Business Overview and Drivers
Pressure has increased since the 2008 crash on financial services organizations to ensure the highest quality of data on which to base their risk and capital adequacy calculations. A Family of regulations enforced by legislation led by the Basel Committee of Banking Supervision (BCBS), and various National and international Federal bodies, have forced financial institutions to answer detailed questions posed by auditors/regulators about the aggregation methodology and lineage of all the elements of their trading and risk analysis data sets.
Currently, the majority of information in applications is “mono” temporal, in order words, the data is tacked ‘as it was recorded’. The “mono” temporal approach is flawed because subsequent data adjustments are not recorded. This is also known as the database dimension, or when we knew it from the database perspective.
The business dimension of time introduces what we knew from a business perspective. This dichotomy between database time and business time is known as "Bitemporality."
Bitemporality handles data along two different timelines, making it possible to rewind the information “as it actually was” in combination with “as it was recorded” at a chosen point in time. A bitemporal data schema makes it possible to go back in time and explore data, manage historical data across systems, ensure data integrity, and conduct complex temporal analysis with ease.
Bitemporal data can provide the business with the following:
A complete history (audit trail) of what you knew and when you knew it. Full support for corrections (history of corrections to past, current & future business time). Reproducible business perspective history as you knew it at any point in time.
If we can find a way to help FSI customers better manage and deal with the regulatory requirements of clean financial data, they will be able to:
Innovate in how they use their data Create new revenue-driving services Mitigate risk and optimize business processes
This video provides some technical background: