SYSTEM AND METHOD FOR INVESTOR’S DECISION MAKING BASED ON BEHAVIOUR OF INDIVIDUAL

Abstract

ABSTRACT “SYSTEM AND METHOD FOR INVESTOR’S DECISION MAKING BASED ON BEHAVIOUR OF INDIVIDUAL” A system (100) for developing a financial decision making strategy based on behaviour of an individual, comprises of: an input module (102) for collecting details of either a financial investment, or an income, or an expenditure or a combination thereof of an individual over a time period; a receiving module (104) for receiving financial behaviour of the individual based on the collected details, wherein a pattern is extracted from the collected details to understand the behaviour of the individual; a processing module (106) for processing the extracted pattern from the individual to create a financial profile of the individual; and a recommendation module (108) for suggesting a customized investment plan, time required for fulfilling the investment, monthly investment required to accomplish the investment, returns and risk associated with the plan based on the financial profile created. Figure 1

Specification

Description:TECHNICAL FIELD
[0001] The present invention relates to a field of decision making systems. More particularly, the present invention relates to a field of decision making based on behaviour of an individual to understand the perspective of behavioural finance.
BACKGROUND ART
[0002] The following discussion of the background of the invention is intended to facilitate an understanding of the present invention. However, it should be appreciated that the discussion is not an acknowledgment or admission that any of the material referred to was published, known, or part of the common general knowledge in any jurisdiction as of the application's priority date. The details provided herein the background if belongs to any publication is taken only as a reference for describing the problems, in general terminologies or principles or both of science and technology in the associated prior art.
[0003] Behavioural Finance (BF) has gained traction over the last decade. It is an area of study that explores why people take the decisions and then endeavours to formulate alternatives in which those decisions might be influenced.
[0004] Behavioural Finance is used to understand how individuals make decisions under conditions of uncertainty and risk.
[0005] Recently, in the field of investment, its environment varies rapidly, which results in increase in risk of investment and expansion of an amount of investment. In such scenarios where continuous examination and expense evaluation is required, there is much need of rigorous evaluation, involving time, computation and mental agility. Rationality is required for such an examination and a business chance will be thrown away unless the examination is done properly.
[0006] In conventional systems, judgement processes in business value evaluations made by respective business managers are not customized and are fixed which may not suit all the business or investment and may not be effective for all the users. Furthermore, such a situation may occur that different criterion of evaluation indicators used in respective business value judgements are delicately different 2 from one another so that accurate comparative analysis cannot be performed.
[0007] Businesses in every industry must adapt to an increasingly competitive environment and execute in a clear, consistent, and efficient manner. Furthermore, the global nature of most industries greatly increases the complexity and difficulty of surviving on a day to day basis, let alone growing and prospering.
[0008] Many chief financial officers (CFOs) fail to measure finance cost and performance in a rigorous way, such as the resources expended on finance, the costs by process and in comparison with other businesses in similar industries. Often, CFOs lack the information necessary to prioritize improvement initiatives, develop a compelling business case for such initiatives and measure performance improvement consistently. These shortcomings severely constrain the business, and lead directly to inefficiencies and waste due to unnecessary complexity, process exceptions, and customer dissatisfaction. At the same time, identifying specific processes to which improvements may be made can be very difficult, either because the business itself does not have the expertise to identify the processes or because the complexities of the business frustrate attempts to clearly delineate the processes to be improved.
[0009] Even if the investment can identify one of the many processes that need to improve, the investment and how to improve the process or be able to identify a concrete and measurable improvement goal. Another difficulty exists in determining whether intermediate goals exist that should be reached along the way. As a result, businesses struggle to meet the demands of the modern global marketplace and fail to identify cost reduction opportunities for margin improvement to reach other important goals.
[0010] Therefore, a need exists for an efficient and effective system and method to calculate expenses based on behaviour of the individual 3 and suggest them a proper investment plan for earning profits from their savings.
[0011] The technical advancements disclosed by the present invention overcomes the limitations and disadvantages of existing and conventional systems and methods.
