WO2009076705A1 - A funds flow processing system - Google Patents

Abstract

Disclosed is a system (100) for transforming a sequence of employer payments (207) from an employer (202) according to an employer payment period, to a sequence of employee payments (210) for an employee according to an employee payment period, the system comprising a corporate machine (127) comprising means for receiving, from the employee (201), employee data (205) specifying the employee payment period, means for communicating, to a bank machine (101), payment data (206) specifying the employer payment and the employer payment period, and means for making a deposit to an account of the bank to enable a payment to be made for the employee (201) and the bank machine (101) comprising means for receiving the payment data (206) from the corporate machine (127), means for transforming, based upon the received payment data (206), the sequence of employer payments (207) characterised by the employer payment period, to the sequence of employee payments (210), characterised by the employee payment period, and means for directing funds, based upon said deposit (207), to an account for the employee according to the transformed sequence of employee payments.

Description

A FUNDS FLOW PROCESSING SYSTEM Copyright Notice

This patent specification contains material that is subject to copyright protection. The copyright owner has no objection to the reproduction of this patent specification or related materials from associated patent office files for the purposes of review, but otherwise reserves all copyright whatsoever.

Field of the Invention

The present invention relates generally to funds flow systems and, in particular, to computer-based systems for use in the management of funds which comprise employee remuneration.

Background

Many employers pay their employees on a monthly basis rather than on a weekly or fortnightly basis. Whilst processing payrolls in this manner frequently results in administrative savings to the employer, it can sometimes create budgeting difficulties and inconvenience for employees.

Summary

It is an object of the present invention to substantially overcome, or at least ameliorate, one or more disadvantages of existing arrangements.

Disclosed are arrangements, referred to as Funds Flow Conversion (FFC) arrangements, which seek to address the above problems by interposing, between employer and employee, a service provider function which converts payments from the employer (referred to as "FFC deposits", or "employer payments", or "first payments"), characterised by one payment cycle, to modified payments to the employee (referred to as "FFC payments", or employee payments", or "second payments"), characterised by another payment cycle. In other words, the FFC arrangements transform an incoming funds flow from the employer, characterised by one payment cycle, to an outgoing funds flow to the employee, characterised by another payment cycle.

According to a first aspect of the present invention, there is provided a system for transforming a sequence of employer payments from an employer according to an employer payment period, to a sequence of employee payments for an employee according to an employee payment period, the system comprising: a corporate computer comprising: means for communicating, to a service provider computer, payment data specifying the employer payment and the employer payment period; and means for making a deposit to an account to enable one or more payments to be made for the employee, said deposit being made in arrears or in advance or partially in arrears or partially in advance of said one or more payments for the employee; and the service provider computer comprising: means for receiving employee data specifying the employee payment period; means for receiving the payment data from the corporate computer; means for transforming, based upon the received payment data and the received employee data, the sequence of employer payments, characterised by the employer payment period, to the sequence of employee payments, characterised by the employee payment period; and means for directing funds to an account for the employee according to the transformed sequence of employee payments. According to another aspect of the present invention, there is provided a system for transforming a sequence of employer payments from an employer according to an employer payment period, to a sequence of employee payments for an employee according to an employee payment period, the system comprising: a service provider computer comprising: means for receiving a deposit to enable one or more payments to be made for the employee, said deposit being made in arrears or in advance or partially in arrears or partially in advance of said one or more payments for the employee; means for receiving, from the employee, information specifying the employer payment, the employer payment period, and the employee payment period; and means for transforming, based upon the received information, the sequence of employer payments, characterised by the employer payment period, to the sequence of employee payments, characterised by the employee payment period; and means for directing funds to an account for the employee according to the transformed sequence of employee payments.

According to another aspect of the present invention, there is provided a computer implemented method for transforming a sequence of employer payments from an employer according to an employer payment period, to a sequence of employee payments for an employee according to an employee payment period, the method comprising the steps of: communicating, by a corporate computer to a service provider computer, payment data specifying the employer payment and the employer payment period; making, by the corporate computer, a deposit to an account to enable one or more payments to be made to the employee, said deposit being made in arrears or in advance or partially in arrears or partially in advance of said one or more payments for the employee; receiving, by the service provider computer, employee data specifying the employee payment period and the payment data from the corporate computer; transforming, by the service provider computer, based upon the received payment data and the received employee data, the sequence of employer payments, characterised by the employer payment period, to the sequence of employee payments, characterised by the employee payment period; and directing, by the service provider computer, funds to an account for the employee according to the transformed sequence of employee payments.

According to another aspect of the present invention, there is provided a computer implemented method for transforming a sequence of employer payments from an employer according to an employer payment period, to a sequence of employee payments for an employee according to an employee payment period, the method comprising the steps of: receiving, by a service provider computer, a deposit to enable one or more payments to be made to the employee, said deposit being made in arrears or in advance or partially in arrears or partially in advance of said one or more payments for the employee; receiving by the service provider computer from the employee, information specifying the employer payment, the employer payment period, and the employee payment period; transforming, by the service provider computer, based upon the received information, the sequence of employer payments, characterised by the employer payment period, to the sequence of employee payments, characterised by the employee payment period; and directing, by the service provider computer, funds to an account for the employee according to the transformed sequence of employee payments. According to another aspect of the present invention, there is provided a computer- based method of converting, by a service provider, a first sequence of first payments from an employer, the first payments being paid according to a first payment cycle, to a second sequence of second payments, said second payments being made for an employee, the second payments being paid according to a second payment cycle, the method comprising the steps of: storing in a payment data storage register payment data defining how said converting is to be performed; recording in an inward deposit storage register the depositing of a said first payment according to the first payment cycle into an account; determining by the service provider the amount and timing of a said second payment for the employee depending upon the stored payment data; and recording in an outward payment storage register the transfer of the determined second payment according to the second payment cycle for the employee. According to another aspect of the present invention, there is provided a system for converting, by a service provider, a first sequence of first payments from an employer, the first payments being paid according to a first payment cycle, to a second sequence of second payments said second payments being for an employee, the second payments being paid according to a second payment cycle, the system comprising: at least one memory module for storing a program; and at least one processor module for executing the program, said program comprising: code for storing in a payment data storage register payment data defining how said converting is to be performed; code for recording, in an inward deposit storage register, the depositing of a said first payment according to the first payment cycle into an account; code for determining by the service provider the amount and timing of a said second payment for the employee depending upon the stored payment data; and code for recording in an outward payment storage register the transfer of the determined second payment according to the second payment cycle for the employee.

According to another aspect of the present invention, there is provided a computer program product including a computer readable storage medium having recorded thereon a computer program for directing at least one processor to execute a method for converting a first sequence of first payments from an employer, the first payments being paid according to a first payment cycle, to a second sequence of second payments said second payments being for an employee, the second payments being paid according to a second payment cycle, the program comprising: code for storing in a payment data storage register payment data defining how said converting is to be performed; code for recording, in an inward deposit storage register, the depositing of a said first payment according to the first payment cycle into an account; code for determining by the service provider the amount and timing of a said second payment for the employee depending upon the stored payment data; and code for recording in an outward payment storage register the transfer of the determined second payment according to the second payment cycle for the employee.

According to another aspect of the present invention, there is provided a method of converting by a service provider a first sequence of first payments from an employer, the first payments being paid according to a first payment cycle, to a second sequence of second payments said second payments being made for an employee, the second payments being paid according to a second payment cycle, the method comprising the steps of: receiving payment data defining how said converting is to be performed; depositing a said first payment according to the first payment cycle into an account; determining the amount and timing of a said second payment to the employee depending upon the stored payment data; and transferring the determined second payment according to the second payment cycle for the employee.

According to another aspect of the present invention, there is provided a corporate customer computer in a system for converting, by a service provider, a first sequence of first payments from an employer, the first payments being paid according to a first payment cycle, to a second sequence of second payments said second payments being for an employee, the second payments being paid according to a second payment cycle, the system comprising storage means for storing in a payment data storage register payment data defining how said converting is to be performed, recording means for recording, in an inward deposit storage register, the depositing of a said first payment according to the first payment cycle into an account, said first payment being made in arrears or in advance or partially in arrears or partially in advance of said second payments for the employee, determining means for determining by the service provider the amount and timing of a said second payment for the employee depending upon the stored payment data, and recording means for recording in an outward payment storage register the transfer of the determined second payment according to the second payment cycle for the employee; said corporate customer computer comprising: input means configured to receive information relating to said payment data; and communication means for communicating said information to a computer of the service provider.

According to another aspect of the present invention, there is provided a service provider computer in a system for converting, by a service provider, a first sequence of first payments from an employer, the first payments being paid according to a first payment cycle, to a second sequence of second payments said second payments being for an employee, the second payments being paid according to a second payment cycle, the system comprising storage means for storing in a payment data storage register payment data defining how said converting is to be performed, recording means for recording, in an inward deposit storage register, the depositing of a said first payment according to the first payment cycle into an account, said first payment being made in arrears or in advance or partially in arrears or partially in advance of said second payments for the employee,, determining means for determining by the service provider the amount and timing of a said second payment for the employee depending upon the stored payment data, and recording means for recording in an outward payment storage register the transfer of the determined second payment according to the second payment cycle for the employee; said service provider computer comprising: input means configured to receive information relating to said payment data; and processing means for converting the first sequence of first payments being paid according to a first payment cycle, to the second sequence of second payments being paid according to the second payment cycle.

