Posts Tagged ‘financial industry’

How Semantic Technology is Improving the Financial Service Industry

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Marty Loughlin of Wall Street & Technology recently noted that in this era of “massive business and IT transformation,” organizations in the financial industry “will need to change how they track, manage, and consume data. For many organizations, this data is not easily accessible — it is distributed across the organization, often trapped in local business units, applications, data warehouses, spreadsheets, and documents. Traditional technologies are struggling to address this challenge and many believe a new approach is required. Some of the new big-data solutions do help. They are good at liberating and colocating data. However, they often struggle to make it usable. Creating a ‘data lake’ where rigid structure is not required can result in yet another silo of unusable data where context, meaning, and sources are lost. Many organizations are turning to semantic technology for the answer.” Read more

Making the Case for Semantic Tech in the Financial Sector

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Amir Halfon of Marklogic recently discussed the ways that semantic technologies can create value in the financial sector, among other industries. One such way is through data provenance: “Due to the increased focus on data governance and regulatory compliance in recent years, there’s a growing need to capture the provenance and lineage of data as it goes through its various transformation and changes throughout its lifecycle. Semantic triples provide an excellent mechanism for capturing this information right along with the data it describes. A record representing a trade for instance, can be ‘decorated’ with information about the source of the different elements within it (e.g.: Cash Flow -> wasAttributedTo -> System 123). And this information can be continuously updated as the trade record changes over time, again without the constraints of a schema, which would have made this impossible.” Read more

FIBO Summit Opening Remarks by EDMC Managing Director Mike Atkin

[Editor’s Note: As our own Jennifer Zaino recently reported, the Enterprise Data Management (EDM) Council, a not-for-profit trade association dedicated to addressing the practical business strategies and technical implementation realities of enterprise data management held a two day FIBO Technology Summit in conjunction with MediaBistro’s Semantic Technology & Business (SemTechBiz) Conference, June 7th and 8th in San Francisco, California.  SemTechBiz was chosen for the summit because of its close proximity to the leading minds in Silicon Valley.
 
In afternoon and morning sessions, lead by distinguished academic and industry leaders, 60 top developers discussed 4 key technology challenges and developed plans that will lead to solutions critical to simultaneously lowering the cost of operations in financial institutions and ensuring the transparency required by regulations put in place since the beginning of the financial crisis of 2008.
 
Michael Atkin, EDM Council Managing Director began the deliberations with the following charge to the assembled experts.]

Photo of Mike Atkin, Managing Director, EDM CouncilI spent the majority of my professional life as the scribe, analyst, advocate, facilitator and therapist for the information industry.   I started with the traditional publishers and then moved on to my engagement in the financial information industry.  I watched the business of information evolve through lots of IT revolutions … from microfiche to Boolean search to CD-ROM to videotext to client server architecture to the Internet and beyond.

At the baseline of everything was the concept of data tagging – as the key to search, retrieval and data value.  I saw the evolution from SGML (which gave rise to the database industry).  I witnessed the separation of content from form with the development of HTML.  And now we are standing at the forefront of capturing meaning with formal ontologies and using inference-based processing to perform complex analysis.

I have been both a witness to (and an organizer of) the information industry for the better part of 30 years.  It is my clear opinion that this development – and by that I mean the tagging of meaning and semantic processing is the most important development I have witnessed.  It is about the representation of knowledge.  It is about complex analytical processing.  It is about the science of meaning.  It is about the next phase of innovation for the information industry.

Let me see if I can put all of this into perspective for you.  Because my goal is to enlist you into our journey.  Read more

FIBO Technology Summit At SemTechBiz: Financial Industry And Sem Tech Leaders Discuss Ontology Evaluation Tools, FLORA-2′s Potential, And More

Last week’s Semantic Technology & Business Conference played host to the FIBO (Financial Business Industry Ontology) Technology Summit. The event, which saw some 60 conference participants from the semantic web, financial industry and other sectors, as well as academia, was led by David S. Newman, SVP & Strategic Planning Manager Enterprise Architecture, at Wells Fargo and Chair of the Enterprise Data Management Council’s Semantics Program, and Dennis E. Wisnosky, founder of Wizdom Systems who is providing technical strategy and operational guidance to the Council for finalizing and implementing FIBO standards.

“This was a tremendous milestone for FIBO and FIBO’s full evolution,” Newman told The Semantic Web Blog following the event. It brought “together a lot of smart people working with semantic technology for a number of years to get their insights into how to further mature FIBO, as well as how to mature the technology, so that FIBO can really resonate with the regulatory community and the financial industry, so that it will have some real solid traction, be able to truly scale to the needs of the constituencies” – that is, not only financial institutions but the entire financial system. Says Newman, “That’s a big, tall order.”

The idea behind FIBO is to standardize the language used to precisely define the terms, conditions, and characteristics of financial instruments; the legal and relationship structure of business entities; the content and time dimensions of market data; and the legal obligations and process aspects of corporate actions. As an open-source, global financial initiative, it is planned to bring health to the financial system, through defining a vast amount of information semantically and providing a better capability for the industry and its regulators to look at more complex patterns and relationships of information in friendlier ways than conventional technology can offer.

At a session following the FIBO Technology Summit at last week’s conference, Wisnosky, also formerly the chief architect and CTO of the Department of Defense, explained one way the financial industry should view FIBO. Today, he said, financial institutions “spend hundreds of millions of dollars gathering data for regulators, with no advantage internally. The carrot [of FIBO] is to reduce those costs.” Ignore the carrot and wait for regulators to ask for more data, and watch costs go up. Added Newman, “if information is highly trustworthy, then the perception of risk regulators have of the financial industry might be lessened, if they can govern and certify an institution aligns with a common data standard, which is FIBO in our proposal.”

During that session, Newman also brought up some of the outcomes of the FIBO Technology Summit, such as discussions that were held about challenges to defining regulatory rules that are more complex and beyond the means of OWL 2 DL and SWRL. In his conversation with The Semantic Web Blog following the conference, he provided more details.

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Dennis Wisnosky Will Lead FIBO Standards Forward

Dennis Wisnosky is on-board to lead the standards implementation process for FIBO, the Financial Industry Business Ontology that is a joint effort of The Enterprise Data Management Council in conjunction with the Object Management Group.

The data management standards can be used by financial institutions and industry regulators to support conformance to federal regulatory reporting requirements and for internal business processes and risk analysis. Wisnosky, who previously was Chief Technical Officer and Chief Architect, Business Mission Area, U.S. Department of Defense, has spearheaded the U.S. DoD’s use of semantic technology across systems to meet the goal of having an “executable, integrated, consumable, solution architecture.” (See story here).

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