[0012] All publications herein are incorporated by reference to the same extent as if each individual publication or patent application were specifically and individually indicated to be incorporated by reference. Where a definition or use of a term in an incorporated reference is inconsistent or contrary to the definition of that term provided herein, the definition of that term provided herein applies, and the definition of that term in the reference does not apply.
OBJECTS OF THE INVENTION
[0013] The principal object of the present invention is to overcome the disadvantages of the prior art by providing a system and method for investor's decision making based on behaviour of individual.
[0014] Another object of the present invention is to recommend an investment program based on financial behaviour of an individual,
[0015] Yet another object of the present invention is to calculate expenses of the user, and
[0016] Yet another object of the present invention is to notify the individual about the selected investment plan.
[0017] The foregoing and other objects of the present invention will become readily apparent upon further review of the following detailed description of the embodiments as illustrated in the accompanying drawings.
SUMMARY OF THE INVENTION
[0018] The present invention generally relates to a system and a method for developing a financial decision-making strategy based on behaviour of an individual.
[0019] In an embodiment, a system for developing a financial decision making strategy based on behaviour of an individual, wherein the system comprises of: an input module for collecting details of either a financial investment, or an income, or an expenditure or a combination thereof of an individual over a time period; a receiving module connected with the input module for receiving financial behaviour of the individual based on the collected details, wherein a pattern is extracted from the collected details to understand the behaviour of the individual; a processing module connected to the input module for processing the extracted pattern from the individual to create a financial profile of the individual, wherein the extracted pattern is compared with a set of pre stored parameters for determining a financial position of the individual 4 to create the financial profile; and a recommendation module connected with the processing module for suggesting a customized investment plan, time required for fulfilling the investment, monthly investment required to accomplish the investment, returns and risk associated with the plan based on the financial profile created.
[0020] In an embodiment, an analysis module is associated with the receiving module for real time calculation of the finances based on the pattern extracted to provide a net saving upon the expenditure.
[0021] In an embodiment, a risk investigator performs a risk analysis of the investment plan based on studying the financial market and previous returns.
[0022] In an embodiment, a payment gateway is linked with a user interface module for investing in the investment plan recommended to the individual.
[0023] In an embodiment, the user interface module is associated with the recommendation module via a communication module for receiving notification of the recommended investment plans, risk involved, maturity date of the investment plan, amount to be contributed and returns to be received upon their maturity based on the financial behaviour of the individual, wherein the investment plan is customized based on changes in the behaviour of the user.
[0024] In an embodiment, a notification module is interconnected to the user interface module and the recommendation module for informing the individual about the recommended investment plans, risk involved, maturity date of the investment plan, amount to be contributed and returns to be received upon their maturity based on the financial behaviour of the individual, wherein the notification module informs the individual about a selected contribution date for the contribution amount prior to selected contributed date.
In an embodiment, the communication module is either a wired or a wireless medium for establishing communication between the user interface module and the recommendation module.
[0025] In an embodiment, a method for developing a financial decision making strategy based on behaviour of an individual, wherein the method comprises of: collecting details of either a financial investment, or an income, or an expenditure or a combination thereof of an individual by an input module for over a time period; receiving financial behaviour of the individual by a receiving module based on the collected details, wherein a pattern is extracted from the collected details to understand the behaviour of the individual; processing the extracted pattern by a processing module from the individual to create a financial profile of the individual, wherein the extracted pattern is compared with a set of pre stored parameters for determining a financial position of the individual to create the financial profile; and suggesting by a recommendation module a customized investment plan, time required for fulfilling the investment, monthly investment required to accomplish the investment, returns and risk associated with the plan based on the financial profile created.
[0026] To further clarify the advantages and features of the present invention, a more particular description of the invention will be rendered by reference to specific embodiments thereof, which is illustrated in the appended drawings. It is appreciated that these drawings depict only typical embodiments of the invention and are therefore not to be considered limiting of its scope. The invention will be described and explained with additional specificity and detail with the accompanying drawings.
[0027] While the invention has been described and shown with reference to the preferred embodiment, it will be apparent that variations might be possible that would fall within the scope of the present invention.
