How low-code automation will transform banking

In terms of basic current account functionality, there is little differentiation among banks, so companies need to offer more to their customers. This is particularly important for traditional commercial banks as they face threats from newer, more flexible app-based challenger banks and other fintech competitors. Incumbents may be hampered by legacy systems, but they do have experience and data about customer preferences that they can use to their advantage. Companies need new products, new methods and new ideas to attract and retain customers. But if they want to remain competitive, they also need to deliver them quickly and be able to change them based on changing business and regulatory needs. This brings automation – 31% of financial services executives believe automation is one of the most important technologies over the next 12 months.

However, innovation cannot come at the expense of security. A report from the Economist Intelligence Unit and Appian found that cybersecurity will be the top concern for automation. 43% believe it will be one of the three most important areas. This is followed by innovation and R&D (35%), and customer-facing processes (34%).

Cybersecurity remains a top concern in the UK, as criminals stole a total of £753.9 million through scams in the first half of 2021 alone. An increase of 30% compared with the same period last year. This is a growing problem. Security systems need to become smarter by using AI and automation to discover and flag nuances in behavioral patterns.

Looking at other focus areas of automation – innovation and customer-facing processes – we’ve only scratched the surface of what’s possible, but there are still issues to be addressed. Although one-third of executives see the importance of automation, there is a gap between IT decision-makers and business leaders on the extent of improvements needed. IT leaders will be more likely to demand faster improvements to technology systems and processes than business leaders. In addition, financial services leaders face other considerations including budgets, resources, skills shortages and regulatory pressures when improving services and delivering business outcomes.

rapid innovation

Low-code is becoming a method that can help companies achieve rapid innovation because it does not require the heavy work and lengthy time of traditional software development. In the case of low-code, visual design tools can be used to specify various aspects of software behavior without resorting to coding. The technology can then generate executable code from these visual designs. Unsurprisingly, low-code has been a bright spot during the pandemic, and it now aims to enable financial Services companies can accelerate the delivery of emerging technologies. The less time you spend developing the technical aspects of your code, the more time you can spend using, creating, and improving the solution.

Low-code improves collaboration between departments because business decision-makers can see and contribute to the software being developed in real time. This allows them to be fully invested in the project and help shape it from the beginning, rather than leaving everything to the IT team and not seeing the results until completion. This results in faster time to value and less reliance on specialized programming skills. Low-code and automation will free software development teams from mundane, time-consuming tasks, allowing them to deliver mission-critical programs faster and modernize technology infrastructure.

Creating Real Differentiation

Low-code makes software development easy and accessible, allowing us to think more ambitiously about the future of the financial services industry. Financial services is a data-intensive industry that requires processing, understanding and operating on large amounts of information. The industry will benefit from increased use of intelligent document processing, relying more on AI to handle complex customer documents, transactions and interactions. This includes conducting due diligence when taking on new clients, running credit analysis reports, processing loan applications and deciphering tax forms.

In commercial banking, we’ve seen how content recognition is transformative in accelerating onboarding, KYC, credit decisions, invoicing and more. We will also see the use of low-code software to accelerate the delivery of robotic process automation (RPA) for fast, error-free data updates to external legacy systems.

It’s an exciting time for the financial services industry as it finally shakes off its reputation as slow to adapt to new technologies. Yes, more than ever, customers are looking to the convenience and security of access through mobile banking apps as they expect banks to proactively detect and prevent fraud and reduce risk exposure. However, by using low-code, banks can not only become a more secure organization, but also a more innovative one. By creating truly unique solutions, they will be able to move faster, stay ahead of the competition, increase customer loyalty, and ultimately achieve profitability.

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