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Modern banking often emphasizes the key component of openness: open platforms, open access and openness to new ideas, business models, technologies and clients. But this openness brings with it some tensions that need to be addressed: ensuring sovereignty of data and preserving cross-border protections for customers and employees, while allowing them to enjoy the benefits of a global entities’ product and market reach across their borders. Human history and evolution would hardly have been possible without the exchange of people and ideas. European civilization was reinvigorated in the early Middle Ages, through the spread of new mathematical ideas, algebra and so on, that only occurred through the movement of Moorish culture and language across its borders. What we have seen on a macro level we can also see on a micro level. Organizations that put up walls between their business units, generally known as silos, are not well positioned to take advantage of new ideas and best practices across the organization.

Borders — both geographic and otherwise — do need some protection, but ensuring that nothing crosses over from one side to the other can lead to declines in profitable development and commercially valuable exchanges. Take the population flows to and from the southern border of the United States.

Decades ago, such as in the 1960s, migratory patterns across the border were typically seasonal. Migrant workers came to the United States from the south to obtain temporary employment in agriculture, perhaps fruit picking, in California and other states. But once the season was over, workers would return home to their families. Since the 1970s, however, borders have been progressively hardened, so that it has become, over time, harder for individuals to cross over and return on a short-term basis.

While acknowledging the importance of maintaining security between borders and ensuring that dangerous elements are kept out, how do our policies and practices ensure that we do allow for the profitable mixing of people, ideas and productive sharing of opportunities? Similarly, banks could operate in ways that allow for greater flow of people and ideas across their borders, business units and regional operating functions. Too often, employees and their leaders establish little fiefdoms that operate in a silo or a vacuum. Laws relating to data sovereignty and public versus private domains are often invoked to inhibit the flow of information within an organization. This, however, need not stem the movement of people across business units and branches that can lead to positive sharing of ideas.

One important item to consider is the growing cross-border nature of the threats posed by cybercriminals and money laundering organizations to banks and the global financing system. Vulnerabilities in one part of that system, if they are not exposed, enable crime organizations to take advantage in another. Yet if banks and regulators are able to find ways to agree protocols and conditions for sharing such information across their borders, with employees appropriately positioned and qualified as far as regulators are concerned, then that wrongdoing can be potentially exposed and addressed without compromising innocent customers’ private information and data privacy rules.

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