Business Intelligence & XBRL @ MPS

Business Intelligence & XBRL @ MPS

Business Intelligence & XBRL @ MPS

Paolo LombardiBanca Monte dei Paschi di Siena

Paolo LombardiBanca Monte dei Paschi di Siena

VII European Banking Supervisors XBRL Workshop

Munich, Bundesbank, 9th -10th May 2007

MUSING, MPS & XBRLMUSING, MPS & XBRL VII European Banking Supervisors XBRL Workshop Munich – 9th-10th May, 2007

VII European Banking Supervisors XBRL Workshop Munich – 9th-10th May, 2007 2 2

Semantic-based Business Intelligence broadens the field of applications of XBRL & provides practical opportunities for integration of Basel II principles with excellence in banking practice.

The Monte dei Paschi di Siena Bank is currently exploring such an evolution path, moving from several years of practical usage of XBRL.

Today’s presentation will briefly describe our experience at MPS on XBRL, vis-à-vis Research & Development activities in the field of Semantic-based Knowledge Management for more efficient banking in the Basel II-modified scenario.

Semantic-based Business Intelligence broadens the field of applications of XBRL & provides practical opportunities for integration of Basel II principles with excellence in banking practice.

The Monte dei Paschi di Siena Bank is currently exploring such an evolution path, moving from several years of practical usage of XBRL.

Today’s presentation will briefly describe our experience at MPS on XBRL, vis-à-vis Research & Development activities in the field of Semantic-based Knowledge Management for more efficient banking in the Basel II-modified scenario.

Message & AgendaMessage & Agenda



Banca MPS is the organization leading the Monte dei Paschi di Siena Group (Italy's fourth largest banking group).

We pride ourselves with being the oldest bank in the world (founded in1472), yet maintaining strong inclination for product and services innovation.

Our mission is centered on Commercial Banking and excellence in distribution, maximizing the value of our 2000 active branches.

Banca MPS is the organization leading the Monte dei Paschi di Siena Group (Italy's fourth largest banking group).

We pride ourselves with being the oldest bank in the world (founded in1472), yet maintaining strong inclination for product and services innovation.

Our mission is centered on Commercial Banking and excellence in distribution, maximizing the value of our 2000 active branches.

Monte dei Paschi di SienaMonte dei Paschi di Siena



Since 2005, the first Italian bank to publish it on its website

Since 2005, the first Italian bank to publish it on its website

MPS’s balance sheet in XBRLMPS’s balance sheet in XBRL

Filing the BS in the absence of a Jurisdiction: XBRL is a “de facto” standard

Filing the BS in the absence of a Jurisdiction: XBRL is a “de facto” standard



MUSING – MUlti-industry, Semantic-based next generation business

INtelliGence

MUSING – MUlti-industry, Semantic-based next generation business

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The MUSING initiativeThe MUSING initiative A Consortium of 15 organisations from 9 European

countries carrying out a Research & Technology Development project (2006-2010) in the field of knowledge management, sponsored by the European Commission (Sixth Framework Programme - IST).

The paradigm: to integrate advanced Semantic Web and Human Language technologies for development of Business Intelligence (BI) applications towards industries with a deep socio-economic impact.

User-driven initiative, 3 industrial verticalisations: Financial Risk Management (FRM) Internationalisation (INT) IT Operational Risk (IT-OpR)

The pervasively-used standard: XBRL

A Consortium of 15 organisations from 9 European countries carrying out a Research & Technology Development project (2006-2010) in the field of knowledge management, sponsored by the European Commission (Sixth Framework Programme - IST).

The paradigm: to integrate advanced Semantic Web and Human Language technologies for development of Business Intelligence (BI) applications towards industries with a deep socio-economic impact.

User-driven initiative, 3 industrial verticalisations: Financial Risk Management (FRM) Internationalisation (INT) IT Operational Risk (IT-OpR)

The pervasively-used standard: XBRL



The rationale of MUSINGThe rationale of MUSING

MUSING delivers next-generation knowledge management solutions and services to enable perceptive Business Intelligence (BI) activities, directly at the End-Users premises.

By applying innovative technological solutions, MUSING provides exclusive BI services for three application areas, all with high social impact. MUSING is committed to find other industries where its solutions can be deployed.

The above is realised through development of an innovative, self-adapting BI system that integrates and specialises high-level semantic technologies; by combined use of declarative rule-based approaches & statistical methods in semantic technology; by accounting for temporal logic; and more...

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Bound to R&D: High potential for more competitive banking services, but no off-the-shelf solutions in Semantic-based BI…

Here are some specific scientific and technological objectives: Development of an innovative, self-adapting BI system

that integrates and specialises high-level semantic technologies for supporting next level of effectiveness in operations in different industries;

Combined use of declarative rule-based approaches and statistical methods in semantic technology;

Modelling and recognising evolving knowledge accounting for temporal logic;

Support to development of innovative technologies that enable enterprise’s self-assessment.

