# Patent

## Title
System and method for measuring and utilizing pooling analytics

## Abstract

A system and method for quantifying the working capital benefit of pooling a number of separate cash accounts. The average (mean) cash balance of the pooled account is determined to be the sum of the means of each of the individual accounts. Similarly, the standard deviation of the pooled account is determined to be the square root of the sum of the squares of the standard deviations of the individual accounts. Accordingly, the minimum cash level of the pooled account is 2.3 times the square root of the sum of the squares of the standard deviations of the individual accounts. In order to determine the benefit of pooling, the present invention determines the difference between the minimum aggregate cash required by the separate companies and the minimum cash required in the pooled account. If pooling is to be beneficial, from a working capital perspective, the minimum cash required in the pooled account will be significantly less than the aggregate cash required by the separate companies.

## Background
CROSS-REFERENCE TO RELATED APPLICATIONS
This present patent application is a continuation of U.S. patent application Ser. No. 10/087,385, filed Mar. 1, 2002, now U.S. Pat. No. 7,895,098 entitled “SYSTEM AND METHOD FOR MEASURING AND UTILIZING POOLING ANALYTICS” to Beard et al., which claims priority to U.S. provisional patent application Ser. No. 60/272,546, filed Mar. 1, 2001, entitled SYSTEM AND METHOD FOR MEASURING AND UTILIZING POOLING ANALYTICS. The disclosures of these priority applications are herein incorporated by reference in their entirety.


FIELD OF THE INVENTION
The present invention generally relates to systems and methods for pooling financial accounts and more particularly to a system and method for measuring the benefits accrued from pooling.
BACKGROUND OF THE INVENTION
Pooling is a financial method in which several different accounts of a customer are combined, “pooled” into a single account in order to obtain certain benefits. Some of these benefits include the ability to earn greater interested in the pooled account and decreased costs in maintaining the several accounts. For an example, a large corporation with several divisions or subsidiaries might consider pooling the cash accounts of the several divisions or subsidiaries to achieve interest and cost benefits.
Corporations will frequently hold multiple bank accounts with the same bank in the same currency. Often these accounts are held by individual subsidiaries or divisions of the corporation for the sole use of that business or legal entity. At any one time one or several of these accounts could be in deficit (overdraft) and pay debit interest to the bank, whilst at the same time other accounts could be in surplus (credit) and be earning credit interest. Given that credit interest is lower than debit interest, the corporation overall will forgo the ‘spread’ between the credit and debit interest on any offsetting long and short positions.
Historically, banks have been asked by their clients to calculate the various benefits of implementing a pooling structure for their organization. Typically, this process began by the client supplying historical data of the daily cash position for each of the individual entities it was intending to pool. For the analysis to be in any way representative, at least 3 months data, ideally more, was required. If the company was subject to seasonal variations, such as a manufacturer of ski equipment, account data representing anything less than a 12 month period would possibly be questionable. The financial data for each entity (e.g., division) within the company would need to be collected over the same period
With this historical financial data in hand, the bank would then calculate the interest earnings and costs that each of these entities would have earned or incurred acting as stand-alone entities with their stand-alone cash positions over that historic period. The bank then calculated the interest earnings and costs that would be realized if the separate accounts had been pooled over this same period of time. The calculated interests and costs of the non-pooled accounts would then be compared to the interest earnings and costs which would have been earned or incurred had the accounts of these entities been pooled together over that historic period. The (presumably) increase in bank interest and decrease in associated costs would be said to be the pooling benefit.
There are a number of drawbacks with this traditional prior art approach for measuring the benefits of pooling. The traditional analysis is conducted on historic data which will inevitably contain one-time irregularities that will distort the data. The traditional analysis measures best case versus a do-nothing strategy. In practice, in the absence of any other liquidity structure, most treasurers would at least be taking some ad-hoc measures to share liquidity across the group using, for example, intercompany term loans. This oversight in the prior art techniques tends to diminish the validity of this analysis in the eyes of any but the most naive of treasurers. Finally, the prior art analysis will only show a pooling benefit if some of the entities have a cash deficit coincident with a surplus cash position in other entities.
SUMMARY OF THE INVENTION
The present invention solves the problems of the prior art as described above by recognizing that the prior art's biggest drawback is that the traditional approach determines the benefits of pooling only by measuring the direct interest gain and direct cost saving. In contrast to the prior art, the system and method of the present invention incorporates and analyzes the beneficial impact pooling can have in areas such as: reduced volatility of cash balance; cash forecasting; the ability to reduce the overall cash required to run the business; and the positive impact all of the above can have on earnings and the balance sheet.
The system and method of the present invention quantifies the working capital benefit of pooling using standard statistical techniques, and at the same time overcomes many of the difficulties inherent in the traditional pooling benefit measurements. The present system and method requires less data as the analysis relies on understanding the volatility of the cashflow in a given entity. These cashflow data tend to be reasonably constant over time so shorter data periods can be analyzed (i.e., less data). While still conducted using historical data, the method of the present invention is a much more accurate predictor of future periods. The method works even if the historic cash balances are unrepresentative of the steady state. A pooling benefit will be evident even if all entities have a long cash position all of the time. The pooling benefit determined by the present invention is similar whether the group has a do-nothing policy with regard to cash management, or has a very active cash management strategy which attempts to manage the individual entity's cash positions using intercompany loans.
One significant aspect of the present invention is its recognition of the fact that although a company's cash balance fluctuates on a daily basis, over time the distribution of the balance conforms to a Normal distribution. The pattern of a Normal distribution is followed both for the cash flow of individual companies without pooling, and the cash flow of a consolidated (pooled) cash account.
Given that the cash balances follow a Normal distribution, a company's cash flow is bounded by the mean of the distribution plus or minus the standard deviation multiplied by 2.3. This implies that the company must keep at least 2.3 times the standard deviation to ensure having enough cash to fund the company's operations. For n companies (e.g., n subsidiaries of a larger corporation) the minimum aggregate cash required is therefore 2.3 times the sum of the respective standard deviations of the separate companies.
In its pooling analysis, the present invention determines that the average (mean) cash balance of the pooled account is the sum of the means of each of the individual accounts. Similarly, the standard deviation of the pooled account is the square root of the sum of the squares of the standard deviations of the individual accounts. Accordingly, the present invention determines the minimum cash level of the pooled account to be 2.3 times the square root of the sum of the squares of the standard deviations of the individual accounts.
In order to determine the benefit of pooling the present invention determines the difference between the minimum aggregate cash required by the separate companies and the minimum cash required in the pooled account. If pooling is to be beneficial, from a working capital perspective, the minimum cash required in the pooled account will be significantly less than the aggregate cash required by the separate companies.