Other aspects of the invention are also disclosed.

Brief Description of the Drawings One or more embodiments of the present invention will now be described with reference to the drawings and Appendices in which:

Fig. 1 is a schematic block diagram of a general-purpose computer system upon which FFC arrangements can be practiced; Figs. 2A and 2B are pictorial depictions of FFC retail arrangements operating in arrears and in advance;

Fig. 3 is a pictorial depiction of an FFC corporate arrangement operating in arrears; Fig. 4 is a data flow and funds flow representation of an FFC corporate arrangement; Fig. 5 is a data flow and funds flow representation of an FFC retail arrangement; Fig. 6 is a flow chart showing how the FFC corporate arrangement of Fig. 4 operates from the perspective of the service provider;

Fig. 7 is a flow chart showing how the FFC retail arrangement of Fig. 5 operates from the perspective of the service provider;

Figs. 8A and 8B are pictorial depictions of an FFC arrangement operating in arrears, or advance, or partially in arrears and partially in advance;

APPENDIX A shows how specified expenses can be provided for in the FFC arrangements;

APPENDIX B shows an FFC retail example; APPENDIX C shows an FFC corporate example; and APPENDIX D shows an example of costs of an FFC arrangement.

Detailed Description including Best Mode

Where reference is made in any one or more of the accompanying drawings to steps and/or features, which have the same reference numerals, those steps and/or features have for the purposes of this description the same function(s) or operation(s), unless the contrary intention appears.

Whilst budgeting and implementation of financial disciplines are second nature to some individuals, the ability to budget for up to a month in advance is difficult for many. The temptation arising from receiving a month's salary payment can lead to overspending on non-essential items shortly after receiving a salary payment, at the expense of essential items later on in the salary month. FFC arrangements provide a solution that enables employers to benefit from the administrative savings associated with less frequent payroll runs whilst employees retain the benefits and comfort of receiving a weekly or fortnightly wage. The FFC arrangements achieve these benefits for the employers and the employees by transforming the FFC deposits characterised by an associated employer payment cycle to FFC payments characterised by another payment cycle being the employee payment cycle. In other words, the FFC arrangements transform an incoming funds flow from the employer, characterised by one payment cycle, to an outgoing funds flow to the employee, characterised by another payment cycle.

Each payment cycle is has a corresponding payment period. Accordingly, a payment cycle characterised by 12 payments per year has a payment period of 1 month. Subject to calendar peculiarities, a payment cycle characterised by 52 payments per year has a payment period of 1 week. Clearly these are very simple examples, and far more complex arrangements can be effected by the FFC approach, as shown in the examples in the APPENDICES. A payment cycle specified by the employer is referred to as the employer payment cycle, and this has an associated employer payment period. A payment cycle specified by the employee is referred to as the employee payment cycle, and this has an associated employee payment period. In the described FFC arrangements this is done using a particular machine (or more strictly a plurality of machines) comprising, in the example shown in Fig. 1, a bank server 101 (also referred to as a bank machine or a bank computer or a service provider machine or a service provider computer), and one or more of retail customer machines 129, corporate customer machines 130, machines 138 used by employees of the corporations associated with the corporate customer machines 130, and mobile or other communication devices 136, controlled by respective software applications 131, 132, 133, 140, and 137 which interoperate in order to provide the described FFC operation. Although the server 101 is referred to as a "bank" server 101, clearly the service provider can, without inferring any limitation on the number and mix of organisations which can fill the service provider role, be a bank, an insurance company, a finance business or another business. The aforementioned transformation relates both to transformation of the information stored in the various machines describing the FFC deposits and the corresponding transformed FFC payments, and also to the cash deposits and payments described by that information. The FFC clearly provides useful, concrete and tangible benefits for some or all parties in the described FFC arrangements.

FFC arrangements provide an end-to-end flexible solution for employees that are paid monthly (or some other frequency) but would prefer to be paid weekly (or some other frequency). The cost to the employer and/or the employee making use of the FFC service (through facility fees, charges and/or interest) is likely to be minimal in the context of a weekly wage and the benefits that may be achieved through consequential financial discipline.

One simple example of an FFC arrangement takes the form of a financial product that facilitates the conversion of a monthly salary to an equivalent weekly wage. In this example, the bank (being the service provider in this instance) facilitates the conversion.

This enables the bank to earn fees and charges as well as interest on debit balances.

FFC arrangements can take the form of a "retail" product and/or a "corporate" product (also referred to as retail arrangements and corporate arrangements respectively). Retail FFC products enable employees (referred to as retail customers) to manage their own funds flow. Corporate FFC products enable employers such as corporations, companies, partnerships or other "business entities" having employees, contractors or other

"staff who need to be paid on regular bases, to concurrently manage their own corporate payroll funds flow in a manner convenient to the corporation, while providing their employees with flexibility in the manner the employees receive their wages. It is noted that the term "employee" includes within it's scope employees, contractors or other "staff who need to be paid on a regular basis. Similarly, the term "employer" includes corporations, companies, partnerships or other "business entities" having employees as previously defined. Both products can be operated as web based products integrated into the bank's existing Internet banking operations and systems. However other approaches can also be used.

The FFC retail product in this example is thus offered by the bank to its (retail) customers who wish to convert their monthly salary into a weekly wage. Optionally, the FFC retail arrangement can support other features that assist customers in managing their financial affairs. The FFC retail arrangement is typically targeted towards retail customers who are paid monthly but would prefer to be paid weekly.

The FFC corporate arrangement is aimed at corporate customers who, in one example, wish to reduce the frequency of their payroll to a less frequent payment (e.g. from weekly to monthly), yet retain the convenience of a weekly wage for their employees. Thus, for example, the FFC corporate product allows a corporate customer (the employer) to perform its main payroll processing on a monthly basis whilst the employees continue to receive weekly payments. This can result in administration savings to the employer whilst employees are not inconvenienced by a reduction in the frequency of their pay.

From the service provider perspective, FFC arrangements offer a substantial target market comprising many varieties of wage and salary earners. FFC arrangements can enable service providers to earn fees and interest revenue. FFC arrangements can also drive allied business products including credit cards, loans, insurance and wealth management products. Typical FFC arrangements can, if desired, be largely integrated within a bank's existing infrastructure and systems. If the FFC arrangement is operated in full or in part by a third party, then the third party can be paid a fee by the bank.

The FFC arrangements may be implemented using a computer system 100, such as that shown in Fig. 1 wherein the processes of Figs. 6 and 7 may be implemented as software, such as one or more application programs (132, 133, 137 and 131) executable within the computer system 100. In particular, the steps of the FFC method are carried out by instructions in the software that are carried out within the computer system 100. The instructions may be formed as one or more code modules, each for performing one or more particular tasks. The software for some or all of the software applications may also be divided into two separate parts, in which a first part and the corresponding code modules performs the FFC methods and a second part and the corresponding code modules manage a user interface between the first part and the user. The software may be stored in a computer readable medium, including the storage devices described below, for example. The software is loaded into the computer system 100 from the computer readable medium, and then executed by the computer system 100. A computer readable medium having such software or computer program recorded on it is a computer program product. The use of the computer program product in the computer system 100 preferably effects an advantageous apparatus for implementing the FFC arrangements. As seen in Fig. 1, the computer system 100 is formed by a computer module 101, which in the present example is the server used by the service provider (which may, without inferring any limitation on the number and mix of organisations which can fill the service provider role, be a bank, an insurance company, a finance business or another business) input devices such as a keyboard 102 and a mouse pointer device 103, and output devices including a printer 115, a display device 114 and loudspeakers 117.

An external Modulator-Demodulator (Modem) transceiver device 116 may be used by the service provider computer module 101 for communicating to and from a retail customer PC 125 which is one of a group 129 of retail customer PCs, and/or to and from a corporate customer server 127 which is one of a group 130 of corporate customer servers, over a communications network 120 via a connection 121. The corporate customer server 127 is also referred to as a corporate machine or a corporate computer. Retail and corporate customers can also communicate with the bank server 101 using mobile or other communication devices such as 134 which is one of a group 136 of mobile devices, which communicate with the network 120 as depicted by a connection 135. Such devices can include, but are not limited to mobile phones, Personal Digital Assistants (PDAs) and so on.

The network 120 may be a wide-area network (WAN), such as the Internet or a private WAN. Where the connection 121 is a telephone line, the modem 116 may be a traditional "dial-up" modem. Alternatively, where the connection 121 is a high capacity (eg: cable) connection, the modem 116 may be a broadband modem. A wireless modem may also be used for wireless connection to the network 120.

The service provider computer module 101 typically includes at least one processor unit 105, and a memory unit 106 for example formed from semiconductor random access memory (RAM) and read only memory (ROM). The service provider module 101 also includes an number of input/output (I/O) interfaces including an audio- video interface 107 that couples to the video display 114 and loudspeakers 117, an FO interface 113 for the keyboard 102 and mouse 103 and optionally a joystick (not illustrated), and an interface 108 for the external modem 116 and printer 115. In some implementations, the modem 116 may be incorporated within the service provider computer module 101, for example within the interface 108.

The service provider computer module 101 also has a local network interface 111 which, via a connection 123, permits coupling of the service provider computer module 101 to a local computer network 122, known as a Local Area Network (LAN). As also illustrated, the local network 122 may also couple to the wide network 120 via a connection 124, which would typically include a so-called "firewall" device or similar functionality. The interface 111 may be formed by an Ethernet™ circuit card, a wireless Bluetooth™ or an IEEE 802.21 wireless arrangement.

