A structured database is a type of database that stores data in tables and columns, where each column has a predefined data type and each row represents a record. Structured databases are also known as relational databases, because they use keys and relationships to link data across tables. Structured databases are ideal for placing financial data, because they offer the following advantages:
They are ACID compliant, which means they ensure the integrity, consistency, and reliability of transactions.
They support a range of data types, such as numbers, dates, strings, and currencies, which are suitable for storing and manipulating financial data.
They allow complex queries and calculations using SQL, which is a standard and widely used query language for financial analysis and reporting.
They are collaborative, secure, and stable, which are essential features for managing and sharing financial data among multiple users and applications.
References: Database Types Explained {11 Database Types Explained} - phoenixNAP, Learn the Basics of Databases for Financial Professionals - Datarade, Data Sources in Financial Modeling - Definition, Types, CompTIA IT Fundamentals (ITF+) Certification Guide, pages 218-219.
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