# The Role of Open Source in Uncertain Times Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2020-09-21 Category: BANKING Category URL: https://financedigest.com/category/banking Meta Title: How Open Source Technology Benefits UK Financial Services Amid Uncertainty Meta Description: Discover how UK financial institutions are turning to open source technology to navigate regulatory uncertainty and adapt to post-Brexit and COVID-19 URL: https://financedigest.com/the-role-of-open-source-in-uncertain-timeshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/untitled-design-4-1-1736838835803-compressed.jpg) _By **Kris Sharma,** Finance Sector Lead at [Canonical](https://canonical.com/)_ Financial [services](https://www.financedigest.com/incentive-fm-group-strengthenswindow-cleaning-portfolio-with-acquisition.html) are an important part of the economy and play a wider role in providing liquidity and capital across the globe. But ongoing political uncertainty and the consequences of the COVID-19 crisis have deep implications for the UK’s [financial](https://www.financedigest.com/financial-literacy-what-is-financial-literacy-and-why-is-it-important.html) services sector. In a post-Brexit world, the industry is facing regulatory uncertainty at a whole different scale, with banking executives having to understand the implications of different scenarios, including no-deal. To reduce the risk of significant disruption, financial [services firms](https://www.financedigest.com/how-financial-services-firms-can-mitigate-against-their-top-data-security-threats.html "How Financial Services Firms Can Mitigate Against Their Top Data Security Threats") require the right technology infrastructure to be agile and responsive to potential changes. **The role of open source** Historically, banks have been hesitant to adopt [open source software](https://www.financedigest.com/why-should-investors-be-paying-more-attention-to-open-source-software.html "Why should investors be paying more attention to open source software?"). But over the course of the last few years, that thinking has begun to change. Organisations like the [Open Bank Project](https://www.openbankproject.com/) and [Fintech Open Source Foundation (FINOS)](https://www.finos.org/) have come about with the aim of pioneering open source adoption by highlighting the benefits of collaboration within the sector. Recent acquisitions of open source companies by large and established corporate technology vendors signal that the technology is maturing into mainstream enterprise play. [Banking leaders](https://www.financedigest.com/digital-trends-for-banking-leaders-looking-to-compete-in-2022.html "Digital trends for banking leaders looking to compete in 2022") are adopting open innovation strategies to lower costs and reduce time-to-market for products and services. [Banks must](https://www.financedigest.com/lost-in-translation-why-banks-must-learn-the-language-of-their-customers.html "Lost in Translation: Why Banks Must Learn the Language of their Customers") prepare to rapidly implement changes to IT systems in order to comply with new regulations, which may be a costly task if firms are solely relying on traditional commercial applications. Changes to proprietary software and application platforms at short notice often have [hidden costs](https://www.financedigest.com/the-hidden-costs-of-property-investment.html "The Hidden Costs of Property Investment") for existing contractual arrangements due to complex licensing. Open source technology and platforms could play a crucial [role in helping financial institutions manage the consequences of Brexit and the COVID-19 crisis for their IT and digital](https://www.financedigest.com/whose-role-is-it-anyway-why-finance-underpins-data-led-digital-transformation.html "Whose role is it anyway? Why finance underpins data-led digital transformation") functions. Open source software gives customers the ability to spin up instances far more quickly and respond to [rapidly changing](https://www.financedigest.com/rapidly-changing-fashion-lifestyle-is-expected-to-spur-demand-for-clothes-closets-market.html "Rapidly Changing Fashion Lifestyle Is Expected To Spur Demand For Clothes Closets Market") scenarios effectively. Container technology has brought about a step-change in virtualisation technology, providing almost equivalent levels of resource isolation as a traditional hypervisor. This in turn [offers considerable opportunities](https://www.financedigest.com/convenience-offered-by-home-automation-solutions-to-offer-opportunities-for-market-players-iot-has-encouraged-the-demand.html "Convenience Offered by Home Automation Solutions to Offer Opportunities for Market Players; IoT has Encouraged the Demand") to improve agility, efficiency, speed, and manageability within IT environments. In a survey [conducted by 451 Research](https://ubuntu.com/engage/finserv-multi-cloud), almost a third of financial services firms see containers and container management as a priority they plan to begin using within the next year. ![Kris Sharma](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/kris-sharma-450x352-1736838835595-compressed.jpg) Kris Sharma Containerisation also enables rapid deployment and updating of applications. Kubernetes, or K8s for short, is an open-source container-orchestration system for deploying, monitoring and managing apps and [services across clouds](https://www.financedigest.com/uk-to-examine-cloud-services-dominated-by-amazon-microsoft-and-google.html "UK to examine cloud services dominated by Amazon, Microsoft and Google"). It was originally designed by Google and is now maintained by the Cloud Native Computing Foundation (CNCF). Kubernetes is a shining example of open source, developed by a major tech company, but now maintained by the community for all, including financial institutions, to adopt. **The data dilemma** The use cases for data and analytics in financial services are endless and offer tangible solutions to the consequences of uncertainty. Massive data assets mean that financial institutions can more accurately gauge the risk of offering a loan to a customer. Banks are already using [data analytics](https://www.financedigest.com/top-5-data-analytics-trends-for-2023.html "Top 5 Data Analytics Trends for 2023") to improve efficiency and increase productivity, and