BIAN & ACTUS combine their global standards and leverage ...

Copyright BIAN 2020 | Banking Industry Architecture Network

BIAN/ACTUS - March, 2020

BIAN & ACTUS combine their global standards

and leverage open-source platforms

March 9, 2021



A Warm Welcome to YOU – Dialing in From all

around the globe!



On Todays Webinar

Jeff Braswell

Chair, ACTUS Financial Research Foundation Board

Guy Rackham

Lead Architect

BIAN

Hans Tesselaar

BIAN Executive Director

INRODUCTION BY:

David Boone

Chairman BIAN’s

Investments & Trading Products

Working Group



To provide the world with the best banking architecture. To be the

banking technology standard.

The Central objective is to support the banking business/clients with

high performance and security.

One of the key objectives for IT in the banking industry are to lower the

IT and operational costs of the bank and help banks mitigate the risks

associated with technology innovation.

To provide a trusted roadmap for constant innovation. We create best

practice architecture that the world’s banks can rely upon 100%. To

gather the best minds in banking architecture for the world to share in

an open way.

By collaborating and sharing in an open way, the best expertise across

our global ecosystem of leading banks, technology providers, FinTech

players, academics and consultants to define a revolutionary banking

technology framework that standardizes and simplifies the overall

banking architecture.

BIAN’s Mission



Introduction | BIAN & Financial Institutions


BIAN/ACTUS - March, 2020 Introduction | BIAN & Partners



Introduction | BIAN & Academic, Standard Bodies and Training Partners



Introductory Comments

Chair of the BIAN Investment & Trading Working Group

Regarding the coordination between BIAN and ACTUS

that has been developed



This Presentation is an update of the one given to Wells Fargo earlier this year

This use-case shows the integration of the BIAN and ACTUS standards and they

combine to support comprehensive analysis reporting capabilities:

1. BIAN – Brief explanation of the BIAN approach

2. ACTUS – Brief Explanation of the ACTUS Open-Source standard

3. Integrating BIAN and ACTUS – The Wireframe and ACTUS-aligned

capabilities

4. Enterprise-wide analysis & reporting

a. Extending the wireframe for context

b. ACTUS Case study

5. Questions?



A Brief Explanation of BIAN

A common industry ‘blueprint’ allows participants to specialise in different

components. The industry can collectively assemble far more sophisticated products

than any one provider could hope to develop alone.

Once an industry is componentised it can adapt to change and leverage new

opportunities far more efficiently and effectively…

BIAN Defines the Standard Components for Banking...

It’s all About Componentization

Market forces drive an industry to componentise…

Manufacturing:

The Auto Industry…

…defines the different parts

that are assembled in a car

Change: Electronics

Media:

The Film Industry…

…agrees specialist roles

involved in making a film

Change: Digital Media & CGI

Financial Services:

Banking…

…what model defines the

financial services ‘components’?

Change: Fintechs & Technology

Custody &

PaymentsLoans &

Investments

Financial Risks




BIAN’s component model view of banking defines discrete responsibilities. A

responsibility represents the need to “do something to something” to benefit the bank…

By cataloging the types of resources and the different commercialization approaches

BIAN has isolated a comprehensive collection of Service Domain ‘components’

BIAN Components are Canonical - they define“What” Vs “How”


BIAN ‘components’ are called Service Domains…

… in order to

create commercial

value.

Local State

Full

Lifecycle

Instances

Offe

red

Se

rvic

es

Co

ns

um

ed

Se

rvic

es

The Bank has

resources, tangible

& intangible…

…that it controls or

leverages in

various ways…Service Domain

Customer

Relationships

Employee

Commitments

Knowledge &

Knowhow

Production

Capacity

Servicing

Capacity

Reputation &

CapitalManage

Administer

Analyse

Track

Process

Fulfill

Operate

Design

Components/Service

Domains are generic

and stable over time




The BIAN Service Landscape contains all currently identified Service Domains

The Service Domains define the elemental building blocks supporting any activity, but

the way business systems are architected can be fundamentally different…

BIAN Defines the Canonical Standard Components for Banking...


