System and method for automated optimization of financial assets
A financial management network is disclosed for optimizing interest return and/or deposit insurance coverage among a plurality of online accounts that may include one or more savings accounts and a checking account, by automatically allocating and transferring funds among the accounts without intervention of the account holder, in accordance with constraints that may be set by the financial management network, account holder, the account holder's financial advisor, and/or imposed by the associate financial institutions holding the accounts.
1 . A computer-implemented method executed by a financial management network processor for securely and automatically adjusting the distribution of financial assets among a plurality of electronically accessible accounts held at a plurality of financial institutions, the accounts including at least a reserve account and a passive core account that are electronically linked over a data network in a hub-and-spoke configuration that permits fund transfers therebetween, the method comprising:
storing, in an encrypted credential data store, account access credentials associated with each of the accounts;
storing, in a rule data store, optimization rules defining a waterfall configuration for allocation of financial assets among the accounts;
monitoring, by the financial management network processor, a set of account conditions pertaining to the accounts, the conditions including at least one of interest rates, deposit insurance coverage, and account limits;
retrieving the optimization rules from the rule data store;
applying, by execution of a product program on the financial management network processor, the optimization rules to the monitored account conditions to determine an optimal allocation of financial assets; and
generating, by the financial management network processor, one or more electronic funds transfer instructions configured to redistribute the financial assets among the accounts, each funds transfer instruction comprising:
authenticating to a corresponding financial institution using the account access credentials stored in the encrypted credential data store; and
instructing, via a secure network, the reserve account to initiate at least one of:
a debit pull of funds from the passive core account into the reserve account, or
a credit push of funds from the reserve account into the passive core account,
wherein the method executes across the plurality of institutions to complete the pull or push of funds without manual user intervention.
2 . The method of claim 1 , further comprising:
storing, in the encrypted credential data store, multifactor authentication (MFA) endpoint data associated with one or more of the accounts; and
authenticating to a corresponding financial institution using the account access credentials and the MFA endpoint data stored in the encrypted credential data store.
3 . The method of claim 1 , wherein the optimization rules include constraints that may be imposed when redistributing said financial assets among the plurality of accounts.
4 . The method of claim 1 , wherein effecting the redistribution of financial assets increases total interest returned on the plurality of accounts.
5 . The method of claim 1 , wherein effecting the redistribution of financial assets increases the deposit insurance coverage on the plurality of accounts.
6 . The method of claim 1 , wherein the plurality of accounts are ranked based on one or more criteria including interest rates, objective or subjective customer service ratings, fees, account limits, transfer limits, historical interest rates and rate volatility, and fund transfers into or out of the plurality of accounts are prioritized based on the rank of the accounts.
7 . The method of claim 1 , wherein at least one of the electronic funds transfers includes a push or pull of funds that is processed substantially in real-time.
8 . The method of claim 1 , wherein at least one of the electronic funds transfers includes a push or pull of funds recorded on a distributed ledger.
9 . The method of claim 8 , wherein the distributed ledger is a blockchain.
10 . The method of claim 1 , wherein the optimization rules include a target balance for at least one of the plurality of accounts.
11 . A financial management network system for automatically and optimally distributing financial assets among a plurality of electronically accessible accounts held at a plurality of financial institutions, the accounts including a passive core account and one or more reserve accounts that are electronically linked over a data network in a hub-and spoke architecture that permits fund transfers therebetween, the system comprising:
a credential data store for securely storing a login credential associated with each account;
a rule data store for storing optimization rules, wherein the optimization rules determine an allocation of financial assets according to a waterfall configuration based on at least one of interest rates, deposit insurance coverage, and account limits associated with each of the passive core account and the one or more reserve account and
a processor in communication with the data stores and configured to execute a product program that:
monitors account conditions of the passive core account and the one or more reserve accounts,
applies the optimization rules to the monitored account conditions to determine an optimal allocation of funds,
securely authenticates to each financial institution using the stored login credential data retrieved from the credential data store, and
generates one or more funds transfer instructions in accordance with the determined optimal allocation of funds and transmits the one or more instructions to the one or more reserve accounts to initiate all required transfers between the reserve account and the passive core account,
wherein the processor coordinates the transfers automatically to implement the optimal allocation of funds without user interaction.
12 . The financial management network system of claim 11 , wherein the distribution of financial assets includes at least one of:
an electronic funds transfer credit push of funds, originating through the one or more reserve accounts, from the one or more reserve accounts into the passive core account, and
an electronic funds transfer debit pull of funds, originating through the one or more reserve accounts, from the passive core account into the one or more reserve accounts.
13 . The financial management network of claim 11 , wherein the data store additionally securely stores multifactor authentication (MFA) endpoint data associated with one or more of the accounts, and wherein the product program is further configured to securely authenticate to each financial institution using the stored MFA endpoint data.
14 . The financial management network system of claim 11 , wherein the processor is configured to monitor for changed conditions pertaining to the passive core account and the one or more reserve accounts, and to generate one or more funds transfer instructions to redistribute said financial assets based on the changed conditions.
15 . The financial management network system of claim 14 , further including a client interface for providing access to an account holder and/or the account holder's financial advisor.
16 . The financial management network system of claim 11 , wherein the plurality of electronically accessible accounts includes the passive core account and the one or more reserve accounts.
17 . The financial management network system of claim 11 , further configured to respond to a multifactor authentication request received from one of said accounts, without requiring intervention by an account holder.
18 . The financial management network system of claim 11 , wherein at least one of the electronic funds transfers includes a push or pull of funds that is processed substantially in real-time.
19 . The financial management network system of claim 11 , wherein at least one of the electronic funds transfers includes a push or pull of funds recorded on a distributed ledger.
20 . The financial management network system of claim 19 , wherein the distributed ledger is a blockchain.
21 . The financial management network system of claim 11 , wherein the optimization rules include a target balance for at least one of said accounts.
22 . The method of claim 7 , wherein at least one of the electronic funds transfers includes a push or pull of funds that is processed in parallel.
23 . The financial management network system of claim 18 , wherein at least one of the electronic funds transfers includes a push or pull of funds that is processed in parallel.