BTL 730 - Digital Twins and Banking

 

The Banking Tutor’s Lessons

BTL 730                                                                          03-12-2024

Digital Twins and Banking

A digital twin is a virtual model of a physical object.

It spans the object's lifecycle and uses real-time data sent from sensors on the object to simulate the behaviour and monitor operations.

Digital twins can replicate many real-world items, from single pieces of equipment in a factory to full installations, such as wind turbines and even entire cities.

Digital twin technology allows you to oversee the performance of an asset, identify potential faults, and make better-informed decisions about maintenance and lifecycle. 

Benefits of Digital Twins

Improved Performance

Real-time information and insights provided by digital twins let you optimize the performance of your equipment, plant, or facilities. Issues can be dealt with as they occur, ensuring systems work at their peak and reduce downtime.

Predictive Capabilities

Digital twins can offer you a complete visual and digital view of your manufacturing plant, commercial building, or facility even if it is made up of thousands of pieces of equipment. Smart sensors monitor the output of every component, flagging issues or faults as they happen. You can take action at the first sign of problems rather than waiting until equipment completely breaks down.

Remote Monitoring

The virtual nature of digital twins means you can remotely monitor and control facilities. Remote monitoring also means fewer people have to check on potentially dangerous industrial equipment.

Accelerated Production Time

You can accelerate production time on products and facilities before they exist by building digital replicas. By running scenarios, you can see how your product or facility reacts to failures and make the necessary changes before actual production.

Digital Twin in Banking

Digital banking channels like apps and online banking have a digital facsimile of a customer’s financial life and enable customers to transact remotely, and all without having to interact with currency, checks, or other physical stores or representations of value.

If a single digital twin has value for a financial institution, imagine the value as a predictive, regulatory, and security mechanism of having tens of thousands. The interactions of each would help increase the detail and accuracy of models based upon them.

Twins also have a role to play in eliminating counterfeits like fake cards, or any other object that can be duplicated.

By adding blockchain technology to the mix, the authenticity of both physical and digital assets, products, or other wares can be guaranteed and their provenance proven.

Using a mirrored environment also allows for more appropriate and precise contingency and incident response plans. And if changes are made to parts of those plans, the other constituent parts can adapt and reconfigure accordingly. This can also make it easier to coordinate responses across interlinked business units, or with third parties as necessary.

A digital twin works by digitally replicating a physical asset in the virtual environment, including its functionality, features, and behavior. A real-time digital representation of the asset is created using smart sensors that collect data from the product. You can use the representation across the lifecycle of an asset, from initial product testing to real-world operating and decommissioning.

Digital twins use several technologies to provide a digital model of an asset. They include the following.

Internet of Things (IoT)

Artificial Intelligence (AI)

Machine Learning (ML)

Digital Twins compared to Simulations

Digital twins and simulations are both virtual model-based simulations, but some key differences exist. Simulations are typically used for design and, in certain cases, offline optimization. Designers input changes to simulations to observe what-if scenarios. Digital twins, on the other hand, are complex, virtual environments that you can interact with and update in real time. They are bigger in scale and application.

 

Sekhar Pariti

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