In 2014, the term “low-code” was coined by Forrester to describe platforms that “accelerate app delivery by dramatically reducing the amount of hand-coding required.” This early concept of low code was geared toward rapidly building and deploying simple business applications without excessive investments or expenditures.
Since then, the definition of low code has shifted quickly and dramatically. Over the course of just six years, the boundaries of low code have expanded beyond quick fixes and basic point solutions. Now, financial institutions, and many other enterprises, can easily integrate their end-to-end operations and intelligently automate complex processes, such as online account opening and trade finance, using a low code platform.
Two Ways to Low Code
As the scope of low code has grown, there have emerged two main types of solutions that exist under the low code umbrella: purpose-built and tactical.
1. A purpose-built solution is meant to address any complex process or specific business need—leveraging low code to build a specialized, configurable system and integrate multiple capabilities across an organization.
Any financial institution looking to completely digitize their operations and achieve specific goals, such as better cost efficiency or improved decision making, would benefit from implementing a purpose-built low code solution.
Take, for example, the online account opening process. This is usually a customer’s first impression of any financial institution, and subsequently provides the chance to convert a prospect into a lifelong customer. By leveraging a low code solution, banks can ensure that every customer enjoys a smooth and personalized experience.
Using a software, built on a low code platform, financial institutions can empower their customers to fill out an application seamlessly using an intelligent, self-service portal—pausing and resuming the process across multiple channels and devices without losing any data or having to re-start. Customers can also enjoy complete visibility into the process—tracking their application, uploading supporting documents, and contacting a bank representative all on a unified interface.
And this is only the start! A purpose-built low code solution allows financial institutions to optimize all their processes by bridging silos, ensuring agility and continuous improvement, and maintaining compliance with regulations, all while delivering an unparalleled customer experience.
2. A tactical solution is a quick fix that fills immediate business gaps, but may not be the best-in-class, or most long-term, option.
Perhaps the best example of a tactical low code solution would be any of the applications created in response to the CARES Act Paycheck Protection Program, launched by the U.S. government in response to COVID-19. The applications, built on a low code platform, were created to fill a unique and imminent need—financial institutions required a solution to help their customers easily apply for loans, and later, apply for loan forgiveness.
As similar economic programs were implemented in other countries, enterprises around the globe came up with comparable low code solutions. The value of low code, in this scenario, was the speed with which applications could be created and configured to the continuously evolving demands and regulatory requirements of each fiscal program.
What Does the Future Hold?
Low code technologies have experienced a decidedly exponential rise in popularity and widespread adoption over the past decade. And there is no indication that the upward trajectory of low code will slow anytime soon. In fact, Gartner predicts that, “low code application building will [comprise] more than 65% of all app development functions by the year 2024.”
With the world still dealing with the effects of the pandemic and financial institutions gearing up to face an impending economic fallout, the importance of operational agility and scalability cannot be overstated. Now, more than ever before, low code is the need of the hour. By adopting low code, financial institutions can ensure business continuity and arm themselves with the tools to thrive in increasingly unprecedented and even unstable times.