Bound to R&D: High potential for more competitive banking services, but no off-the-shelf solutions in Semantic-based BI…

Here are some specific scientific and technological objectives: Development of an innovative, self-adapting BI system

that integrates and specialises high-level semantic technologies for supporting next level of effectiveness in operations in different industries;

Combined use of declarative rule-based approaches and statistical methods in semantic technology;

Modelling and recognising evolving knowledge accounting for temporal logic;

Support to development of innovative technologies that enable enterprise’s self-assessment.

End-users needs and needed R&D

End-users needs and needed R&D



Credit merit assessment for customers & prospects

Credit merit assessment for customers & prospects



Business Intelligence services offered by MUSING in the Financial Risk Management value chain.

Business Intelligence services offered by MUSING in the Financial Risk Management value chain.

Value ChainValue Chain

Management of the Credit Issuing process

Credit monitoring

BI products packaging and delivery

Data evaluation

Credit scoring

Communication with the clients

Collection and structuring qualitative and quantitative data.

The source of these data may be both internal and external.

INFORMATION

PROCESSING

PROCESS DATA

ACQUISITION

RISK MEASUREMEN

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CREDIT ISSUING AND

COMMUNICATION

CREDIT MANAGEMENT

DELIVERY



Target industry End-users Specific target profiles

Financial Risk Management

SMEs Micro businesses Financial Institutions Rating Agencies Public-data info providers Info providers

Entrepreneurs CFOs Financial Analysts Raters Investors Risk Managers (CROs, …) CPAs

Internationalisation

SMEs Large enterprises (wholesale,

direct marketing, telco, …) Financial Institutions Internationalisation agencies Import/export consultancy

firms Info providers

CEOs / COOs VPs business

development Financial Analysts International traders Investors Consultants

IT Operational Risk Management

IT-intensive SMEs Service / Application providers Public Utilities Large enterprises (wholesale,

direct marketing, telco, …) Research Institutions

CTOs Entrepreneurs Business Continuity

Managers Risk Managers SW developers Quality Managers

Target Users in various fieldsTarget Users in various fields MUSING targets a broad spectrum of influential

users. MUSING targets a broad spectrum of influential

users.



Automatic upload of Balance Sheets

Blending of qualitative & quantitative knowledge for prospect evaluation

Enterprise self-assessment

Automatic upload of Balance Sheets

Blending of qualitative & quantitative knowledge for prospect evaluation

Enterprise self-assessment

Working examplesWorking examples



We strive to develop Business Intelligence services that support & automate the interactive process of analyzing and exploring structured & unstructured information to discern trends or patterns, thereby deriving insights and drawing conclusions, through flexible reporting.

In the above the MUSING Consortium of Partners is a convinced user of XBRL, and we “spontaneously support” usage of the standard: Among our target user communities Within the industrial R&D Framework Programme of EC

itself

We strive to develop Business Intelligence services that support & automate the interactive process of analyzing and exploring structured & unstructured information to discern trends or patterns, thereby deriving insights and drawing conclusions, through flexible reporting.

In the above the MUSING Consortium of Partners is a convinced user of XBRL, and we “spontaneously support” usage of the standard: Among our target user communities Within the industrial R&D Framework Programme of EC

itself

MUSING and XBRLMUSING and XBRL



Co-organisation of a workshop-like event on usage of next generation of business intelligence in banking

Host-a-pilot initiative (see musing.eu)

Co-organisation of a workshop-like event on usage of next generation of business intelligence in banking

Host-a-pilot initiative (see musing.eu)

Opportunities for collaborationOpportunities for collaboration



While the XBRL local jurisdiction acts as a catalytic element for practical applications, XBRL is already the de-facto standard for performing business intelligence in the banking industry, making possible to conjugate Basel II-compliant frameworks, process automation, and transparency requirements.

More MUSING services to be tested in the next 3 years: opening for collaboration with other European financial institutions, as per the spirit of the EC-funded R&D initiative.

Invited speech at the XBRL Conference in Munich: sneak preview of MUSING services running with XBRL in applications in various European countries.

While the XBRL local jurisdiction acts as a catalytic element for practical applications, XBRL is already the de-facto standard for performing business intelligence in the banking industry, making possible to conjugate Basel II-compliant frameworks, process automation, and transparency requirements.

More MUSING services to be tested in the next 3 years: opening for collaboration with other European financial institutions, as per the spirit of the EC-funded R&D initiative.

Invited speech at the XBRL Conference in Munich: sneak preview of MUSING services running with XBRL in applications in various European countries.

Conclusion & next stepsConclusion & next steps



www.musing.eu

[email protected]

Paolo Lombardi, Distribution Channels Department – Banca Monte dei Paschi di Siena S.p.A.

www.musing.eu

[email protected]

Paolo Lombardi, Distribution Channels Department – Banca Monte dei Paschi di Siena S.p.A.

Acknowledgements – Support from the European Commission, under the IST Programme, project IST-27097, is gratefully acknowledged

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Business Intelligence & XBRL @ MPS