Question

Role of distributed database managment system in Finance Industry (Banking/ Investing / Insurance/... )

Answer 1

Answer)
A distributed database is the collection of the multiple interrelated databases which are distributed over a computer network and a software system manages the distributed database which contains the data and also uses the metadata.

In the finance industry such as Banking/ Investing / Insurance and other the business is distributed over many countries or many regions in a country. Thus in such a case a single database or a central database structure may not support the entire business. And thus a distributed database is required here.

There are many distributed database systems which can be used to create STRATEGIC advantages and thus the advantages for the Finance industry in this regard are:
a) Managing the data with different levels of transparency and hiding or showing the details of the files which are physically stored into the system
b) Increasing the reliability and the availability of the database system such that it is continuously available during the time interval and thereby improving the reliability
c) The expansion of the database in terms of adding more data and increase in the database size is much easier
d) The performance of the distributed databases are much more as we can do interquery and intraquery parallelism and thereby increasing the performance