Business Intelligence & XBRL @ MPS
Paolo Lombardi
Banca Monte dei Paschi di Siena
VII European Banking Supervisors XBRL Workshop
Munich, Bundesbank, 9th -10th May 2007
Message & Agenda
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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 Semanticbased Knowledge Management for more efficient
banking in the Basel II-modified scenario.
MUSING, MPS & XBRL
VII European Banking Supervisors XBRL Workshop
Munich – 9th-10th May, 2007
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Monte dei Paschi di Siena
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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.
MUSING, MPS & XBRL
VII European Banking Supervisors XBRL Workshop
Munich – 9th-10th May, 2007
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MPS’s balance sheet in XBRL
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Since 2005, the first
Italian bank to publish it
on its website
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MUSING, MPS & XBRL
Filing the BS in the
absence of a
Jurisdiction: XBRL is a
“de facto” standard
VII European Banking Supervisors XBRL Workshop
Munich – 9th-10th May, 2007
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www.musing.eu
MUSING – MUlti-industry, Semantic-based
next generation business INtelliGence
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VII European Banking Supervisors XBRL Workshop
Munich – 9th-10th May, 2007
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The MUSING initiative
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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
MUSING, MPS & XBRL
VII European Banking Supervisors XBRL Workshop
Munich – 9th-10th May, 2007
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MISSION
STATEMENT
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...
MUSING, MPS & XBRL
VII European Banking Supervisors XBRL Workshop
Munich – 9th-10th May, 2007
S&T EXCELLENCE
MUSING delivers next-generation knowledge
management solutions and services to enable
perceptive Business Intelligence (BI) activities,
directly at the End-Users premises.
MULTI-INDUSTRY
PARADIGM
The rationale of MUSING
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End-users needs and needed R&D
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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.
MUSING, MPS & XBRL
VII European Banking Supervisors XBRL Workshop
Munich – 9th-10th May, 2007
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Credit merit assessment for
customers & prospects
MUSING, MPS & XBRL
VII European Banking Supervisors XBRL Workshop
Munich – 9th-10th May, 2007
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Value Chain
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Business Intelligence services offered by MUSING in
the Financial Risk Management value chain.
PROCESS DATA
ACQUISITION
INFORMATION
PROCESSING
Collection and
structuring qualitative
and quantitative data.
The source of these
data may be both
internal and external.
MUSING, MPS & XBRL
RISK
MEASUREMENT
CREDIT ISSUING
AND
COMMUNICATION
Data evaluation
Credit scoring
Communication with
the clients
CREDIT
MANAGEMENT
DELIVERY
Management of the
Credit Issuing process
Credit monitoring
BI products packaging
and delivery
VII European Banking Supervisors XBRL Workshop
Munich – 9th-10th May, 2007
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Target Users in various fields
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MUSING targets a broad spectrum of influential users.
Target industry
End-users
Specific target profiles
Financial Risk
Management
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SMEs
Micro businesses
Financial Institutions
Rating Agencies
Public-data info providers
Info providers
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Entrepreneurs
CFOs
Financial Analysts
Raters
Investors
Risk Managers (CROs, …)
CPAs
Internationalisation
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SMEs
Large enterprises (wholesale,
direct marketing, telco, …)
Financial Institutions
Internationalisation agencies
Import/export consultancy firms
Info providers
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CEOs / COOs
VPs business development
Financial Analysts
International traders
Investors
Consultants
IT-intensive SMEs
Service / Application providers
Public Utilities
Large enterprises (wholesale,
direct marketing, telco, …)
Research Institutions
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CTOs
Entrepreneurs
Business Continuity
Managers
Risk Managers
SW developers
Quality Managers
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IT Operational Risk
Management
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MUSING, MPS & XBRL
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VII European Banking Supervisors XBRL Workshop
Munich – 9th-10th May, 2007
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Working examples
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Automatic upload of Balance Sheets
Blending of qualitative & quantitative knowledge for
prospect evaluation
Enterprise self-assessment
MUSING, MPS & XBRL
VII European Banking Supervisors XBRL Workshop
Munich – 9th-10th May, 2007
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MUSING and XBRL
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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, MPS & XBRL
VII European Banking Supervisors XBRL Workshop
Munich – 9th-10th May, 2007
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Opportunities for collaboration
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Co-organisation of a workshop-like event on usage
of next generation of business intelligence in banking
Host-a-pilot initiative (see musing.eu)
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VII European Banking Supervisors XBRL Workshop
Munich – 9th-10th May, 2007
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Conclusion & next steps
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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.
MUSING, MPS & XBRL
VII European Banking Supervisors XBRL Workshop
Munich – 9th-10th May, 2007
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Contact
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
MUSING, MPS & XBRL
VII European Banking Supervisors XBRL Workshop
Munich – 9th-10th May, 2007
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