A Digital Twin Architecture for Open Finance
Abstract
The convergence between Digital Twins and Open Finance brings new opportunities. Open Finance enables the collection and sharing of vast amounts of financial data among different market players, such as banks, fintechs, and other institutions. These data can be integrated into a Digital Twin, creating a digital replica of a customer, process, or financial system. This allows for the simulation of various scenarios, such as customer behavior in response to different financial products or services, predicting default trends, assessing credit risks, and optimizing service offerings. In this context, the present article discusses some DT architectures for Finance and presents an architecture specifically designed for Open Finance.
Keywords:
Digital Twin, Architecture, Open Finance
References
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J. McKendrick, "Banks Increasingly Use Digital Twins for Behavioral Modeling," RTInsights, 2023. [Online]. Available: [link]. [Accessed: Sep. 19, 2024].
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S. Zacher, "Digital twins for education and study of engineering sciences," International Journal on Engineering, Science and Technology, vol. 2, no. 2, pp. 61-69, 2020.
E. Badakhshan and P. Ball, "Applying Digital Twins for Inventory and Cash Management in Supply Chains under Physical and Financial Disruptions," International Journal of Production Research, vol. 61, no. 15, pp. 5094-5116, Aug. 2023. [Online]. Available: DOI: 10.1080/00207543.2022.2093682.
M. L. Gomm, "Supply Chain Finance: Applying Finance Theory to Supply Chain Management to Enhance Finance in Supply Chains," International Journal of Logistics: Research and Applications, vol. 13, no. 2, pp. 133-142, 2010.
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Armstrong, "Digital Twin: Financial Technology’s Next Frontier of Robo-Advisor," 2020.
L. S. D. Nagli, Resolução Conjunta Nº 1, 2020, Fundação Getulio Vargas, São Paulo, 2023.
A. G. Siqueira, A. Cardoso, V. F. Martins, and I. F. Silveira, "From Virtual Reality to Digital Twins: The Long and Winding Road," in Symposium on Virtual and Augmented Reality, 2024.
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R. Boffey and G. N. Robson, "Bank credit risk management," Managerial Finance, vol. 21, pp. 66–78, 1995. [Online]. Available: [link].
M. Doumpos, C. Lemonakis, D. Niklis, and C. Zopounidis, "Analytical techniques in the assessment of credit risk," in EURO Advanced Tutorials on Operational Research, Cham: Springer International Publishing, 2019.
Brasil, "Resolução Conjunta No 1, de 4 de maio de 2020," Banco Central do Brasil, Brasília, DF, 2020. [Online]. Available: [link]. [Accessed: Sep. 19, 2024].
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INDUSTRIAL INTERNET CONSORTIUM (IIC), "Digital twins for industrial applications," 2020. [Online]. Available: [link]. [Accessed: Jan. 22, 2023].
Published
2024-11-27
How to Cite
BACHMANN, João Eduardo Cosentino; SILVEIRA, Ismar Frango; MARTINS, Valéria Farinazzo; CARDOSO, Alexandre.
A Digital Twin Architecture for Open Finance. In: LATIN AMERICAN CONGRESS ON FREE SOFTWARE AND OPEN TECHNOLOGIES (LATINOWARE), 21. , 2024, Foz do Iguaçu/PR.
Anais [...].
Porto Alegre: Sociedade Brasileira de Computação,
2024
.
p. 307-314.
DOI: https://doi.org/10.5753/latinoware.2024.245537.