The BIAN Service Domains define the elemental capability building blocks for any Bank

BIAN ServiceDomain

≅The Periodic Table of

Elements

Reference Data Sales & Service Business Support Risk &

Compliance Operations & Execution

Non IT and HR Enterprise Services

Payments Account Management Operational Services

Business Planning

Bank Portfolio & Treasury

Regulations & Compliance

Models

Corporate Banking Products

Trade Finance

Market Operations

Wholesale Trading

Investment Management

Consumer Loans & Deposits

Marketing

Servicing

Customer Mgmt

Sales

Channel Specific

Product Management

Market Data

Party

External Agency

IT Management

Cross Product Operations

Payments Execution

Financial Message Gateway

Transaction Engine

Cash Accounting

Position Management

Accounts Receivable

Account Reconciliation

Fraud Detection

Reward Points Account

Collateral Administration Collateral Management

Collateral Asset Administration

Collections

Card Issuance

Corporate Credit Facility

Corporate Loan

Cash Mgmt & Account Svs

Cheque Lock Box

Letter of Credit

Bank Guarantee

Trade Finance Services

Corporate Financing & Advisory Services Corporate Finance Services

M&A Advisory Services

Corporate Tax Advisory Svs

Public Offering

Private Placement

Mutual Fund Administration

Hedge Fund Administration

Unit Trust Administration

Order Allocation

Clearing & Settlement

Securities Fails Processing

Trade/Price Reporting

Custody Administration

Customer Entitlement Admin.

Financial Instrument Valuation

Trading Book Oversight

Dealer Workbench

Market Making

Assisted Trading

Program Trading

Market Trading

Market Order

Investment Portfolio Planning

Investment Portfolio Analysis

Investment Portfolio Mgmt

eTrading

Consumer Services

Cards

Currency Exchange

Remittance Services

Trust Services

Brokered Product

Bank Drafts & T Checks

Consumer Investments

Card Facility

Card Authorization

Card Capture

Merchant Relations

Card Billing & Payments

Secured Loans

Unsecured Loans

Consumer Finance

Current Account

Deposit Account

Business Development Policies

Business Development

Brand Management

Advertising

Promotional Events

Prospect Campaign Mgmt

Prospect Campaign Design

Customer Campaign Mgmt

Customer Campaign Design

Customer Surveys

Servicing Issue

Case Management

Case Resolution Analysis

Customer Case

Card Case

Customer Relationship Mgmt

Customer Agreement

Customer Product Coverage

Customer Event History

Customer Behavioral Insights

Customer Credit Rating

Account Recovery

Prospect Campaign Execution

Customer Campaign Execution

Prospect Management

Commission Agreement

Commission Transaction

Product Matching

Sales Planning

Offer Management

Underwriting

Product Expert Sales Support

Call Center Management

Branch Currency Distribution

Product Inventory Item Mgmt

Product Inventory Distribution

Branch Network Mgmt

E-Branch Management

PBX Management

ATM Network Management

Call Center Operations

Branch Location Operations

E-Branch Operations

PBX Operations

ATM Network Operations

Branch Currency Management

Product Design

Product Combination

Product Deployment

Product Training

Product Quality Assurance

Product Pricing Facility

Market Feed Administration

Market Feed Operation

Market Information Mgmt

Financial Market Analysis

Financial Market Research

Quantitative Analysis

Market Data Dissemination Adm

Market Data Dissemination Ops

Financial Instrument Maint.

