Imagine developing new banking applications in just days instead of months. That's the promise of low-code for the financial sector in 2024. In a rapidly evolving financial world, banks and lenders face a significant challenge: staying competitive while meeting growing customer expectations for digital services. Digital transformation is no longer an option but an absolute necessity. In 2024, low-code emerges as a true catalyst for this transformation. Let's explore how this revolutionary approach can propel your financial institution to new heights of efficiency and innovation.

1\. The Rise of Low-Code in the Financial Sector in 2024

The Benefits of Low-Code for Banks and Lenders

Low-code is establishing itself as an essential solution for financial institutions seeking to modernize their operations. This approach allows for faster and more flexible development of banking applications and services, without requiring in-depth programming skills. According to the American Bankers Association's Banking Journal, banks can now use low-code tools to drive innovation, customize and automate workflows, even without highly skilled programming staff.

The main benefits of low-code for the financial sector include:

• Drastic reduction in development time (from several months to a few weeks)
• Increased flexibility to adapt to frequent regulatory changes
• Improved customer experience through personalized and responsive services
• Significant reduction in development and maintenance costs
• Facilitation of collaboration between IT and business teams

Key Figures on Low-Code Adoption in the Financial Sector

The adoption of low-code in the financial sector is experiencing explosive growth. According to a recent study cited by Basikon, the adoption of low-code platforms in the financial sector increased by 40% in 2023, a trend that is accelerating in 2024. Moreover, research by Frevvo indicates that low-code accelerates digital transformation by 69% and reduces dependence on high technical skills by 40%.

These impressive figures demonstrate the significant impact of low-code on the financial industry:

• 70% of financial institutions plan to increase their investments in low-code by 2025
• Applications developed with low-code will represent 65% of development activity by 2024
• The global low-code market is expected to reach $187 billion by 2030, with a significant share in the financial sector

2\. How Low-Code Accelerates Digital Transformation

Process Automation and Operational Efficiency Improvement

One of the main strengths of low-code is its ability to automate complex banking processes. Financial institutions can quickly create automated workflows for tasks such as:

• Opening online accounts in minutes
• Processing and approving loan applications in record time
• Real-time risk management and compliance
• Automated transaction analysis for fraud detection

This automation not only reduces human errors but also significantly accelerates transaction processing. For example, with a low-code platform like Basikon, banks can configure automated loan approval processes that integrate various data sources for quick and accurate risk assessment. This results in a significant improvement in operational efficiency and cost reduction of up to 30%.

Customization and Rapid Innovation of Financial Services

Low-code allows financial institutions to quickly customize their services to meet the specific needs of their customers. With intuitive visual interfaces, business teams can closely collaborate with IT teams to create and modify banking applications without having to write complex code.

This agility in financial services facilitates fintech innovation, allowing banks to:

• Launch new financial products in weeks instead of months
• Create customized mobile applications for different customer segments
• Quickly integrate innovative payment services (such as cryptocurrencies or instant payments)
• Adapt user interfaces based on real-time customer feedback

This flexibility is crucial for staying at the forefront of financial innovation in an ever-evolving market.

3\. The Impact of AI on Low-Code Platforms in Finance

Synergy Between AI and Low-Code

The integration of artificial intelligence (AI) with low-code platforms opens up new perspectives for the financial sector. This synergy allows banks and lenders to develop smarter and more efficient applications. As Basikon highlights in its article on the impact of AI on low-code platforms, this combination enables the automation of complex tasks while providing valuable insights based on data analysis.

New Possibilities Offered by This Combination

The combination of AI and low-code in the financial sector enables:

• Predictive analysis for better risk management and anticipation of market trends
• Real-time personalization of customer offers based on their behavior and preferences
• Intelligent automation of customer service via advanced chatbots capable of handling complex queries
• More effective fraud detection and prevention through machine learning
• Optimization of investment portfolios based on AI algorithms

These advanced capabilities allow financial institutions to make more informed decisions, improve customer experience, and optimize their operations to an unprecedented level. For example, a bank using a low-code platform with integrated AI could develop an intelligent credit scoring system in just a few weeks, capable of adapting in real-time to market conditions.

4\. Case Study: Leascorp and Its Transformation with Basikon

Presentation of Leascorp's Challenge

Leascorp, a company specializing in financial leasing, faced major challenges in its growth. With a rapidly increasing data volume (+150% contracts over 2 consecutive years) and more than 300 partners to manage, the company needed an agile and robust solution to support its expansion.

