SECURE LOW CODE PLATFORM

Low-code development platforms reduce the amount of traditional hand-coding, enabling accelerated delivery of business applications.

While the pandemic is raging in the world currently, businesses stand the danger of a rapid decline in financial stability and the inability to maintain critical revenue-generating assets. In the past year, many businesses have inculcated more digital aspects in their customer-facing activities in order to sustain themselves. The banking sector has faced a similar setback since people forewent major credit investments or push through the inability to make transactions offline for the time being.

It is no secret that banks — and all financial intermediaries in general — are rushing to digitally innovate their business and transform their technology. And we know that these interventions target both top and bottom-line impact while purporting to deliver speed, agility, and simplicity in operations. Add in a host of headwinds — pandemic induced credit losses, muted revenues in a low-interest environment, rise in challenger banks that are digital-only, and fintech that threaten to drive new non-interest business models on a modern tech platform.

Low-code development platforms reduce the amount of traditional hand-coding, enabling accelerated delivery of business applications. Considering the fact that world economics will shift to a digital and deeply technologically indulgent model in the coming years, it is interesting to note that 65% of global purchase partners are still reluctant to accelerate the digital front.

Customer engagement through digital personalization has been evidently observed to help revenue growth in the BFSI sector. To counter the slow adoption of digital banking, platforms that can accelerate software development without investment in time and talent, such as low-code and no-code software development platforms have emerged. Low code is the easiest implemented solution that could help financial service players (FSPs) tide over the challenges faced by the banking industry to embrace digital transformation faster.

It is only safe to estimate that a low code platform can transform the banking business landscape through a better and faster digital interaction with the customer through its rapid application development capabilities.

Low code platforms then also pave the way for other digital endeavors to take root inside an organization. The biggest advantage of low code is its democratic nature that can liberate a business from playing catch up from outsourcing services. But it can still motivate successive changes to the technological base with the increase in ROI and use cases.

Banks need a secure low-code platform that makes it easier to construct payment journeys etc. With appveen’s Smart Contracts and e-commerce moving online at a rapid pace, financial institutions could offer digital-first payment solutions and become a trusted and innovative pay tech partner for e-commerce marketplace platforms, digital-native companies, and payment aggregators.

The Smart Contracts system offers the bank’s clients a range of APIs to manage accounts, parties, payments, and other contractual elements. Bank’s corporate clients can leverage the API technology to integrate directly without the manual intervention of the bank’s operations team.

What are the challenges faced by Financial Institutions?

• Without all contracts and payments in a single system, operations have inefficiencies and transactions are at risk of failure.
• Users have to look into different systems for different data points, invariably dealing with missing entries / wrong information.
• Ability to group payments together to simplify recon and reduce core system load.
• Traditional payment engines are not built to handle e-commerce payment loads and/or scale automatically.
• e-Commerce payments are richer in data and metadata, with various constructs and additional information e.g. invoices, shipments, etc. that can be captured and used for future recon/monetization
• Payment behavior, reports, clearing systems, etc. are not easily configurable within the current application landscape, requiring dependency on IT and additional time and cost.

How do Smart Contracts address these issues?

• Flexible structuring with the ability to create configurable payment contracts on demand eg — Group Payments split payments in an e-commerce marketplace.
• A comprehensive platform that manages complex relationships between several parties — suppliers, financial services partner, customers, etc. — at ease
• Automate payments via straight-through processing and process automation eg- Scheduled payments, budget automation, etc.

Low code development has not only impacted the IT industry but many other businesses around the globe. The major effects that can be seen are speed which brought better customer experience. Any new changes that come to the market can be quickly adapted by the customers and they can change or customize the application according to themselves up to an extent.

Technology is evolving and so are the needs of humankind. To ease the human-power, a lot of inventions are taking place. Low code is one of those technologies which gives freedom to anybody to build a capability without writing a single line of code. The revolution of low code has started and only time will reveal how big an impact it makes to the digital transformation and automation journeys in the global financial services ecosystem.