Risk v reward
The conversation was robust and dynamic, touching upon some key industry challenges including trust and security, as well as the more technical and nuanced challenges of adopting open-source technologies within monolithic organisations with a rich history of technical debt.
In an era where flexibility and adaptability are paramount, the discussion revealed that there was a need for big organizations to move away from inflexible proprietary technology in order to keep in step with customer expectations and rapidly changing Fintech trends.
While the table agreed that open-source solutions were an attractive alternative to avoiding expensive vendor lock-in and steering clear of what they referred to as walled gardens, it was acknowledged that deeply ingrained procurement processes can present a significant challenge to open source adoption.
However, convoluted administration issues paled in comparison to concerns surrounding Data integrity and security. Open-source projects by nature, embrace collaboration and community-driven development and innovation, but it is this same openness that attendees sighted as the main concern of working with open-source technologies. In an age where cyber threats loom large, the executives were acutely aware of the importance of maintaining customer confidence and regulatory compliance.
Building awareness and education
They talked about the need to measure the flexibility, innovation, and cost-saving potential of open source adoption, against the perceived security, performance, and compliance risks associated with doing so.
It was acknowledged by several guests that there remains a lack of understanding among some C-Suite executives surrounding the role of open source within their companies, with many still viewing open-source technology as experimental and risky, rather than a well-spring of dedicated community experts and contributors that could play an important role in their company’s innovation, digital transformation, and overarching business strategy.
FINOS
FINOS (Fintech Open Source Foundation), the leading Linux Foundation forum for open-source, open-standard, and open-data collaboration in financial services – has been making strides to help change outdated perceptions by raising awareness of the impact open-source tech is already having in the marketplace and educating decision makers on the potential to harness open source to drive innovation within their own companies. Their newly released report (available to read here) showed that 90% of respondents agreed that open source is valuable to the future of the financial services industry.
Rimma Perelmuter VP of Strategic Growth, FINOS
Fujitsu: a pioneer and partner in open source
Fujitsu also played an important role in the demystification and alleviating of security and performance concerns in the open source space. Fujitsu’s 20+ years of dedication to co-creation and collaboration in open source development, aligns seamlessly with the shifting landscape of the banking sector. Their expertise and experience can serve as a guiding light for banks who are looking for a trusted and experienced managed service to help them harness the potential and navigate the intricacies of open source adoption.
The future of AI + open source in FSI space
As the US banking industry charts its course into the future, the open-source journey promises to be an exciting one. Amidst the recognition of challenges, there was a palpable sense of optimism regarding the benefits of embracing open source within the US banking market. In particular, the integration of open source and artificial intelligence (AI) projects, and the transformative power of this technology. Due to the flexibility and scalability of open-source solutions, many of the AI projects currently in the pipeline within the banking sector rely on open-source software. As AI continues to reshape the banking sector, open source will continue to play a pivotal role in driving innovation and efficiency at an unprecedented pace.
Marcos Figueiredo Director, Global Offering Management and Center of Excellence
Looking ahead
As banks continue to grapple with the need for innovation and agility, open-source technology offers a compelling path forward.
With Fujitsu's guidance and the industry's commitment to collaboration, the US banking sector is well-positioned to harness the potential of open source in a secure and responsible manner. The journey is just beginning, and the future holds the promise of a more flexible, collaborative, and innovative banking landscape.
You can grab hold of the material that we presented during the session by downloading the PDF below.