BRIEF DESCRIPTION OF THE DRAWING(S)
For the purposes of illustrating the invention, there is shown in the drawings a form which is presently preferred, it being understood however, that the invention is not limited to the precise form shown by the drawing in which:
FIG. 1 illustrates an example of historical cash balances for a hypothetical sales company over a calendar quarter;
FIG. 2 depicts the right the historical data of FIG. 1, plotted as a statistical distribution;
FIG. 3 illustrates a Normal distribution, including an indication of the standard deviations; and
FIG. 4 is a system in accordance with the present invention.



DETAILED DESCRIPTION OF EMBODIMENTS OF THE INVENTION
In a preferred embodiment of the method of the present invention, it is assumed that the volatility of cashflows in an entity follow a Normal distribution. That is, statistical analysis of short term cash flows will show that they approximate to a standard bell curve. FIG. 1 illustrates the historical cash balances 100 for a hypothetical sales company over the third quarter of a calendar year. In FIG. 2, the historical data from FIG. 1 has been plotted as a statistical distribution 200. A Normal distribution 210 is superimposed on this distribution 200. The Normal distribution 210 has the same statistical characteristics, (the same mean and standard deviation) as the statistical distribution 200.
As can be seen from FIG. 2, the historical data for the company's cash balance approximates to the Normal distribution 210, but in this case it is slightly skewed because the particular hypothetical company was building cash over this period. In the steady state, most companies show an even better fit to the Normal distribution than is illustrated in FIG. 2.
Where a company's cash levels can be represented by a Normal distribution, some reasoned assumptions about their cash levels can be made based on the characteristics of this distribution. One of the key assumptions concerns the width of a normal distribution. FIG. 3 illustrates a Normal distribution 300. Ninety nine percent of the area of the Normal distribution 300 lies within 2.3 standard deviations 320, 330 of the mean 310. In other words, 99% of measurements in a Normal distribution are within the areas bounded by the mean 310 plus or minus 2.3 standard deviations 320, 330. In the example above the mean (average) 310 cash level is zero, and the standard deviation is S 320, 330.
When the Normal distribution 300 represents the cash balance of a company, this means that the company will need to plan to have a cash balance each day of 2.3 times their standard deviation 320 in order to be sure of having enough cash to fund the operational uncertainties of the corporation.
In the present invention, it is assumed that there exists a group of related companies (e.g., divisions, subdivisions . . . ) each with their own accounts. Assuming there are ‘n’ different affiliates, the cashflows in each of the n accounts approximate to a Normal Distribution.
One of the first steps undertaken in the method of the present invention is to determine the minimum cash balances required by the n separate companies, prior to pooling. The cash balances of each of the n affiliates is different, and has different characteristics. These characteristics are be represented as follows:













