In partnership with the Linux Foundation, the third annual Fintech Open Source Foundation (FINOS) “State of Open Source in Financial Services” report was unveiled on November 1st, 2023 at the Open Source Strategy Forum in New York City.
The report was authored by Hilary Carter, Adrienn Lawson and Stephen Hendrick of the Linux Foundation, Cara Delia of Red Hat, Tosha Ellison of FINOS, Colin Eberhardt from Scott Logic, Philip Holleran of GitHub.
The report consisted of survey findings from the financial services industry, including fintechs and partners. It paints an exciting picture for the industry in that it not only reveals current trends but also addresses the challenges and opportunities within the financial services sector.
What are the key takeaways?
Open source is part of the future of financial services
Widespread Recognition: 90% of respondents agree that open source is valuable to the future of financial services, highlighting the sector’s understanding of its significance.
Open source program offices are common
Significant Impact: Organizations with Open Source Program Offices (OSPOs) are over 80% more likely to have a formal review process for evaluating OSS components, highlighting the influence and importance of OSPOs in fostering a culture aligned with open source best practices and culture.
Adoption Rate: 52% of respondents report having an OSPO in their organization, showcasing the increasing adoption of focused open source management practices.
Open source is driving more value
Increased Value: 78% of organizations agree that they are getting more value from open source compared to the previous year, demonstrating a continuous improvement in the benefits derived.
Time dedicated to open source contributions is increasing
Increased Time Allocation: A significant 65% of respondents report having more time allocated for open source contributions, indicating a growing commitment to collaborative efforts.
There is confidence in security in what is being consumed
Growing Confidence: A total of 91% of respondents express confidence in the security and current status of the open source software they are consuming.
Open source is driving productivity
Driving Productivity: "Open sourcing internally developed projects" is recognized as the top factor for increasing productivity at work, with inner-source closely following.
Open source is central to the future of cloud, artificial intelligence and cyber security
Most Valuable Technologies: The report identifies artificial intelligence/machine learning (AI/ML), cybersecurity and cloud/container technologies as the most valuable open source technologies for the financial services industry.
The 2023 State of Open Source in Financial Services report not only showcases the progress made by the industry, but also highlights the pivotal role open source plays in shaping the future of financial services. As organizations continue to evolve and adapt, the collaborative spirit of open source remains a driving force, unlocking new possibilities and ensuring a resilient and innovative future for the financial services sector.
The full report can be found below
About the author
Aric serves as the Chief Technologist on Red Hat's Global Financial Services team, where he helps clients meet their strategic priorities through the use of open source technology. Prior to joining Red Hat, he led large, digital transformation projects at Goldman Sachs’ Investment Management Division and was co-founder/CTO of several FinTechs in equity and FX trading.