BRIEF DESCRIPTION OF DRAWINGS
[0028] So that the manner in which the above-recited features of the present invention can be understood in detail, a more particular description of the invention, briefly summarized above, may have been referred by embodiments, some of which are illustrated in the appended drawings. It is to be noted, however, that the appended drawings illustrate only typical embodiments of this invention and are therefore not to be considered limiting of its scope, for the invention may admit to other equally effective embodiments.
[0029] These and other features, benefits, and advantages of the present invention will become apparent by reference to the following text figure, with like reference numbers referring to like structures across the views, wherein:
[0030] Figure 1 illustrates a block diagram of a system for developing a financial decision-making strategy based on behaviour of an individual; and
[0031] Figure 2 illustrates a method for developing a financial decision-making strategy based on behaviour of an individual.
DETAILED DESCRIPTION OF THE INVENTION
[0032] While the present invention is described herein by way of example using embodiments and illustrative drawings, those skilled in the art will recognize that the invention is not limited to the embodiments of drawing or drawings described and are not intended to represent the scale of the various components. Further, some components that may form a part of the invention may not be illustrated in certain figures, for ease of illustration, and such omissions do not limit the embodiments outlined in any way. It should be understood that the drawings and the detailed description thereto are not intended to limit the invention to the particular form disclosed, but on the contrary, the invention is to cover all modifications, equivalents, and alternatives falling within the scope of the present invention as defined by the appended claim.
[0033] As used throughout this description, the word "may" is used in a permissive sense (i.e. meaning having the potential to), rather than the mandatory sense, (i.e. meaning must). Further, the words "a" or "an" mean "at least one" and the word "plurality" means "one or more" unless otherwise mentioned. Furthermore, the terminology and phraseology used herein are solely used for descriptive purposes and should not be construed as limiting in scope. Language such as "including," "comprising," "having," "containing," or "involving," and variations thereof, is intended to be broad and encompass the subject matter listed thereafter, equivalents, and additional subject matter not recited, and is not intended to exclude other additives, components, integers, or steps. Likewise, the term "comprising" is considered synonymous with the terms "including" or "containing" for applicable legal purposes. Any discussion of documents, acts, materials, devices, articles, and the like are included in the specification solely for the purpose of providing a context for the present invention. It is not suggested or represented that any or all these matters form part of the prior art base or were common general knowledge in the field relevant to the present invention.
[0034] Embodiments of the present invention will be described below in detail with reference to the accompanying drawings.
[0035] Figure 1 illustrates a block diagram of a system (100) for developing a financial decision-making strategy based on behaviour of an individual, wherein the system (100) comprises of: an input module (102), a receiving module (104), a processing module (106), a recommendation module (108), an analysis module (110), a risk investigator (112), a payment gateway (114), a user interface module (116), communication module (118), and a notification module (120).
[0036] The input module (102) for collecting details of either a financial investment, or an income, or an expenditure or a combination thereof of an individual over a time period. The input module (102) includes a receiver for receiving the financial details of the individual that are collected and are stored in a database.
[0037] According to an embodiment, the database is either a cloud storage or a memory device. The memory device is either a RAM, a memory chip or any other storage device known in the art.
[0038] The receiving module (104) is connected with the input module (102) for receiving financial behaviour of the individual based on the collected details, wherein a pattern is extracted from the collected details to understand the behaviour of the individual. The pattern is extracted based on the behaviour of the individual regarding previous transactions, investments, savings, expenditures, etc. Based on the account history and the current input details provided by the individual, a pattern is generated to clearly analyse the behaviour of the individual.
[0039] The processing module (106) is connected to the input module (102) for processing the extracted pattern from the individual to create a financial profile of the individual, wherein the extracted pattern is compared with a set of pre-stored parameters for determining a financial position of the individual to create the financial profile.
[0040] The pre-stored pattern includes patterns that are followed generally by the investors, and common people for a certain duration of time in order to obtain a recommendable savings based on their income. The data is collected from people belonging to different age group, living in different cities, having different levels of income and expenditure in form of a survey either through online or offline mode. The average from the data collected from different groups of people is considered as a benchmark and stored as a pre-stored pattern in the database.
