MUMBAI, India, Aug. 10 -- Intellectual Property India has published a patent application (202641083286 A) filed by Diya Susan Biju; and Dr Veerta Tantia on July 07, 2026, for Ai-Based Household Financial Vulnerability Evaluation System Using Nlpca And Hierarchical Models.
Inventors include Diya Susan Biju; and Dr Veerta Tantia.
The application for the patent was published on July 31, 2026, under issue no. 31/2026.
Abstract: A method and system for determining and evaluating a Household Financial Vulnerability Index (HFVI) is disclosed. The method comprises aggregating non-numerical and subjective household data relating to income shocks, expenditure shocks, and financial difficulties. A processing unit applies Nonlinear Principal Component Analysis (NLPCA) to quantify the non-numerical variables, computing centroid and vector coordinates to extract primary dimension weights. The extracted variables are standardized to a uniform scale and multiplied by their corresponding factor loadings to calculate a raw financial vulnerability score. This raw score is subsequently normalized and rescaled into a bounded range (1 to 10) to generate the final interpretable HFVI. Additionally, the system employs Fractional Probit Regression and Hierarchical Modelling to process the computed index against multidimensional determinants—specifically financial literacy, financial behavior, financial skills, financial inclusion, and digitalized payment adoption—to output a predictive assessment of household financial risk.
Disclaimer: Curated by HT Syndication.