The interfaces 108 and 113 may afford both serial and parallel connectivity, the former typically being implemented according to the Universal Serial Bus (USB) standards and having corresponding USB connectors (not illustrated). Storage devices 109 are provided and typically include a hard disk drive (HDD) 110. Other devices such as a floppy disk drive and a magnetic tape drive (not illustrated) may also be used. An optical disk drive 112 is typically provided to act as a non- volatile source of data. Portable memory devices, such optical disks (eg: CD-ROM, DVD), USB-RAM, and floppy disks for example may then be used as appropriate sources of data to the system 100.

The components 105, to 113 of the service provider computer module 101 typically communicate via an interconnected bus 104 and in a manner which results in a conventional mode of operation of the computer system 100 known to those in the relevant art. Examples of computers on which the described arrangements can be practised include IBM-PC's and compatibles, Sun Sparcstations, Apple Mac™ or alike computer systems evolved therefrom. The retail customer PCs 129 and corporate customer servers 130 typically have similar or equivalent architectures to that described in regard to the service provider machine 101. While the mobile communication devices 136 typically incorporate specialised modules directed to the mobile communication function, these devices 136 typically also have similar or equivalent architectures to that described in regard to the service provider machine 101 insofar as the requirements of the FFC arrangements are concerned. In regard to the service provider machine 101, typically the application program

131 is resident on the hard disk drive 110 and read and controlled in execution by the processor 105. Intermediate storage of such programs and any data fetched from the networks 120 and 122 may be accomplished using the semiconductor memory 106, possibly in concert with the hard disk drive 110. In some instances, the application programs may be supplied to the user encoded on one or more CD-ROM and read via the corresponding drive 112, or alternatively may be read by the user from the networks 120 or 122. The software operation and configuration for the retail customer PCs 129, the corporate customer servers 130, and the mobile communication devices 136 is typically similar or equivalent to that described in relation to the service provider machine 101.

Still further, the software can also be loaded into the computer system 100 from other computer readable media. Computer readable media refers to any storage medium that participates in providing instructions and/or data to the computer system 100 for execution and/or processing. Examples of such computer readable storage media include floppy disks, magnetic tape, CD-ROM, a hard disk drive, a ROM or integrated circuit, a magneto-optical disk, or a computer readable card such as a PCMCIA card and the like, whether or not such devices are internal or external of the computer module 101. Examples of computer readable transmission media that may also participate in the provision of instructions and/or data include radio or infra-red transmission channels as well as a network connection to another computer or networked device, and the Internet or Intranets including e-mail transmissions and information recorded on Websites and the like.

The second part of the application programs and the corresponding code modules mentioned above may be executed to implement one or more graphical user interfaces (GUIs) to be rendered or otherwise represented, in regard to the service provider machine 101, upon the display 114. Through manipulation of the keyboard 102 and the mouse 103, a user of the computer module 101 and the application 131 may manipulate the interface to provide controlling commands and/or input to the applications associated with the GUI(s). Corresponding GUIs and associated functionality, specialised as appropriate for the target platform, are typically also provided on the customer PCs 129, the corporate servers 130 and the mobile communication devices 136. Typically, the software applications 132 and 137 on the retail customer PCs 129 and the mobile communication devices 136 respectively are general purpose web browsers by means of which retail customers can interact with the service provider web site (hosted perhaps on the service provider machine 101). The software application 133 on the corporate customer server 133 is typically a general purpose web browser by means of which the corporate customer can interact with the service provider web site (hosted, for example, on the service provider machine 101). Alternatively, the software application 133 can be a special purpose FFC application which supports the correspondingly greater data manipulation requirements of corporate customers. Similarly, the service provider application 131 is a special purpose FFC application which supports the data manipulation requirements of the service provider.

The FFC arrangements may alternatively be implemented in dedicated hardware such as one or more integrated circuits performing the functions or sub functions of FFC methods. Such dedicated hardware may include graphic processors, digital signal processors, or one or more microprocessors and associated memories.

Although not explicitly shown in Fig. 1, functional aspects of the FFC arrangements can be distributed among both the platforms shown in Fig. 1, and among facilities provided by other service providers. These various platforms and facilities can communicate in a similar manner to that described above. Each step or sub-process in the processes of Figs. 4-7 is associated with one or more segments of the programs 132, 133, 137 and 131, and is performed by register sections , Arithmetic Logic Units (ALUs), and control units in the respective processors of the platforms 129, 130, 136 and 101 working together to perform fetch, decode, and execute cycles for every instruction in the instruction set for the noted segments of the programs 132, 133, 137 and 131.

Figs. 2 A and 2B show pictorial depictions of FFC retail arrangements operating in arrears 600 and in advance 613. Fig. 2 A shows a pictorial representation 600 of how an FFC deposit 601 that is made on a monthly basis by an employer is converted by the FFC arrangement, depicted by an arrow 606, to a sequence of (weekly) FFC payments 602-605 that are transferred to the employee via an employee account. The representation 600 indicates that the payments 602-605 to the employee are made in arrears to the incoming payment 601 from the employer. In the simple example 600 in Fig. 2 A, the FFC arrangement 606 thus facilitates the conversion of a monthly salary 601 to a sequence of weekly wage payments 602-605.

The disclosed FFC arrangements can also accommodate optional features that enable incorporation of more complex financial management. Thus for example, as depicted by a dashed arrow 614, the FFC arrangement 606 can also account for a customer's specified regular expenses and payments (e.g. rent, utilities, car loan repayments), and/or specified irregular expenses and payments (e.g. wedding savings) in calculating the weekly FFC payments 602-605. This can involve, in one example, deducting the amounts required for the noted specified regular and/or irregular expenses and payments from the FFC deposits 601 prior to determining the FFC payments 602-605. The deducted amounts are then made available at the appropriate time to meet the specified regular and/or irregular expense, as depicted by 615.

From a terminology perspective, the term "Salary" is taken to mean remuneration payments paid to employees on a monthly or quarterly basis or less frequently. The term "Wage" means remuneration payments paid to an employee on a weekly, fortnightly or bi- monthly (i.e. twice per month) basis or more frequently. Accordingly, a Salary is paid less frequently than a Wage. For the purpose of simplicity only, this description also refers to a weekly wage or a weekly FFC payment or similar. This is merely due to wages often being paid, or requested to be paid on a weekly basis. The use of the term "weekly" could easily be replaced by other payment frequencies (also referred to as payment cycles), such as bi-monthly, fortnightly and so on. Similarly, references to monthly salaries could easily be replaced by other payment frequencies.

Fig. 2B shows a pictorial representation 613 of how weekly FFC payments 607-

610 to the employee are made in advance of a monthly FFC deposit 611 from the employer, hi a practical sense, in one example this means that the FFC arrangement 612 requires the advancement of credit to the employer and/or the employee in order to enable the FFC payments 607-610 to be paid to the employee in advance of the payment 611 being received from the employer. This credit may be advanced using normal banking criteria such as the availability of security, goodwill associated with a long business relationship and so on. Fig. 2B depicts how the FFC arrangement 612 facilitates the ability for retail customers (ie employees) to incorporate an advance facility against their salary

611 subject to the bank's usual credit assessment criteria. For example, the customer can commence receiving FFC weekly payments 607 - 610 at the beginning of the month even though they are paid their monthly salary 611 at the end of the month. The above advance facility can be extended to drawing advances against future expected bonuses, overtime, leave loadings, long service pay or other items which may be drawn as a lump sum amount(s) or applied to increase regular FFC payments. Such advances are subject to the limitations imposed by the customer's approved credit limit. These advances may be repaid by the customer out of their monthly salary (ie monthly repayments) or out of their weekly FFC payments.

Fig. 3 is a pictorial representation 700 of a corporate FFC arrangement. In this arrangement an incoming monthly payroll payment 702 (ie an FFC deposit) is deposited by the corporate employer. An FFC corporate arrangement 701 converts the aforementioned FFC deposit 702 to weekly payments 703-706 to each employee who falls within the described arrangement, hi one simple example, all employees receive weekly FFC payments having the same payment cycle, although different employees would typically receive different weekly amounts according to their level of remuneration, hi another example, both the FFC payment cycle and the FFC payment amount can differ for each employee. Furthermore, the corporate FFC arrangement can also accommodate payment of specified regular and/or irregular payments to the employee in a similar fashion to that described at 614, 615 in Fig. 2 A in relation to the FFC retail arrangement.

The FFC corporate arrangement 700 depicted in Fig. 3 operates in arrears. The arrangement 700 assists the employer who wishes to reduce the frequency of their payroll to a less frequent payment cycle (e.g. weekly to monthly), yet retain the weekly or fortnightly wage convenience for their employees, and provide salaried employees with an equivalent wage. The employer processes a monthly payroll and makes a single monthly FFC deposit 702 to an FFC account. An FFC pay frequency conversion engine in the software 131 (see Fig. 1) converts the monthly FFC deposit 702 into a sequence of weekly / fortnightly equivalent FFC payments (such as 703-706 which are shown for a particular employee) and pay the employees on a weekly or fortnightly basis. The FFC corporate arrangement 700 can, in a similar fashion to that depicted in Figs. 2A and 2B for the FFC retail arrangement, be operated by the corporate customer (employer) on an arrears basis (as shown in Fig. 3) or on an advance basis (not shown).

