No-Code and Low-Code Technology: Good Match for Finance?
As the consequences of over-reliance on IT professionals became apparent, such as workforce shortages, slow turnaround rates, application backlogs, and assignment overload, the adoption of low-code and no-code platforms or tools increased across industries. According to Gartner, by 2025, roughly 70 % of application development will be based on No-Code / Low-Code technology around the world.
Although these technological developments are not new, the rush to become digital in the wake of the pandemic has resulted in the creation of an ocean of platforms and microservices to meet the ever-changing expectations and needs of a variety of industries, including financial markets.
However, anyone leading a digital transformation understands this intuitively. We've all heard stories about the "magical powers" of low-code and no-code platforms, and many of us have experienced how far those promises may fall short of reality.
Key Considerations for Financial Organizations
The truth is that these tools should never have been viewed as a one-size-fits-all solution to all of our IT problems. We must comprehend not just what it is good for, but also what our aims are, just like any other tool. What is the precise need that must be met? What industry are we targeting with our deployment? What technical, regulatory, and systemic challenges must we overcome?
To put it another way, we need to be more explicit about what we expect from this "magic" technology, and nowhere is this more true than in financial markets. To begin, here are some crucial points to keep in mind for financial organizations as they undergo digital transformations:
Lack of Strategy
Digital transformation is more than just an industry buzzword; it is occurring and progressing on a daily basis. To stay competitive, enterprises must have a concrete plan and strategy that enables them to overcome challenges such as strict compliance and data protection norms, an overreliance on legacy technology, and the pressure to deliver applications quickly.
When it comes to a financial organization's growth during this shift, legacy systems and regulations can be a major obstacle. Within this market, there is a lack of reaction and readiness to modify these outdated systems, yet it is vital for growth.
Evolving Customer Needs
Depending on the state of the industry, customers' and clients' needs are always changing. To meet these demands, a business must have access to adaptable and flexible technologies.
Because the financial industry is constantly changing in terms of technology, compliance, and market fluctuations, financial organizations must be selective in their budget allocation and investment in new business initiatives.
What Financial Organizations Need Most
There are a variety of no-code and low-code solutions available that are being used by various industries in their digital transitions. Can they, however, meet the following financial industry needs?
As the world changes, the technology that enables financial sectors to survive and prosper must change as well. Low-code and no-code platforms can help businesses solve problems more quickly and at scale by putting application development in the hands of the people who need to solve them rather than a software specialist. The financial industry is a complicated and fast-paced environment with unique requirements that can only be satisfied by technology that provides flexibility and efficiency, which legacy systems often lack.
For financial services companies, increasing the pace of software development is a top concern. Faster development enables faster delivery to the market and clients, allowing your company to stand out from the crowd. Additionally, having access to client feedback allows your company to make real-time adjustments, which can help you build stronger relationships with your customers.
As financial businesses grow and evolve, legacy systems remain a barrier, with some firms adopting the "don't fix what isn't broken" mentality. What that overlooks, however, is the fact that "working" in this industry does not always imply optimization and growth.
One advantage that no-code and low-code solutions can provide to the financial industry is the ability to avoid and overcome "legacy technical debt." The intricacies that exist within the many areas of financial markets necessitate simplicity. Low-code and no-code tools can provide the foundation for addressing these intricacies and integrating with existing systems. This can save time, human resources, and money as these systems can continuously be developed internally rather than investing in new ones.
Along with its numerous advantages, faster deployment always entails increased risk. Here are a few potential obstacles to be aware of and prepared to address if they emerge.
Using no-code or low-code solutions within an organization can provide its own set of governance, risk, and compliance issues (GCR). Because these solutions don't have any safeguards in place, IT workers have more freedom to experiment with internal technology, leaving some room for potential error or mishaps.
Financial markets contain deeply embedded legacy systems, and implementing no-code or low-code solutions, like anything new, may cause internal friction across teams.
Lack of Resources
To achieve their desired business goals, developers and other IT professionals working with these tools must learn how to use them appropriately. Low-code technologies necessitate some amount of training and experience to be properly implemented, and organizations may lack internal resources, ranging from finances to staffing, causing a roadblock.
Although difficult, the complexity of financial industry technology can be addressed if your business goals are well stated and you don't become trapped by a one-size-fits-all solution. Needs and goals will differ from one company to the next, but low-code and no-code solutions can assist in achieving them if used strategically.