Many people believe that no-code development is the future of digital development.
A decade ago, no one would have thought that the idea of zero coding to build functional applications would be possible. Today, this new technological solution is challenging the financial world to embrace it and all of its potential.
Defining No-Code Development
No-code development refers to the process of by-passing coding to build applications and computer systems. No-code platforms use simple mechanics or visual environments (like drag-drop) to build apps from scratch. This technology allows a person with zero coding knowledge to create a perfectly functional app without scripting any codes.
No-code development is usually clustered with low-code environments, but these two have stark differences. Although low-code development can involve visual-base systems, it still allows scripting or manual coding to build applications. Some low-code systems require around 20% manual coding to work.
Defining Digital Transformation
Digital transformation is the approach that merges digital technology into business sectors to improve operations and strengthen customer loyalty and relationships. It is more a movement that compels organizations to strive for innovation, criticize the status quo, and constantly experiment, despite the risks of failure.
Here are the 5 things you should know about no-code development in digital transformation in finance.
No-code development can make digital transformation initiatives in finance more successful.
The world has entered the digital age, and the need for digital transformation is high for most industries, including the finance sector.
Regular consumers are now used to using the internet to get quick information, shop, and be entertained. Thus, they also expect the same convenience and speed when receiving financial services. For example, most customers expect banks, insurance companies, and other financial institutions to have a highly functional digital set of services and systems in place.
It is inevitable that keeping with the demand for digital transformation is a matter of business survival and longevity.
Digital transformation can help identify new business opportunities, simplify procedures, add value to customer relationships and improve services. However, this is a costly process that demands tremendous resources, which includes human talent. This is where no-code development comes in to become a game-changer to the finance sector.
By using no-code development platforms, companies can overcome the burden of hiring only highly-trained IT professionals and third-party consultants to build the necessary apps and solutions to implement a digital transformation initiative.
No-code development offers many benefits to the finance sector.
The no-code technology makes businesses less reliant on IT consultants and professionals to solve IT-related problems or create tech solutions. Consequently, a no-code solution helps unlock human capital. It gives the existing workforce the opportunity to become more productive, efficient, and tech-savvy.
For example, instead of delegating the task of building a specific app to address a problem to the IT department or third-party company, the internal finance team members, who arguably know more about what tech solution is needed, will create the app themselves.
Using existing staff instead of hiring app builders and IT consultants (some of which have expensive fees) will lead to more cost savings. Another way in which no-code technology can save companies money and time is its ability to execute routine IT tasks such as fixing security threats, debugging, and software updates. These tasks are traditionally given to in-house programmers, freelance developers, or third-party companies.
No-code development also accelerates software development as it can offer internal IT programmers more time to work on building complex and high-level applications and systems. Faster software development equates to faster delivery of quality service to customers.
Many existing no-code development platforms suit the preferences of business professionals.
These platforms are usually cloud-based and acquired through subscription. They also have sought-after standard features such as report generation and automatic updating. Most importantly, the existing no-code development systems are made simple and straightforward. Thus, finance professionals, who don’t have technical backgrounds, can use these systems at ease.
Finance workers and professionals can use no-code solutions to create business applications that deal with project and task management, asset management, help-desk management, and customer relationship management (CRM).
The no-code/low-code development technologies market is growing every year. Gartner projected it to grow to around $13.8 billion by 2021. There is also an increasing number of banks, insurance companies, and financial professionals using no-code solutions.
Embracing no-code development in finance faces challenges and risks.
Despite experts acknowledging that the finance sector can greatly benefit from no-code development, some have argued that the acceptance of this technology has been slow compared to other industries.
This is because no-code development is new, and the finance sector has a tendency to cling to traditional systems. Industry key players not willing to let go of deeply-ingrained legacy systems and regulations, which the no-code development and digital transformation will most likely disrupt. It is highly plausible that not everyone within the company will happily embrace no-code solutions.
There is also the argument that compared to other industries, the finance sector needs to comply with more sensitive rules and data protection laws. This is why it is hard to change existing tech systems as they have already been proven effective in safeguarding compliance errors.
Another challenge in adopting no-code solutions is that these technology tools still require some training and expertise to use. Businesses may not have the right staff to work with these tools. Companies do not only need to purchase this technology, but they must also invest in trainers and training materials and allow enough learning curve. All of which present some risks that need proper review and mitigation.
No-code development may not be the sole solution to digital transformation issues.
No-code development is just one way to achieve digital transformation in the finance world. It is important to understand that this solution may not fit the needs and objectives of all organizations. Some companies may feel more comfortable delegating app and system building to traditional IT professionals and teams.
Digital transformation initiative in finance does not only need new technology to succeed. Financial organizations also require a well-devised plan and strategy to deal with challenges such as compliance rules and data protection standards.
Today, many finance organizations have turned to no-code development platforms in hopes of reaping its promised benefits. No-code technology allows a company to quickly and efficiently adopt a viable digital transformation initiative.
This tech solution has so much potential and is still evolving. However, companies should tread carefully should they decide to adopt no-code development as risks and sensitivities surrounding the finance world make it a trickier ground for anything new and revolutionary.