Digital Transformation in Finance
In the age of smartphones and the internet, it is only inevitable that the demand for digital transformation has reached the financial sector.
Experts believe that digital transformation, which is the process of utilizing digital technologies to create digital business models and support, is critical to the success and longevity of any business, including those in the finance world.
There is a growing need and expectations for business models and processes in finance to align with technology. Digital transformation provides value to customers and employees, who are both increasingly dependent on digital technologies in their everyday lives.
Some of the known benefits of digital transformation include:
- Improvement of customer services and experience
- Recognize new business opportunities
- Optimizing data collection to determine customer behavior
- Discovering technological opportunities to meet company objectives
No-Code Development’s Role in Digital Transformation
As brilliant as digital transformation may sound, the finance sector won’t be able to integrate it at a snap-of- a-finger. Serious barriers and risks will get in the way of adopting digital transformation in many financial organizations.
Some challenges the finance world is facing is the lack of resources, time, and talent to jumpstart a complete digital revision. Companies need to allocate a large budget for software development and implementation. Even if companies have the budget, they may still need to find experienced developers to create robust applications and programs.
No-code development is a type of technology that enables non-programmer employees to build computer software without a formal background in coding and other related technical abilities. This makes app-building accessible to the ordinary folk by providing graphical user interfaces and user-friendly tools.
The no-code solution promotes creativity and removes the technical barriers that stop technological advancements in finance. No-code solutions can unlock human capital with fintech. It not only aids digital transformation, but also accelerates the entire process.
How to Utilize No-Code Development
In terms of no-code development in finance, there is no “hat that fits all”. Thus, it is important for finance companies consider the following arguments:
- Strategy first
Companies in the finance sector should create a sound strategy before implementing no-code development. There are now many types of no-code platforms to choose from. Businesses should pick a no-code platform that aligns with their company goals and suits their resources and current talent pool.
Many banks and financial institutions use no-code development to meet specific digital objectives such as:
- building of software programs
- integrating systems
- updating applications
- automating workflows,
- creating mobile applications that serve customers.
Objectives vary from company to company, therefore, managers must first set the general strategy for digital transformation before venturing into no-code development.
- No – code may not always be the solution.
Before going all into no-code systems, it is smart for businesses in finance to also look into other means of digital solutions. One of these is low-code development.
Low-code development is also a software development technology that may also use visual (drag-and-drop) or graphical user interfaces. However, low-code aims for faster or more productive software development. This solution comes with coding or scripting options so it is ideal for users with some coding or developer background.
Low-code development makes application building faster and more efficient, making it more suitable for organizations with a well-established developer team. With this solution, non-IT personnel can execute routine tasks such as integrating data and automating business processes.
- Consider Trends
Businesses do not always have to jump on the bandwagon with everyone else to keep up with the trends. However, it is worth keeping an eye on digital trends in the finance industry as they reflect the demands and expectations of customers.
Digital transformation trends also indicate the types of no-code solutions are available to businesses.
The trends in digital transformation in finance include:
- Online registrations and applications such as loans, memberships, and payments.
- Customer interactions through mobile apps
- Web chats and chatbots
- The omnichannel approach to offering customer services
Businesses may use these trends to gauge the effectiveness of their current services and processes. By evaluating trends, management may find opportunities to strengthen their digital systems and solutions and exploit the potential of no-code development.
- Mitigate risks and challenges associated with no-code development
As mentioned, integrating no-code development in finance takes careful planning. The finance sector comes with its own risks when embracing new technological advancements. Some of these risks are relatively more serious compared to other industries.
Businesses in finance adhere to comparatively stricter rules and regulations as they handle a tremendous amount of data and financial resources. Consequently, introducing new technology, especially ones that break traditional approaches, is often riskier.
Finance organizations must integrate no – code development without causing compliance risks and issues. For example, banks should still be able to protect customers’ card information even if they introduce applications made on a no-code development platform.
- No-code development takes time, talent, and resources.
No-code development involves offering tools to non-professions, but using this technology does not mean that zero technical skills are required. Despite having visual modeling interfaces, no-code solutions still need a degree of technical expertise and training from users.
Finance companies should still be prepared to offer the training, guidance, and tools to non-IT employees who will take on no-code systems.
It is also important to realize that not everyone in the company can be a developer. The management should be able to identify individuals who have the interest, base knowledge, and skills to become part of the no-code development team.