Full Data Model upgrade

This article presents the benefits of the full commercial over the Open Source core version.

Starting with the latest 2020/Q1 release: Commercial licenses get the two data models:

  • FIB-DM Normative, 1968 entities, the industry-standard derived from FIBO Production.
  • FIB-DM Informative, 4563 entities, a new model derived from the latest FIBO Development version.

The full version adds 900 normative entities in additional packages for Securities, Derivatives, Indices & Indicators. The permissive commercial license includes data model resources. This overview discusses license terms, maintenance, and pricing.

Audience

The FIB-DM extended overview is for technical and business users and decision-makers.

Lego Data Architect (icon)

As a data architect, you are already evaluating the Open Source Version. You downloaded the FIB-DM core, and if not on PowerDesigner, imported the model file into your data modeling tool. Now you want to unlock the additional packages and entities of the extended version.

Lego Ontologist (icon)

As an ontologist, business analyst, or finance user, you like the FIBO concepts, definitions, and FIB-Concept maps. You want to fully utilize the MS-Excel, PowerPoint, and Visio model resources.

As a decision maker, your team asks for an upgrade of the FIBO data model. You want to align with the industry standard, but need to fully understand license terms and cost of ownership.

FIB-DM extended vs core

FIB-DM Core is a comprehensive, self-contained, high-quality blueprint for smaller financial service providers, academic research, and independent data architects. More than 900 users, mostly European and North American Banks, downloaded the free version released under GNU General Public License (GPL-3.0), an Open Source Initiative® recommended license.

The FIB-DM Informative model release packages and their main dependencies.
FIB-DM Core, Normative and Informative Packages

The commercial version unlocks 900 new Normative entities in three packages for investment and financial markets.

Securities package

Model entities, relationships, attributes, and inheritances of the Securities package have their code starting with the prefix fibo-sec. E.g.

CodeName
fibo-sec-sec-id:SecurityIdentifierSecurity Identifier
  • Equities
    equity instruments, depository receipts, equity issuance, limited partnership equity, shareholder rights, and shareholder equity
  • Bonds
    concepts relating to cash debt instruments, listings, tax treatment, debt guarantees, parity variants, participation notes, and cash flow
  • Money Markets
    Repos, term deposits and short term debt
  • Other Securities
    baskets, parametric schedules, pools, securities classification, securities identification, issuance, listings, restrictions, and assets.

Derivatives

Model objects in the Derivatives package start with fibo-der.

fibo-der-cr-cds:CreditDefaultSwapContractCredit Default Swap Contract
  • Basic Contracts
  • Asset derivatives
    asset baskets, bond options, bond return swaps, equity forwards, equity options, equity swaps
  • Commodities
    commodities contracts, commodity delivery, forwards, options, spots, swaps
  • Credit Default Swaps
  • Exchange-traded derivatives (options and futures)
  • Fx derivatives (forwards, options, spots, swaps)
  • Rate derivatives
    forward rate agreements, inflation swaps, interest rate options, interest rate swaps, OTC index options
  • Rights instruments and other miscellaneous forms of derivative contracts.

Indices & Indicators

Model objects have a prefix starting fibo-ind.

fibo-ind-ir-ir:InterbankBidRateInterbank Bid Rate
  • Market Indices
    baskets, credit, and debt indices
  • Economic indicators, economic measures
  • Market-based interest rates and foreign exchange
  • Common interest rates, inter-bank lending and rates of debt instruments.

View or download the MS-Excel reports for a complete list of Package and Entity names, codes, and definitions of the Normative and Informative 2020/Q1 data models.

The Informative model derived from FIBO Development.

Corporate Actions & Events

A Corporate Action is an event that brings a material change to the company or securities issued by the company. Two hundred thirty-nine new base entities support Corporate Actions for bonds and shares, as well as communications and elections.

Collective Investment Vehicles

The new package for Investment Funds has One Hundred Nine new base entities defining Fund types, strategy, administration, units, and management.

Market Data

In finance, market data is the price and trade-related data for a financial instrument reported by a trading venue such as a stock exchange. Market data allows traders and investors to know the latest price and see historical trends for instruments such as equities, fixed-income products, derivatives, and currencies. (Wikipedia)

Two hundred forty-nine base entities define the temporal concepts of Market Data, Security Status, and Analysis Curves.

Business Processes

Business Processes is not a generic package (yet). The focus for the two hundred eighty-one entities is on Securities Issuance and the Financial Context of Trade, Clearing, Settlement, Custody, and Market.

