While many bank technologists are on the fence when it comes to using open platform and open source technologies, start-up bank BankSimple has gone full steam ahead. In fact, according to an article in the American Banker, BankSimple’s co-founder and chief technology officer Alex Payne has used open source technology as the foundation for almost all of its web and mobile applications.
The benefits of open platform and open source technology includes a whole community of developers that are working together to make the platform better. Banks could get more robust functionality at a fraction of the cost using an open platform solution. In addition, greater customization is available by extending an open platform through app development can be a key in delivering a differentiated service. As the geographic constraints in delivering banking services continue to disappear, more focus on truly differentiated financial services is a must.
However, since banks must deliver a consistent and trusted experience for their customers, an open platform over true open source may be the best of both worlds. With a vendor supplied open platform, banks get the benefits of vendor accountability and platform level advances, while still enjoying the freedom to innovate through independent app development.
At US Dataworks, we have seen the benefits of this open platform strategy first hands as several of our key financial institutions clients actively develop unique apps built on the Clearingworks payment processing platform. The open platform strategy allows the bank’s IT staff to focus on delivering the rich customer experience that is custom to the bank, while relying on a commercially proven platform. We see this as truly the wave of the future.
The American Banker article outlines all the considerations banks need to keep in mind when moving to Open Source solutions. You can read the full article here.
Source: American Banker July 2012