going forward, will be able to use their data to train machine learning algorithms that can automate many of their processes. For data analytics initiatives, [banks now have the option of leveraging the best of open](https://www.financedigest.com/the-open-banking-revolution-enabling-accessible-and-inclusive-finance.html "The open banking revolution – enabling accessible and inclusive finance") source technologies. Databases today can [deliver insights](https://www.financedigest.com/research-delivers-insight-into-the-global-polymer-surfactants-market-during-the-period-2021-2029.html "Research Delivers Insight Into The Global Polymer Surfactants Market During The Period 2021-2029") and handle any new sources of data. With models flexible enough for rich modern data, a distributed architecture built for cloud scale, and a robust ecosystem of tools, open source [platforms can help banks break free from data](https://www.financedigest.com/mercedes-benz-and-microsoft-collaborate-on-supply-chain-data-platform.html "Mercedes-Benz and Microsoft collaborate on supply chain data platform") silos and enable them to scale their innovation. Open [source](https://www.financedigest.com/german-new-passenger-car-registrations-up-3-in-august-industry-source.html) databases can be deployed and integrated in the environment of choice, whether public or private cloud, on-premise or containers, based on business requirements. These database platforms can be cost effective; projects can begin as prototypes and develop quickly into production deployments. As a result of political uncertainty, financial firms will need to be much more agile. And with no vendor lock-in, they will be able to choose the [provider that is best for them at any point in time](https://www.financedigest.com/finger-pointing-helps-no-one-it-is-time-for-retailers-energy-providers-and-government-to-band-together.html "Finger-pointing helps no one: it is time for retailers, energy providers and government to band together"), enabling this agility while avoiding expensive licensing. As with any application running at scale, production databases and analytics applications require constant monitoring and maintenance. Engaging enterprise support for open [source production](https://www.financedigest.com/amino-acids-premixes-market-overview-analysis-with-application-product-source-opportunity-and-region-2022-2029.html "Amino Acids Premixes Market Overview & Analysis with Application, Product, Source, Opportunity and Region 2022-2029") databases minimises risk for business and can optimise internal efficiency. Additionally, AI solutions have the potential to transform how banks deal with regulatory compliance issues, financial fraud and cybercrime. However, [banks need to get better at using customer](https://www.financedigest.com/why-banks-need-to-embrace-ai-first-customer-service.html "Why Banks Need to Embrace AI-First Customer Service") data for greater personalisation, enabling them to offer products and services tailored to individual consumers in real time. As yet, most financial institutions are unsure whether a [post-Brexit world will focus on gaining more overseas or UK-based customers](https://www.financedigest.com/uk-and-eu-reach-post-brexit-customs-deal-for-n-ireland-the-times.html "UK and EU reach post-Brexit customs deal for N.Ireland-The Times"). With a data-driven approach, [banks can see](https://www.financedigest.com/europes-banks-brace-for-russia-fallout-while-u-s-banks-see-limited-pain.html "Europe’s banks brace for Russia fallout while U.S. banks see limited pain") where the opportunities lie and how best to harness them. The opportunities are vast and, on the journey to deliver cognitive banking, financial institutions have only just [scratched the surface](https://www.financedigest.com/explainer-western-sanctions-on-banks-only-scratch-surface-of-fortress-russia.html "Explainer-Western sanctions on banks only scratch surface of Fortress Russia") of data analytics. But as the consequences of COVID-19 continue and Brexit uncertainty once again moves up the agenda, moving to data-first will become less of a choice and more of a necessity. The number of [data sets and the diversity of data is increasing across financial services, making data integration](https://www.financedigest.com/can-banks-compete-in-the-digitisation-race-without-effective-data-integrity.html "Can banks compete in the digitisation race without effective data integrity?") tasks ever more complex. The cloud [offers a huge opportunity](https://www.financedigest.com/surgical-equipment-market-high-trend-opportunities-offers-future-business-growth-by-2030.html "Surgical Equipment Market High Trend Opportunities Offers Future Business Growth by 2030") to synchronise the enterprise, breaking down operational and data silos across risk, finance, regulatory, customer support and more. Once massive data sets are combined in one place, the organisation can apply advanced analytics for integrated insights. **Uncertainty on the** [road ahead](https://www.financedigest.com/the-road-ahead-what-does-2022-hold-for-the-automotive-supply-chain.html "The Road Ahead: What Does 2022 Hold for the Automotive Supply Chain?") Open source technology today is an agile and responsive alternative to traditional technology systems that provides financial [institutions](https://www.financedigest.com/top-5-security-technologies-that-every-finance-institution-workplace-should-consider.html "Top 5 Security Technologies That Every Finance Institution Workplace Should Consider") with the ability to deal with uncertainty and adapt to a range of potential outcomes. In these unpredictable times, [banking executives need](https://www.financedigest.com/what-banks-need-to-prepare-for-eba-pillar3-disclosure-of-esg-risks.html "What Banks Need to Prepare for EBA Pillar3 Disclosure of ESG Risks") to achieve agility and responsiveness while at the same time ensuring that IT systems are robust, reliable and managed effectively. And with the option to leverage the best of open source technologies, financial institutions can [face whatever challenges](https://www.financedigest.com/how-to-overcome-the-challenges-faced-by-women-in-business-4.html "How to overcome the challenges faced by women in business") lie ahead. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---