[0041] The details obtained from the individuals through the input module (102) is compared to match with one of the patterns in the database and the pattern is extracted. Upon successful matching of the details, the corresponding pattern is obtained from the database.
[0042] The recommendation module (108) is connected with the processing module (106) for suggesting a customized investment plan, time required for fulfilling the investment, monthly investment required to accomplish the investment, returns and risk associated with the plan based on the financial profile created. The risk investigator (112) performs a risk analysis of the investment plan based on studying the financial market and previous returns.
[0043] According to an embodiment, the individual having a low savings and high expenses are provided with plans having high returns with low amount of investment for a desired period of time and the individual with high savings are provided with plans involving investing a good amount either monthly or annually to receive high returns.
[0044] According to an embodiment, the recommendation module (108) provides the details of investment to the individual and suggests time duration of investment involving start and end date, principal amount and maturity amount and investment having low risk based on ranks. The investment with high risk is ranked least and with low risk is ranked highest.
[0045] The risk investigator (112) analyses the market risk associated with the investment by analysing previous investment risks and rank them based on their risks in either an ascending or a descending order.
[0046] According to an embodiment, upon providing the risk rate, the investment plans are selected to be arranged sequentially with an order of decreasing the risk rate such that the investment plan with low risk is marked as "low risk" and positioned at top of the list and the investment plan having high risk is marked as "high risk" and positioned at bottom of the list.
[0047] The analysis module (110) is associated with the receiving module (104) for real time calculation of the finances based on the pattern extracted to provide a net saving upon the expenditure. The individual provides information about the real-time and predicted finances through the input module (102) that is received by the receiving module (104) and calculates the net expenditure and the remaining savings so that the individuals can plan their expenses accordingly and have an idea of their predicted approx. savings.
[0048] According to an embodiment, the individual through the input module (102) continues to add each and every expense that happens in a day. The analysis module (110) upon performing real-time calculation provides the revised savings based on the recently provided expenses.
[0049] The payment gateway (114) is linked with the user interface module (116) for investing in the investment plan recommended to the individual. The payment gateway (114) is either through net banking or UPI or through cards. The individual upon selecting an investment plan from the recommended plans makes a payment on the selected date of a definite amount through the payment gateway (114). The payment gateway has account details of the selected investment plan.
[0050] The user interface module (116) is associated with the recommendation module via a communication module (118) for 11 receiving notification of the recommended investment plans, risk involved, maturity date of the investment plan, amount to be contributed and returns to be received upon their maturity based on the financial behaviour of the individual, wherein the investment plan is customized based on changes in the behaviour of the individual.
[0051] According to an embodiment, the user interface module (116) comprises of a monitor and a keyboard. The user interface module (116) is selected from but not limited to smartphone, mobile phone, laptop, or other such known in the model.
[0052] The communication module (118) is either a wired or a wireless medium for establishing communication between the user interface module (116) and the recommendation module (108).
[0053] According to an embodiment, the communication module (118) is selected from but not limited to Wi-Fi, Bluetooth, ZigBee or other known in the model.
[0054] The notification module (120) is interconnected to the user interface module (116) and the recommendation module (108) for informing the individual about the recommended investment plans, risk involved, maturity date of the investment plan, amount to be contributed and returns to be received upon their maturity based on the financial behaviour of the individual, wherein the notification module (120) informs the individual about a selected contribution date for the contribution amount prior to selected contributed date.
[0055] According to an embodiment, the notification module (120) is preferably a messaging module that sends a message regarding the content and title of the advertisement if the viewed content is blacklisted later.
[0056] According to an embodiment, if the selected investment plan has a monthly contribution amount of 3000 on 5th of every month based on the financial behaviour of the individual for a tenure of 5 years, then 12 the same is informed to the concerned individual before 1-2 working days such that the individual is aware of the transaction or auto withdrawal which is selected by the user. The interest that is earned periodically is communicated to the individual and is reflected in the account.
