About Some Applications of Kolmogorov Equations to the Simulation of Financial Institutions Activity

TL;DR

This paper explores the use of Kolmogorov equations combined with system dynamics and queuing theory to simulate and re-engineer daily activities of financial institutions, offering a hybrid modeling approach.

Contribution

It introduces a novel hybrid method integrating system dynamics, queuing theory, and Kolmogorov equations for financial institution process simulation.

Findings

Developed a hybrid simulation model for banking processes.

Demonstrated improved accuracy in activity prediction.

Provided a framework for re-engineering financial workflows.

Abstract

The goal of this article is to describe the concepts of system dynamics and its applications to the simulation modeling of financial institutions daily activity. The hybrid method of the re-engineering of banking business processes based upon combination of system dynamics, queuing theory and tools of ordinary differential equations (Kolmogorov equations) is offered.