Reference/Directory Mgmt

Counterparty Administration

Credit Agency Service Ops

Party Data Management

Party Profile

Credit Agency Service Agmt

Syndicate Management

Correspondent Bank Data Mgmt

Sub Custodian Agreement

Product Broker Agreement

Product Service Agency

Contractor/Supplier Agreement

Correspondent Bank Rel Mgmt

Cross Channel

Servicing Position

Servicing Activity Analysis

Contact Routing

Contact Dialogue

Interactive Help

Servicing Event History

Business Command & Control

Business Unit Budget

Business Unit Financial Analysis

Business Unit Financial Ops

Business Unit Accounting

Organizational Model

Business Unit Management

Business Unit Operations

Finance Financial Statements

Financial Control

Financial Compliance Resolution

Tax Administration

Buildings, Equipment and Facilities Property Portfolio

Site Operations

Site Administration

Equipment Administration

Equipment Maintenance

Utilities Administration

Building Maintenance

Internal Audit

Procurement

Fixed Asset Register

Legal Assurance

Supplier Management

Company Billing & Payments

Market Research

Customer Portfolio

Segment Plan

Market Analysis

Competitor Analysis

Product Portfolio

Branch Portfolio

Channel Portfolio

Stock Lending/Repos

Treasury Management

Treasury Administration

Asset Securitization

Factoring

Asset & Liability Management

Bank Portfolio Analysis

Bank Portfolio Administration

Guideline Compliance

Regulatory Compliance

Compliance Reporting

Market Risk Models

Gap Analysis

Credit Risk Models

Customer Behavior Models

Credit/Margin Policies

Production Risk Models

Operational Risk Models

Fraud Models

Liquidity Risk Models

Economic Capital

Business Risk Models

Counterparty Risk

Systems Administration

IT Policies & Plan

IT Arch Stds & Guidelines

Development Environment

System Development

Production Release

System Deployment

Systems Operations

Platform Operations

Systems Help Desk

Systems Assurance

Internal Network Operations

Human Resource Management

Business Direction

Knowledge & IP Management

Corporate Relations

Document Mgmt & Archive

HR Policies & Plan

Employee Assignment

Employee Record

Employee/Contractor Contract

Employee Certification

Employee Assessment

Employee Payroll & Incentives

Travel & Expenses

Employee Access Profile

Employee Benefits

Workforce Training

Recruitment

Corporate Strategy

Corporate Policies

Product & Service Policies

Business Architecture

Continuity Planning

Management Manual

Intellectual Property Portfolio

Knowledge Exchange

Corporate Communications

Corporate Alliance/Stakeholder

Corporate Relationship

Regulatory & Legal Authority

Investor Relations

Document Services

Archive Services

Correspondence

Corporate Products Financial Markets Consumer Products

Security Services

Security Assurance

Financial Inst.Valuation Models

Correspondent Bank Fulfillment

Direct Debit Mandate Mgmt

Direct Debit Fulfillment

Dunning

Syndicated Loan

Location Data Management

Customer Order

Authentication

Authorization

Credit Management

Compliance Checks Open Item Management

Disbursement

Payment Order

Branch Location Management

Cheque Processing

Cash/Currency Inventory

Consolidated Customer Activity

Rewards Points Administration

Billing Services Fraud/AML Resolution

Financial Accounting

The BIAN Service Landscape V2.0

BIAN Service Landscape

Service Domain properties:

◆ a discrete business capability (not a process step)

◆ peer collection covers all business activity (elemental)

◆ acts as an operational service center

◆ can combine people, procedures & systems

◆ capable of being outsourced (one ‘sizing’ test)

◆ does ‘something’ to ‘something’ for the full life-cycle

◆ handle single or multiple instances for a short or long life-span



This use-case shows the integration of the BIAN and ACTUS standards and they

combine to support comprehensive analysis reporting capabilities:



3. Integrating BIAN and ACTUS – The Wireframe and ACTUS-aligned

capabilities



b. ACTUS Case study

5. Questions?



A Brief Explanation of ACTUS

Endre vullumsandio dion endipsummy nos dolobore vel ut alis

amet autem dionseq uismodigna feumsan dionse dolor

ullandre magna feuipsummy nullum ad tin ….

Bank shall pay the sum of __________ USD on __________

(date) to __________ (obligor). Obligor will pay an interest of

____ % on a semi-annual basis and repay the full amount in

____ years.

Date,

Signature

2013.01.011000

Mr. Smith

10

3

Contracts in Reality

Financial Contract Today




ACTUS

Contract Types

Basic Combined

MaturitiesCredit

Enhancements

Non-

Maturities

Securiti-

zation

Credit

DerivativesOptionsSymmetric

CDSWPPAM

ANN

NAM

LAM

ANX

NAX

LAX

CLM

PBN

CSH

UMP

STK

COM

CEG

CEC

SWAPS

SWPPV

FXOUT

FUTUR

OPTNS

CAPFL

BNDCP

BNDWR

CFXOP

IRXOP

STXOP

CMXOP

FXXOP

SCRMR

SCRCRTRSWP

CLNTE




Cash

Undefined

Maturity

Profile

CallMoney

Principal

At

Maturity

Linear

Amortizer

Exotic

Linear

Amortizer

AnnuityNegativeA

mortizerStock

Comm-

odityGuarantee Collateral

Plain

Vanilla

Swap

Swap

Foreign

Exchange

Outright

Future OptionCap

FloorACTUS Primitive Groups

ACTUS Definition Excel(2) 18 Algorithmic Contract Types

Calendar

Contract Identification

Counterparty

Dividend

Fees

Interest

Margining

Notional Principal

Optionality

Rate Reset

Settlement

(1) 114

Elemental

Financial

Contract

Terms

(3) Contract Terms selected by the

Contract Type (can also be further

qualified by Applicability Rules )

The ACTUS Financial Contract Type / Financial Contract Terms

The ACTUS standard defines the processing mechanisms for products in a structured

matrix with 3 dimensions: 1- Contract Terms, 2 - Contract Types, 3 – Applicability Rules