Fig. 4 is a data flow and funds flow representation 200 of an FFC corporate arrangement. A corporate customer (employer) 202 provides, by suitable manipulation of a user interface associated with the corporate platform 130, a registration request and associated registration information 204 to a bank 203 that in the present example acts as the FFC service provider, by sending the registration request and the associated registration information 204 from the corporate platform 130 to the service provider platform 101 over the network 120. Alternately, the registration request and the associated registration information 204 can be communicated, either automatically on a periodic basis, or semi automatically initiated by a suitable manual command, from a memory (not shown) in the corporate platform 130 to the service provider platform 101 over the network 120.

The registration request is a request from the corporate customer to register with the FFC service offered by the FFC provider which is typically a bank. The registration information typically includes information such as the name, address, and bank account details of the corporate customer.

The corporate customer 202 also provides, via the same or similar communication path, a payment data download 206 for all employees falling within the present FFC arrangement, to the bank 203. The payment data typically includes information such as the names, addresses and other appropriate personal information of the employees in regard to which the FFC arrangement is to be applied, the corresponding payments to be made to the employees, and the associated payment cycles which apply. One of the payment cycles is the one used by the corporate customer (also referred to as the "employer payment cycle" or the "first payment cycle") and another payment cycle is the one requested by the employee (also referred to as the "employee payment cycle" or the "second payment cycle").

The corporate customer 202 also provides (ie makes or pays) an FFC deposit 207 having the employee payment cycle (ie payment cycle "1") to the bank 203. Provision of the FFC deposit 207 can be effected manually by taking cash into the premises of the bank 203 and depositing the cash, or more probably, by making an electronic transfer of the requisite funds via the same or similar communication path referred to above from the corporate customer bank account to a designated account of the bank.

The corporate customer may also have other funds on deposit or available credit facilities with the bank that the bank may use in lieu of or in addition to the payment 207. The aforementioned deposit 207 typically takes place on a regular basis at the employee payment cycle with a frequency defined by payment cycle "1".

The aforementioned information sent 206 by the corporate customer 202 to the bank 203 is processed by the processor 105 of the bank platform 101, and data is stored in the various memory devices 106 and 109, or in external databases (not shown) to which the bank platform 101 is functionally connected over the network 120. The aforementioned processing which implements an example of the FFC approach effects, in one simple FFC example (eg see APPENDIX A), the following process based upon information provided in the payment data: 1. define the periodic payment made to the employee ($4,000) at the employer payment cycle (monthly);

2. adjust the above payment ($4,000) for defined committed expenditure (- $1,650) to determine the available funds ($2,350) for transformation to the employee payment cycle; 3. define an averaging period (12 months);

4. determine the total amount that the employer would pay the employee over the averaging period ($2,350 x 12); and

5. determine the equivalent payments to be made at the desired employee payment cycle ($2,350 x 12)/52.

The above example, at the most basic level leaving out the committed expenditure,

An employee 201, who is merely one employee in a group of employees falling within the depicted FFC arrangement provided by the corporate customer 202, registers 205 with the corporate customer 202 by providing the requisite registration and other required information to the corporate customer 202. This registration information may be provided by the employee 201 manipulating the keyboard (not shown) of a PC (not shown) to which the employee has access, and sending the information by email to the corporate customer 202, or by using a dedicated GUI provided to the employees PC by the corporate customer 202. The information provided (205) by the employee (201) would typically include at least some of the following information: (a) the desired employee payment cycle, (b) details of specified regular expenses and payments (e.g. rent, utilities, car loan repayments), and/or specified irregular expenses and payments, (c) employee bank account details and so on. Clearly the employee 201 can request, at any time after the initial registration (205) with the FFC arrangement as limited by the employer, changes to the desired employee payment period and to other parameters such as regular expenses by submitting the requisite employee data to the employer 202.

This refers to the case in which the corporate customer 202 makes membership of their FFC arrangement voluntary for employees. In the case of a voluntary FFC arrangement the aforementioned employee registration 205 is a necessary precursor to payment data for the employee 201 being provided at 206.

As depicted by a rectangular box at the lower end of the ellipse depicting the bank 203, the bank 203 performs a number of operations in the course of providing the FFC arrangement. These operations include adjustments for (a) payment cycle, (b) fees and charges, (c) interest, and (d) other amounts and adjustments including the specified regular and/or irregular expenses and payments. These aforementioned factors are taken into account when converting the incoming FFC deposit 207 from the corporate customer 202 to a (modified) FFC payment 208 to the employee 201. The aforementioned operations performed by the bank 203 can be effected in an automatic or semi-automatic fashion as directed by the FFC software module 131. Information generated by the aforementioned operations is processed, as and if required, by the processor 105 of the bank platform 101, and data is stored, as and if required, in the various memory devices 106 and 109, or in external databases (not shown) to which the bank platform 101 is functionally connected over the network 120, for example.

Although not explicitly shown, the FFC payment 208 can be directed to a third party if the employee so wishes. Computation, data storage and transmission can be effected in an equivalent fashion in this event in a similar manner to that described above. In one example, the incoming FFC deposits 207 from the corporate customer 202 have a payment cycle of one payment per month, while the converted FFC payments 208 to the employee 201 have a payment cycle of one payment per week. Also shown are specified regular and/or irregular FFC payments 210 made by the bank 203 to the employee 201.

• Clearly Fig. 4 shows only the basic funds and data flows associated with the FFC corporate arrangement. Other matters such as account maintenance and updating, adjustments to payment accounts, payment data maintenance and updating, reporting on account information, reconciliation reporting and so on also take place but have not been explicitly shown.

Fig. 5 is a data flow and funds flow representation 300 of an FFC retail arrangement. The retail customer (employee) 301 registers 303 with a bank 302 in order to establish the retail FFC arrangement for him or herself. The retail customer downloads payment data 304 to the bank 302 defining the desired payment cycle to be used in regard to generating converted FFC payments to the employee. The payment data can also include information relating to specified regular and/or irregular payments. The bank 302 performs operations similar to those described in relation to the corporate FFC arrangement in Fig. 4. The employer 308 of the retail customer 301 makes FFC deposits 305 having a payment cycle "1" to the bank 302, typically depositing the retail customers salary into an account (typically an FFC account) designated by the retail customer 301. The bank 302 converts these incoming FFC deposits from the employer 308 to outgoing FFC payments 306 having the desired payment cycle to the retail customer 301. Also shown are specified regular and/or irregular FFC payments 307 made by the bank 302 to the retail customer 301. Clearly Fig. 5 shows only the basic funds and data flows associated with the FFC retail arrangement. Other matters such as account maintenance and updating, adjustments to payment accounts, payment data maintenance and updating, reporting on account information, reconciliation reporting and so on also take place but have not been explicitly shown.

Fig. 6 shows a process flow diagram 400 of an example of an FFC process for a corporate FFC arrangement. In a first step 401, the processor 105 in the bank server 101 (see Fig. 1) determines if there has been a request for a new corporate registration. This request may have been communicated to the bank server 101 over the network 120, or another network (not shown), and stored in the memory of the bank server (106, 109), pending processing. If this is not the case, then the process 400 follows a NO arrow from the step 401 back to the step 401. If on the other hand there has been a request for a new corporate registration, the process 400 follows a YES arrow from the step 401 to a step 404. In the step 404 the processor 105 in the bank server 101 downloads corporate registration information for the new corporate customer (employer) from the relevant corporate customer server such as 127 (see Fig. 1) and stores it in the memory (106, 109) pending processing. In a following step 406 the processor 105 in the bank server 101 downloads payment data for employees of the new corporate customer and stores it in the memory (106, 109) pending processing.

Thereafter, in a step 409 the bank server 101 receives incoming FFC deposits from the corporate payor for all employees according to a payment cycle that has been defined by the payment data received in the step 406. m an alternate arrangement (not shown), the aforementioned payment cycle data is provided, not as part of the payment data received in the step 406 from the employer but rather by a download of payment cycle data from the employee, hi yet another alternate hybrid arrangement (not shown), payment cycle data can be provided by the employer and/or the employee in any desired manner. An arrow 410 indicates that receipt of incoming FFC deposits from the employer is a cyclical process which occurs periodically according to the aforementioned payment cycle, or a-periodically if desired.

A dashed rectangle 421 indicates that the process fragment to be described in relation to steps 412, 414, 416 and 419 relates to one of many employees who are remunerated by the corporate employer in the present example. The process fragment within the dashed rectangle 421 relates to a particular employee, and clearly there are concurrent equivalent process fragments for each employee in the present FFC arrangement.