I advocate more generic BP content in supporting ontology derived BPMN models!

Loans

The largest new package with more than three hundred entities is the most anticipated enhancement for FIB-DM users. Sub packages Loan Core & Mortgage and Extended provide the framework. Loan temporal covers origination, status, and payments. Loan Types defines subtype entities for retail and commercial loans.

FIB-DM Loan Entities stacked column chart
FIB-DM Loan Entities stacked column chart

Loan (core)

The main package for sub packages supporting Collateral, Guarantees, Basic Terms, Parties, and Regulatory aspects.

Collateral

Entities in this package describe the concept of loan collateral and loan property collateral in the context of collateralized securitized loans.

Guaranties

This package defines various kinds of guaranty for different kinds of loans, along with the concept of a loan guarantor. These include mortgage loan related guaranty terms.

Basic Loan Terms

This is the core package for loan entities. These include loan purposes, loan payment terms, and parties.

Loans Parties

Entities in this package define the parties to a loan, including borrowers and third parties such as collateral providers and loan servicers.

Loans Regulatory

This package contains entities relating to regulatory requirements around loans, including disclosure rights and a small number of regulation-specific concepts. These include definitions of rights conferred on borrowers under consumer protection law, rights to equal treatment, and the like.

Loan Core & Mortgage

The main package for core and mortgage-related sub-packages.  Entities in the sub-packages define the loan contract and the US Home Mortgage Disclosure Act (HMDA) support.

Loan Core Ontology

This package defines the fundamental concepts for loans, with emphasis on mortgages.  The loan contract is the core concept. It includes the primary obligations to fund the loan and to pay it back according to payment schedules. The contract is also connected to various parties including borrowers, lenders, and originators.  Kinds of loans covered in this ontology include open and closed-end, secured, and mortgages.  Another major thread of the loan core ontology is credit risk assessment, which includes property appraisals, security agreements, pre-approvals, credit scores, and credit reports.

Loan HMDA Ontology

This package defines entities specific to the HMDA rule. This includes the concept of an HMDA report as well as specializations of the core classes for pre-approval requests, covered loan contracts.
The Home Mortgage Disclosure Act (HMDA) is US regulation.

Loan Extended

The main package for LN extensions. The current development packages LN, LNX, and Loan are likely to be reorganized in Production

Loans General

This package contains a small number of additional entities for general loan terms. These are mainly based on lists of values such as income verification methods, risk levels, and documentation types, as referred to in the loan application process.

Loan Generic Ontology

This ontology defines a number of concepts that are not specific to a loan and belong in more general FIBO ontologies. They are in the process of being moved over. This ontology will eventually go away.

Loan Temporal

The main package for temporal aspects such as loan status, phases, and events. Sub packages are for  Loan Applications, Appraisal, Borrowers, Construction Loans, Collateral, Events, LTV, Phases, Status, and temporal.

Loans Temporal core

Loan concepts with a date or time component. For example, amounts outstanding, loan balances, and interest rates at a given point in time.

Loan Applications Temporal

The package defines entities for the loan application process, including the temporally sensitive concept of loan phases, along with kinds of the loan application and the parties thereto.    These concepts include mortgage loan applications, which will need to be integrated with the HMDA-based work in Loan Contracts.

Loans Appraisal

Entities relating to the appraisal of a loan, including mortgage borrower assessment information and repossession history.

Loan Borrowers Temporal

The package provides temporally sensitive entities elating to loan borrowers themselves, including such concepts for different kinds of the borrower (corporate and personal). These include things like credit statuses, payment history, and facts about the borrower at assessment and at other times.

Construction Loans Temporal

Temporally sensitive concepts relating to construction loans.    At present The package simply defines the basic concept of a snapshot in time for a construction loan. Additional details will need to be added.

Loan Collateral Temporal

The package covers date-sensitive facts about the collateral provided for a collateralized loan, including security collateral.

Loans Events

The package defines a wide range of events relating to loans. These include legal proceedings, prepayments, events affecting the collateral such as valuation, purchase, and sale and details of many of these concepts.    Note that most of this material was derived from an earlier EDMC activity with IBM Research and is substantively based on a logical data model from that exercise.

Loans LTV

The package defines the concept of a loan to value (LTV) ratio, including both the original LTV at application and the same concept as a variable over time.

Loan Phases

Entities in this package define the phases in the life of a loan, including delinquent loans, up to the point where the loan is repaid.    Future integration of this work should be based on the lifecycle concept, in the same way as product lifecycles.