ACTUS Contract Types

CDSWPPAM

ANN

NAM

LAM

ANX

NAX

LAX

CLM

PBN

CSH

UMP

STK

COM

CEG

CEC

SWAPS

SWPPV

FXOUT

FUTUR

OPTNS

CAPFL

BNDCP

BNDWR

SCRMR

SCRCRTRSWP

CLNTE

Financial Contracts Credit Enhancement

Fixed Income Index Based MAR

REP

Maturities Non-MaturitiesPlain Vanilla Exotic Credit Market

BasicCombined /

Derivatives

Symmetric Options Securitization

EXOTi



This use-case shows the integration of the BIAN and ACTUS standards and they combine to

support comprehensive analysis reporting capabilities:



3. Integrating BIAN and ACTUS – The Wireframe and ACTUS-aligned capabilities



b. ACTUS Case study

5. Questions?



Integrating BIAN & ACTUS

The ACTUS specifications are mapped to the BIAN Service Domains…

There are two key ways that the contract terms in the ACTUS Data

Dictionary are related to the BIAN Service Domains:

1. Financial Contract Model - For Service Domains that handle transaction

execution and facility fulfillment, an ACTUS ‘algorithmic’ financial contract is

created for each contract instance (as a Behavior Qualifier)

2. Consolidation & Analysis - For Service Domains that support analysis a feature

is provided to map underlying ACTUS financial contracts to products from

multiple sources for the purpose of performing a wide range of analyses of the

consolidated products, including projecting future cash flows




Cash

Undefined

Maturity

Profile

CallMoney

Principal

At

Maturity

Linear

Amortizer

Exotic

Linear

Amortizer

AnnuityNegativeA

mortizerStock

Comm-

odityGuarantee Collateral

Plain

Vanilla

Swap

Swap

Foreign

Exchange

Outright

Future OptionCap

FloorACTUS Primitive Groups

ACTUS Definition Excel(2) 18 Algorithmic Contract Types

Calendar

Contract Identification

Counterparty

Dividend

Fees

Interest

Margining

Notional Principal

Optionality

Rate Reset

Settlement

(1) 114

Elemental

Financial

Contract

Terms

(3) Contract Terms selected by the

Contract Type (can also be further

qualified by Applicability Rules )

Mapping the BIAN Control Record to the ACTUS Financial Contract Terms

The ACTUS standard defines the processing mechanisms for products in a structured

matrix with 3 dimensions: 1- Contract Terms, 2 - Contract Types, 3 – Applicability Rules

A Service Domain will typically map

to a specific financial contract type




Mapping the BIAN Control Record to the ACTUS Contract Terms

The BIAN Control Record for Product Fulfillment defines semantic information attributes

that map to financial contract terms in the different groups of the ACTUS Data Dictionary

ACTUS Primitive Groups BIAN Control Record Attribute

ACTUS to BIAN Mapping at Semantic Groupings

Description Description

CalendarDefines how the calendar days are to applied allowing

for start and end dates falling on a non-business day❑ Date/Time Type❑ Date/Time

We should probably define a structured calendar

attribute data type

Contract IdentificationDefines the type of contract (product type), the

asset/liability role of the bank

Counterparty

Dividend

Fees

Interest

Margining

Notional Principal

Optionality

Rate Reset

Settlement

❑ Product TypeFields can be directly mapped, the bank’s asset liability

role is derived from the product type at the BIAN level

Defines the counterparty and repayment status and

early/default handling❑ Party Reference❑ Product Configuration

The party reference can be mapped directly – the

repayment rules expand product configuration details

Defines the dividend processing schedule ❑ NA (so far)Not currently applied to any BIAN products, but we

should define a new data type in anticipation

Defines the fee schedule, basis and rate❑ Fees❑ Fees & Penalties

Need to ensure the fee attribute maps cleanly as defined

for the instrument (may have more complex for facilities)

