The Common Domain Model (CDM) was created to solve exactly that kind of problem. It offers a shared vocabulary for describing what happens inside a financial transaction - how it starts, changes, and finishes - so that every platform, report, and control function can interpret it in the same way. When language becomes common, communication becomes automatic.

In capital markets this idea has already proved its worth. Firms that adopted CDM discovered that once trade events are defined in one consistent format, the usual reconciliation work almost disappears. Audits become faster; compliance becomes easier. The model replaced argument with agreement. For many of us in retail banking, that same breakthrough now feels overdue.

Think about how ordinary products behave. A mortgage payment, a card refund, a salary credit - all describe the same movement of money, yet every internal system labels it differently. One calls it “instalment received,” another “incoming transfer,” a third “scheduled debit.” None of them are wrong, but together they create noise. CDM clears that noise by giving everyone the same grammar. The transaction looks identical in the branch, in the contact centre, and in the regulator’s dataset.

That small change has large consequences. Staff spends less time translating data and more time serving customers. Risk teams get the comfort of a single version of truth. Regulators receive information that is ready to use, not something that needs weeks of cleaning. And customers notice the difference when a query that once took days is solved in a single call.

The FDC3 standard brings another layer of connection. Where CDM structures the data, FDC3 handles the conversation between applications. It allows one piece of software to pass context to another without scripts or middleware. When a service agent opens a customer profile, the analytics system, payments tool, and risk dashboard can all react instantly because they understand the same context. It feels human - one screen follows the next naturally, as if the technology were thinking along with the user.

This pairing of CDM and FDC3 creates something powerful: a foundation where collaboration replaces integration. Banks stop writing one-off connectors and start building on shared logic. The cost and risk of transformation drop sharply, while the quality of data and speed of insight improve.

Open-source collaboration gives this movement its strength. Standards such as CDM and FDC3 are not owned by one company; they are maintained by a community through FINOS. That means progress is constant. As new use cases appear, contributors refine the model together. Each improvement is published openly so that the next institution doesn’t have to start from zero.

Adopting open standards does not erode competitive advantage - it refines it. When the basics are common, differentiation happens where it matters: in the customer experience, in analytics, in innovation. The shared foundation simply ensures that creativity is not wasted solving the same plumbing problems again and again.

For any bank, the right starting point is small. Choose one process that regularly causes reconciliation or reporting headaches - payments, onboarding, or internal transfers. Map it to CDM definitions. Let two applications exchange information using FDC3 messages. See what happens when the friction disappears. Once people experience that simplicity, the case for scaling up makes itself.

This journey is as much cultural as technical. It asks banks to view cooperation not as risk but as resilience. When knowledge is shared, errors surface faster and are fixed collectively. When the foundation is transparent, trust grows.

The move from data to dialogue is more than a slogan. It captures the heart of what open source can deliver: turning information into understanding. Data alone describes; dialogue connects. Retail banking now has the tools to make that connection real.

The next decade will reward the institutions that recognise this shift early. Technology budgets will always be tight, regulations will always evolve, and customer expectations will only rise. The banks that thrive will be those that use open standards to align people, processes, and platforms into one continuous conversation.

CDM gives us the language. FDC3 provides the voice. Together they allow banking, finally, to speak with it - and with the customers who have been waiting to be heard.

Explore CDM:

• Review CDM documentation and sample models on FINOS and GitHub.
• Take the free 90-minute Introduction to CDM course.
• Watch the CDM YouTube Masterclass Series (e.g., Trade Reporting or CDM workflows).
• Use ISDA's CDM Start-Up Guide for applying CDM to CSA data structures (including DRR and Collateral).
• Join CDM working groups: Derivatives, Collateral, Tokenized Assets, Physical Risk, Technology Architecture, and more.
• Join the CDM mailing list and attend community meetings/showcases.

Explore FDC3:

• See the FDC3 GitHub repository for code/documentation, contribute, or take free training.
• View the FDC3 overview page and sign up for more info.