Patent ID: 7822681

Claim:
A portfolio based financial network, comprising: a plurality of network participants, the plurality of network participants comprising a first network participant comprising a first network participant requesting a loan on a first date and a second network participant funding at least one portion of the requested loan on the first date, wherein the requested loan is of a predetermined value between 100 USD and 3000 USD, wherein a portion of the requested loan is withheld as an advance fee, and wherein the requested loan is repaid on at least a second date with a loan fee; a data processing system, including a computer, the data processing system for managing a corresponding account for each of the plurality of network participants, wherein the data processing system performs financial transactions including a payment deposit related to investment in a portfolio, a loan repayment deposit, a payment distribution associated with the accounts of the plurality of network participants, loan requests of the network participants, and collection of loan fees from the network participants; wherein the data processing system combines loan fees from the network participants into a portfolio fee; wherein the data processing system collects network participant's personal and credit information; wherein the data processing system combines deposits from the network participants in a loan fund; wherein the requested loan to network participants are issued by the data processing system from the loan fund based on a funding criteria; wherein the data processing system determines whether one or more network participants of the plurality of network participants has repaid the requested loan on at least the second date; wherein the data processing system redistributes at least a portion of the portfolio fee among the network participants who repaid their respective loans by at least the second date; and wherein the data processing system calculates a gain or loss on the portfolio for the lenders.