What is Low-Code Development?
Low-code development is a form of software development that offers an intuitive front-end interface that makes it possible to plan a series of commands, often using underlying application programming interfaces (APIs) to connect. data across multiple tools, as well as tying to existing infrastructure, whether in the cloud or onsite.
The concept of low-code development, a term coined by Forrester in a report in 2014, is useful in many ways. First, it opens up capabilities to larger categories of people, including those without a traditional programming background. Second, it allows for a faster development process, making it possible to do more in less time.
“The ability to easily generate applications won’t make companies allocate fewer resources toward the initiative,” said Seth Robinson, CompTIA’s senior director for technology review. “They really want to allocate more resources so they can use all the potential.”
Generating low cost code can take many forms; for example, it can be used as a method of application development, but also as a way to manage servers and other pieces of digital infrastructure, extending concepts such as infrastructure as code.
What are the Best Low-Code Solutions for Banking?
There are several low-code applications and platforms for different use cases, which offer benefits for several industries, including banking. Some of the most common tools for low code include:
- Power Apps of Microsoft: Because it is plugged into Microsoft’s ecosystem of apps, including the Power BI analytics platform, Power Apps has become popular as a tool that supports the rapid development of business back-end applications. The ability to integrate with Microsoft Azure is also seen as a benefit.
- App Engine’s Service Today: Originally rooted in IT services but evolving into a more all-purpose low-code tool, App Engine has generated interest in several highly regulated government agencies.
READ MORE: Find out why open banking is the future of finance.
How Can Low-Code Development Improve Banks’ Digital Offers?
For the financial industry, low code could allow for a new influx of agility in areas that are not yet very easy to serve.
Because many banks and their underlying financial systems still rely on legacy technology, such as COBOL, a 1950s-era programming language, banks may find themselves unable to move faster until ‘ t they want when other industries are well positioned to respond quickly to changes in consumer climate.
In a recent blog post, Lucy Brown, a leader in the industry of business applications for financial services with Microsoft, said that financial institutions will find great opportunities in turning away from legacy technology if possible.
“On average, financial institutions can spend up to 70 percent of their IT budgets on maintaining and servicing core systems and legacy applications,” Brown wrote. “But by allocating resources in this way, organizations reduce their time and ability to consider new innovations. At the same time, they risk delivering a poor customer experience over old systems.”
He recommends adopting modern interfaces, including on mobile devices, that “seamlessly integrate with any current business applications, workflows and processes,” that will help legacy infrastructure become newer.
MORE THAN BIZTECH: Find out the tech trends to watch for financial institutions in 2022.
How to Reduce IT Backlogs?
The real benefit of low-code development for banks depends on how much it can do and how quickly it can do it. Given the complexity of most financial institutions, traditional programmers may need years to optimize platforms for modern operations. With 88 percent of IT departments saying workloads have increased, according to a Salesforce study, the arrival of low-code isn’t too early.
By expanding its reach to more staff, low-cost code development allows for faster rotation, which can allow IT departments to take short-term initiatives. which otherwise may not be a priority.
A recent Forbes article said that banks are applying technology from companies like Salesforce to change manual processes that typically take weeks to complete into operations that can be done in just a few minutes; for example, researching a client before a meeting, which may require data from dozens of legacy systems.
Low-code is also ideal for managing the occasional curveball, such as the need to change business processes to handle a single event such as the Paycheck Protection Program. According to SiliconANGLE, the critical need for the program, and the speed at which it is launched, requires banks to complete within weeks what could take months or years to do normally.
“The only way a company can make such an app very quickly is by using low -code functions – which allow people to create applications through graphical user interfaces instead of traditional hand -coded programming – on the underlying platform, ”explains writer Jason Bloomberg.