4 Ways Low-code Can Support the Digitalization of Financial Services

Financial Services Digital Transformation

Low-code is one of the technologies being rapidly adopted within the hyper-competitive financial services industry. Why? Because companies in the space are seeing an increasing need for process automation across the business and significant customer demand for a seamless digital customer experience.

Leading financial services enterprises realize that a more efficient operating model is required to meet market demands and keep pace with change. In fact, the global risk management survey by EY found that 88% of senior management teams name process automation as the top implementation focus of their digital transformation strategy.

Traditional software development projects can take anything from 6 months up to 18 months to complete.

That’s far too long for any bank or financial services company looking to automate and optimize business processes, simply due to the volume of processes that would need to be addressed. The most likely outcome for those looking to tackle hyper-automation through traditional development is an ever-growing request backlog for more software.

What’s more, financial services firms are not finding it easy to recruit the developer talent they need to tackle their most pressing needs. A recent McKinsey survey revealed that 87% of executives are experiencing skill gaps in the workforce. Perhaps this developer shortage can go some way to explain Cornerstone Advisors’ findings in the ‘What’s Going on in Banking 2021’ report, which states that only 27% of banks have committed to some form of digital transformation. And that’s despite the COVID-19 pandemic forcing many to the digitalization of certain processes out of sheer necessity.

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4 ways low-code development can help

It’s no surprise, then, with pressure from internal stakeholders and customers alike, that many financial services enterprises are turning to low-code development platform to help them combat this harsh landscape.

The good news is that low-code software so has already proven that it can help even the longest standing banking institutions to accelerate their digital transformation projects.

So, without further ado, here are four ways that low-code solutions can help with financial services digital transformation.

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Enable rapid application development

Traditional development methods can take months to build new business applications from scratch, with more complex apps looking at over a year in development. Low-code platforms can reduce these development timelines by as much as 85%, with many solutions delivered in a month or less.

With automated code creation for all the most common aspects of an application, developers are freed up from a lot of tedious hand-coding. Imagine bringing your IT and subject matters experts together, to collaborate effectively on a process optimization flow. This is made possible with an intuitive visual development style, drag and drop tools to map out the process flow, and easy-to-configure user interfaces.

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Boost business agility

The speed benefit of low-code is in play during updates just as it is with the initial build of an application. This means that changes to the app can be made on the fly. Indeed, low-code platforms often foster an iterative development style where teams can build a minimum viable product (MVP) extremely fast, then fine-tune and scale up the application over time.

This ultimately leads to a much more agile organization. For financial services enterprises, who must constantly adapt to market needs, world events, and regulatory changes, this kind of nimble operating profile can prove critical.

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Improve customer experience

Financial services organizations with a lack of process automation in the enterprise should seriously consider low-code technology as a great way to automate a lot of processes very quickly. This can dramatically reduce the amount of time that customers spend waiting for certain processes to complete. For example, the KYC and AML regulatory checks that banks must conduct can be automated during the corporate client onboarding process.

Low-code applications deployed in this area can make a huge difference to both operational efficiency and customer satisfaction by streamlining the way that information and documentation are collected from new customers, just to give an example. Moreover, big data is more easily shared between systems and departments when the application is properly integrated. The resulting solutions provide new customers with an improved digital experience that significantly reduces the time spent in the onboarding and account opening process.

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Provide greater visibility into processes

A lack of visibility in a certain business process or any of its areas is rarely going to yield positive outcomes. Exactly how negative the outcome depends on the process in question. At best, the business might suffer from repeating bottlenecks that it struggles to identify. At worst, the business might be failing to deal with critical problems in a timely fashion.

For example, a banking organization used low-code to build an incident management application for its fleet of ATM and POS devices. Previously, the bank had no way to instantly identify issues that would arise in these networks. What’s more, there were no digital tools for monitoring how and when they are fixed.

Low-code helped the bank build a complete system with Google Maps integration for real-time visibility over the entire fleet of devices, with a ticketing system that enables the bank to take a more proactive strategy, reduce outage time and increase service availability.

Governance and security tools in low-code platforms

Data accuracy, safety, and security are paramount when you’re dealing with clients’ data and money. And with financial services organizations looking to implement software applications to automate processes across the business, this inevitably produces more opportunities for cybersecurity attacks. This makes it of critical importance for financial services companies to consider the tools a low-code platform provides to protect the business from malicious or unauthorized activity.

Only the very best low-code platforms come with built-in governance and security tools, such as user authentication, fine-grained and role-based levels of authorization for accessing different parts of an application, and comprehensive logging. What’s more, every time the platform’s security or governance tools are upgraded, these become instantly available to your entire catalogue of existing apps.

Digital transformation powered by low-code

Financial services companies are finding it tough to transform operational processes and customer experiences into efficient, automated, and fully digital solutions. Due to the developer talent shortage, CIOs within the industry need to look at new options and emerging technologies to help alleviate the stress on technical teams, while helping the business to transform as quickly as possible.

The value of low-code technology is clear, as it is perfectly suited to help enterprises within financial services build new applications that tackle their most pressing needs. However, not all low-code platforms come with the level of security that the industry requires. For those looking to seize the advantage, you just need to make sure you pick the right one.

Want to find out more about the Aurachain low-code platform?

Book a demonstration to see the true power of low-code and discover exactly how your business can get out in front with Aurachain.

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