Xero‘s patent involves a method using machine learning to reconcile transactions by identifying parameters based on text descriptors. The system trains predictors with data from previously reconciled transactions, provides suggestions for reconciliation, and allows user validation and re-training. GlobalData’s report on Xero gives a 360-degree view of the company including its patenting strategy. Buy the report here.

According to GlobalData’s company profile on Xero, Virtual banking assistant was a key innovation area identified from patents. Xero's grant share as of January 2024 was 30%. Grant share is based on the ratio of number of grants to total number of patents.

Machine learning tool for reconciling transactions

Source: United States Patent and Trademark Office (USPTO). Credit: Xero Ltd

The granted patent (Publication Number: US11861695B2) outlines a method for reconciling transactions using machine learning tools. The method involves training a community predictor and a user predictor with relevant data, presenting reconciliation suggestions to a user for validation, and re-training the user predictor based on user feedback. Additionally, the community predictor determines confidence levels for reconciliation suggestions, and the machine learning tool selects the best suggestion based on the highest confidence level.

Furthermore, the method includes features for reconciling transactions in bank statements, such as entity names and account details, and can be segmented for different geographical regions. The system described in the patent comprises processors that perform operations related to training predictors, providing a user interface for validation, and re-training the user predictor. The patent also covers a non-transitory machine-readable storage medium with instructions for training predictors, determining reconciliation suggestions, presenting them to users, and re-training the user predictor based on validated suggestions.

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GlobalData Patent Analytics tracks bibliographic data, legal events data, point in time patent ownerships, and backward and forward citations from global patenting offices. Textual analysis and official patent classifications are used to group patents into key thematic areas and link them to specific companies across the world’s largest industries.