Digital transformation goes beyond simply digitalizing processes and implementing cutting-edge technology like blockchain or Artificial Intelligence. It also involves offering enticing experiences on demand. The demands of the customer, together with when and where are important.
Global IT leaders are relying on innovative, cloud-native solutions to drive revenue and growth and remain competitive. Enterprises are eager to leverage the power of digital transformation with change happening in shorter and faster cycles in the post-pandemic environment.
Because customer loyalty is erratic and there are often a number of alternatives, providing the ideal experience at the ideal time can have a significant impact on market share. A clear example of this phenomenon can be found in the financial services industry. Traditional banks are working to turn the tide in their favor as newer digital banks and FinTech, who are equipped with advanced technology and products, are acquiring market share more quickly.
Modernizing Traditional Banking Systems
Banks and financial software providers should choose a development platform that will allow them to take charge of the digital transformation process and make it possible for them to offer value to their clients more quickly with each upgrade.
They can accomplish this easily with the help of development platforms built on the solid foundation of composability.
- Composable banking– For many years, established banks have relied on various services from various providers, which has resulted in complex integrations. With composability, Independent Software Vendors (ISVs) and banks can now choose the experience they want for their customers, expanding their capabilities and offering a wider range of services.
- A wide variety of integrations– Open APIs and a long list of market suppliers offering specialized services give ISVs and banks a wide range of choices. Banks can select best-of-breed providers from an extensive number of available suppliers to give customers the best experience.
- Scaling with components– This offers developers far more flexibility and freedom than with traditional coding because banking systems made from these components can be swiftly scaled up or down dependent on the functionalities necessary.
- Working at the pace of need– A dynamic market with dynamic consumer expectations necessitates the addition or quick customization of functionalities. Software modifications can be made quickly and with a shorter time to market thanks to a composable architecture.
- Personalized experiences– Components can be modified and customized to meet customer requirements. User journeys can be altered to suit each customer’s particular requirements through the use of color, font, style, localization, brand-specific themes, customization, and insight-based notifications.
Advantages of Composable Experience Platforms Driven by Low-code
Financial institutions can perform the following by utilizing a composable experience platform driven by low code:
- Create an internal marketplace by building new UI experiences with best-of-breed APIs with the aid of widgets offered by the low-code platform, then storing them there. FIs can then easily assemble entirely new apps and experiences by just dragging and dropping custom functional components with minimal configuration.
- With minimal disruption to the business, organizations can use reusable elements to modernize incrementally by gradually replacing essential functionalities. This is made possible by low-code platforms, which offer a greater degree of flexibility for integrating with current systems and allowing new components to coexist with legacy systems.
- It can help to quickly implement tailored solutions for each client and take on more market demand. Developers can often tweak and adjust these functional components for UI, design, brand, location, and logic using the features that come with low-code platforms. This encourages a quicker go-to-market with prompt adjustments to meet client needs.
- It provides banks with a low-code custom studio with brand-specific components, so they have all they need to manage upgrades and adjustments on their own and enable self-service. The consumer can then make minor modifications and changes themselves rather than having to wait for the solution providers to do so.
Also Read: Efficiencies and Pitfalls of Robo-Advisors
Banks and their software providers must act quickly. Composability can give legacy systems and processes the push they need to become modern experiences. In addition to embracing the latest technology and the cloud, software providers and banks need to find a faster way to create new experiences while leveraging the expertise of their various teams.
With the help of low-code platforms, financial service providers can provide personalized experiences that enable composability in order to modernize their legacy systems in an affordable and scalable way.