In the classic tale of the tortoise and the hare, the tortoise wins the race by making thoughtful progress towards the finish line. Unfortunately, the moral of that story doesn’t translate for banking innovation. While being purposeful about product development is commendable, it’s not sustainable at a time when fintech and other non-traditional Finservs are already so far ahead.
The good news is, banks are aware of this problem. The bad news? Many aren’t sure what they should do about it. One model that’s proven successful has been for banks to build digital products themselves. So, how are some of the biggest names in banking accomplishing this, and why are they doing it this way?
are Building Their Own Digital Products
According to a 2022 report by the DevOps Institute, there will be a global shortage of more than 545 thousand software developers by 2026. That shortage of talent is already starting to affect the efficiency of product development in banking, as many organizations struggle to get new products and services to market fast enough to meet customer demand.
Meanwhile, banks are looking for ways to align their
technology with their overall business goals, and a controlled internal
development process contributes to that. This controlled development also gives
banks the power to implement tighter security measures and gain greater control
over their entire technology stack while differentiating from competitors.
More banks are building their own digital products to retain
control and keep costs low, and the central goal is to go-to-market faster. But,
with a short staffed and overworked IT team, banks that are doing it successfully
are using workarounds outside of traditional development models. Namely, the
use of no-code technology.
No-code is allowing banks to pump out digital products and
services quickly without adding more to IT’s workload. “Regular Joe” team members
are contributing to the development, design, and testing of new solutions using
no-code’s drag-and-drop interfaces.
New automation workflows, apps, and service models are being
rolled out across divisions in a few clicks. The no-code approach is allowing
teams to share their digital products easily and align the customer experience
within the entire organization.
Banking Industry is Using No-Code to Make Gains
Some of the biggest names in banking are use no-code tech to
develop and launch new products and services. The flexibility of no-code is
helping these institutions reboot their digital offerings to quickly meet
- Take Capital One, a giant in US banking. Capital
One adopted a no-code platform to help their team launch new mobile apps and
online banking portals. They were able to create digital banking products and
services with less friction and meet changing customer needs because of
- HSBC, a powerhouse in global banking, implemented
no-code to develop new products and services, too. The new mobile apps supported
a more personalized experience that met their changing customer needs.
- Ally Bank is already an online-only bank, but they
also saw the value of no-code for launching digital products more efficiently.
They used a no-code platform to develop and deploy new offerings that improved
the overall customer experience.
The future of development includes rapid protyping, more
equal collaboration between business and technical teams, and greater control by
banks over their technology stack. It’s a future that’s happening right now.
Using no-code platforms to build digital products and
services will helps banks overcome the software developer gap without slowing
down the rate of innovation. Institutions are able to pivot and remain
competitive with evolving digital offerings, and the applications of no-code
are going to continue to add to those possibilities.