In a step 412 the processor 105 in the bank server 101 determines if there has been a payment data change received for the employee in question. This payment data change can be provided either by a suitable data download 206 from the corporate customer 202 (see Fig. 4) or by a payment data download 209 directly from the employee 201 (see Fig. 4). From a practical perspective the aforementioned data download options relate respectively to either (a) the employee advising the employer of his or her wish to change their payment cycle details or alternately (b) the employee logging onto the FFC arrangement web interface supported by the bank server 101 using his or her personal PC such as 125 and the corresponding browser software 132 and changing the relevant data. The availability of these and other options would depend upon the specific manner in which the FFC arrangement is implemented. If there has been no payment data change detected by the step 412, then the process 400 follows a NO arrow from the step 412 to a step 414. hi the step 414 the bank server processor 105 determines the specifics of the outgoing payments 208 (and 210 if appropriate) to the employee 201 based upon the payment data for the employee in question that is stored, for example, in the storage devices 109 in the bank server 101. In a following step 419, the bank server 101 effects a transfer of the outgoing payment 208 to a relevant account of the employee 201 according to a payment cycle determined by the payment data for the employee in question. The payment 210 relating to specified regular and/or irregular payments to the employee would be made according to the specific payment data relating to these payments 210. The process 400 then follows an arrow 420 from the step 419 back to the step 412. This arrow 420 indicates that the process fragment within dashed direct rectangle 421 is a cyclic process that repeats periodically according to the payment cycle defined by the payment data for the employee in question (noting the aforementioned caveat relating to specified payments). Returning the step 412 if payment data changes have been made for the employee in question, then the process 400 follows a YES arrow from the step 412 to a step 416. hi the step 416, the bank server 101 incorporates the data changes for the employee into the payment data for that employee, thereby suitably updating the payment data defining the manner in which payments will be made to the employee. The process 400 then follows an arrow 417 from the step 416 to the step 414.

Although the step 409 precedes the process fragment 421 in Fig. 6, these two sub- processes can occur independently of each other provided that the bank has sufficient funds from the employer (or the employer has sufficient credit) to support the FFC payments made to the employee. Thus in effect Fig. 6 depicts FFC arrangements made in advance, arrears or a mixture of both. Furthermore, other sub-processes relating, for instance, to addition of new employees (and removal of employees resigning from the employer) are not shown explicitly, however these clearly can be encompassed within the FFC arrangement depicted.

Fig. 7 shows a process flow diagram 900 of an example of an FFC process for a retail FFC arrangement. In a first step 901, the processor 105 in the bank server 101 (see Fig. 1) determines if there has been a request for a new retail customer registration. If this is not the case, then the process 900 follows a NO arrow from the step 901 back to the step 901. If on the other hand there has been a request for a new retail registration, the process 900 follows a YES arrow from the step 901 to a step 904. In the step 904 the processor 105 in the bank server 101 downloads registration information for the new retail customer from the relevant retail customer PC such as 125 (see Fig. 1). In a following step 906 the processor 105 in the bank server 101 downloads payment data for the retail customer. Thereafter, in a step 909 the bank server 101 receives incoming FFC deposits from the employer of the retail customer according to a payment cycle that has been defined by the payment data received in the step 906. An arrow 910 indicates that receipt of incoming FFC deposits from the employer is a cyclical process which occurs periodically according to the aforementioned payment cycle.

In a following step 912 the processor 105 in the bank server 101 determines if there has been a payment data change received for the customer in question. This payment data change can be provided by a suitable data download 304 from the customer 301 (see Fig. 5). From a practical perspective the aforementioned data download typically involves the customer logging onto the FFC arrangement web interface supported by the bank server 101 using his or her personal PC such as 125 and the corresponding browser software 132 and inputting the relevant data.

If there has been no payment data change detected by the step 912, then the process 900 follows a NO arrow from the step 912 to a step 914. m the step 914 the bank server processor 105 determines the specifics of the outgoing FFC payments 306 (and 307 if appropriate) to the customer 301 (see Fig. 5) based upon the payment data for the customer that is stored, for example, in the storage devices 109 in the bank server 101. In a following step 919, the bank server 101 effects a transfer of the outgoing FFC payment 306 to a relevant account of the customer 301 (or to another account designated by the customer 301) according to a payment cycle determined by the payment data for the customer. The payment 307 relating to specified regular and/or irregular payments to the customer would be made according to the specific payment data relating to these payments 307. The process 900 then follows an arrow 920 from the step 919 back to the step 912. This arrow 920 indicates that the process fragment involving the steps 912, 914, 916 and 919 is a cyclic process that repeats periodically according to the payment cycle defined by the payment data for the customer (noting the aforementioned caveat relating to specified payments).

Returning to the step 912 if payment data changes have been made for the customer, then the process 900 follows a YES arrow from the step 912 to a step 916. hi the step 916, the bank server 101 incorporates the data changes for the customer into the payment data for that customer, thereby suitably updating the payment data defining the manner in which payments will be made to the customer. The process 900 then follows an arrow 917 from the step 916 to the step 914.

In the step 912 the processor 105 determines if there has been a change to the payment data that was received in the step 906 for the retail customer in question. Payment data, both in the step 906 and/or in the step 912 can relate to fundamental parameters including the payment cycle to be adopted (eg weekly payments). However, the payment data can also include optional features that are designed to enable customers to incorporate responsible financial management into their day to day banking. Such optional features include having regard to a customer's specified regular expenses and payments (e.g. rent, utilities, car loan repayments) or specified irregular expenses and payments (eg wedding savings) in calculating the weekly FFC payments at 919 and making these committed expense amounts available to the customer on or shortly before the corresponding due payment date of the specified expense. Although the step 909 precedes the process fragment designated as 921 in Fig. 7, these two sub-processes can occur independently of each other provided that the bank has sufficient funds from the retail customer (or the retail customer has sufficient credit) to support the FFC payments made to the customer. Thus in effect Fig. 7 depicts FFC arrangements made in advance, arrears or a mixture of both.

Payment data can also incorporate savings plans into day-to-day banking through the withholding of regular amounts from each FFC payment to be made available to the customer (payee) at a certain date (e.g. Christmas savings, wedding savings). Payment data can also integrate a web based budget module into the FFC system. In summary, the FFC retail arrangement provides an end-to-end solution for retail banking customers who wish to exert an element of control over the frequency, timing and quantum of their salary or wage.

Figs. 8A and 8B make up a simplified pictorial depiction of an FFC arrangement

800 operating in arrears, or advance, or partially in arrears and partially in advance. Figs. 8A and 8B show a pictorial representation 800 of how an FFC arrangement can convert incoming monthly FFC deposits 801 from an employer to weekly FFC payments to an employee in advance (803), arrears (802), or a mixture of the two (804). Accordingly, a monthly incoming FFC deposit 801 received in week five from the employer can be converted, in arrears, to a series of weekly payments 802. Alternately, the FFC deposit

801 can be converted to weekly FFC payments 803 which take place prior to receipt of the monthly payment 801 by the FFC service provider. Alternatively, a sequence of weekly payments 804 can be made to the employee straddling the point at which the monthly payment 801 is received. FFC Retail Arrangements

FFC retail arrangements can be relatively easily integrated with the bank's current banking operations and systems (including web, phone banking, IT, compliance, training, back-end, etc). FFC retail arrangements are particularly well suited as a web offering. Amongst other things, the FFC retail arrangements web interface allows retail customers to apply to use the FFC arrangements and receive credit approval (if required), keep their relevant FFC arrangement details up to date (eg employer payment frequency, net salary amount, FFC payment requirements, etc), make adjustments, (for example the implementation of a savings plan or directions as to how a bonus payment should be dealt with), and obtain information or statements regarding their FFC account.

Whilst the most common pay conversion is likely to be from a monthly salary to a weekly wage, FFC retail arrangements can accommodate a wide variety of pay frequency (ie payment cycle) conversions, including fortnightly to weekly, Four- weekly to weekly, quarterly to monthly / weekly, and customised timing specified by the customer.

An important feature of FFC retail arrangements is the ability of the customer to control the timing of the receipt of their FFC payment. The customer has the choice of receiving their FFC payment in arrears, in advance or a combination of the two. Payment in arrears means that the customer will receive their FFC payments after their employer has deposited their salary into the customer's bank account. The customer's FFC bank account will, therefore, generally reflect a credit balance. Payment in advance means that the customer will receive some or all of the FFC payments before their employer has deposited their salary into the customer's bank account. The customer's FFC bank account will, therefore, reflect a debit or a credit balance depending on the timing of cash flows and options selected.

Customers who elect to receive their FFC payments in advance will usually have more FFC options available to them, for example additional advances and bonus advances. In other words, customers that elect the "advance" functionality can be afforded flexibility to the extent of the bank approved credit limit. FFC payments in arrears allow the bank to provide the FFC service without the provision of any at risk funds to the customer. FFC payments in advance require the bank to provide credit to approved customers. Customers that have an approved credit limit can enjoy more flexibility with FFC arrangements in respect of their ability to draw down on future salary / bonus payments as well as other features.

As described, FFC retail arrangements recognise that some expenses are payable on a less frequent basis than weekly. For example, residential rent is often paid on a monthly basis. In order to assist the customer with managing their finances, the FFC arrangements allow for specified regular and/or irregular expenses and payments when calculating FFC payments. The FFC arrangements allows for these funds to be made available to the customer on or prior to the specified due payment date for each expense and commitment. One example of this feature is shown in the example in APPENDIX A.

The FFC retail arrangement customer can elect to have a portion of their weekly wage set aside in their FFC account (or transferred into any other account) which can be earmarked for any purpose including Christmas savings, holiday savings, wedding savings, etc. The savings may be made available to the customer at a specified date. The FFC arrangements enable customers to draw down on future expected bonuses or other similar items on a lump sum basis (subject to any credit limit restrictions imposed by the bank), draw down on future expected bonuses or other similar items by increasing weekly FFC payments accordingly (subject to any credit limit restrictions imposed by the bank), and receive bonuses or other similar items and spread these over future FFC payments. The customer is able to keep details of their bonuses and other similar items up to date through the bank's FFC web based interface. The customer may elect to have overtime payments spread across the following month's FFC payments, paid in advance (based on the customer's estimate of overtime and subject to any credit limit restrictions imposed), or made available in full when the overtime payment is received from the employer. The management of overtime will be facilitated through the bank's FFC web based interface.

