Introduction Open source software is ubiquitous across industries, and FINOS comprises more than 64 member organizations who financial services is no exception. While organizations join together to innovate on open source software, open actively engage in implementing open source technologies standards, and data technologies unique to the financial that are essential for day-to-day operations, on its own, open services sector, including in cloud services, financial desktop source strategy is under-heralded as a viable pathway to applications, and beyond. competitive advantage. At the same time, companies that dismiss open source as not competitively relevant do so to Once again, FINOS, in partnership with Linux Foundation their detriment. The opportunities that open source creates Research, launched a new study to understand the use for financial services organizations include lowering the total of open source among financial services organizations, cost of ownership of IT infrastructure, increasing the time to including banks, asset managers, and hedge funds. Working market for digital applications, and keeping a competitive with GitHub, Red Hat, and Scott Logic, this new empir- posture when it comes to talent recruitment and retention. ical research study was initiated with the goal of creating an industry-wide resource to be accessible by all financial For all the benefits that open source creates, financial services organizations to inform their open source strategy, services firms face unique obstacles that preclude more with comparisons to the inaugural study published in 2021 to fulsome participation in the space. In a similar fashion to show directional trends. the healthcare and public sectors, financial services orga- nizations are bound—for good reason—by strict regulatory This report explores and compares the current landscape frameworks, where the cost of noncompliance comes in the of open source consumption, contribution, leadership, and form of punitive fines and damaged corporate reputations. governance in the financial services sector, focusing on how Consequently, a cautious approach is often the order of the the industry has changed in a short amount of time. With day when it comes to managing innovation, where internal insights from subject matter experts at leading organiza- policies concerning open source contribution can often range tions across the sector, the report sheds light on the strategic from outright prohibitive, at worst, to restrictive, at best. opportunities and organizational benefits created by open source as well as the challenges unique to the industry. The Fintech Open Source Foundation (FINOS) exists to provide guidance in navigating regulatory imperatives while enabling parties to realize the benefits of open source collaboration. In addition, FINOS aims to create a path to sustainable innovation, accelerating collaboration among a networked community of competitors, who have come together to solve common challenges and pain points, while enjoying a host of benefits. THE 2022 STATE OF OPEN SOURCE IN FINANCIAL SERVICES 7