The rapidly growing fintech industry is riddled with challenges — from a shortage of technically skilled talent to decelerated time-to-market.
The industry is growing at a dizzying speed, with India taking its place among the fastest growing fintech markets in the world. In 2021, the Indian fintech market size was estimated at US$50 billion, and it is expected to reach US$150 billion by end of 2025[i]. But Indian fintechs often struggle to acquire the right talent, with over 60%[ii] claiming skill shortages in IT, engineering, and sales roles. It is a notable concern for the industry that requires agile, flexible, and adaptable solutions.
Enter low-code and no-code solutions: an approach towards software development where users can develop applications with little to no coding knowledge. They offer model-driven design, automatic code generation and easy-to-use visual programming that enables the creation of enterprise-level applications using visuals and basic skills without needing proficiency in programming.
Low-Code/No-Code has the potential to introduce dynamic changes to digital fintech ecosystem without being heavily dependent on high-skilled app developers.
What Low-Code/No-Code platforms bring to the table
Low-code and no-code applications have similar benefits like traditional applications, but different use cases and considerations. Low-code platforms, for instance, are built to elevate a technical coding environment into a model-driven, drag-and-drop graphical interface. Stakeholders of varying development skill levels can use low-code to build value-driven enterprise business applications. Thus, enterprises can customize low-code platforms to suit their different needs.
Low-code platforms are also more scalable and can extend their architecture to include collaborative techs such as AI, ML, blockchain, and more. Enterprises can use them to create specific user interface templates — a handy feature for fintechs. In industry terms, low-code platforms unlock the ability to create apps that run business-critical processes, like specific integrations and digital transformation initiatives.
No-code platforms are mostly cloud- and subscription-based, and they rely on quick and frequent online updates to bypass the need for coding altogether. These platforms are not customizable but are instantly usable right out of the box — making them ideal for inexperienced users with no or minimal technical know-how.
Bridging the IT gap: How Low-Code/No-Code can benefit fintech
As the IT skills gap widens and customers continue to demand more personalized services, the ability to cater to them with speed and flexibility makes low-code and no-code solutions great options for fintech firms.
A recent Capterra survey revealed that 60%[iii] of respondents reported higher productivity, and 50%[iii] reported reduced costs using the Low-Code/No-Code approach.
By strategically implementing Low-Code/No-Code solutions into the banking framework, fintech organizations can benefit in the following ways:
Build a deeper understanding of business processes
Low-Code/No-Code platforms unlock effective data management and analytics across enterprises. They enable data collection, quality checks, and cleansing without requiring scripts and specialized toolsets. This self-service approach to data analytics helps financial services organizations move from the endpoint to the core of the data management process —clarifying a broader scope of their business process configuration.
Improve the speed of delivery and time-to-market
Low-Code/No-Code platforms help FS organizations (and their IT teams) streamline software development and gain resilience against failures. Pre-designed elements and UI components’ reusability unlock rapid growth and accelerate innovation to offer customers better products.
Enhance overall customer satisfaction
The ability to bridge the gap between the business and technical teams significantly reduces the number of feedback loops. This simplifies the process of changing software and enables the delivery of a robust and error-free customer experience.
Adapt and scale solutions to specific enterprise requirements
With Low-Code/No-Code, organizations can democratize the app development process. The semi-technical workforce can transform into citizen developers and help build and deliver apps that address specific issues on a higher or even lower level. This enables FS organizations to manage problems quickly and cost-effectively.
Reduced heavy reliance on skilled, in-demand human talent
Low-Code/No-Code platforms empower unskilled or low-skilled developers to make changes, build out modules, test, and deploy new features safely without affecting the sources of truth. Hence, organizations can overcome workforce challenges such as skill gaps and eliminate the time and cost-intensive process of onboarding, training, and upskilling individuals with cross-expertise between business and IT.
Fast forwarding with Low-Code/ No-Code
As industries across the business world open their eyes to the immense potential of Low-Code/No-Code for the future, this very landscape of app development is poised for a seismic change. Gartner predicts that by 2024, low-code application development will account for almost two-thirds (65%)[iv] of all application development activity. And as per a NASSCOM Study, the market is projected to be worth US$4 billion by 2025.
In India, IT service providers and start-ups have generated over US$ 400 million in revenue with low-code/ no-code solutions in FY2021. Global markets have contributed 70% of the total revenue figure. NSEIT, too, has embarked on a fast-paced adoption of Low-Code/No-Code platforms and has witnessed its benefits on engagements involving commodity tools like CMS, DXP, BPM/Case Management, Chatbots, and RPA.
Ultimately, the onus is on fintech enterprises to embrace the evolving nature of technology applications to continue meeting the expanding requirements of their customers and the business landscape.
However, businesses also need to be mindful of the concerns that arise with the adoption of low-code/ no-code platforms like:
- Lack of IT visibility on application development,
- Low Code / No Code vendor locking
- Security challenges from connected applications
- Escalated costs associated with development proliferation
- Compliance and regulatory issues
This is where fintech enterprises need a strong partner like NSEIT to help them navigate the complex but up-and-coming world of Low-Code/ No-Code. With our flagship low code platform “Yugma”, we offer accelerated development of Enterprise / Channel Portals & supporting back-office Application Modules. Yugma also serves as a repository of generic reusable components and industry specific domain libraries.
With a trusted partner, like us, our clients can leverage innovation and experience its myriad benefits while staying secure and profitable.
Manoj B. Bhatkar
Vice President – Digital, NSEIT Limited