), comprising:
(a) at the beginning of said period of time, allocating a percent greater than 0% of said aggregate funds to said Omnibus TA, such that each of said customers has funds allocated to both said Omnibus TA and said Omnibus MMDA;
(b) receiving net daily transaction data for one or more of said plurality of customers representative of a net daily withdrawal from or a net daily deposit to said custodial accounts, and storing said net daily transaction data in a memory of said computer;
(c) determining, with one or more processors, whether said net daily transaction data will result in an aggregate transfer of funds from said Omnibus MMDA to said Omnibus TA; and
(d) allocating funds belonging to one or more of said plurality of customers from said Omnibus TA to said Omnibus MMDA, to offset said aggregate transfer of funds from said Omnibus MMDA to said Omnibus TA.
3. A computer program product comprising a computer useable medium having computer program logic stored on the medium for enabling a processor to perform a method for managing funds in custodial accounts at a depository institution held by a custodial agent on behalf of a plurality of customers, wherein said funds of said customers are deposited in the aggregate in said custodial accounts, and wherein said custodial accounts comprise an omnibus transaction account (“Omnibus TA”) and an omnibus money market deposit account (“Omnibus MMDA”), comprising:
(a) receiving net daily transaction data for one or more of said plurality of customers representative of a net daily withdrawal from or a net daily deposit to said custodial accounts, and storing said net daily transaction data in a memory of said computer;
(b) deriving a net balance change data for said Omnibus MMDA from said net daily transaction data, and storing said derived net balance change data in said memory;
(c) comparing said derived net balance change data to data representing the amount of funds in said Omnibus TA; and
(d) allocating funds belonging to one or more of said plurality of customers from said Omnibus TA to said Omnibus MMDA, to offset a negative net balance change not greater than the amount of funds in said Omnibus TA.
4. A computer program product comprising a computer useable medium having computer program logic stored on the medium for enabling a processor to perform a method for managing, over a period of time, funds held in custodial accounts at a depository institution by a custodial agent on behalf of a plurality of customers, wherein said funds are deposited in the aggregate in said custodial accounts, and wherein said custodial accounts comprise an omnibus transaction account (“Omnibus TA”) and an omnibus money market deposit account (“Omnibus MMDA”), comprising:
(a) allocating, at the beginning of said period of time, a percent greater than 0% of said aggregate funds to said Omnibus TA, such that each of said customers has funds allocated to both said Omnibus TA and said Omnibus MMDA;
(b) receiving net daily transaction data for one or more of said plurality of customers representative of a net daily withdrawal from or a net daily deposit to said custodial accounts, and storing said net daily transaction data in a memory of said computer;
(c) determining whether said net daily transaction data will result in an aggregate transfer of funds from said Omnibus MMDA to said Omnibus TA; and
(d) allocating funds belonging to one or more of said plurality of customers from said Omnibus TA to said Omnibus MMDA, to offset said aggregate transfer of funds from said Omnibus MMDA to said Omnibus TA.
5. A computer system for managing funds in custodial accounts at a depository institution held by a custodial agent on behalf of a plurality of customers, wherein said funds of said customers are deposited in the aggregate in said custodial accounts, and wherein said custodial accounts comprise an omnibus transaction account (“Omnibus TA”) and an omnibus money market deposit account (“Omnibus MMDA”), comprising:
a first data processor configured to receive net daily transaction data for one or more of said plurality of customers representative of a net daily withdrawal from or a net daily deposit to said custodial accounts;
a first memory configured to store said net daily transaction data;
a second data processor configured to derive a net balance change data for said Omnibus MMDA from said net daily transaction data;
a second memory configured to store said derived net balance change data;
a third data processor configured to compare said derived net balance change data to data representing the amount of funds in said Omnibus TA; and
a fourth data processor configured to allocate funds belonging to one or more of said plurality of customers from said Omnibus TA to said Omnibus MMDA, to offset a negative net balance change not greater than the amount of funds in said Omnibus TA.
6. A computer system for managing, over a period of time, funds held in custodial accounts at a depository institution by a custodial agent on behalf of a plurality of customers, wherein said funds are deposited in the aggregate in said custodial accounts, and wherein said custodial accounts comprise an omnibus transaction account (“Omnibus TA”) and an omnibus money market deposit account (“Omnibus MMDA”), comprising:
a first data processor configured to allocate a percent greater than 0% of said aggregate funds to said Omnibus TA at the beginning of said period of time, such that each of said customers has funds allocated to both said Omnibus TA and said Omnibus MMDA;
a second data processor configured to receive net daily transaction data for one or more of said plurality of customers representative of a net daily withdrawal from or a net daily deposit to said custodial accounts;
a first memory configured to store said net daily transaction data;
a third data processor configured to determine whether said net daily transaction data will result in an aggregate transfer of funds from said Omnibus MMDA to said Omnibus TA; and
a fourth data processor configured to allocate funds belonging to one or more of said plurality of customers from said Omnibus TA to said Omnibus MMDA, to offset said aggregate transfer of funds from said Omnibus MMDA to said Omnibus TA.