Average (Mean) cash balance =
A(x)


Standard Deviation =
S(x)


Number of entities =
n









On any given day the minimum cash with which the company can operate is:




  
    
      
        
          Minimum
          ⁢
          
            
          
          ⁢
          cash
          ⁢
          
            
          
          ⁢
          level
        
        =
        
          2.3
          ×
          
            {
            
              
                S
                ⁡
                
                  (
                  1
                  )
                
              
              +
              
                S
                ⁡
                
                  (
                  2
                  )
                
              
              +
              ⋯
              +
              
                S
                ⁡
                
                  (
                  n
                  )
                
              
            
            }
          
        
      
    
  
  
    
      
        =
        
          2.3
          ×
          Σ
          ⁢
          
            {
            
              S
              ⁡
              
                (
                n
                )
              
            
            }
          
        
      
    
  




The next step in the process is to determine the minimum cash balance required in the pooled account. Once this same group of n companies engaged in some sort of pooling mechanism, the balances would be consolidated each day. In this case the characteristics of the consolidated cashflows would still approximate to a Normal distribution with the following characteristics:



  
    
      Average
      ⁢
      
        
      
      ⁢
      
        (
        Mean
        )
      
      ⁢
      
        
      
      ⁢
      cash
      ⁢
      
        
      
      ⁢
      balance
    
    =
    
      {
      
        
          A
          ⁡
          
            (
            1
            )
          
        
        +
        
          A
          ⁡
          
            (
            2
            )
          
        
        +
        ⋯
        +
        
          A
          ⁡
          
            (
            n
            )
          
        
      
      }
    
  




  
    
      
        
          
            Standard
            ⁢
            
              
            
            ⁢
            Deviation
          
          =
          
          ⁢
          
            
              Sqr
              .
              
                
              
              ⁢
              root
            
            ⁢
            
              
            
            ⁢
            of
          
        
      
    
    
      
        
          
          ⁢
          
            {
            
              sum
              ⁢
              
                
              
              ⁢
              of
              ⁢
              
                
              
              ⁢
              squares
              ⁢
              
                
              
              ⁢
              of
              ⁢
              
                
              
              ⁢
              the
              ⁢
              
                
              
              ⁢
              
                Std
                .
                
                  
                
                ⁢
                deviations
              
            
            }
          
        
      
    
    
      
        
          =
          
          ⁢
          
            √
            
              {
              
                
                  
                    S
                    ⁡
                    
                      (
                      1
                      )
                    
                  
                  ^
                  2
                
                +
                
                  
                    S
                    ⁡
                    
                      (
                      2
                      )
                    
                  
                  ^
                  2
                
                +
                ⋯
                +
                
                  
                    S
                    ⁡
                    
                      (
                      n
                      )
                    
                  
                  ^
                  2
                
              
              }
            
          
        
      
    
    
      
        
          
            =
            
            ⁢
            
              
                √
                Σ
              
              ⁢
              
                {
                
                  
                    S
                    ⁡
                    
                      (
                      x
                      )
                    
                  
                  ^
                  2
                
                )
              
            
          
          }
        
      
    
  



The minimum cash level required to fund the operation of the n companies using the single pooled account each day are now given by:

Minimum cash level=2.3×√Σ{S(x)^2}

And the reduction in minimum cash level from the n separate accounts and the single pooled account is given by:

Reduction in min. cash level=2.3×{Σ{S(n)}−√Σ{S(x)^2}

This reduction in the minimum required operational cash is a benefit of pooling that has been completely overlooked by the prior art. Very few treasurers would regard cash as being working capital. Indeed many financial institutions, when analyzing company balance sheets, deliberately exclude cash from the working capital equation. What the present invention clearly shows however, is that there is a minimum cash level for every company, determined by the volatility (standard deviation) of it's cashflow, below which a company must not allow it's cash to fall. Treasurers and cash managers instinctively know what this level is, and will always plan each day to have this much cash in case of uncertainties. As shown above, though, this ‘seat of the pants’ method of operation will mean on average, however that too much cash is ‘tied up’ in the business. Multiplied across all the entities of a group this amounts to:

Minimum cash level (without pooling)=2.3×Σ{S(n)}

However when a company pools the individual balances of the entities together the minimum cash level reduces to:

Minimum cash level (with pooling)=2.3×√Σ{S(x)^2}

It is useful to note that this reduction in the cash required is in no way related to the average cash balances of the companies involved and is not affected by their cash being positive or negative. Also, this method does not negate the interest savings which would be measured using the traditional pooling benefit determination. The working capital benefit can be considered as additional to the interest gains.
A simple example of the benefit of the method of the present invention will serve to show just how much value (cash being released from the business) has been created by pooling.
To keep the determinations simple, let us assume we have a corporation which consists of ten individual affiliates. Each of these affiliates has an average cash balance of $10 million. As described above though, day to day, the cash balances are subject to uncertainty (volatility, standard dev.=$1 million).













Average A, (mean) cash level =
$10 million


Volatility S, (standard deviation) =
$1 million


Number of entities n, =
10












  
    
      
        
          
            Each
            ⁢
            
              
            
            ⁢
            of
            ⁢
            
              
            
            ⁢
            the
            ⁢
            
              
            
            ⁢
            ten
            ⁢
            
              
            
            ⁢
            entities
            ⁢
            
              
            
            ⁢
            will
            ⁢
            
              
            
            ⁢
            plan
            ⁢
            
              
            
            ⁢
            daily
            ⁢
            
              
            
            ⁢
            cash
            ⁢
            
              
            
            ⁢
            of
          
          =
          
            $2
            ⁢
            .3
            ×
            
              {
              S
              }
            
            ⁢
            
              
            
            ⁢
            million
          
        
      
    
    
      
        
          =
          
            $2
            ⁢
            .3
            ×
            
              {
              1
              }
            
            ⁢
            
              
            
            ⁢
            million
          
        
      
    
    
      
        
          =
          
            $2
            ⁢
            .3
            ⁢
            
              
            
            ⁢
            million
          
        
      
    
  




  
    Overall
    ⁢
    
      
    
    ⁢
    the
    ⁢
    
      
    
    ⁢
    ten
    ⁢
    
      
    
    ⁢
    entities
    ⁢
    
      
    
    ⁢
    will
    ⁢
    
      
    
    ⁢
    hold
  




  
    
      
        
          
            total
            ⁢
            
              
            
            ⁢
            cash
          
          =
          
            2.3
            ×
            
              (
              
                {
                
                  
                    S
                    ⁡
                    
                      (
                      1
                      )
                    
                  
                  +
                  
                    S
                    ⁡
                    
                      (
                      2
                      )
                    
                  
                  +
                  ⋯
                  +
                  
                    S
                    ⁡
                    
                      (
                      10
                      )
                    
                  
                
                }
              
            
          
        
      
    
    
      
        
          =
          
            2.3
            ×
            
              (
              10
              )
            
            ⁢
            
              
            
            ⁢
            million
          
        
      
    
    
      
        
          =
          
            $23
            ⁢
            .0
            ⁢
            
              
            
            ⁢
            million
          
        
      
    
  



Therefore, without pooling, the ten entities combined must hold cash balances of $23 million.
If the entities are pooled then the distribution would again approximate to a normal distribution as described above where:



  
    
      
        
          
            Average
            ⁢
            
              
            
            ⁢
            A
          
          ,
          
            
              
                (
                mean
                )
              
              ⁢
              
                
              
              ⁢
              cash
            
            =
            
              $
              [
              
                
                  A
                  ⁡
                  
                    (
                    1
                    )
                  
                
                +
                
                  A
                  ⁡
                  
                    (
                    2
                    )
                  
                
                +
                ⋯
                +
                
                  A
                  ⁡
                  
                    (
                    n
                    )
                  
                
              
              }
            
          
        
      
    
    
      
        
          =
          
            $
            ⁢
            
              {
              
                10
                +
                10
                +
                ⋯
                +
                10
              
              )
            
          
        
      
    
    
      
        
          =
          
            $100
            ⁢
            
              
            
            ⁢
            million
          
        
      
    
  




  
    
      
        
          
            Volatility
            ⁢
            
              
            
            ⁢
            S
          
          ,
          
            
              (
              
                std
                .
                
