Financial Data Engineering

Chapter 10. The Monitoring Layer

After designing and implementing the ingestion, storage, transformation, and delivery layers, the final layer to build is the monitoring layer. This layer is crucial for tracking and reporting on the financial data infrastructure’s performance, reliability, and quality.

Data monitoring is a continuous task requiring close collaboration between financial data engineers and business teams. It enables financial institutions to operate securely, compliantly, and efficiently in a rapidly changing environment. More specifically, monitoring is needed for the following functions:

Operational continuity and efficiency

As financial data infrastructures grow in complexity, monitoring becomes vital to ensure operational continuity, system availability, efficiency, cost optimization, and optimal performance.

Compliance

Effective monitoring is crucial for financial institutions to meet regulatory requirements. It enables the detection and prevention of fraud and other suspicious activities, while also facilitating accurate and timely regulatory reporting.

Risk management

Financial institutions face a range of risks, including financial, credit, fraud, and operational risks, each with potentially significant costs. Monitoring plays a critical role in promptly and effectively detecting and mitigating these risks.

When designing this layer, the first question you should ask yourself is what components of your financial data infrastructure you need to ...