Subject to the bank's lending criteria, the employee may be offered regular advances, cyclical advances, lump sum advances and loans (through the FFC account or separate accounts). The FFC approach allows for regular repayments of these loans out of the regular FFC payments or out of the salary payments received from the customer's employer. The management of additional advances may be facilitated through the bank's FFC web based interface.

The FFC retail system can be offered in conjunction with a web based budgeting module. At its simplest, the budgeting module enables customers to set simple income and expenditure budgets which may assist the customer in determining the quantum and timing of their required FFC payments. The budgeting module may be enhanced to incorporate advanced budgeting functionality such as forecasting of cash flow peaks and troughs to enable fine tuning of future FFC payments, comparison of budget to actual expenditure and earnings, ability to import from and export to and from standard accounting and financial software packages. FFC retail arrangements easily allow for changes in employee circumstances and other typical exceptions, including employer change (including new salary amount, frequency and pay date), pay increases and decreases, pay adjustments due to salary packaging, cessation of employment, bonuses and other lump sum receipts, and overtime. FFC arrangements can also allow for changes including leave loadings, maternity leave, long service leave, annual leave, leave without pay, and changes in net pay as a result of changes in income tax rates. The customer may make these changes through the bank's FFC web based interface.

The bank is able to set credit limits and assess clients from a credit criteria perspective in accordance with the bank's usual practices or in any other way the bank chooses. Typically, FFC arrangements do not require the customer's employer to authorise or even be aware that the customer is utilising an FFC arrangement (except to the extent that an employer may be contacted as part of the credit approval process). The employer merely deposits the customer's salary into the bank account nominated by the customer, which will be an FFC account or will be linked to an FFC account.

FFC retail arrangements may be operated through a specifically designated FFC account that is only used for FFC related transactions. Alternatively, the FFC system may operate through an existing bank account which is not specifically designated as an FFC account but which has the FFC functionality. The bank may require confirmation from the customer prior to activating a customer's FFC account that the customer has informed the employer of the correct bank account details. An FFC retail example is shown in APPENDIX B.

It is noted that retail FFC arrangement may operate out of one or more bank accounts. Thus for example when using one account, the FFC deposits are received, according to payment cycle 1, into the account. Other than in exceptional circumstances the undrawn FFC deposits may not generally be withdrawn from the account, except to the extent that the withdrawals are in respect of weekly FFC payments in accordance with payment cycle 2 and/or irregular expenses and payments. This is a type of "ring-fencing". When using more than one account, the FFC deposits are received into one account and FFC payments are transferred into one or more other accounts (including sub accounts). FFC Corporate arrangements

The FFC corporate arrangement shares many of the features and options of the FFC retail product. The FFC corporate arrangement may be used via the bank's web interface which will allow corporate customers to administer their use of the FFC system, including add or remove employees from the FFC system, keep employees' relevant FFC details up to date (eg employer payment frequency, net salary amount, FFC payment requirements, bonus payments, leave payments, payment top-ups, payment refunds etc), and keep track of FFC payments made to employees to date. Other administrative functionality offered includes facilitate printing of reconciliation reports, utilising existing and customised payroll software to communicate with the FFC web interface (this may require modification to the payroll software, noting that the FFC corporate product can operate independently of the customer's payroll software), obtain information regarding their FFC account, and authorise payroll payments to employees.

The employer has the option of making the monthly payroll payment (ie the FFC deposit) in advance or arrears or part advance and part arrears to the FFC account. The timing of such an election will determine the extent of funding facilities required by the customer. An example of the FFC corporate arrangement is shown in APPENDIX C. In regard to FFC retail arrangements, it is noted that financial discipline is important in achieving financial goals amongst salary and wage earning individuals. FFC arrangements assist salary and wage earners with their financial management and, in turn, their financial goals. As previously noted, the cost to the consumer of the FFC service (through facility fees, charges and interest) is likely to be minimal in the context of a weekly wage and the benefits that may be achieved through consequential financial discipline. An example of these costs for an FFC retail customer is shown in APPENDIX D.

In regard to the FFC corporate arrangements, these arrangements provide the corporation with a means to reduce the frequency of their payroll from, for example, weekly / fortnightly to monthly without inconveniencing their staff. The ability to easily change from a weekly / fortnightly payroll to a monthly payroll allows corporations to enjoy efficiency and cost savings in the payroll function of their businesses.

In regard to FFC arrangement service providers (such as banks), the benefits of FFC arrangements can be substantial in terms of new product marketing. Other benefits to the bank include the ability to generate fee and interest based revenues (including establishment fees, regular FFC fees [applicable for the use of the basic FFC system], option fees [fees applicable to customers utilising additional functionality e.g. savings plan, withholding committed expenses, budget module, further drawdowns etc.]), and the ability to drive allied business including credit cards, loans, insurance and wealth management products.

Industrial Applicability

It is apparent from the above that the arrangements described are applicable to the banking and financial service and processing industries. The foregoing describes only some embodiments of the present invention, and modifications and/or changes can be made thereto without departing from the scope and spirit of the invention, the embodiments being illustrative and not restrictive. Thus for example, although specific funds flow examples have been depicted Figs. 4 and 5, clearly other funds flow mechanisms can be used within the FFC arrangements.

APPENDIX A

Brett earns $4,000 per month (after tax). Brett's rent of $1 ,500 is payable at the end of each month. Brett expects his monthly telephone bill to amount to $70 and his monthly insurance bill to amount to $80. The telephone and insurance bill are payable on the 15th of each month.

Through the bank's FFC web based interface, Brett elected to have these essential payments deducted from his weekly payment and to be made available to him shortly before the due payment dates.

The amount that will be made available to Brett weekly is calculated as follows:

Payment Timing $

Monthly Pay cheque

Monthly paycheque $4,000

Less Committed Expenditure

Rent End of month -$1 ,500

Telephone 15th of month -$70

Insurance 15th of month -$80

Remainder to be converted to weekly payment* $2,350

Weekly payment in advance ($2,350 x 12) + 52 = $542

^* before fees and interest Brett will, therefore, receive:

• $542 per week before deducting fees and interest;

• $1 ,500 on or prior to the end of the month in respect of rent; and

• $150 on or prior to the 15^th of the month in respect of telephone and insurance. By adjusting his weekly payment for expense items and commitments, Brett will have peace of mind that his expenses and commitments will be paid when due.

Brett may elect to receive the amounts relating to the expenses and commitments made available in his bank account. Alternatively he may elect to have them paid directly to the landlord, insurance company and the telephone company. APPENDIX B

Monica Earns $48,000 per annum (after the deduction of tax). Monica is paid by her employer at the end of each month (i.e. $4,000 per month). Monica will be able to better manage her finances if she is paid weekly rather than monthly. The weekly equivalent of a $48,000 p.a. salary is $923 per week ($48,000 divided by 52). Monica's equivalent weekly wage of $923 per week reduces to an average of approximately $908 per week (In this example, the FFC payment varies slightly each week as it is impacted by interest which is different each week due to the fluctuating account balance) after taking into account the FFC facility fee (assumed at $12 per week) and interest (assumed at 12.5% pa on debit balances).

Monica applies for the FFC product from the bank on 1 August 2007 and elects to commence receiving her FFC weekly payments commencing Friday 10 August 2007 even though her next salary payment is due from her employer on 31 August 2007.

Following Monica's successful credit assessment, the following occurs: Monica receives FFC advances against her salary amounting to around $908 / week (after deductions for FFC fees and interest); and Monica's salary is paid into her FFC account by her employer on the last working day of each month.

Set out below are Monica's FFC transactions for the 3 months from August to October 2007:

^'•^• Day of Week FFC BaI an

Week Number Payment Fee Interest DRZ(CR

Friday 10-Aug-07 Week i $761 $150 $12 - $923

Friday 17-Aug-07 Week 2 $909 $12 $2 $1 ,846

Friday 24-Aug-07 Week 3 $907 $12 $4 $2,769

Friday 31-Aug-07 Week 4 $904 ($4,000) $12 $7 ($308)

Friday 07-Sep-07 Week 5 $911 $12 - $615

Friday 14-Sep-07 Week 6 $910 $12 $1 $1 ,538

Friday 21-Sep-07 Week 7 $907 $12 $4 $2,461

Friday 28-Sep-07 Week 8 $905 ($4,000) $12 $6 ($616)

Friday 05-Oct-07 Week 9 $911 $12 - $307

Friday 12-Oct-07 Week 10 $910 $12 $1 $1 ,230

Friday 19-Oct-07 Week 11 $908 $12 $3 $2,153

Friday 26-Oct-07 Week 12 $906 $12 $5 $3,076

Wed 31-Oct-07 Week 13 _ ($4,000) - - ($924)

Rounded to nearest dollar.

Example 1 below contains more detailed schedules in respect of Monica's FFC arrangement. APPENDIX B (continued no. 1 )

Example 1

The customer earns $48,000 per annum or $4,000 per month (after the deduction of tax).

The customer is paid by her employer at the end of each month.