                  
                
                ⁢
                deviation
              
              )
            
            =
            
              $
              ⁢
              
                √
                Σ
              
              ⁢
              
                {
                
                  
                    S
                    ⁡
                    
                      (
                      x
                      )
                    
                  
                  ^
                  2
                
                }
              
            
          
        
      
    
    
      
        
          =
          
            $
            ⁢
            
              √
              Σ
            
            ⁢
            
              {
              
                
                  1
                  ×
                  
                    
                  
                  ⁢
                  1
                
                +
                
                  1
                  ×
                  
                    
                  
                  ⁢
                  1
                
                +
                ⋯
                +
                
                  1
                  ×
                  
                    
                  
                  ⁢
                  1
                
              
              )
            
            ⁢
            
              
            
            ⁢
            million
          
        
      
    
    
      
        
          =
          
            $
            ⁢
            
              √
              
                {
                10
                }
              
            
            ⁢
            
              
            
            ⁢
            million
          
        
      
    
    
      
        
          =
          
            $3
            ⁢
            .16
            ⁢
            
              
            
            ⁢
            million
          
        
      
    
  




  
    
      
        
          
            Overall
            ⁢
            
              
                
              
              ⁢
              
                
              
            
            ⁢
            the
            ⁢
            
              
            
            ⁢
            minimum
            ⁢
            
              
            
            ⁢
            cash
            ⁢
            
              
            
            ⁢
            level
            ⁢
            
              
            
            ⁢
            of
            ⁢
            
              
            
            ⁢
            the
            ⁢
            
              
            
            ⁢
            pooled
            ⁢
            
              
            
            ⁢
            account
          
          =
          
          ⁢
          
            2.3
            ×
            S
          
        
      
    
    
      
        
          
            =
            
            ⁢
            
              $2
              ⁢
              .3
              ×
              3.16
            
          
          ⁢
          
            
          
        
      
    
    
      
        
          
          ⁢
          million
        
      
    
    
      
        
          =
          
          ⁢
          
            $7
            ⁢
            .27
            ⁢
            
              
            
            ⁢
            million
          
        
      
    
  



Therefore, the method of the present invention clearly shows that the minimum planning level of cash required to keep the business liquid is reduced from $23 million to $7.27 million as a result of pooling. A release of cash, or a reduction of working capital of $15.7 million. As a consequence of pooling, volatility and uncertainty is reduced overall, with the average standard deviation moving down from +/−10 million to just +/−3.16 million. This reduction has benefits in terms of both cash forecasting and planning. Neither of these benefits were taken into consideration with the traditional pooling benefit analysis of the prior at.
Furthermore, in conjunction with the prior art methods, it can be shown how the interest expense of the pooled account is reduced, while at the same time we showing how the working capital required to run the business is also reduced. This action affects both the denominator and numerator of the Return on Assets equation by increasing profit and reducing assets. By using the method of the present invention of measuring the pooling benefit alongside the traditional method it can be demonstrated and quantified that pooling has a double multiplier effect on this key profitability ratio.
FIG. 4 illustrates a system 400 according to the present invention. Users (typically clients of a bank) who are interested in performing the method of the present invention can use their user terminals 410 to access information processor 440 through a network. In a preferred embodiment, the user terminals 410 are personal computers, the network 420 is the Internet and the information processor 430 is a server hosting a website for performing the method of the present invention (note, the term website will be used interchangeably with the information processor 430).
Users log onto the website 400 using name and password. New users register their logon details and be assigned a password. Input of data by the users is a two stage process. The first stage is to identify the name, currency and number of balance records for each of the accounts, and the second stage is to input the daily balance data for each of the accounts the user is intending to pool. Input is preferably typed directly into a familiar spreadsheet format, but can be copy/pasted from another spreadsheet or Electronic Banking system. Data input by the user is stored in database 440
The data required to be input by the users includes: the number of accounts to be pooled (n); a time series of consecutive daily balance data for each of these accounts for a representative period (up to 3 months); the currency of each data set; interest spreads for each individual account; and the pooling interest spread.
Once the data has been input by the user, the information processor 430 executes the above described method in order to determine: the standard deviation of each data set (s); the mean of each data set (m); the ‘R-squared’ of each data set versus the best fit distribution. The processor 430 then determines whether the number of data elements (sample size) in each data set is statistically significant. Finally, the processor determines the reduction in volatility (ΔS) which, as described above is the square root (sum of squares of std deviations) less the sum of std deviations.
Optionally, the information processor 430 can perform the calculation of the spread saving in accordance with the traditional pooling benefit analysis.
As an output, the processor 430 produces a graphical representation of each data set (as seen in FIG. 1 above) and graphical representations of the statistical distribution of each data set overlaid with the best-fit distribution (as seen in FIG. 2 above). In addition to the presentation of the graphical representations, processor 430 also outputs a textual summary of the characteristics of each data set (s, m, Best-fit distribution, R squared) in original currency and in euros if desired. Finally, processor 430 textually provides a summary of the pooling benefit including the liquidity benefit, the interest benefit (optional) and an estimate of the accuracy (applicability) of the technique.
Although the present invention has been described in relation to particular embodiments thereof, many other variations and modifications and other uses will become apparent to those skilled in the art. It is preferred, therefore, that the present invention be limited not by the specific disclosure herein, but only by the appended claims.

