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      Question

      What is 'data warehousing' and how does it differ from a

      traditional OLTP database?
      A Data warehousing stores real-time transaction data that can be used for data analytics; OLTP stores historical data that can be used for analytics Correct Answer Incorrect Answer
      B Data warehousing is a backup system; OLTP is the primary transaction system Correct Answer Incorrect Answer
      C Data warehousing uses NoSQL; OLTP always uses relational databases Correct Answer Incorrect Answer
      D Data warehousing is a subject-oriented, integrated repository optimized for analytical queries; OLTP databases are optimized for high-speed, real-time transaction processing Correct Answer Incorrect Answer
      E There is no practical difference β€” both serve the same purpose Correct Answer Incorrect Answer

      Solution

      OLTP (Online Transaction Processing) handles day-to-day operations β€” withdrawals, deposits, transfers β€” with high concurrency, small fast transactions, normalized schema. Data Warehouses (OLAP β€” Online Analytical Processing) store historical, aggregated data from multiple sources for business intelligence, trend analysis, and reporting β€” denormalized star/snowflake schemas optimized for complex queries. Banks use data warehouses for credit risk analysis, fraud detection models, regulatory reporting (RBI returns), and customer segmentation.

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