According to the 10xBanking 2023 survey, 64% of banks acknowledge that slow digital transformation has led to missed opportunities for attracting new customers. Meanwhile, 74% are focused on accelerating their digital transformation. On the flip side, the McKinsey report reveals that 89% of people use at least one payment service daily, and 54% of digital wallet users expect similar services from their banks. The takeaway is clear: for banks, transformation is an ongoing journey. This is where low-code platforms come to the rescue.
Low-code platforms offer a visual approach to software development while still allowing for hand-coding when needed. These platforms simplify the development process with pre-built components and drag-and-drop features, making the low-code developer’s role primarily about assembling the application, testing, and deploying the solution.
Crucially, low-code platforms also enable the creation of custom and unique components through integrated development environments (IDEs), built-in testing tools, or direct support from platform developers. Low-code is a logical progression toward simplifying programming, which is especially valuable in the fast-evolving banking sector.
Low-code platforms have been at the forefront of banking for several years. Their clear advantage lies in their speed and ease of development while still allowing for the creation of sophisticated solutions tailored to the financial sector. These platforms serve as powerful tools for building front-end interfaces and business logic, automating and monitoring processes, and managing tasks.
Undoubtedly, low-code platforms are a key asset in accelerating digital transformation and adapting to market changes and customer needs. In a 2020 report, Italian researchers and experts support this view. Consequently, low-code platforms have become a natural choice for organizations that depend on IT development, particularly those leveraging artificial intelligence.
A report by the International Data Corporation (IDC) highlights that low-code platforms cut software development time by 62% for new applications and by 72% for adding new features. The same research shows that companies leveraging low-code platforms saw an additional $19.8 million in annual revenue and a 123% boost in productivity.
Here are the key benefits of using low-code platforms:
Low-code platforms significantly lower the costs associated with developing and maintaining banking software. They help financial institutions reduce their need for highly skilled programmers, who are scarce in the labor market. According to IDC research, in the US, low-code platforms enable banks to hire fewer programmers and increase business value by over $4 million in three years. Additionally, banks can avoid financial concerns related to software maintenance and stability, as these are managed by the low-code platform providers.
According to Gartner, 83% of enterprises highlight flexibility as the primary benefit of low-code platforms. The ability to quickly develop various processes and applications using pre-built, reusable components is considered a significant advantage. With a core of an application in place, banks can build and integrate additional custom functions, enabling them to swiftly adapt to evolving business needs.
By providing clean code in the form of off-the-shelf graphical components, the risk of errors during the development of banking applications is much lower than with traditional programming.
Banking applications developed with low-code platforms can be effortlessly extended with reusable components. Additionally, these components integrate with databases and APIs much more quickly than with traditional development methods. This interoperability with existing systems allows banks to make the most of their current resources, leading to significant financial benefits.
With off-the-shelf code, process visualization tools, and advanced CI/CD capabilities, low-code platforms significantly accelerate the delivery of banking software. They enable the development of end-to-end banking applications, covering everything from design and production to testing, debugging, integration, and deployment. This results in a substantial reduction in the time-to-market (TTM) for banking products and services.
A crucial step in successfully implementing a low-code platform in a bank is to educate all employees, including non-technical staff, on how to use the tool effectively. When introducing Eximee in banks, we start with a comprehensive series of training sessions to ensure employees are well-acquainted with the new platform and can fully leverage its capabilities. At Credit Agricole Bank Polska, the bank’s team has advanced to the point where they are now independently training new employees on how to use Eximee.
Low-code platforms must be designed with security as a fundamental feature. Providers need to conduct regular audits and ensure alignment with the latest security standards. A key advantage of Eximee is that banks can rely on the Consdata team to ensure the security of both the platform and the banking applications developed on it, allowing them to concentrate on their core operations.
Low-code platforms are built around the concept of citizen development, which offers numerous advantages but also presents some risks. One such risk stems from the independence of all users. To prevent chaos in this collaborative environment, it’s essential to establish clear rules for the use and management of the platform from the outset.
While the operational principles of low-code platforms are similar, the specifics of managing the tool, developing applications, handling security, and licensing can differ. By selecting Eximee, you benefit from robust security and seamless integration with your existing banking infrastructure, all while maintaining complete independence from the vendor. This is particularly important, as highlighted in OutSystems report on the state of LCNC application development, which found that 37% of companies are concerned about vendor lock-in.
Success with a low-code platform relies on several factors: how well it fits the organization, the organization’s ability to operate in an agile environment that supports incremental project execution and regular monitoring, and vendor support to ensure everything functions as expected. The support of experts with experience in deploying and maintaining low-code applications in large organizations and expertise in separating common parts of applications, managing dependencies, and propagating knowledge is crucial to a successful implementation. Notably, the support that Consdata provides post-implementation is highly valued by our clients.
Learn about the challenges of implementing a low-code platform in a bank by reading the article published in the report issued by the monthly magazine, Bank.
Using the Eximee platform, we developed and implemented a comprehensive process for applying for and activating accounts for juniors at SGB – Takie konto SPOKO. The entire project was completed in just one quarter. The affiliated banks received a ready-made application and account opening process, ensuring consistency within the group. At the same time, the banks retain full autonomy in configuring the process parameters, product business configuration, marketing communications, and branding.
Using the Eximee platform, PKO BP bank has launched an intuitive chat for its customers that uses machine learning to interpret user intentions. The chat responds contextually to customer behavior, such as when they repeatedly fill in fields on a form. Notably, it took the bank only four weeks to prepare the MVP of the chat using the Eximee low-code platform.
Credit Agricole Bank used the Eximee platform to develop an online mortgage application process, requiring customers to visit the bank only to sign the agreement. This highly complex process, involving more than 200 documents, was made possible thanks to Eximee features like modularization, unlimited omnichannel and integration capabilities, and support from the Consdata team.