Banking on Collaboration: The 2025 State of Open Source in Financial Services
Hilary Carter | 22 October 2025
This week in New York City at the Open Source in Finance Forum we marked an exciting milestone. This is the fifth consecutive year that Linux Foundation Research and FINOS have collaborated on the State of Open Source in Financial Services Report, and the insights from this year's study are not only impactful for the financial services sector at large, they extend far beyond it.
Before my career turned to open source research, I spent years working in financial services at RBC Royal Bank, Franklin Templeton Investments, and UBS — institutions defined by precision, regulation, and an unrelenting focus on return on investment (ROI). In finance, every decision must justify its value. That’s why I often say that if banks embrace open source, it’s not a passing trend — it’s a signal.
When Banking Becomes the Bellwether
Financial institutions are the ultimate pragmatists. When they move decisively toward open collaboration, it’s because the data supports it. The State of Open Source in Financial Services 2025 report shows precisely that: open source has proven its business case. And, given how ROI-driven this sector is, these findings serve as a bellwether for every other industry evaluating the economic and strategic value of open source.
Open Source as a Strategic Pillar
This year's study captures a turning point in sentiment where open source is no longer viewed exclusively as a cost-saving tactic but is seen increasingly as a value play to build mission-critical infrastructure, mutualize the cost of compliance, and innovate on standards to enable efficiencies for all players in the industry.
The numbers behind it are striking:
93% of respondents say that open source improves software quality.
87% say it delivers tangible business value.
This isn’t speculative optimism; the figures are grounded in practitioner experience. What began as cautious experimentation as reported by FINOS and LF Research in 2021 has evolved into a full-fledged strategic practice woven into the operating fabric of financial services.
In a sector where margins, regulation, and risk intersect, the rise of open source signals something profound: it has become a trusted mechanism for innovation, efficiency, resilience, and value.
If banks embrace open source, it’s not a passing trend — it’s a signal.
Institutional Maturity and the Rise of OSPOs
The most visible marker of open source maturity is the growth of open source program offices (OSPOs). Nearly half of all firms surveyed — and almost two-thirds of large financial institutions — now have one in place.
In 2021, OSPOs were largely aspirational; today they are a structural norm. They connect engineering, legal, compliance, and community engagement — ensuring that consumption, contribution, and risk management are no longer ad hoc, but strategic and measured.
This evolution is a model for other industries that are only beginning to formalize their own open source governance. For those sectors, financial services offers a roadmap — proving that rigor and openness can coexist.
Generative AI and the Productivity Curve
Of all the emerging technologies reshaping financial services, AI — especially GenAI — stands out as the consequential frontier. Nearly half of respondents say that its greatest impact will be in improving developer productivity, not just customer experiences.
This distinction matters. It shows that firms are prioritizing internal capability building: automating testing, accelerating code review, and leveraging open models and frameworks to de-risk their modernization efforts.
Open source plays a vital role here. It provides the transparency, interoperability, and vendor neutrality that financial institutions require, and early adoption in the sector, as we'll report in a separate, soon-to-be-released study, is beginning to yield returns. As other industries pursue AI transformation through open source, they can follow financial sercices lead.
Measuring Real ROI
Perhaps the most powerful indicator that open source has matured in financial services is this: it’s paying off. Nearly one-fifth of respondents report more than $1 million in annual cost savings from open source use, while many others acknowledge efficiency gains and faster release cycles even if the exact numbers are harder to quantify.
But beyond pure financial metrics, institutions are identifying intangible returns — faster innovation, reduced vendor lock-in, and better talent retention.
As one CIO told us, “The ROI of open source isn’t only in dollars — it’s in speed, collaboration, and learning.” For an industry built on measuring outcomes, that statement underscores the shift from cost play to value engine.
From Awareness to Execution
The 2025 findings reveal that the foundations of maturity are firmly established. Open source policies are widespread, OSPOs are operational, and communities are thriving. Yet, like any evolving ecosystem, there’s more work ahead: continuing to measure the value of ROI specific to open source contributions, improving supply-chain security, and addressing persistent concerns about leaking IP.
Still, the overall trajectory is clear — upward, openward, and accelerating.
A Community-Driven Future
As we concluded our presentation in New York, it was impossible not to feel a sense of momentum.
From 2021’s tentative beginnings to 2025’s confident integration, the transformation of open source in finance mirrors the broader evolution of digital collaboration.
The financial services industry — disciplined, data-driven, and ROI-oriented — has become the benchmark for what mature open source adoption looks like.
If banking’s journey is any indication, the lesson for other sectors is simple:
openness isn’t a risk to manage — it’s a capability to scale.
At the Linux Foundation and FINOS, we remain committed to documenting that evolution — one report, one insight, and one community contribution at a time.
Hilary Carter is the SVP of research at The Linux Foundation.