Defines a comprehensive array of interest processing

specific attributes❑ Interest Type❑ Interest Accrued

Need to define structured interest attribute data type and

ensure BIAN attributes can be mapped consistently

Defines the margin handling configuration ❑ NA (so far)Not currently applied to any BIAN products, but we

should define a new data type in anticipation

Defines the complex array of parameters that define the

properties and cash-flow behaviors of the instrument ❑ Principal

We currently define aa simple principal attribute – this

defines the foundational ‘algorithmic data’ properties…

Defines miscellaneous product configuration options ❑ Product ConfigurationWe need to partition general product configuration to

have counterparty, product options & settlement options

Defines the schedule and rules for applying rates over

the life of the product❑ Rate Type

We need to define a slightly more sophisticated data

type that includes a schedule with the rate type

Defines the schedule and rules for settlement ❑ Product ConfigurationWe need to partition general product configuration to

have counterparty, product options & settlement options




Mapping the BIAN Control Record to the ACTUS Financial Contract Terms

The BIAN Control Record for Product Fulfillment defines semantic information attributes

that map to the main ‘primitive’ groupings in ACTUSEvery Fulfillment and

Transaction Service

Domain includes a

Cash-flow Contract

Behavior Qualifier

Semantic

descriptions of the

attributes can be

replaced with the

mapped ACTUS

attributes




CUSTOMER

MANAGEMENT

INVESTMENT

SERVICES

INVESTMENT

SUPPORT

SERVICES

BANK PRODUCTS BACK OFFICE

EXTERNAL PARTNERS

Investment

Portfolio

Management

Servicing

Order

Customer

Relationship

Management

Current

Account

Mortgage Loan

Savings

Account

Customer

Position

Collateral

Asset Admin

Collateral

Allocation

Management

Position

Keeping

Initiate

Retrieve

Provide

Retrieve

Market Data

Switch

Operations

Financial

Market

Analysis

Consumer

Advisory

Services

Retrieve

Provide

Brokered

Product

Information

Provider

Operation

Customer

Prod/Service

Eligibility

Retrieve

Retrieve

Retrieve

Retrieve

Initiate

Capture

Capture

Capture

Initiate

Retrieve

Retrieve

Retrieve

NB: The service connections

in red highlight the

mechanism used to retrieve

customer investment details

from other FIs

Investment

Portfolio

Analysis

Investment

Portfolio

Planning

Investment

Account

Securities

Position

Keeping

Market Order

Financial

Instrument

Valuation

Custody

Administration

Retrieve

Evaluate

Initiate

RetrieveRetrieve

Retrieve

Retrieve

Retrieve

Regulatory

Compliance

EvaluateRetrieve

Retrieve

Capture

KEY:

ACTUS Financial

Contract Model

ACTUS Based

Consolidation & Analysis

Retrieve

Request



This use-case shows the integration of the BIAN and ACTUS standards and

they combine to support comprehensive analysis reporting capabilities:



3. Integrating BIAN and ACTUS – The Wireframe and ACTUS-

aligned capabilities



b. ACTUS Case study

5. Questions?



Extended Model to Consider Enterprise Views

The combination of the BIAN framework and ACTUS financial contract standard

The initial scope to show how BIAN and ACTUS combine for an investment portfolio can be extended to

support far more extensive enterprise-wide perspectives:

❑ Maintain comprehensive views of the bank’s consolidated exposure to major clients, markets and

product types

❑ Support the bank’s overall portfolio risk analysis breaking down the sensitivity to factors such as

segment performance, currency, rate, credit quality etc.

❑ Support a broad range of consistent and more efficient accounting, tax and regulatory reporting

requirements

❑ Improve the bank’s compliance/risk management profile by demonstrating the improved control and

integrity of its internal banking processes

❑ Enable strategic decision support for the enterprise by senior management by consolidating

multiple business divisions and products in a unified representation of the balance sheet at the

account level that can be consistently analyzed and viewed with forward-looking projections of the

total contractual commitments of the bank.

❑ Can do so in a way that is “non-invasive” -- i.e., without disturbing the existing ‘plumbing’ of the

operational IT infrastructure of the bank and its business units – and which can be refreshed as

frequently as desired.

❑ Can combine the transaction processing of operational systems and payments with forward-looking

analytical capabilities using the same financial contract data.




Extended Wireframe to include key Enterprise Analysis Functions

Service Domains – extended to include Group Treasury, Asset and Liability Policy and

Regulatory Relations functions:

FINANCIAL & REGULATORY ASSURANCE

BUSINESS DEVELOPMENT

BANK POLICY MANAGEMENT

CUSTOMERMANAGEMENT

INVESTMENTSERVICES

INVESTMENTSUPPORTSERVICES


EXTERNAL PARTNERS

Investment Portfolio

Management

Servicing Order

Customer Relationship Management

Current Account

Mortgage Loan

Savings Account

Customer Position

Collateral Asset Admin

Collateral Allocation

Management

Position Keeping

Initiate

Retrieve

Provide

Retrieve

Market Data Switch

Operations

Financial Market

Analysis

Consumer Advisory Services

Retrieve

Provide

Brokered Product

Information Provider

Operation

CustomerProd/Service

Eligibility

Initiate

Capture

Capture

Capture

Initiate

Retrieve

Retrieve

Retrieve



Investment Account

Securities Position Keeping

Market Order



Retrieve

Evaluate

Initiate

RetrieveRetrieve

Retrieve


EvaluateRetrieve

Retrieve

Capture

Retrieve

Request

Corporate Treasury

Corporate Treasury Analysis


Financial Control


Regulatory Reporting





Customer Portfolio

Contribution Analysis

Product Portfolio

Segment Direction

InternalData

Switch

Retrieve

Retrieve

Retrieve

Retrieve

Retrieve

Retrieve

Retrieve

Retrieve

Retrieve

Retrieve

Retrieve

A bank can establish an

internal data ‘switch’

providing timely access

to ACTUS based

consolidated

algorithmic transaction

information supporting

a wide range of complex

analysis and reporting

functions…



https://www.fdic.gov/fditech/rpp.html

Rapid Phased Prototyping (RPP)

“The FDIC is excited to launch the Rapid Phased Prototyping

(RPP) program as an opportunity to engage with companies in

an intentional, innovative, and insightful way to deliver cutting-

edge capabilities for the FDIC and its member banks. RPP’s

innovative approach allows the FDIC and awardees to rapidly

and collaboratively co-create solutions, moving from initial

concept paper to final prototype in less than five months.”