The Basikon Solution and Results Achieved

By adopting the Basikon low-code platform, Leascorp was able to:

• Increase its partner network by 300%, growing from 300 to 1,200 active partners
• Reach 32,000 customers by the end of 2023, up from 8,000 before adopting Basikon
• Design and deploy new sales channels in less than a week, compared to several months previously
• Reduce financing request processing time from 72 hours to less than 4 hours

Specifically, Leascorp used Basikon to create a customized partner portal, allowing each partner to generate simulations and contracts transparently. Additionally, they were able to directly integrate their platform with their partners' CRMs using the APIs provided by Basikon, significantly accelerating the sales process.

This transformation allowed Leascorp to gain agility and efficiency while offering more innovative services to its customers. The Leascorp case perfectly illustrates how low-code can accelerate growth and innovation in the financial sector.

5\. Preparing Your Company for Low-Code Adoption

Needs Assessment and Platform Selection

Before embarking on low-code adoption, it's crucial to assess the specific needs of your financial institution. Consider the following aspects:

• Processes that would benefit most from automation (e.g., account opening, loan approval)
• Short and long-term digital transformation goals (e.g., launching a new mobile app, integrating innovative payment services)
• Technical skills available within your teams and training needs
• Security and compliance requirements specific to your institution

Once these needs are identified, choose a low-code platform that aligns with your objectives. Solutions like Basikon offer features specifically designed for the financial sector, facilitating integration and adoption. Ensure that the chosen platform offers:

• Strong integration capabilities with your existing systems
• Robust security features meeting financial industry standards
• Scalability to support your future growth
• Solid technical support and an active user community

Team Training and Change Management

Adopting low-code requires a holistic approach to change management. Here are some key steps to ensure a successful transition:

• Train your teams on using the chosen platform, emphasizing collaboration between IT and business departments
• Identify "low-code champions" within your organization to promote its adoption
• Start with pilot projects to quickly demonstrate the value of low-code
• Establish a low-code center of excellence to share best practices and ensure governance
• Regularly communicate successes and lessons learned to maintain momentum

This collaborative approach is essential to fully leverage the benefits of low-code and ensure a successful digital transformation.

Conclusion

The adoption of low-code represents an unprecedented opportunity for banks and lenders to accelerate their digital transformation in 2024. This approach not only improves operational efficiency and reduces costs but also stimulates innovation and offers more personalized and responsive financial services.

By embracing low-code, financial institutions can position themselves at the forefront of innovation, respond more quickly to market changes and customer expectations, while maintaining the necessary security and compliance in a highly regulated sector.

In an ever-evolving financial market, adopting low-code is no longer just a competitive advantage; it's a necessity to ensure the sustainability and growth of your institution. The time to act is now.

Ready to accelerate your digital transformation with a low-code solution tailored for the financial sector? Discover how Basikon can help you achieve your goals. Request a personalized demo today and take the first step towards a more agile and innovative bank.

FAQ: Low-Code in the Financial Sector

1\. What is low-code and how does it work in the financial sector?

Low-code is a development approach that allows creating applications with little or no manual coding. In the financial sector, it enables banks and lenders to rapidly develop customized solutions to automate processes, improve customer experience, and adapt to regulatory changes. For example, a bank could create an online loan application in weeks rather than months.

2\. What are the main benefits of low-code for banks and lenders?

The main benefits include reduced development time (up to 70% faster), greater agility to adapt to market changes, improved operational efficiency, and the ability to innovate rapidly without requiring in-depth technical skills. Additionally, low-code enables better collaboration between IT and business teams.

3\. Is low-code secure for financial applications?

Yes, modern low-code platforms incorporate advanced security features and are designed to meet the strict security and compliance requirements of the financial sector. They offer features such as data encryption, multi-factor authentication, and granular access controls. However, it's crucial to choose a reputable platform and follow best security practices.

4\. How does low-code integrate with existing bank systems?

Low-code platforms generally offer robust integration capabilities, allowing seamless connection with existing banking systems via APIs and pre-built connectors. For example, a platform like Basikon can easily integrate with account management systems, CRMs, and regulatory reporting tools already in place in a bank.

5\. What is the typical return on investment (ROI) for low-code adoption in the financial sector?

While ROI can vary, many financial institutions report a significant reduction in development costs (up to 50%), faster time-to-market for new products (60-80% reduction in timelines), and improved operational efficiency, leading to a positive ROI in both the short and long term. Some companies have reported an ROI of 300% or more over a three-year period.

6\. How can low-code specifically help small and medium-sized financial institutions?

Low-code is particularly beneficial for small and medium-sized financial institutions as it allows them to:

• Compete with large banks by innovating quickly, without requiring extensive IT resources
• Customize their services to meet the specific needs of their local customers
• Automate manual processes to improve efficiency and reduce costs
• Quickly adapt to regulatory changes without relying on costly external vendors
• Create modern digital experiences for their customers, thus improving retention and acquisition