Day Ledger Real-Time Average Balance Calculation
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Solution Overview
Problem
Current systems for generating average balance key figures in banking and insurance companies are limited in producing reports for variable time intervals and require significant software/hardware modifications, leading to performance issues and inflexibility.
Innovation Solution
A method and system that allows for the generation of various key figures and reports at run-time using transactional data, storing data as line items in a day ledger, enabling users to select report parameters and generate financial figures over user-specified time intervals without the need for separate data storage for average balances.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Measurement precision
If post-processing is performed to generate average balance key figures from transactional data, then average balances can be calculated, but significant software/hardware modifications are required and performance throughput deteriorates
Solution Approach 1:
The system performs preliminary actions by maintaining transactional data in a day ledger with daily granularity stored and readily accessible. This preliminary organization of data by day enables immediate calculation of average balances for any time interval without requiring post-processing modifications or complex rollup operations, thus preserving system performance throughput while enabling precise average balance calculations.
2Reliability
If a rigid post-processing average balance ledger is used to store average balance key figures, then average balances can be stored, but the system becomes inflexible and cannot produce reports comparing different average balance key figures or operational balance key figures
Solution Approach 1:
The system merges the storage of transactional data and average balance key figures into a single day ledger structure. By storing both the original transactional data and the calculated average balance key figures together in the day ledger with daily granularity, the system enables flexible reporting that can simultaneously access and compare operational balance key figures, average balance key figures, and other financial data without being constrained by separate rigid ledgers.
Solution Approach 2:
The day ledger is designed as a universal data structure that serves multiple functions: it stores transactional data, calculates and stores average balance key figures, and supports various reporting requirements. This multi-functional design allows the same ledger to produce reports comparing different average balance key figures, operational balance key figures, and custom time intervals without requiring separate specialized ledgers for each purpose.
3Reliability
If separate data storage is implemented for average balances alongside transactional data, then average balances can be stored independently, but database storage requirements increase
Solution Approach 1:
The system combines the storage of transactional data and average balance key figures into a single day ledger structure. By integrating both types of data in one ledger with daily granularity, the system maintains data integrity for average balances while avoiding the need for separate dedicated storage structures, thus reducing overall database storage requirements.
Data Source
AI summary
Methods and system consistent with the present invention facilitate the management of financial information. Such methods and systems may receive transaction data, store the transaction data as a line item in a day ledger, receive a request for a report, the request indicating a financial figure, such as an average daily balance, to be generated over a specified time interval, and generate, substantially in real-time or during run-time per the request, a report with the financial figure over the specified time interval using data from the day ledger.