Given that we are amid Industry 4.0, rapid development is the most defining feature of today’s market. In that vein, it is worth noting that since the advent of Low Code, IT solutions development has become a democratized process.
Native developers can now dive into building innovative products without any or minimal coding knowledge, reducing the need for large and expensive IT teams. This means, domain experts can hone their superior understanding of niche business practices to build innovative products simply by leveraging the drag-and-drop feature of Low Code platforms. In fact, Gartner, Inc. predicted that by 2024 80% of technology products and services will be developed by non-IT professionals.
In this blog, we will explore the key areas in which Low Code can help the BFSI sector innovate and push the envelope of innovation and profitability further in relation to the growth of digital finance in India.
A Snapshot of the Growth of Digital Finance in India
The Indian Fintech ecosystem is growing at a breakneck speed, as the sheer growth of about 2x in the number of unique institutional investors would testify. This growth was recorded in just one year, between 2021 and 2022 as the sector raised a whopping 5.65 billion USD in 2022 alone. Similarly, the digital payment market is expected to hit the 10 trillion USD mark by 2026, signaling a major growth in demand, use, and user base. Also, during the pandemic, the online and mobile banking user base grew by around 23-30%.
To meet the expected growth rate that will match the influx of capital and user base, the Financial Services sector is looking at digital solutions to streamline its operations. Demonstrating the need for digital solutions, for example, a Gartner study shows that 99% expenditure involved in certain manual processes can be avoided with digitization that enables self-service.
On that note, given how Low Code makes digitization easy, it is worth looking at opportunities the technology brings to the BFSI sectors.
Faster-Proof of Concept
Roiling out proofs of concept is crucial for scaling new product ideas to viable financial tools. Low Code platform for financial services is a gamechanger. With visual development, innovative ideas can be swiftly converted into a demo product, leading to a potentially quick product launch.
For example, a major challenge to tackle towards faster proofs of concept would be data crunching– which is one of the most time-consuming tasks in the sector. The more data insights one can leverage the more targeted the financial tool is likely to be. To elaborate the challenge in gaining the insights it is worth mentioning that as per an IBM report, just by 2025 over 150 zettabytes of data will require analysis.
The Low Code for financial services would be vital in analyzing data. This is because the fundamental principles of low-code and no-code now extend to configuring data acquisition, quality management, and distribution processes, serving as the cornerstone of data management procedures.
Quicker Onboarding
Since 2017, financial asset penetration has surged by 16%, catapulting the market value to an impressive ₹135 trillion. With a rising demand for financial services, a BFSI player onboarding its customers quicker compared to the competition is likely to boast an edge.
In the context of customer onboarding, the Low Code for financial services can be instrumental in creating a captivating user experience by seamlessly integrating customer data and ensuring compliance to business rules and KYC norms. Needless to say, a smooth onboarding process improves retention.
Leveraging AI and ML Automation
Integrating AI and ML automation is easy with Low Code solutions. Low Code for financial services is vital for streamlining manual processes and automating complex decisions. For instance, in the event of a query or use case, an AI chat bot can sift through transaction history and customer detail faster, reducing response time by over 30 %, thus, amping CX.
Improved Customer Satisfaction
Apart from quick query resolution, another area of improvement that comes with the use of the Low Code for financial services is personalization. According to McKinsey & Company, personalization can contribute to a massive 15% revenue growth. A Gartner report forecasts that lack of personalization can lead to customer loss by a significant 38%.
An example of a personalized solution would be that of a banking app which sends relevant, automated notifications customized to the personal details shared with the bank. Such notification could lead to enhanced engagement with the bank, leading to the customers deriving more value from the organization than they otherwise would have.
Quick Adoption to Changes
The BFSI sector operates on stringent guidelines of regulatory bodies, which at times mandate sudden changes in operations. Given the flexibility in developing solutions for business practices, using the Low Code for financial services is extremely helpful in implementing and adapting to changes. Fast adaptation to changes also benefits a BFSI player in efficiently serving clients, thus impacting the overall growth of the company.
Towards seizing growth opportunities with Low Code, financial services companies can find Low Code platforms like iLeap rather helpful.
Leveraging iLeap for Financial Services
iLeap offers a user-friendly interface, empowering even novice programmers to create engaging applications. The platform also supports dynamic collaborations, meeting the needs of BFSI players who are required to work in multiple teams when a product is being developed.
Also, given that financial services companies need APIs to seamlessly integrate third-party applications. iLeap low code platform proves to be an effective platform for industry players.
iLeap ensures rapid product deployment and fast digital transformation, enabling rapid time-to –market and quick adaptation to technological changes, respectively. To put it succinctly, the fast-paced growth that the financial service sector is eyeing, iLeap could be a great facilitator in reaching their goals.
To leverage Low Code for financial services, get in touch with us today!