The customer would like to be paid weekly in advance and sets up the FFC arrangement depicted in this example

ASSUMED FFC SERVICE PROVIDERVARIABLES AND OTHERVARIABLES

Today's Date 1 August 2007 N)

Approval Period Prior to First FFC Payment (days) 7 days

Approved Credit Limit for Customer $4,000.00

Establishment Fee (if FFC Arrangement in Advance of Employer FFC Deposit) $150.00

Establishment Fee (if FFC Arrangement in Arrears i.e. After Employer FFC Deposit) $25.00

Fee on Debits % 0.0%

Fee on Credits % 0.0%

Weekly FFC Arrangement Fee $12.00

Weekly Expense Option Fee $2.50

Debit Interest Rate p.a. 12.5%

Credit Interest Rate p.a. 2.5%

APPENDIX B (continued no. 2)

EXAMPLE - EXTRACT OF WEB QUESTIONNAIRE TO SETUP FFC ARRANGEMENT

Step 1: When Are You Paid by Your Employer?

How often are you paid by your employer? Monthly ^<r Day/s on which you are paid by your employer? On or around the last business day of each month ▼ On what date is your next pay expected to be deposited into your bank account by your employer? Friday, 31 August 2007 ▼

Step 2:When Would You Like Your FFC Payments to be Made Available to You?

How often would you like your FFC Payments to occur? Weekly w On what date would you like your FFC Payments to commence? Friday, 10 August 2007 ▼

Do you wish to receive your FFC Payments in Advance of Your Employer Pay? Yes (Credit Application Required)

Step 3: How Much Net Pay Do You Currently Receive from Your Employer?

Net pay received from your employer each month: $4,000.00

Please fill this section in.

Do you receive a bonus (or 13th cheque) No ▼

Do you expect to receive a bonus (or 13th cheque)? If so, how much do you expect to receive net of taxes?

In which month do you expect to be paid your bonus (or 13th cheque)? Dec 2007 ▼ Would you like to receive regular advance FFC payments on your bonus (or 13th cheque)? No ▼

APPENDIX B (continued no. 3)

Step 4: Would You Like Your FFC Payments to Allow for Your Regular Expenses and Payments.

(•) I do not require my FFC payments to allow for my expenses or payments each week

OR

O I require my FFC payments to allow for my expenses or payments each week. Please fill in the following items.

Payment Date (1st to End of the month) Payment Type Estimate of Amount

£

APPENDIX B (continued no. 4)

Assumptions Regarding Public Holidays for The Purpose of This Example

1 ) It is assumed that the customer requires FFC payments not to be made on public holidays but to be made on the first non public holiday working day prior to the date that the FFC payment would have been scheduled for had it not been a public holiday.

2) It is assumed that the customer's employer does not pay salaries on weekends and / or public holidays. It is assumed that if a payday would have occurred on a weekend or public holiday (had that day not been a weekend or public holiday) that the payday occurs on the first non public holiday working day prior to that weekend or public holiday.

3) It is assumed that public holidays occur on the following dates:

01-Jan-07

26-Jan-07

06-Apr-07

07-Apr-07

09-Apr-07

25-Apr-07

11-Jun-07

01-Oct-07

25-Dec-07

26-Dec-07

01-Jan-08

28-Jan-08

21-Mar-08

22-Mar-08

24-Mar-08

25-Apr-08

APPENDIX B (continued no. 5)

09-Jun-08

06-Oct-08

25-Dec-08

26-Dec-08 &

01-Jan-09

26-Jan-09

10-Apr-09

11-Apr-09

13-Apr-09

25-Apr-09

08-Jun-09

05-Oct-09

25-Dec-09

26-Dec-09

APPENDIX B (continued no. 6)

Summary and Breakdown of FFC Transactions

Current Pay (FFC Deposit) Details

Currently paid $4,000 Monthly On or around the last business day of each month Next pay is expected on 31 Aug 2007

FFC Payment Requirements

Requires FFC payments in adance of employer pay

Requires Weekly FFC Payments commencing Friday, 10 August 2007

Customer's personal expenses must not be taken into account in determining FFC Payments

Does not require a bonus advance

APPENDIX B (continued no. 7)

I I

• •

•

Fπday, 4 January 2008 ($617) $908 $12 $3 $923 $923 $12 $3 $908

Friday, 11 January 2008 $306 $910 $12 $1 $923 $923 $12 $1 $910

Friday, 18 January 2008 $1 ,229 $908 $12 $3 $923 $923 $12 $3 $908

Friday, 25 January 2008 $2,152 $906 $12 $5 $923 $923 $12 $5 $906

Thursday, 31 January 2008 $3,075 - - ($4,000) -

Friday, 1 February 2008 ($925) $905 $12 $6 $923 $923 $12 $6 $905

Friday, 8 February 2008 ($2) $911 $12 - $923 $923 $12 - $911

Friday, 15 February 2008 $921 $909 $12 $2 $923 $923 $12 $2 $909

Friday, 22 February 2008 $1,844 $907 $12 $4 $923 $923 $12 $4 $907

Friday, 29 February 2008 $2,767 $904 $12 ($4,000) $7 $923 $923 $12 $7 $904

Friday, 7 March 2008 ($310) $911 $12 - $923 $923 $12 - $911

Friday, 14 March 2008 $613 $910 $12 $2 $923 $923 $12 $2 $910

Thursday, 20 March 2008 $1 ,536 $908 $12 $3 $923 $923 $12 $3 $908 OO

Friday, 28 March 2008 $2,459 $904 $12 $7 $923 $923 $12 $7 $904

Monday, 31 March 2008 $3,382 - - ($4,000) - -

Friday, 4 April 2008 ($618) $908 $12 $3 $923 $923 $12 $3 $908

Fπday, 11 April 2008 $305 $910 $12 $1 $923 $923 $12 $1 $910

Friday, 18 April 2008 $1 ,228 $908 $12 $3 $923 $923 $12 $3 $908

Thursday, 24 April 2008 $2,151 $907 $12 $4 $923 $923 $12 $4 $907

Wednesday, 30 April 2008 $3,074 - - ($4,000) - -

Friday, 2 May 2008 ($926) $905 $12 $6 $923 $923 $12 $6 $905

Friday, 9 May 2008 ($3) $911 $12 - $923 $923 $12 - $911

Friday, 16 May 2008 $920 $909 $12 $2 $923 $923 $12 $2 $909

Friday, 23 May 2008 $1,843 $907 $12 $4 $923 $923 $12 $4 $907

Friday, 30 May 2008 $2,766 $904 $12 ($4,000) $7 $923 $923 $12 $7 $904

Friday, 6 June 2008 ($311) $911 $12 - $923 $923 $12 - $911

Friday, 13 June 2008 $612 $910 $12 $2 $923 $923 $12 $2 $910

Friday, 20 June 2008 $1 ,535 $907 $12 $4 $923 $923 $12 $4 $907

Friday, 27 June 2008 $2,458 $905 $12 $6 $923 $923 $12 $6 $905

Monday, 30 June 2008 $3,381 - - ($4,000) - -

Friday, 4 July 2008 ($619) $908 $12 $3 $923 $923 $12 $3 $908

Friday, 11 July 2008 $304 $910 $12 $1 $923 $923 $12 $1 $910

Friday, 18 July 2008 $1 ,227 $908 $12 $3 $923 $923 $12 $3 $908

Friday, 25 July 2008 $2,150 $906 $12 $5 $923 $923 $12 $5 $906

Thursday, 31 July 2008 $3,073 - - ($4,000)

APPENDIX C

Sample Co has 80 employees who are currently paid weekly. For some time Sample Co has been considering changing the frequency of their payroll from weekly to monthly, however, they have been delaying making this change due to anticipated resistance from their employees. The bank approached Sample Co and advised them of a product being offered by the bank, being the FFC corporate arrangement. Sample Co immediately recognised the benefit to them of the FFC corporate arrangement, being:

- changing the frequency of their payroll from weekly to monthly (or some other frequency) without the accompanying staff resistance;

- achieving administrative cost savings through reducing the frequency of processing payroll; and - from the employees' point of view there has been no or minimal change in the manner in which they receive their weekly pay. That is, the employees continue to receive their weekly pay without a gap or delay even though Sample Co has moved from weekly to monthly payroll processing.

Sample Co arranged with their bank to pay their employees weekly through their FFC account while settling their wage bill monthly through a monthly lump sum transfer to the FFC account.

Sample Co manages its account through the FFC web based interface. Depending on the timing of Sample Co's monthly payroll cheque, Sample Co's FFC account will reflect a debit balance until such time as the monthly payroll payment is made. Sample

Co's bank generates additional revenue through FFC fees and interest on debit balances in the FFC account.

APPENDIX D

Pre FFC Wages

Tina receives her monthly pay of $3,500 at the end of the month. Tina knows that she has committed expenditure each month comprising rent, utilities, car repayments and other items amounting to around $2,000, leaving her with $1 ,500 for living expenses and savings over the month.

Tina acknowledges that managing her finances is not her strong point and often cannot resist the temptation of the fashion boutiques, particularly when she has

$3,500 cash in her bank account after the deposit of her monthly salary. A couple of weak moments sees Tina spending $1 ,000 on clothing, handbags and shoes at the mall shortly after the receipt of her monthly pay cheque. Tina returns home and realises that she has $500 to live off for the rest of the month and she has not yet purchased the groceries.

