Low code: A Game-Changer in the BFSI Industry

Low code has become a critical disruptor in the Banking, Financial Services, and Insurance (BFSI) sector. Many banking and financial institutions are doing away with their traditional legacy systems and embracing low code to improve speed and business agility. Low code platforms enable rapid digital transformation by empowering enterprises to build solutions quickly without investing a hefty amount of money and effort.

The intense competition in the BFSI industry has compelled firms to expedite the delivery of new products and services. Also, with the ever-growing customer expectations, firms must always be on the front foot and bring new features quickly to meet evolving customer demands. Low-code platforms are undisputed in this regard. These platforms enable firms to be more agile and responsive and help them build more robust ecosystems.

Low-code platforms: Need of the hour in the BFSI Industry

For the BFSI industry to excel, firms must simultaneously focus on improving customer experience, operational excellence, and business innovation. This transformation involves effectively integrating information flow across different areas of the organization, including front, middle, and back offices. However, banks primarily turn to low code to streamline front-end customer journeys rather than backend journeys.

Using a low code platform, organizations can optimize customer touchpoints to effectively engage with them at different stages of their journey, enhancing customer experience. Besides, It allows firms to drive operational excellence in their mid-office and back-office by implementing automated solutions and integrating advanced software to ensure accurate and timely processing of transactions.

Many BFSI firms have adopted low-code platforms and streamlined multiple processes like Risk Management, Loan Origination, and Trade Finance. The technology has paved the way for streamlined operations and reduced IT costs for various firms. As India continues to embrace digitalization and more businesses recognize the benefits of low code, this technology will likely play an even more prominent role in shaping the future of the Indian digital landscape.

Let’s understand why low code platforms are the talking point in the BFSI industry-

Digital Lending is Making a Difference: Digitization of financial services is crucial, not just at a single step but the entire lifecycle and at all the touchpoints-- right from the origination to when the customer is onboarded, providing them with avenues for self-service. Lowcode is the solution for businesses aiming to deliver valuable customer experiences without compromising on cost or agility, making it an intelligent solution to streamline workflows and achieve faster time to market.

A Paradigm Shift Across Public Sector Banks (PSBs): India's private banking sector has undergone significant technological advancements in recent decades. It has always been at the forefront of adapting to technological changes. PSBs, on the other hand, were comparatively slow to adapt to these changes. However, with the government easing guidelines for the PSBs to level up with the private banks, they are also catching up fast on digital transformation initiatives. They have started investing aggressively in technologies like low code, bringing a paradigm shift in their operations.

Low-code platforms empower PSBs to modernize their existing system and adapt to customer needs. Besides, it helps them accelerate day-to-day functions, resulting in automated workflows, enhanced customer engagement, and improved operational efficiency.

Holistic Automation: Wait times never really clicked with customers. Hence, the race towards automation is characteristic of businesses today. The key is how soon the company can deliver what it is supposed to deliver. The answer lies in automating at scale. With low-code platforms, manual tasks that are painfully time-consuming, such as document processing or verification and risk assessments, can be streamlined, thereby offering an enviable customer experience.

Paving the Way for Commercial Banking: When a bank's core system is inflexible and outdated, winning customer loyalty becomes next to impossible. A low-code platform can help the industry generate responsive UI/UX or frontends, offering better personalization based on customer preferences and business focus.

With the advent of anytime-anywhere banking, it becomes pivotal to roll out personalized customer journeys, compose custom applications, and offer deep personalization - all with speed and scale. And that's the way to go for commercial banking.

Low code is the Future

The future of application development is undeniably leaning towards a significant reliance on low-code platforms. These platforms have gained considerable traction and will likely continue to grow in importance as the preferred method for creating a wide range of applications. While traditional coding will always have its place for highly custom and intricate solutions, the future of application development will be significantly shaped by low-code platforms due to their speed, accessibility, and adaptability. They will empower organizations to develop applications more efficiently and effectively, ultimately accelerating digital transformation efforts across industries.

However, low code is not just about simplifying app development or automating simple processes. It is used at a much larger scale for end-to-end automation and helps organizations meet government and security compliances.

Summing Up

Many BFSI firms in India still rely on legacy systems that may not be easy to integrate with modern technologies. Low-code platforms offer robust integration capabilities, enabling these organizations to bridge the gap between legacy systems and new digital solutions.

Also, if the industry strives to be future-proof, low-code platforms are the answer and almost a necessity if one is looking to infuse agility and foster continuous and sustainable development. The technology is profoundly reshaping the BFSI sector by streamlining development processes, fostering collaboration, addressing security concerns, and driving innovation in customer experiences. As the technology matures, more BFSI institutions will likely recognize its potential and integrate it into their core operations, propelling the industry toward a more agile, responsive, and customer-centric future.

Author: Ritesh Varma, Head of Business Solutions Group, Newgen Software