So far, the bastion of lowcode platforms has been defined primarily by custom applications (built by so-called “citizen” developers) – which are, in a sense, diametrically opposed to the main software platforms built by professional programmers. But the music is changing. Software platforms, particularly in the banking world, are increasingly adopting lowcode features. But, before we go any further, let us delete the scenario: it is no secret that banks – and all financial intermediaries in general – are rushing to digitally innovate their business and transform their technology.

And we know that these interventions are directed both at the top-down and bottom-up level, with the aim of improving speed, agility and simplicity in operations. If we add to this a series of “collateral” events, such as increased pandemic-induced suffering, downward revenues in a context of low interest rates, increased competition from digital-only banks and fintechs, which threaten to impose new business models (not focused on brokerage margins), then for the banking sector there is a real resilience test in the next 4-5 years.

To improve the theme of digital innovation and technological transformation, banks must purchase or build banking software (core and channel facing systems) based on 4 fundamental pillars: API markets: They will increasingly become the heart of digital banks to expand the reach of their intellectual property, democratize access, and launch a broad network. Cloud-native or cloud-ready : In the sense of designed or brought to the public cloud, with ready-to-deploy services for hybrid or multi-Cloud environments. Component-based and customizable systems: systems that can address different customer needs in an agile, low-cost and even self-serving way. Ecosystem interaction: If banks want to remain competitive in the long term, they need to lay the groundwork for value-creating service offerings and business models. In this context, market-leading digital banking systems are increasingly turning to lowcode features/platforms; The main drivers that motivate this choice are: Acceleration: Using a lowcode platform, providers significantly accelerate the development of cloud-based modules, components, and applications. Modernization: Using an available API backplane, a lowcode study can generate consumer-grade responsive front ends (UI/UX), enabling rapid modernization. OptimizationA lowcode-enabled banking system allows you to configure, compose, extend, or customize certain parts of a digital core system or application portfolio, reducing/optimizing service effort and evolving client-provider engagemet to a higher level. In other words, Lowcode+ banking software= better results, in terms of digital transformation and technological innovation.

Confirming this, several studies correlate leadership in providing banking software to the degree of low-code functionality that vendors are able to offer. Several reports (McKinsey and others) on the banking sector also point out that the COVID-19 pandemic will cause the loss of 3.7 trillion euros in revenues, which will no longer be recovered. However, the sky is not just plumbeo: the same studies point out that banks can return to pre-Covid income levels in 2024, provided they greatly improve productivity. You may be wondering what this has to do with lowcode platforms….

A tip: lowcode= high productivity.

Tony Vitale on LinkedIn