Post FFC Wages Tina opens a FFC account. Tina elects to have her committed expenses of $2,000 excluded from her weekly wage conversion and made available to pay the committed expenditure items shortly prior to the due dates. Tina receives a weekly FFC transfer into her bank account. Through the receipt of her FFC payment, Tina knows exactly how much she has available to spend for that week. Tina has the peace of mind that in the event she spends her weekly FFC payment, her identified essential expenses are covered and there are only a few days to go until the receipt of her next FFC payment. Tina considers that the small fee that she pays for the FFC account to be negligible when compared to the disciplines that are promoted through the FFC system.

The FFC account has assisted Tina to regain control of her finances.

Claims

CLAIMS:

1. A system for transforming a sequence of employer payments from an employer according to an employer payment period, to a sequence of employee payments for an employee according to an employee payment period, the system comprising: a corporate computer comprising: means for communicating, to a service provider computer, payment data specifying the employer payment and the employer payment period; and means for making a deposit to an account to enable one or more payments to be made for the employee, said deposit being made in arrears or in advance or partially in arrears or partially in advance of said one or more payments for the employee; and the service provider computer comprising: means for receiving employee data specifying the employee payment period; means for receiving the payment data from the corporate computer; means for transforming, based upon the received payment data and the received employee data, the sequence of employer payments, characterised by the employer payment period, to the sequence of employee payments, characterised by the employee payment period; and means for directing funds to an account for the employee according to the transformed sequence of employee payments.

2. A system for transforming a sequence of employer payments from an employer according to an employer payment period, to a sequence of employee payments for an employee according to an employee payment period, the system comprising: a service provider computer comprising: means for receiving a deposit to enable one or more payments to be made for the employee, said deposit being made in arrears or in advance or partially in arrears or partially in advance of said one or more payments for the employee; means for receiving, from the employee, information specifying the employer payment, the employer payment period, and the employee payment period; and means for transforming, based upon the received information, the sequence of employer payments, characterised by the employer payment period, to the sequence of employee payments, characterised by the employee payment period; and means for directing funds to an account for the employee according to the transformed sequence of employee payments.

3. A computer implemented method for transforming a sequence of employer payments from an employer according to an employer payment period, to a sequence of employee payments for an employee according to an employee payment period, the method comprising the steps of: communicating, by a corporate computer to a service provider computer, payment data specifying the employer payment and the employer payment period; making, by the corporate computer, a deposit to an account to enable one or more payments to be made to the employee, said deposit being made in arrears or in advance or partially in arrears or partially in advance of said one or more payments for the employee; receiving, by the service provider computer, employee data specifying the employee payment period and the payment data from the corporate computer; transforming, by the service provider computer, based upon the received payment data and the received employee data, the sequence of employer payments, characterised by the employer payment period, to the sequence of employee payments, characterised by the employee payment period; and directing, by the service provider computer, funds to an account for the employee according to the transformed sequence of employee payments.

4. A computer implemented method for transforming a sequence of employer payments from an employer according to an employer payment period, to a sequence of employee payments for an employee according to an employee payment period, the method comprising the steps of: receiving, by a service provider computer, a deposit to enable one or more payments to be made to the employee, said deposit being made in arrears or in advance or partially in arrears or partially in advance of said one or more payments for the employee; receiving by the service provider computer from the employee, information specifying the employer payment, the employer payment period, and the employee payment period; transforming, by the service provider computer, based upon the received information, the sequence of employer payments, characterised by the employer payment period, to the sequence of employee payments, characterised by the employee payment period; and directing, by the service provider computer, funds to an account for the employee according to the transformed sequence of employee payments.

5. A computer-based method of converting, by a service provider, a first sequence of first payments from an employer, the first payments being paid according to a first payment cycle, to a second sequence of second payments, said second payments being made for an employee, the second payments being paid according to a second payment cycle, the method comprising the steps of: storing in a payment data storage register payment data defining how said converting is to be performed; recording in an inward deposit storage register the depositing of a said first payment according to the first payment cycle into an account; determining by the service provider the amount and timing of a said second payment for the employee depending upon the stored payment data; and recording in an outward payment storage register the transfer of the determined second payment according to the second payment cycle for the employee.

6. A computer-based method according to claim 5, wherein: the first payments are salary payments for the employee and the first payment cycle is one salary payment per month; and the second payments are modified salary payments for the employee and the second payment cycle is one modified salary payment per week.

7. A computer-based method according to claim 6, wherein the modified salary payment is determined pro-rata depending upon the relationship between a week or a series of weeks and a month or a series of months.

8. A computer-based method according to claim 7, wherein a fee is charged for performing the conversion method.

9. A computer-based method according to claim 5, further comprising, between the storing step and the determining step, a step of storing modified payment data in the payment data storage register, and wherein the determining step depends upon the modified payment data.

10. A computer-based method according to claim 5, wherein a second payment to the employee is one of: in advance of a corresponding first payment from the employer; in arrears of the corresponding first payment from the employer; and part in advance and part in arrears of the corresponding first payment from the employer.

11. A computer-based method according to claim 5, wherein: the payment data further comprises information about the amount and timing of at least one of specified regular payments, specified regular expenses, specified irregular payments, and specified irregular expenses; and the method further comprises the steps of: determining the amount and timing of said at least one of specified regular payments, specified regular expenses, specified irregular payments, and specified irregular expenses to the employee depending upon the stored payment data; and the recording step further comprises recording, in the outward payment storage register, the transfer of the payments against at least one of specified regular payments, specified regular expenses, specified irregular payments, and specified irregular expenses.

12. A computer-based method according to claim 5, wherein: the first payments are salary payments for the employee according to a first payment cycle; the second payments are modified salary payments for the employee and the second payment cycle is more frequent than the first payment cycle;

13. A computer-based method according to claim 12, wherein the modified salary payment is determined based upon a relationship between the frequency of the first payment cycle and the frequency of the second payment cycle.

14. A computer-based method according to claim 12, wherein the employee and the employer are charged a fee in respect of the service provider performing the method.

15. A system for converting, by a service provider, a first sequence of first payments from an employer, the first payments being paid according to a first payment cycle, to a second sequence of second payments said second payments being for an employee, the second payments being paid according to a second payment cycle, the system comprising: at least one memory module for storing a program; and at least one processor module for executing the program, said program comprising: code for storing in a payment data storage register payment data defining how said converting is to be performed; code for recording, in an inward deposit storage register, the depositing of a said first payment according to the first payment cycle into an account; code for determining by the service provider the amount and timing of a said second payment for the employee depending upon the stored payment data; and code for recording in an outward payment storage register the transfer of the determined second payment according to the second payment cycle for the employee.

16. A computer program product including a computer readable storage medium having recorded thereon a computer program for directing at least one processor to execute a method for converting a first sequence of first payments from an employer, the first payments being paid according to a first payment cycle, to a second sequence of second payments said second payments being for an employee, the second payments being paid according to a second payment cycle, the program comprising: code for storing in a payment data storage register payment data defining how said converting is to be performed; code for recording, in an inward deposit storage register, the depositing of a said first payment according to the first payment cycle into an account; code for determining by the service provider the amount and timing of a said second payment for the employee depending upon the stored payment data; and code for recording in an outward payment storage register the transfer of the determined second payment according to the second payment cycle for the employee.

17. A method of converting by a service provider a first sequence of first payments from an employer, the first payments being paid according to a first payment cycle, to a second sequence of second payments said second payments being made for an employee, the second payments being paid according to a second payment cycle, the method comprising the steps of: receiving payment data defining how said converting is to be performed; depositing a said first payment according to the first payment cycle into an account; determining the amount and timing of a said second payment to the employee depending upon the stored payment data; and transferring the determined second payment according to the second payment cycle for the employee.

18. A corporate customer computer in a system for converting, by a service provider, a first sequence of first payments from an employer, the first payments being paid according to a first payment cycle, to a second sequence of second payments said second payments being for an employee, the second payments being paid according to a second payment cycle, the system comprising storage means for storing in a payment data storage register payment data defining how said converting is to be performed, recording means for recording, in an inward deposit storage register, the depositing of a said first payment according to the first payment cycle into an account, said first payment being made in arrears or in advance or partially in arrears or partially in advance of said second payments for the employee, determining means for determining by the service provider the amount and timing of a said second payment for the employee depending upon the stored payment data, and recording means for recording in an outward payment storage register the transfer of the determined second payment according to the second payment cycle for the employee; said corporate customer computer comprising: input means configured to receive information relating to said payment data; and communication means for communicating said information to a computer of the service provider.

19. A service provider computer in a system for converting, by a service provider, a first sequence of first payments from an employer, the first payments being paid according to a first payment cycle, to a second sequence of second payments said second payments being for an employee, the second payments being paid according to a second payment cycle, the system comprising storage means for storing in a payment data storage register payment data defining how said converting is to be performed, recording means for recording, in an inward deposit storage register, the depositing of a said first payment according to the first payment cycle into an account, said first payment being made in arrears or in advance or partially in arrears or partially in advance of said second payments for the employee,, determining means for determining by the service provider the amount and timing of a said second payment for the employee depending upon the stored payment data, and recording means for recording in an outward payment storage register the transfer of the determined second payment according to the second payment cycle for the employee; said service provider computer comprising: input means configured to receive information relating to said payment data; and processing means for converting the first sequence of first payments being paid according to a first payment cycle, to the second sequence of second payments being paid according to the second payment cycle.