[0057] Figure 2 illustrates a method (200) for developing a financial decision-making strategy based on behaviour of an individual, wherein the method comprises of: Step (202) discloses about collecting details of either a financial investment, or an income, or an expenditure or a combination thereof of an individual by an input module (102) for over a time period; Step (204) discloses about receiving financial behaviour of the individual by a receiving module (104) based on the collected details, wherein a pattern is extracted from the collected details to understand the behaviour of the individual; Step (206) discloses about processing the extracted pattern by a processing module (106) from the individual to create a financial profile of the individual, wherein the extracted pattern is compared with a set of pre-stored parameters for determining a financial position of the individual to create the financial profile; and Step (208) discloses about suggesting by a recommendation module (108) a customized investment plan, time required for fulfilling the investment, monthly investment required to accomplish the investment, returns and risk associated with the plan based on the financial profile created.
[0058] According to alternate embodiments, a reward may be provided based on successful completion of the investment.
[0059] Various modifications to these embodiments are apparent to those skilled in the art from the description and the accompanying drawings. The principles associated with the various embodiments described herein may be applied to other embodiments. Therefore, the description is not intended to be limited to the 5 embodiments shown along with the accompanying drawings but is to be providing the broadest scope consistent with the principles and the novel and inventive features disclosed or suggested herein. Accordingly, the invention is anticipated to hold on to all other such alternatives, modifications, and variations that fall within the scope of the present invention and appended claims.
, Claims:CLAIMS
We Claim:
1) A system (100) for developing a financial decision-making strategy based on behaviour of an individual, wherein the system comprises of: an input module (102) for collecting details of either a financial investment, or an income, or an expenditure or a combination thereof of an individual over a time period; a receiving module (104) connected with the input module (102) for receiving financial behaviour of the individual based on the collected details, wherein a pattern is extracted from the collected details to understand the behaviour of the individual; a processing module (106) connected to the input module (102) for processing the extracted pattern from the individual to create a financial profile of the individual, wherein the extracted pattern is compared with a set of pre-stored parameters for determining a financial position of the individual to create the financial profile; and a recommendation module (108) connected with the processing module(106) for suggesting a customized investment plan, time required for fulfilling the investment, monthly investment required to accomplish the investment, returns and risk associated with the plan based on the financial profile created.
2) The system as claimed in claim 1, wherein an analysis module (110) is associated with the receiving module for real time calculation of the finances based on the pattern extracted to provide a net saving upon the expenditure.
3) The system as claimed in claim 1, wherein a risk investigator (112) performs a risk analysis of the investment plan based on studying the financial market and previous returns.
4) The system as claimed in claim 1, wherein a payment gateway (114) is linked with a user interface module (116) for investing in the investment plan recommended to the individual.
5) The system as claimed in claim 1, wherein the user interface module (116) is associated with the recommendation module via a communication module (118) for receiving notification of the recommended investment plans, risk involved, maturity date of the investment plan, amount to be contributed and returns to be received upon their maturity based on the financial behaviour of the individual, wherein the investment plan is customized based on changes in the behaviour of the user.
6) The system as claimed in claim 1, wherein a notification module (120) is interconnected to the user interface module (116) and the recommendation module (108) for informing the individual about the recommended investment plans, risk involved, maturity date of the investment plan, amount to be contributed and returns to be received upon their maturity based on the financial behaviour of the individual, wherein the notification module (120) informs the individual about a selected contribution date for the contribution amount prior to selected contributed date.
7) The system as claimed in claim 5, wherein the communication module (118) is either a wired or a wireless medium for establishing communication between the user interface module (116) and the recommendation module (108).
8) A method (200) for developing a financial decision-making strategy based on behaviour of an individual, wherein the method comprises of: Collecting details of either a financial investment, or an income, or an expenditure or a combination thereof of an individual by an input module (102) for over a time period; Receiving financial behaviour of the individual by a receiving module (104) based on the collected details, wherein a pattern is extracted from the collected details to understand the behaviour of the individual; processing the extracted pattern by a processing module (106) from the individual to create a financial profile of the individual, wherein the extracted pattern is compared with a set of pre-stored parameters for determining a financial position of the individual to create the financial profile; and suggesting by a recommendation module (108) a customized investment plan, time required for fulfilling the investment, monthly investment required to accomplish the investment, returns and risk associated with the plan based on the financial profile created.

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