The financial sector faces increasing regulatory pressure in the era of digital transformation. Between new directives on data protection, anti-money laundering, and prudential standards, financial institutions must juggle increasingly complex compliance constraints. This situation weighs on their capacity for innovation and operational agility, particularly for players offering innovative financing solutions such as Buy Now Pay Later, leasing, or digital factoring.

Faced with this observation, many companies are turning to low-code technologies to accelerate their regulatory compliance while preserving their competitiveness. In this article, we will see how this approach allows overcoming the main regulatory challenges in the sector, through concrete examples and best practices.

The Growing Complexity of Financial Regulation

The financial sector is one of the most regulated in the world. Institutions must comply with a growing number of directives, often complex and rapidly evolving. Among the most structuring regulations, we can mention:

The PSD2 Directive on Payment Services

Entered into force in 2018, PSD2 aims to strengthen the security of online payments and open the market to new players. It imposes strict requirements for strong customer authentication and data protection.

The General Data Protection Regulation (GDPR)

The GDPR regulates the processing of personal data of European citizens. It requires companies to implement appropriate security measures and obtain explicit user consent for the collection and use of their data.

The Anti-Money Laundering (AML) Directive

Financial institutions are subject to strict AML obligations, such as verifying customer identity (KYC) or detecting suspicious transactions. These requirements have been further strengthened in recent years.

In addition, there are many other sectoral or local regulations. For players offering innovative financing solutions, the compliance burden can quickly become a brake on agility and growth.

The Limits of Traditional Compliance Approaches

To face these regulatory challenges, financial institutions have long used traditional compliance approaches. However, these have several limitations:

Manual and Time-Consuming Processes

The collection and processing of regulatory data often rely on manual tasks, such as entering information in spreadsheets or producing reports. These processes are time-consuming and error-prone, mobilizing resources that could be allocated to more strategic activities.

Information Systems in Silos

Regulatory data is often managed in compartmentalized systems, which complicates its consolidation and exploitation. This situation hinders a global vision of risks and responsiveness to regulatory changes.

Lack of Agility and Flexibility

Traditional compliance approaches are often rigid and do not allow for rapid adaptation to new requirements. Each regulatory change requires costly developments and significant implementation delays, penalizing time-to-market.

To overcome these limitations, financial players must rethink their approach to regulatory compliance. This is where low-code technologies come into play, allowing processes to be automated and streamlined while providing the necessary agility.

Low-Code, an Asset to Accelerate Regulatory Compliance

Low-code platforms allow for rapid development of complete business applications, thanks to visual interfaces and ready-to-use components. Applied to the field of regulatory compliance, low-code offers many advantages:

Automation of Compliance Processes

Low-code allows automating time-consuming tasks related to compliance, such as collecting and processing regulatory data. Teams can thus focus on higher value-added activities while reducing the risk of manual errors.

Agility and Speed of Implementation

With low-code, compliance applications can be developed and deployed in record time. Updates are also much faster, allowing for continuous adaptation to regulatory changes. This is a key asset for shortening compliance timelines.

Enhanced Collaboration and Transparency

Low-code platforms foster collaboration between business teams, developers, and compliance experts. They provide a unified view of regulatory processes and data, enhancing transparency and governance.

By streamlining and accelerating compliance while providing the necessary agility to adapt to changes, low-code is emerging as a strategic asset for financial players. Many concrete examples already illustrate its potential.

The Basikon Low-Code Platform at the Service of Financial Compliance

Basikon is a low-code platform specialized in the financial sector, which offers many features to accelerate regulatory compliance:

A System Built for Security

Basikon natively integrates best practices in terms of security, such as data encryption, fine-grained access rights management, and action traceability. The platform is designed to meet the strictest requirements, such as those of the GDPR.

Centralized Management of Third Parties and Documents

Basikon allows for centralized management of all third parties (customers, partners, suppliers...), as well as their associated documents (identity documents, supporting documents, contracts...). Document collection and verification workflows are fully automated, facilitating KYC compliance.

Powerful Scoring and Decision Tools

The platform integrates advanced scoring and decision modules, based on configurable business rules. Users benefit from a familiar Excel-like interface to define their models, which can evolve easily. The audit trail is ensured for each decision.

A Unified User Experience for All Stakeholders

Basikon offers a single portal for all stakeholders: employees, partners, end customers... Each one accesses the functionalities they need, according to their role and under the control of workflows. Partners can register directly and manage their operations autonomously (sales, customer subscription...), while respecting compliance rules.

Thanks to its advanced functionalities and unified approach, the low-code platform Basikon allows financial players to reconcile operational agility and regulatory rigor. It illustrates the full potential of this technology to transform compliance management.

How to Choose the Right Low-Code Platform and Succeed in Your Projects

To fully benefit from low-code in your regulatory compliance projects, several best practices should be followed:

Favor Specialized Platforms

Choose a low-code platform that has already proven itself on compliance issues similar to yours. Check that it has features adapted to your specific challenges (KYC, AML, GDPR...) and that it can easily interface with your information system.

Involve All Concerned Stakeholders

The success of a low-code project relies on close collaboration between business teams, compliance experts, and developers. Make sure to involve all these stakeholders from the start of the project, and to set up an appropriate governance to pilot developments.

Adopt an Agile and Iterative Approach

Favor an agile approach, by breaking down your project into small deliverable batches quickly. This will allow you to progressively validate the solution and adjust it on the fly, based on user feedback and regulatory changes.

Anticipate Change Management Issues

The adoption of a low-code platform often involves changes in working methods and processes. Anticipate these impacts by setting up an appropriate change management plan: user training, regular communication, support at startup...

By following these best practices, you will maximize your chances of success in your regulatory compliance projects on a low-code platform. The agility and speed of implementation offered by these technologies will be key assets to remain competitive in a constantly evolving regulatory environment.

Embracing Regulatory Agility Through Low-Code

Faced with the growing complexity of financial regulation, industry players must rethink their approach to compliance. Traditional methods, often manual and compartmentalized, show their limits in keeping pace with changes and ensuring rapid and effective compliance.

In this context, low-code appears as a real strategic asset. By allowing for the rapid development and deployment of compliance applications, while ensuring great agility, this technology paves the way for a new approach to regulatory management. Concrete examples of achievements, such as those enabled by the Basikon platform, illustrate the full potential of low-code on subjects as varied as KYC, reporting, or GDPR.

To fully benefit from these opportunities, however, financial players must be careful to choose their low-code platform well and adopt good project management practices. By favoring proven solutions, involving all concerned stakeholders, and adopting an agile approach, they will give themselves the means to succeed in their regulatory transformation.

Low-code thus opens the way to true regulatory agility for the financial sector. A unique opportunity to combine compliance and competitiveness, in the service of an ever more fluid and innovative customer and partner experience. The future of regulatory management is indeed low-code!