Loans Status

The package defines the kinds of status that a loan may be in at various stages in its lifecycle, based on the more general temporal concept of statuses. These include the statuses of legal proceedings, of loan performance, of prepayment, and of the loan itself, e.g., active or in arrears.

Loan types

The main package for loan types. Loan types are Construction Loans, Commercial Loans, Credit Products, General Loans, Mortgage Loans, Personal Loans, Loan Products, Student Loans, Secured and Unsecured Loans. The package is a folder for sub-packages and doesn’t contain entities.

Construction Loans

Construction loans are loans in name only, in that the concept referred to as a construction loan is effectively a credit facility, with separate draw-downs (loans as defined in these ontologies) upon evidence of completion of agreed stages of the construction project. Note that for completion., Some basic project management terms such as milestones are already included but will need framing within more foundational concepts for project management.

Commercial Loans

Commercial loans are loans where the loan purpose is some commercial purpose. Note that these are distinguished by the loan purpose, not by the borrower type – borrowers may be corporate or personal, though in the majority of cases they would also be corporate loans that are loans with a corporate borrower.

Credit Products

Terms specific to the existence and extension of credit. Includes terms like home equity lines of credit which may be referenced in asset-backed securities. It also includes credit card facilities.

General Loans

This ontology is for different kinds of general loans such as motor loans and marine finance.   Other types of general loans such as those for motorhomes or other specified purposes would also go in this ontology, which is not complete.

Mortgage Loans

Loans that have collateral posted as security and where that collateral is real-estate and the real estate which makes up the collateral is purchased with the funds loaned. This ontology covers a range of mortgage concepts and parties, along with categories of mortgage loan purpose (remortgage, second home, etc.)   Note that much of the material in this ontology will also have been covered in the separate Loan Contracts module, and is to be integrated. The terms here are not intended not to be specific to US mortgage loans or HMDA reporting but are more general.

Personal Loans

Loans where a borrower is a natural person.

Loan Products

The ontology describes loan and mortgage loan products. A product as defined here is something marketed and offered for sale, in this case, a loan, such that when a customer takes on the product, they become signatories to a corresponding loan contract. A loan product in this sense is a contractual, off-the-shelf product with terms corresponding to those in the actual contract when it is signed.   Note that considerable work has been done on products to support a separate loan product concept in the HMDA-derived Loan Contracts module, so this work now needs integrating with that or deprecating

Secured Loans

This package provides entities relating to secured loans. All loans are either secured or unsecured, and secured loans are secured either by collateral or by the guaranty. This ontology covers these core concepts, so that mortgage loans, where the collateral is more specific, can be built on to of this. These concepts may not be needed for stand-along application-specific ontologies for mortgage lending as the concepts here provide the abstractions for the definition of mortgage loan concepts and differentiates them from other categories of loan. These intermediate abstractions may or may not be presented in the separate Loan Contracts module for mortgage loans.

Student Loans

A loan or series of loans made for the purposes of study at some institution of learning.   This ontology and much of the common supporting information on loan applications are based on extensive review and input from Sallie Mae in the US, and there may be other variants of student loans that are not covered here. For example, in principle, a student loan may be framed as a credit facility in some arrangements and as a single loan with separate payment phases in others.

Unsecured Loans

This package is a companion to the Secured Loans package and defines loans for which there is no security, either as a guaranty or as collateral.    Note that for most applications this ontology would not be needed. It is provided in order to provide a conceptually complete account of the kinds of loans there might be. While most people would not lend on this basis, the concept still exists.

Loan types / hierarchies

The diagram gallery on the Bank-ontology website shows the loan types sub-package. There are four major hierarchies, Commitments, Loan Agreements, Borrowers & Facilities, and Mortgage Purpose.

Loan Agreements

The agreements (contracts) hierachy is subtype to the Fundamental Concept defined in the Froundation package.

Data Model Resources

A colossal data model can be overwhelming. New users need introduction, training materials and references. As a bonus the commercial license grants unrestricted permission to copy, edit, lift off, and even rebrand the extensive FIBO data model resources for internal use.

Visual guide to data model resources
Visual guide to data model resources
  • 100 Entity Relationship Diagrams in SAP PowerDesigner and Scalable Vector Graphic (SVG)
  • 170 pages of education courseware in MS-PowerPoint
  • 6 hours of webinar videos
  • 50 pages articles & whitepapers
  • MS-Excel reports MS-Visio stencils and templates

You find the public Diagrams and Resources on the FIB-DM website’s main menu. Licensees receive a ZIP-file with all data model resources. You are encouraged to edit, translate, and reformat the materials as your organization training materials. The only restriction is that you can’t pass them on to third parties.

