Low code/no code development holds promise for banking, financial services, and insurance (BFSI) firms to gain agility and cost-effectively build innovative technology solutions – without needing professional developers who are in short supply. Learn about the market potential and provider landscape in this blog.
Digital consumption demand in the (BFSI) industry has seen a heavy uptick in the past year, driven by customer expectations for enhanced experience and the adoption of flexible work options to run businesses.
BFSI firms are under pressure to achieve profitability in an already volatile market and need to be more agile, collaborative, and responsive. These firms have to build stronger ecosystems and overcome the obstacles created by legacy systems.
This has increased demand for professional developers to manage complex technology stacks. But the fast digitization pace has caused enterprises to focus their limited development talent on workflow customization and business-as-usual activities instead of innovation and core product engineering.
Low code/no code technology answers these issues.
Tapping into low code/no code technology
Low code/no code technology has paved its way through these circumstances, easing operations and optimizing costs. This approach provides a visual modeling development tool that business teams can easily use in collaboration with the IT department, reducing the need to hire professional developers who are in short supply.
The exhibit below illustrates the drivers for low code/no code adoption.
BFSI firms are successfully using this method. Let’s look at some examples:
- Marex, a tech-enabled liquidity hub for participants in global commodities and financial markets, selected Genesis to fully digitize middle office workflows for its new equities market-making business
- Unqork, an enterprise software company with a transformational no-code platform for financial services and insurance organizations, secured $73 million in two investment rounds from Goldman Sachs, demonstrating the shifting industry views on building enterprise technology
Low code/no code benefits
Benefits of low code/no code technology for BFSI firms include:
- Reduced internal workflow processing time due to easier integrations, leading to increased efficiency
- Decreased product time-to-market brought about by the simplicity of development
- Increased ease to upgrade or introduce technology without affecting normal business operations because of the microservice architecture offering
- Reduced cost by having internal teams for development and maintenance
- Improved solutions resulting from the business-oriented development focus that combines business knowledge and IT skills
BFSI enterprises also have enhanced customer satisfaction by using low code/no code to quickly and effectively establish digital omnichannel experiences. This has satisfied customers’ appetites for remote consumption and also enabled the ability to personalize services by easily integrating other technologies such as Artificial Intelligence (AI), Machine Learning (ML), and Internet of Things (IoT.) Self-service applications for 24/7 support can be set up with less time and cost using low code/no code.
See common use cases across the BFSI in the image below.
Evolving the low code/no code ecosystem
The low code/no code technology provider landscape is made up of many players as, illustrated below. These include:
- Generalist low code/no code vendors who provide solutions that can be offered to any industry
- BFSI specialist low code/no code providers who offer technology products for BFSI workloads and out-of-the-box accelerators for reusability and quick access
- Big tech companies and core BFSI technology providers who are investing in low code/no code through partnerships, acquisitions, or developing the technology to provide standalone and bundled solutions to their customers
Grabbing the opportunity
Many BFSI firms who have adopted low code/no code technology are reaping the benefits, while others have experienced roadblocks such as limited options to scale the technology across the organization. To achieve success, the right procedures must be set up to avoid any pitfalls. Understanding the internal and external capabilities and challenges while moving along the path is critical.
BFSI enterprises should follow our CASE framework and have a clear vision, assess internal resources, select technology, and execute their roadmap as illustrated below:
For a detailed view, read our report, BFSI Enterprise Adoption Guide for Low-Code/No-Code Technology – Market Trends and Provider Landscape, which covers the market challenges, drivers, and way forward in the low code/no code ecosystem from a BFSI perspective. To discuss this topic, please reach out to [email protected], and [email protected].
Read more about low-code adoption in our blog, Selecting the Right Low-code Platform: An Enterprise Guide to Investment Decision Making.