Competition in the financial services landscape is growing and today’s influx of neobanks and non-bank entrants makes it fiercer than ever. Many of these fintechs are beginning to eat away at traditional financial institutions’ market share for products and services at unprecedented levels and they are doing so by offering first-class end-to-end online customer experiences.
While banks and credit unions are used to buying the technology they need from vendors, many are now realizing that the traditional vendors they have purchased from in the past do not specialize in the customer experience; rather they are focused on employee facing technology. They may try to add on a customer-facing application form and a file upload feature to their existing technology, but it does not really come close to the experiences today’s tech-savvy customers are expecting in the modern landscape.
Moreover, the off-the-shelf solutions offered by most vendors likely will not satisfy the end-to-end experience unique to each institution’s custom applications. Even for the most basic of applications, like a business checking account, institutions have their own, very specific workflows and processes that must be followed to meet their own internal risk and compliance requirements.
Compounding the problem, most of today’s financial institutions will want to offer more than one product that a vendor sells. Ultimately, they will want to digitize the customer experience for the entire business banking suite of products, from bank accounts to treasury to small business loans, which means they must find vendors that offer all these experiences, not an easy feat. This creates a situation where institutions need to manage multiple vendors, likely creating inconsistent and disconnected experiences confusing to customers, with those multiple vendors trying to connect to the bank or credit union’s systems, which can lead to cost and resource overruns.
Low-code and no-code solutions solve for these challenges because they allow non-engineers/designers to build end-to-end customer experiences using modern technology frameworks. With low-code and no-code solutions, FIs can build applications that are unique to their needs using drag and drop tools, eliminating the need for an off-the-shelf solution that does not support their processes and workflows. The control of the customer experience is placed in the hands of the FIs that better understand their products and services, internal workflows/processes and technology infrastructure. This means institutions can also use the same tools to build applications for their entire suite of financial services using the same user interface, leveraging the same database and integrations across all their products and services to support the next generation of customer experiences.
Low-code/no-code technology is changing banking experiences and in turn, it can create opportunities for financial institutions to gain a significant competitive advantage in the marketplace, both today and in the future.
Want to learn how Prelim can help put your bank in the driver’s seat? Visit https://prelim.com/ today to learn more and don’t miss our upcoming panel at the Bank Automation Summit where we’ll discuss how financial institutions are leveraging these solutions to move into the future of banking!