License Agreement

The agreement is a standard commercial license for intellectual property. The plain English Jayzed Data Models IPLA defines organization (you), intellectual property, information model (the FIB-DM), Derived Work, and Distribution.

“Derived Work” is any work based upon the data model. They can be Modifications (e.g., scoping, adding entities) or secondary works (migrating the model or generating a physical model). You own the title to derived works that you create, but you can not distribute them to third parties.

You should not remove the EDM Council, Object Management Group, or Jayzed copyright and license notices on the model and derived works. Treat the FIBO data model as you would the original ontology.

For bona fide distributions, you can request waiver free of charge. For example, collaborating with other licensed Financial Institutions, or publishing your presentations based on model resources.

Read the full template license agreement here.

TopicDetailYour current
General Public License 3.0
Your upgrade
Jayzed Customer License
FIBO Release2018/Q42020/Q3
DomainPublicPrivate
DistributionOriginal FIB-DMencouragedprohibited
Your FIB-DM derived worksOpen SourcePrivate, not applicable
Number of Entities10291,968 (normative)
4,563 (informative)
FIBO ModulesFoundation
Business Entities
Finance, Business & Commerce
SecuritiesX
DerivativesX
Indexes & IndicatorsX
InformativeLOANSX
FundsX
Corporate ActionsX
Market DataX
Business ProcessesX
ResourcesPowerPointsX
VideosX
WhitepapersX
FIB-DM General Public 3.0 vs. Customer License

In summary, the Open Source license requires you, to copyleft, that is to license your derived models to the public.

The proprietary Customer commercial license agreement lifts the GPL 3.0 license requirement. In other words, you keep your FIB-DM Enterprise and other models secret. However, you must not share the extended Full modules.

Likewise, for the public all Education materials are subject to copyright – you are welcome to distribute the original, but you must not modify any articles, Excel files, PowerPoints, or videos.

With a customer license, you are free to modify, translate, edit, and even lift off images and diagrams as long as they remain within your organization.

Maintenance 

The Enterprise Data Management Council has exciting new business content in FIBO Development. Two thousand five hundred new entities supporting investment management and banking loans. 

FIB-DM 2020 new packages and entities
The pie-in-pie chart shows the number of entities in the current packages and the breakout pie of new FIB-DM packages.

Read the detailed article about the 2020 outlook here.

There is no official release plan for the Financial Industry Business Ontology. Finalizing the Development modules, rigorous review, and QA depend on the availability of EDMC members providing subject matter experts.

The EDM Council releases new FIBO Production and Development versions every quarter.

FIB-DM follows the schedule and has two new data models versions, six weeks after the new FIBO release.

The optional maintenance contract, besides support, entitles you to twelve months of free upgrades.

Pricing

Licenses are priced for institution size, using your EDMC membership tier as a segment.

Line of BusinessMetricTier ATier BTier C
Sell SideConsolidated Capital$10B+$500M-$10B<$500M
Buy SideAssets under Management$200B+$50B-$200B<$50B
CustodyAssets under Custody$1,000B+$100B-$1,000B<$100B

Introductory License prices start at $15,000 – a fraction of competing vendor industry data models. Central Banks, Multilateral Lenders, and other qualifying financial institutions get the Tier C price, irrespective of asset size.

The optional 12 months maintenance contract costs 20% of the license price. E.g., $3,000 per year for a Tier C financial institution.

Note: The above prices are indicative. They will raise as the model gets bigger. Please, always request a quote.

Conclusion: upgrade now

  • The FIB-DM commercial license unlocks the full FIBO data model.
  • Update to the latest 2020/Q1 FIBO release.
  • Education materials help to get started and master the industry standard.
  • The introductory pricing is a compelling offer.
  • A maintenance contract keeps your reference model up to date and in sync with the FIBO.

Look up your EDMC membership tier or balance sheet and receive a formal quote. Contact us with any questions or to arrange a meeting. Thanks!

Jurgen Ziemer, Jayzed Data Models, Inc., jziemer@jayzed.com

References

Article FIBO/FIB-DM Normative and Informative models: https://fib-dm.com/normative-and-informative-fibo-data-model-version/

Specification of the offer (spreadsheet):