Let’s talk about something crucial in the banking industry today – digital transformation. A recent survey by Accenture found that 80% of banking leaders believe that digital transformation is critical to their organization’s success.
But here’s the thing: the journey to becoming truly digital can be tough. It can take a lot of time, money, and resources. That’s where low-code development comes in. It’s a game changer for retail and investment banks, letting them innovate faster, cut costs, and provide better experiences for their customers.
In this guide, we’ll break down what low-code is, why it’s a big deal, use cases, and practical steps you can take to start using a low-code application development platform effectively.
What Exactly is Low-Code?
Low-code is a way to build enterprise-class apps without having to do a ton of traditional coding. Instead of writing lines and lines of hand code, you use visual tools like drag-and-drop features and pre-built templates. This means that both IT experts, business users (non-technical) and citizen developers can create applications quickly and easily.
Unlike the old-school way of coding, where you write every line by hand, low-code lets you focus more on the big picture – solving problems and making things work – rather than getting bogged down in repetitive tasks. In banking, where security, speed, and flexibility are everything, this is a huge win.
Use Case: One of the largest banks in Southeast Asia.
Challenge:
- Customer was looking for an IT Services Management solution that gives them flexibility and adaptability to match up their growing IT infrastructure support needs.
- The majority of ITSM tools available in the market were hardcoded with extensive vendor dependency to make any changes.
Solution:
- iLeap’s technical consulting team worked closely with the Bank’s IT Team to build a process centric ITSM solution that could be easily customized by in-house IT teams.
- Using iLeap rules engine, SLAs were defined based on the issue criticality and alerts were set to monitor SLA deviations.
Benefits:
iLeap integrated with an existing DMS to build a strong information portal (KM) that reduced basic/entry level queries by 55% in 3 months, enabling technical support executives to focus on resolving high/critical issues that might affect bank operations severely.
Why Low-Code Works So Well for Banks
- Faster App Development: Low-code platforms can speed up development dramatically. Research shows companies using low-code build apps up to 10x faster than with traditional coding.
- Cost Savings: Because you don’t need as many specialist developers, low-code can save you a lot of money. Forrester found that businesses cut development costs by 25% when switching to low-code.
- Enhanced User Experience: Low-code tools often come with easy-to-use design features that enhance the user experience. In fact, 88% of people said that better user experience improved their satisfaction with banking apps.
- Business Agility: Banks need to stay flexible and keep up with changes. Low-code lets them roll out new features quickly and respond to customer needs fast. Gartner reports a 30% boost in business agility from low-code use.
- Seamless Integration: Low-code makes it easy to connect with your existing systems and data, so you don’t have to start from scratch. 75% of businesses say it helped them integrate with older or legacy systems.
Advantages of Low-Code Over No-Code
While no-code platforms are excellent for enabling business users to quickly create simple applications without any coding knowledge, low-code solutions provide a distinct advantage by allowing for greater customization and flexibility. Low-code platforms enable users with minimal coding skills to build more complex applications that can adapt to specific business needs.
This makes low-code particularly valuable for organizations that anticipate needing to scale or modify their applications over time. By blending speed with a degree of customization, low-code empowers teams to innovate rapidly while still addressing unique requirements—something that pure no-code solutions may struggle to accommodate.
Who Can Use Low-Code?
Citizen Developers: These are your non-technical employees who can create enterprise-class apps to solve specific problems without needing to know how to code. 84% of organizations are adopting low-code tools to empower these users.
Professional Developers: Even your expert developers can use low-code to speed things up and focus on more complex tasks, adding more value to the company.
Business Analysts: They can build prototypes quickly, which helps with collaboration between the business side and IT, cutting the time it takes to bring new apps to market almost by half.
Choosing the Right Low-Code Development Platform for Your Bank
When picking a low-code platform, you can keep these points in mind:
- Vendor Reputation: Look for a provider with a solid track record and experience in banking.
- Security and Compliance: Make sure the platform meets industry regulations like PCI DSS and GDPR.
- Features: Check if it supports integrations, scalability, AI/ML capabilities, and specific banking needs.
- Support and Training: You want a platform with strong support and training options to ensure smooth adoption.
- Cost: Understand both short-term and long-term costs to make sure it fits your budget.
- Customization: The platform should offer flexibility for your specific needs and future growth.
What’s Next for Low-Code Development in the Banking Industry?
As banks continue to embrace digital transformation, low-code platforms are only going to get more important. They’ll drive innovation, improve customer experiences, and streamline operations. And with the shortage of IT talent, low-code platforms will allow more employees to contribute to app development, making the whole business more agile and efficient. Key Projections:
United States
- The US low-code market is set to hit $19.2 billion by 2030, growing at 31.1% per year.
- By 2024, 65% of app development in the US will be on low-code or no-code platforms.
- Companies using low-code in the US are expected to increase revenue by 58%.
Southeast Asia
- The low-code market in SEA is projected to grow at 28.2% per year, reaching $3.1 billion by 2030.
- By 2024, over 65% of apps in SEA will be built with low-code platforms.
- Banks in the region are using low-code to speed up development by 20 times.
Middle East
- The Middle East low-code market is forecast to grow at 29.5% per year, hitting $2.4 billion by 2030.
- By 2025, 70% of new business applications in the Middle East will rely on low-code platforms.
These numbers show the massive growth potential of low-code in banking, especially in the US, Southeast Asia, and the Middle East. Banks in these regions are focused on digital transformation, and low-code platforms are going to play a critical role in speeding up app development, improving efficiency, and enhancing customer experiences.
Final Thoughts
Low-code platforms are transforming the way banks build and deploy applications. It’s faster, more cost-effective, and helps banks stay ahead of the curve. If you’re looking to enhance your digital capabilities, improve customer satisfaction, and maintain a competitive edge, low-code development is the way forward.
Ready to take the plunge? Start your free trial with iLeap today!
References:
- https://www.accenture.com/content/dam/accenture/final/industry/banking/document/Accenture-Banking-Top-10-Trends-2024.pdf
- https://www.factmr.com/report/low-code-development-market
- https://www.futuremarketinsights.com/reports/low-code-development-platform-market
- https://www.mordorintelligence.com/industry-reports/low-code-development-platform-market