Low-code concepts reduce the gap between corporate and IT functions, allowing both teams to work together to solve business needs. Ankit Uppal explores how banks can use these to automate operations and transform the customer experience.

The successive waves of technological disruption have dramatically changed the way financial service (FS) organizations create value for customers, employees and other stakeholders. The relentless pressure to innovate, cope with the pace of regulatory requirements and solve problems faster than ever is leading an increasing demand for applications and software solutions. FS organizations are increasingly adopting low-code platforms for rapid application development in a cost-effective manner.

Leveraging graphical user interface and drag-and-drop capability, low-code platforms can dramatically increase the speed of creation for sophisticated enterprise-class applications. These applications can incorporate complex business logic, automate workflow, integrate with existing information systems and enable a slick user experience. The low-code platform eliminates the need for creating frameworks, linking databases and other tasks that are typically included in the traditional development. Even novices without programming skills can use it to develop applications with relatively little aid from the IT department. 

A plethora of applications

Many banks are using low-code platforms that come prepackaged with microservice-based architecture and Cloud-native functionalities, helping them collaborate with FinTech players to deliver advanced consumer value propositions and deliver sustained innovation across the front, middle and back-office functions. Globally, prominent banks are adopting low-code to:

  • Enhance the customer experience: deploying digital solutions such as self-service customer portals, mobile applications and other digital platforms to promote an intuitive digital customer experience. Through low-code platforms, organizations build once and deploy everywhere so web and mobile users get the same experience. This multi-channel consistency helps boost productivity and enhance collaboration.
  • Automate and orchestrate existing processes: leveraging the robust business process automation engine of low-code platforms to orchestrate multiple different applications. This allows the organization to build seamless experiences–an onboarding journey that orchestrates several systems, risk, AML, workflow, along with providing a front-end channel.
  • Modernize legacy systems and uplift the employee experience: Building NextGen business applications using low-code platforms to supplement legacy systems such as core banking systems. This adds flexibility, enhances functionality and elevates the user experience (UX) and user interface (UI) of packaged software products.

With traditional software implementations, business leaders across FIs often focus on two things when it comes to low-code platforms: how long will it take to become operational and how much it is going to cost? Low-code platforms have proven to be up-to ten times faster than traditional software implementation. The speed at which low-code applications can be developed is one of its key propositions, as well as the cost efficiency of being able to deploy one technology for unlimited applications. Based on our experience, the total cost of ownership can be reduced by up-to 40%–considering it is implemented at the right scale–as compared to traditional software development. Because of its simple building block approach, low-code allows complex projects to be accomplished quickly, sometimes even in a few weeks.

Gartner predicts that by 2024, low-code and no-code tools will likely account for more than 65% of all application development within enterprises. This is how the landscape is evolving for the future of application development. Low-code is going mainstream, replacing traditional development, and becoming the customization layer for the software as a service (SaaS) solution.

Low-code in action

Low-code platforms can be used for digital transformation to streamline operations and improve the overall customer experience; this requires a modern and agile IT architecture to replace legacy systems. Applications include:

  • Front-end, mobile-first, fully responsive digital experiences
  • Digital “know your customer” authentication and document signature
  • Integration with business partners via the application programming interface (API) Digital assets shared across all products, channels and partners
  • Replacing 70% of core systems F

Is are quickly realizing that low-code can be leveraged for a lot more than merely citizen developers building good-looking apps at speed. There is a clear shift in the way lowcode is being consumed in banking. We are seeing more banks lean toward developer-centric platforms that enable serious and complex banking applications.

The unifying fabric of the digital enterprise Leading organizations are already looking ahead to a connected future where low-code platforms — by the adoption and convergence of emerging technologies, will unify front, middle and back office functions.

  • Front office

Low-code will enable harmonious multichannel user experiences across applications, and faster time-to-market for new product and service offerings.

  • Middle office

Low-code will improve the integration and automation of the processes that span the enterprise, add a unifying orchestration layer across the organization’s many different applications, and bring a digital user experience to legacy systems.

  • Back office

Low-code will modernize legacy systems, automate mundane, disconnected and manual tasks, and reduce the dependency on traditional, costly and lengthy custom development projects.