As the financial sector continues its rapid digital transformation, banks are under increasing pressure to adapt to shifting customer expectations and emerging technologies amid a rise in sophisticated cyber threats and evolving regulatory requirements. Enter low-code/no-code (LCNC) platforms—a game-changing solution that enables banks and financial institutions to streamline operations, innovate, and enhance customer experiences without extensive coding skills. LCNC platforms are redefining how banks interact with their customers and manage their services by empowering non-technical staff to build, customize, and deploy applications rapidly.
According to the Gartner 2024 Magic Quadrant report, 80% of mission-critical applications in enterprises will be built on low-code platforms by 2029, up from 15% in 2024. This surge is reflected in the global low-code development market size, which is expected to grow at a compound annual growth rate of 32% to US$264.4 billion by 2032, from $28.75 billion today, according to Fortune Business Insights. Gartner’s report states that while LCNC platforms are critical to the development landscape, businesses must choose the right low-code platform to suit their needs.
As the financial sector’s digital transformation continues to accelerate, investing in LCNC capabilities is no longer just an option; it is a viable strategy for banks seeking to not only reduce costs but also to remain agile, retain a competitive edge, and drive sustainable growth.
Low-code/no-code defined
LCNC capabilities in digital banking refer to platforms that utilize a visual or graphical approach, enabling banks to build, deploy, and manage applications with minimal to no coding. It empowers non-technical staff, such as back-office employees and product managers, to quickly create and customize digital banking solutions with the visual tools provided, including drag-and-drop features and pre-made templates, making it easier to respond to customer needs and adapt to market changes with agility.
Low-code platforms require some coding knowledge and are usually handled by a bank’s IT professionals, giving them greater flexibility and customization options. In contrast, a no-code platform allows users to create applications to address a bank’s needs without coding experience.
What are the benefits of LCNC in banking?
There are a range of benefits for banks that opt for an LCNC platform. These include:
- Accelerated digital transformation: LCNC platforms allow banks to innovate more rapidly, enabling teams to develop, iterate, and launch new services swiftly.
- Development efficiency: LCNC solutions can potentially reduce development time by an impressive 50% to 90%, according to research by Red Hat.
- Agility and adaptability: The flexible design of LCNC platforms enables banks to quickly adjust to market trends and shifts by reusing and recomposing business components or integrating with third parties. This flexibility allows bank employees to set up integrations with minimal coding – and requires less testing.
- Cost efficiency and improved resource allocation: With little coding required, banks can reduce development costs and redirect resources toward strategic initiatives, focusing on innovation and competitive differentiation.
What are the use cases for LCNC in banking?
There are numerous use cases when switching to an LCNC platform. Examples include an improved customer experience (UX), seamless card workflow management, and streamlining Know Your Customer (KYC) processes.
Enhance UX for web and mobile applications
With LCNC, banks can efficiently adjust their websites and mobile app interfaces to improve UX. These platforms often provide a visual drag-and-drop editor, allowing teams to:
- Create intuitive interfaces: Modify screen layouts, menus, and navigation flows based on customer feedback.
- Launch updates faster: Implement continuous improvements in UX by quickly deploying changes based on A/B testing results without needing to write complex code.
- Respond to market trends: Rapidly adapt features to meet customer expectations, such as adding new payment options, chatbots, or one-click access to frequently used services.
Manage card workflows and onboarding
For workflows such as card issuance, onboarding, and KYC, LCNC platforms offer:
- Automated workflows: Set up automated processes to handle routine tasks such as card application submissions, customer onboarding, and verifications. Teams can easily adjust workflow steps if regulations or customer needs change, as well as enhance fraud detection.
- KYC and compliance flexibility: Quickly update KYC forms and processes when regulations evolve. LCNC platforms can streamline document submission, identity verification, compliance monitoring, and fraud detection through customizable modules.
- Reduced development bottlenecks: By minimizing coding requirements, banks can make updates and release changes faster, eliminating their dependency on large development cycles.
Supporting product and loan applications
LCNC platforms are beneficial for building workflows related to various products and loan applications, including:
- Configurable loan applications: Teams can simplify application forms, eligibility checks, and document submission processes by visually configuring application flows for different loan products. Changes can be made without extensive coding.
- Instant product updates: Easily adjust eligibility criteria, product details, and application steps across various product offerings, such as personal loans, mortgages, and credit cards, without complex coding.
Improve customer experience with analytics and personalization
This includes:
- Build real-time dashboards and reports: Banks can quickly create data dashboards to track customer behavior, transaction volumes, and other key metrics. Pre-built templates and drag-and-drop tools simplify the process of visualizing data in real-time.
- Enable data-driven personalization: LCNC platforms can integrate with analytics engines to deliver insights on customer preferences, allowing banks to offer personalized services based on real-time data analysis.
Partnership management
Banks often collaborate with third-party providers and fintech companies to expand services and enhance customer offerings. LCNC platforms provide:
- Seamless integrations: Enable integrations with third-party partners for features including reward programs, expense tracking, investment services, and identity verification. The LCNC capabilities of a digital banking platform can simplify the integration process with pre-configured APIs that are easy to manage and select from a drop-down menu.
- Data sharing and management: LCNC solutions help securely manage and share customer data with partners for joint services, enabling collaboration without the need to build custom data workflows from scratch.
Investing in an LCNC-enabled digital banking platform allows banks to scale and innovate rapidly, keeping pace with compliance regulations, fraud detection, and customer expectations in a competitive market. These platforms empower cross-functional teams to collaborate effectively, fostering a culture of innovation where business and IT work seamlessly together. By investing in an LCNC platform, banks can accelerate their digital transformation and improve overall service delivery.
How SBS can help
The SBP Digital Banking Suite is an advanced open platform that provides modular features for seamless omnichannel customer experiences, covering all banking services from onboarding to daily operations. It integrates with various core processors and supports flexible deployments through an API-first microservices architecture. The platform’s LCNC capabilities empower banks to manage KYC processes, customer workflows, and bank partners, as well as leverage data and analytics to create personalized customer experiences.
Partner with us to accelerate your bank’s digital transformation and simplify development. Together, we can empower your team to build and innovate faster, enhancing customer experiences and streamlining operations with the SBP Digital Banking Suite.
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