Monday, April 14, 2008

Why can't the open source software development model help the financial sector?

Why can't the open source software development model help the financial sector? The banks, the lenders, the market, or whatever you want to call it sucks. Layoffs, for sale signs, off shoring, foreclosure, etc, are happening everywhere. In terms of technology, why aren't these companies banding together to help each other to save operating cost?

Sure, sure, sure, there are plenty of proprietary activities going on, but think of all the common activities. Account opening, loan servicing, online banking, these are all common functions of a financial institution. The technology that drives these creates the status quo amongst peers in this industry. How this technology is used and implemented creates the edge, not the actual code, the core functional code. I say, open it up, share it. Standardize the financial platform and raise the bar from technology centric edges to the people and the how.

Now the projects are open to developers across these institutions, across the world, across timezones, across languages. Project funding is now modeled after open source development, donations, grants, government. Need computing power, resources? The major companies will soon be opening their environments to share their unused resource for a price, the financial grid now is born, and even the small guys can contribute as well.

But nobody wants to hear it, everyone needs their arms and control around their code and servers. Trust me, its not as valuable as it appears. The value is the use, the how, not the what.

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