## Claims

1. A computer-implemented method for determining a benefit of pooling separate cash accounts into a single pooled account, the method comprising:
determining, using an information processor, historical data of each of the separate cash accounts;
determining, using the information processor, statistical characteristics of each of the separate cash accounts based at least in part on the historical data;
determining, using the information processor, separate minimum cash balances required in each of the separate cash accounts based at least in part on the statistical characteristics;
aggregating, using the information processor, the separate minimum cash balances into an aggregated minimum cash balance; and
determining, using the information processor, a benefit of pooling the separate cash accounts into the single pooled account based at least in part on the aggregated minimum cash balance.

2. The method of claim 1, wherein the historical data comprises cash balance in each of the separate cash accounts for a predetermined period of time.

3. The method of claim 2, wherein the cash balance comprises daily cash balance data for each of the separate cash accounts for the predetermined period of time.

4. The method of claim 2, wherein the step of determining the statistical characteristics of each of the separate cash accounts comprises: multiplying a standard deviation of the cash balance in each of the separate cash accounts by 2.3.

5. The method of claim 2, wherein the step of determining separate minimum cash balances comprises: 2.3×Σ{S(1), S(2), . . . S(n)}, wherein n is the number of separate cash accounts and S(x) is a standard deviation of the cash balance in any one of the separate cash accounts.

6. The method of claim 1, further comprising: determining a pooled minimum cash balance required in the single pooled account.

7. The method of claim 6, wherein the step of determining a benefit of pooling comprises determining a difference between the aggregated minimum cash balance and the pooled minimum cash balance.

8. The method of claim 7, further comprising: pooling the separate cash accounts into the single pooled account if the pooled minimum cash balance is less than the aggregated minimum cash balance.

9. A system for determining a benefit of pooling separate cash accounts into a single pooled account, the system comprising:
a communication network;
at least one user terminal coupled to the communication network; and
an information processor coupled to the communication network, wherein the information processor is operable to:
determine historical data of each of the separate cash accounts, determine statistical characteristics of each of the separate cash accounts based at least in part on the historical data, determining separate minimum cash balances required in each of the separate cash accounts based at least in part on the statistical characteristics, aggregate the separate minimum cash balances into an aggregated minimum cash balance, and determine a benefit of pooling the separate cash accounts into the single pooled account based at least in part on the aggregated minimum cash balance.

10. The system of claim 9, wherein the historical data comprises cash balance in each of the separate cash accounts for a predetermined period of time.

11. The system of claim 10, wherein the cash balance comprises daily cash balance data for each of the separate cash accounts for the predetermined period of time.

12. The system of claim 10, wherein the information processor is operable to determine the statistical characteristics of each of the separate cash accounts by multiplying a standard deviation of the cash balance in each of the separate cash accounts by 2.3.

13. The system of claim 10, wherein the information processor is operable to determine separate minimum cash balances by 2.3×{S(1), S(2), . . . S(n)}, wherein n is the number of separate cash accounts and S(x) is a standard deviation of the cash balance in any one of the separate cash accounts.

14. The system of claim 9, wherein the information processor is further operable to determine a pooled minimum cash balance required in the single pooled account.

15. The system of claim 14, wherein the information processor is operable to determine a benefit of pooling by determining a difference between the aggregated minimum cash balance and the pooled minimum cash balance.

16. The system of claim 15, wherein the information processor is further operable to pool the separate cash accounts into the single pooled account if the pooled minimum cash balance is less than the aggregated minimum cash balance.