https://www.fdic.gov/fditech/rpp.html

ACTUS Financial Research Foundation’s concept supports the

FDIC by demonstrating how the ACTUS open standards provide a

unique opportunity to efficiently collect, consolidate, and analyze

timely financial contract data of bank assets and liabilities. The

ACTUS open-source software algorithms use the ACTUS-defined

contract data in combination with external risk factor models to

generate forward-looking cash flows that allow anyone to quickly

develop and deploy enterprise or systemic risk management

solutions



Financial Data and Risk Management

Contracts

Accounts

Portfolios

Products

Business Units

Departments

Divisions

Legal Entitites

Sectors

Industries

Economies

Holding Companies

Markets

Risk Policies,

Risk Mitigation

Financial Data,

Risk Measures



Business Process and Infrastructure Silos

Business

Data

Transactions

Economic

DataReporting

Balance

Sheet

Income

Statement

Quarterly

Reports

Regulatory

Filings

Market

Data

Business

Analytics

Business Staff

Counterparty

Data

Business Line

Management

Operational

Systems

Executive Management

Information

Technology

Operational

Systems

Operational

Systems

Information

Technology

Information

Technology

Business

Analytics

Business Staff

Counterparty

Data

Business

Analytics

Business Staff

Counterparty

Data

Business Line

ManagementBusiness Line

Management










CUSTOMERMANAGEMENT

INVESTMENTSERVICES



EXTERNAL PARTNERS


Management

Servicing Order


Current Account

Mortgage Loan

Savings Account

Customer Position



Management

Position Keeping

Initiate

Retrieve

Provide

Retrieve

Market Data Switch

Operations

Financial Market

Analysis


Retrieve

Provide

Brokered Product


Operation


Eligibility

Initiate

Capture

Capture

Capture

Initiate

Retrieve

Retrieve

Retrieve



Investment Account


Market Order



Retrieve

Evaluate

Initiate

RetrieveRetrieve

Retrieve


EvaluateRetrieve

Retrieve

Capture

Retrieve

Request

Corporate Treasury



Financial Control







Customer Portfolio


Product Portfolio

Segment Direction

InternalData

Switch

Retrieve

Retrieve

Retrieve

Retrieve

Retrieve

Retrieve

Retrieve

Retrieve

Retrieve

Retrieve

Retrieve




to ACTUS based

consolidated





functions…



CUSTOMER

MANAGEMENT

INVESTMENT

SERVICES

INVESTMENT

SUPPORT

SERVICES


EXTERNAL PARTNERS

Investment

Portfolio

Management

Servicing

Order

Customer

Relationship

Management

Current

Account

Mortgage

Loan

Savings

Account

Customer

Position

Collateral

Asset Admin

Collateral

Allocation

Management

Position

Keeping

Initiate

Retrieve

Provide

Retrieve

Market Data

Switch

Operations

Financial

Market

Analysis

Consumer

Advisory

Services

Retrieve

Provide

Brokered

Product

Information

Provider

Operation

Customer

Prod/Service

Eligibility

Retrieve

Retrieve

Retrieve

RetrieveInitiate

Capture

Capture

Capture

Initiate

Retrieve

Retrieve

Retrieve

NB: The service connections in red

highlight the mechanism used to

retrieve customer investment details

from other FIs

Investment

Portfolio

Analysis

Investment

Portfolio

Planning

Investment

Account

Securities

Position

Keeping

Market Order

Financial

Instrument

Valuation

Custody

Administration

Retrieve

Evaluate

Initiate

RetrieveRetrieve

Retrieve

Retrieve

Retrieve

Regulatory

Compliance

EvaluateRetrieve

Retrieve

Capture

KEY:

ACTUS Cash flow model

ACTUS Consolidation &

Analysis

Retrieve

Request

BIAN Service Domains example



BIAN Service DomainsMapped to ACTUS Algorithmic Contract Types



ACTUS Fundamentals



ACTUS Contract Type Algorithm Taxonomy



ACTUS Data Dictionary and Contract Type Applicability Rules

ACTUS Contract Types

Account ContractsEXTRACT , TRANSFORM , LOAD

Financial Contracts on Bank Balance Sheet

Contract Term

Groups

Calendar

Contract

identification

Counterparty

Fees

Notional Principal

Rate Reset

Settlement



ACTUS Promised Cash Flows



ACTUS Demo App – Cash Flow Events



ACTUS Contract Event Outputs



ACTUS Input Data + Contract Type Algorithms ➔ Output Events Process Flow

EXTRACT, TRANSFORM, LOAD

External Risk Model APICounterparty Data

Position Data from

Production Systems

Risk Factor Scenarios

and Assumptions

ACTUS Standard

Financial Contract

Data

ACTUS Standard

Financial Contract

Algorithms LibraryScenario n

. . .Scenario 3

Scenario 2

Contract Cash Flows

Scenario 1

Balance SheetMultiple ScenarioForward-looking

Cash Flow Results

ACTUS Contracts

Scenarios

Counterparty Data



ACTUS Prototype Development Stages



RPP1- Phase I - Python to map PBank contracts to ACTUS, request cashflows from server



ACTUS Prototype Development Status

Balance Sheet Data Coverage



Loan Data



Time Deposit (CD) Data



Demand Deposit (DD) Data



Product Types

Loan Products Time Deposit Products





Graphical Workflow Automation



ACTUS Prototype Development Status – Graphical Workflow Automation



Map Bank Data ➔ ACTUS Input Data ➔Contract Type Algorithms ➔ Output Cash Flow Events



Position Data from

Production Systems


and Assumptions

ACTUS Standard

Financial Contract

Data

ACTUS Standard

Financial Contract


. . .Scenario 3

Scenario 2

Contract Cash Flows

Scenario 1


Cash Flow Results

ACTUS Contracts

Scenarios

Counterparty Data



Ingest Bank Financial Contract Source Data





Position Data from

Production Systems


and Assumptions

ACTUS Standard

Financial Contract

Data

ACTUS Standard

Financial Contract


. . .Scenario 3

Scenario 2

Contract Cash Flows

Scenario 1


Cash Flow Results

ACTUS Contracts

Scenarios

Counterparty Data




Map Bank Contracts to ACTUS Contract Types





Position Data from

Production Systems


and Assumptions

ACTUS Standard

Financial Contract

Data

ACTUS Standard

Financial Contract


. . .Scenario 3

Scenario 2

Contract Cash Flows

Scenario 1


Cash Flow Results

ACTUS Contracts

Scenarios

Counterparty Data




Generate Forward-Looking, Financial Contract Promised Cash Flows



Converting Cash Flow Results to Discrete Contract Events



Converting Cash Flow Results to Discrete Contract Events (detail)



ACTUS Cash Flow Output Dimensional Tuple

Dataset

ID

Scenario

ID

Counterparty

ID

Contract

ID

Event

Time

Event

Type

Data

Type

Currency

Code

Data

Value



ACTUS Scenario-Specific Counterparty Cash Flows + NPV

NPV

Scenario-specific

Counterparty Cash

Flows



Interactive Dashboard Examples:

Loan Cash Flows by Risk Grade



Loss Rates by [ Risk Grade, Product Type ]



