Bank digitization requires significant cultural change, and open source software is a significant part of that.
We promote promotes open source for financial services, helping standardize open source software and the APIs to access them through the Open API spec.
In addition to being a technological challenge, open source both results from, and encourages further cultural change in an industry that has not been known for collaboration. Big banks have often spent billions building their own or buying vendor solutions that often get customized to the point where the vendor can no longer support them.
Open source for banking often uses some existing open source technology — Apache, Hadoop, Spark, MySql — and then adds software enhancements for financial services contributed by technology firms, users like banks, and code from developers.
While open source provokes concerns about security, open source can be superior to the security of vendor code.
“With your ability to scan open source software, it may be an advantage to see underlying code. You can reduce the surface area for attacks and ensure utility functions are as stable as possible.”
A second worry about open source is giving away competitive advantage that proprietary software offers.
As they ponder the value of open source, investment banks are re-examining old beliefs. They are looking at their software portfolios to see what adds value and what is a utility function that could be shared across the industry to reduce costs and improve operations without surrendering any competitive advantage,