Present-day banks and financial institutions understand that pursuing digital transformation initiatives is imperative to remain competitive in this evolving market landscape. The customer landscape is also rapidly changing. It is vital to become customer-centric and take fruitful initiatives to enhance the customer experience. Among these initiatives, banking application development is the fundamental pillar of digital transformation. The right approach can be an absolute game-changer. Rather than crafting custom applications from scratch (often takes years), low-code solutions are a popular approach for financial institutions.
Building applications from scratch is not only time-consuming but also expensive and involves multiple rounds of testing and refinement. Low-code solutions offer this fantastic pathway to mitigate technical debt by enabling swift and agile development with visualized and fully automated workflows and a continuous cycle of testing and feedback.
Did you know that the banking, financial services and insurance (BFSI) sector presently constitutes a third of the entire low-code solutions market, according to a recent statistic? It is no wonder that the need to build business apps quickly and cost-effectively has propelled the share.
A severe developer skill gap
Besides, financial institutions are facing several challenges in recruiting the developer talent they need to address their pressing needs. A recent McKinsey survey further cements this fact, revealing that 87% of executives face skills gaps within their workforce.
With a pressing shortage of developer talent, the critical need to provide a great customer experience, and boost digital capabilities in a fast and cost-effective manner, harnessing low-code solutions is the way to achieve this for financial institutions. Low-code platforms assist busy engineers in rapidly constructing frontends over existing data utilizing pre-built capabilities, while enabling the organization’s internal users to create innovative applications that address diverse business challenges through a zero-code approach.
In this blog, let us understand how banks and financial institutions can use low-code solutions to develop and streamline their applications in a fast and cost-effective manner.
How do low-code solutions streamline banking applications?
Low-code platforms such as Power Apps enable internal business teams to be innovative and develop customized, robust applications swiftly and securely. These applications enhance both internal functions and the customer experience. Low-code development can help in achieving speed, stability, and agility and thereby transform other vital operational aspects of the banking system. Let us understand by observing the benefits.
Accelerate app development and innovation
As you are aware now, low-code platforms accelerate software development and make it a much easier and smoother process. Business users can actively build it without much developer involvement and make the application more user-friendly and successful. When it comes to developing new automation tools and incorporating the latest banking digital practices, low-code development facilitates the process.
Lower developer risks
Since the majority of the code is already pre-made graphics, it is difficult to spoil a low-code banking app development. Moreover, the custom code areas of the app have AI-powered quality assurance testing at every stage of its development. So, the platform will detect any inconsistency in the code and allow the developers to proceed only if the code is fixed. Furthermore, since low code has tight involvement of business users or domain experts along with the developers, it is unlikely that there is a glass wall between them. This will result in the resultant app being more responsive to the business goals, streamlining every app function to its business goals. Even if there are any issues, using the low-code version history feature, developers can track back to the issue and take back the code to an earlier stage. This agility is lacking in traditional development and is a significant benefit when using low code.
You can scale low-code apps up or down as per the need. The reusable components in low-code solutions enable seamless scalability. When it comes to integrating new features or even third-party services with full security features, it is easier to do so in a low-code banking app within hours rather than days or weeks. The business user can add new and simple features to the app without involving a professional developer, thus expediting the process and allowing smooth scalability.
Lesser service failures
The presence of pre-made code components makes low-code financial applications sustain the consistency of the code. As a result, these applications are less susceptible to failure. Additionally, low-code platforms also come with incorporated software testing/debugging tools that alert users about errors in the app’s performance. This feature further lowers the risks of app failures.
Benefits of low-code: Bringing about transformation
Low code platforms such as Power Apps enable teams to construct a minimum viable product (MVP) swiftly. The MVP can then be refined and gradually scaled up over time. In the fiercely competitive and evolving landscape, banking institutions need to adapt to market demands, changes in regulations, and global events. Having an iterative approach towards app development can significantly enhance business agility.
Enhanced customer experience
Banking and financial institutions maintain regular communication with customers and undergo business functions consistently. Having low-code technology can help them automate many of these processes rapidly and seamlessly. By expediting many crucial processes, low code reduces the waiting time for many operations to conclude. The outcome is truly enhanced customer experience. For instance, streamlining KYC and AML regulatory checks during the customer onboarding process leads to an enhanced and hassle-free customer experience.
Low-code solutions enable digital transformation
Banking institutions can embrace digital transformation without making enormous financial investments with the help of low-code solutions. The dependency on professional developers is lesser with low code as it requires minimal coding, all the while ensuring robust security measures. As a result, this technology is reshaping the banking landscape by enhancing customer experience and interaction through its swift app development capabilities.
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Use cases of low-code banking applications and solutions
The key to having an incredible customer experience is delivering a top-class digital onboarding experience. Of course, that itself can drive revenue growth. Low-code solutions can play a key role in enhancing customer onboarding experiences by empowering internal users to build robust, user-friendly applications that can be deployed within minutes. For example, leveraging Power Apps, our team of experts at Saxon can build customizable and easy-to-deploy apps that can facilitate business users in rapidly integrating process automation into this critical banking workflow.
In the banking sector, maintaining the delicate balance between delivering exceptional customer service and adhering to regulatory requirements is essential. Banking is a heavily regulated area where compliance with the regulations is strictly followed. Low-code platforms such as Power Apps can help banking institutions build applications that are safe and secure for data regulation. They also empower teams to respond and comply with new regulations promptly.
Customer Identification (KYC)
In banking operations, compliance with “Know Your Customer” (KYC) guidelines is imperative. This process stands as one of the most critical in the banking industry, involving the collection and management of customer information. Using low-code solutions, banking institutions can develop in-house tools tailored for expediting KYC compliance processing.
Fraud monitoring tool
Fraud detection and monitoring is a crucial task due to its continuous involvement in transactional exchanges in financial institutions. Low code platforms can facilitate users in building fraud monitoring applications that will empower operations and customer support teams to access transaction records, review customer details, and take prompt necessary actions in case of suspicious activity such as verification or account freezing.
The process of applying for a loan typically is a stressful and chaotic one. However, with low-code platforms, banks can easily create applications and solutions to manage this crucial experience. Low-code solutions can help in this process of streamlining the entire loan process. Users can create applications that enable customers to choose their type of loan, input the necessary information, upload documents, and directly apply for the loan within the app without any additional barriers or systems. This process delights the customers with a hassle-free experience and enhances the employee experience.
Automation of letters of guarantee
Issuing letters of guarantee is often a lengthy and frustrating process for customers, resulting in poor customer experience. However, with low code solutions, banking institutions can automate the system queries and consolidate the entire process into a fully auditable and adaptable digital experience. This streamlined approach can reduce the approval time to under 3 hours, making the customer journey more efficient and satisfying.
How can we help?
Low-code solutions can be game-changing in the arena of financial institutions. It can deliver high value by building new banking applications that address the most critical needs of these BFSI enterprises. Infused with AI and ML capabilities, these new-age banking applications are streamlining banking operations and delighting customers. Are you looking forward to seizing the advantage of low-code solutions and optimizing your banking applications? Saxon AI specializes in helping its customers on building modern apps. Book a consultation today.