The FI e-standardization blues
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Have you seen the movie "A beautiful mind"?  In case
you have not it is about a Nobel-prize winner (disturbed
but brilliant at the same time), who's primary thesis is
an game optimization theory that goes as follows:

"You gain more by doing something that your entire group
 gains by, than by doing something that only benefits yourself"

I believe this applies extremely well the establishment of
infrastructure standards.

An industry which seems completely unaffected by this theory as
well as by the virtual cemetery of earlier failed proprietary efforts,
is the financial sector.  Even in a very small country like Sweden
the FI sector (only comprising of 4-5 major banks) have
managed to not unite on:
- Electronic invoices (3 different) [1]
- On-line payment systems (4-5 different)
- Citizen electronic ID software/system (3-4 different)

A recent US example is NACHA's Project ACTION, were
the members preferred shelving the entire project rather than
putting it in the public domain where it might have spurred the
creation of a highly needed on-line payment system standard.

It is also interesting to note that banks in spite of their heavy
use of IT, are virtually invisible in general standardization
efforts and that they in their own standardization efforts,
often charge huge member fees excluding a lot of potentially
useful people and organizations.

I believe it is time for the financial industry to [re]enter the
21st century with an open mind instead of unmotivated fear.

Anders Rundgren

1] After 5 years(!) of unsuccessful operation, they have finally
concluded that the customers' apparently have no interests in
supporting three invoicing "standards" that essentially do the
same thing.


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