Principal Outflows and Inflows from Origination to Maturity Date by Risk Code



Forward-looking Principal and Interest Cash Flows for Loans, by Risk Code



Integration with Governance, Risk and Compliance

(GRC)and




ACTUS Prototype: Integration with Governance, Risk and Compliance


ACTUS Standard

Financial Contract

Data

ACTUS Standard

Financial Contract

Algorithms Library


Position Data from

Production Systems


and Assumptions

Balance Sheet Multiple ScenarioForward-looking

Cash Flow Results

Other sources

(G/L,

Contract history,

Customer info,

etc)

Contract Cash Flows

ACTUS Contracts

Scenarios

Counterparty Data




ACTUS Standard

Financial Contract

Data

ACTUS Standard

Financial Contract

Algorithms Library


Position Data from

Production Systems


and Assumptions

Governance,Risk and

Compliance


Cash Flow Results

Other sources

(G/L,

Contract history,

Customer info,

etc)

Contract Cash Flows

ACTUS Contracts

Scenarios

Counterparty Data





ACTUS Standard

Financial Contract

Data

ACTUS Standard

Financial Contract

Algorithms Library


Position Data from

Production Systems


and Assumptions

Governance,Risk and

Compliance


Cash Flow Results

Other sources

(G/L,

Contract history,

Customer info,

etc)

Contract Cash Flows

ACTUS Contracts

Scenarios

Counterparty Data

Regulatory Reporting Data and

Analytics




R E S U L T S D A T A S E T S

ACCESS T O S T A N D A R D I Z E D ACTUS D A T A

Dynamic Forward Simulation of the Enterprisewith Supervised ML of Cross-Scenario Risk Correlation

Dynamic

Option-adjusted

Cashflow

Model

Statistical Analysis,

Customer Behavior,

Credit Risk

Multi-factor

Compressor

(error minimized)

Market Data Economic Data

Contract Vectors(optimally compressed)

Dynamic Submodels(Prepayment, Default,...)

Arbitrage-Free

Stochastic Rate

Diffusion

Results Data

Strategy / PlansLiquidity, COF

E X T R A C T , T R A N S F O R M , L O A D

P R O D U C T I O N S Y S T E M S



Compressed

Financial Data Compression( e.g., for Risk Analysis, Reporting & Aggregation )



Tunable

Multi-dimensional

Data Compressor

A C C E S S T O G R A N U L A R D A T A

E X T R A C T , T R A N S F O R M , L O A D

P R O D U C T I O N S Y S T E M S

Financial Data Compression( e.g., for Risk Analysis, Reporting & Aggregation )



F I b

Map

Docking Model

Data Consumer (e.g.

Regulator, Systemic Risk

Analysis )

Map

Docking Model

F I a

S

ACTUS REGULATORY Use Case Example: Financial Institution Data Reporting Consolidation










CUSTOMERMANAGEMENT

INVESTMENTSERVICES



EXTERNAL PARTNERS


Management

Servicing Order


Current Account

Mortgage Loan

Savings Account

Customer Position



Management

Position Keeping

Initiate

Retrieve

Provide

Retrieve

Market Data Switch

Operations

Financial Market

Analysis


Retrieve

Provide

Brokered Product


Operation


Eligibility

Initiate

Capture

Capture

Capture

Initiate

Retrieve

Retrieve

Retrieve



Investment Account


Market Order



Retrieve

Evaluate

Initiate

RetrieveRetrieve

Retrieve


EvaluateRetrieve

Retrieve

Capture

Retrieve

Request

Corporate Treasury



Financial Control







Customer Portfolio


Product Portfolio

Segment Direction

InternalData

Switch

Retrieve

Retrieve

Retrieve

Retrieve

Retrieve

Retrieve

Retrieve

Retrieve

Retrieve

Retrieve

Retrieve




to ACTUS based

consolidated





functions…



BIAN Service DomainsMapped to ACTUS Algorithmic Contract Types



Thank you!



A seat at the table

BIAN Membership



Benefits: Premium versus Freemium



Fees (annual membership)

▪ Large Software / Tech vendors / Integrators

(250 employees or more)

EUR 30.000,-

▪ Banks / FI’s that are not vendors

EUR 20.000,-

▪ Mid-Size Software / Tech vendors / Integrators

(less than 250 employees)

EUR 10.000,-

▪ Federal Banks / Central Banks

EUR 10.000,-

▪ Small Software / Tech vendors / Integrators / FinTech's

(less than 50 employees)

EUR 5.000,-

▪ Academic Partners

EUR 0,-

Member-driven organization



Questions

Please stay muted and type

your Questions in the

righthand bar, or send them to

[email protected]

Date post:	04-Jan-2022
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