How Low-Code Solutions Improve Customer Experiences — Even During Uncertain Times

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Customer service is the most important aspect of a banking experience. But in a digitally driven service economy, both commercial and retail banks often lack the technological capabilities to create and sustain optimal customer experiences (CX).

Part of the problem is simply keeping pace. Consumer standards for quality CX are higher than ever — and continually rising. The banking industry often feels pressure from innovation in other service sectors, where the convenience of services and CX are being improved by the day. Today, consumers expect on-demand access to banking services similar to what they’re offered when shopping with providers like Amazon.

Banks face this pressure to innovate in the face of economic uncertainty. Interest rates are on the rise in response to high inflation and a recession is seemingly on the horizon. If the economy continues to tighten at this rate, banks will see exponential increases in requests to defer mortgage payments and restructure debt. Mounting economic pressures raise the stakes for customer service in financial services, adding tension and uncertainty to each customer engagement. There’s a need to quickly and efficiently process customers’ requests, which many banks aren’t currently positioned to handle.

For today’s financial institutions, the ability to provide a seamless CX is tied directly to digital capacity. Undertaking a full digital transformation is an effective way to gain a competitive advantage, but not all banks have the time or resources required to completely overhaul their systems.

Low-code solutions offer an accessible, cost-effective alternative for banks to gain the digital capabilities and innovation they need to optimize CX.

Low-code solutions overcome legacy systems

The need to increase digital competitiveness and prioritize CX improvements isn’t lost on financial leaders.

Rather, legacy technology and outdated infrastructure make it difficult for traditional banking providers to adapt to emerging banking environments. Over time, the gap has widened between the CX traditional banks can offer and what consumers expect from service providers generally — and also between banks that have originated in a digital-first world. Likewise, bigger banks with larger budgets to invest in digital tools seem to hold the technological advantage over traditional providers.

That doesn’t need to be the case though — and low-code solutions ensure it’s not. Here’s what you stand to gain from low-code applications designed to enhance your CX capabilities:

  • Unified end-to-end experiences

Traditional banking processes lack coordination between front- and back-end processes, and that inefficiency hampers banks’ speed of service and the range of digital capabilities they can build. Under this structure, employees struggle to maintain the agility required to offer exceptional customer service experiences. Customers go wanting as well and miss out on the full scope of digital capabilities they expect from modern banking experiences.

When rebuilding technology from the ground up isn’t feasible, digital transformation can come from smaller adjustments to your business’s existing architecture and assets. Low-code platforms allow you to quickly develop custom applications within your current infrastructure that better suit your reach, client base, and capabilities. These platforms function as an overarching layer on your technology infrastructure and connect software systems to unify business operations and service offerings. This way, you retain the core information from your existing systems while enhancing the scalability and reliability of your overall software stack.

Low-code platforms are easy to build into existing systems and employees don’t need a coding background to use the applications effectively. Before long, you’ll be streamlining your processes through modern applications that increase operational efficiency for employees and decrease friction for customers.

  • Agility and adaptability

    A more integrated banking system provides a streamlined structure that makes banking processes more convenient and enjoyable for customers and employees alike. But processes don’t always take place under ideal conditions. When obstacles arise, your offerings must hold up all the same, if not become even better — customers will have a lower tolerance for difficult situations and time wasted will when they have problems of their own.

    Challenges like the pandemic, war, high inflation, and rising interest rates have piled up quickly. And these are on top of standard industry disruptions like emerging technology trends and changes to regulatory requirements. The ability to course-correct quickly to maintain quality service despite these disruptions is critical to a successful CX program.

    Legacy banking systems are notoriously riddled with rigidities that isolate operations, prevent real-time data collection, and slow regulatory compliance measures — just to name a few consequences. That lack of dynamism limits the adaptability and responsiveness of heritage banking systems, and customer relations suffer as a result. Low-code applications, on the other hand, are highly malleable and easy to reconfigure when challenges emerge.

Think about the current economic climate. Customers are all but certain to start frequently requesting payment deferrals on loans as they face financial constraints. They may also increase how often they check in on their finances and have questions about the information they see. Digitized and automated systems can process these requests quickly, efficiently, and — perhaps most important of all — accurately.

Tasks like maintaining regulatory compliance will also become exponentially faster thanks to modeling and automation applications that maintain adherence to banking standards across different jurisdictions. That’s one less monumental job to undertake while you focus on optimizing CX amidst volatility. Efficiency comes with the added bonus of cost savings that help you maintain business margins and profitability in the face of restructured debt.

The future isn’t bleak for traditional retail and commercial banks, but there’s a growing need for modern apps and automation.

While banking customers’ expectations and preferences are changing, there’s still a place in the digital world for long-standing and trusted financial institutions. That said, long-term success now hinges on evolving with the times. Consumers aren’t going to lower their expectations anytime soon, and quality CX isn’t going to become any easier to provide. In a fiercely competitive environment, low-code solutions give you the edge and offer the flexibility and efficiency of a trusted banking partner.

About Author:

Gustavo is an entrepreneur who loves solving problems. Equipped with a degree in Computer Science, Gustavo pursued a career in software engineering in Europe and Colombia. In 1989 he founded Bizagi, short for business agility. Despite running a global business, Gustavo’s passion for delighting customers hasn’t changed. Those around him admire his accessibility and hands-on approach, demonstrated through his daily customer interactions, involvement with product improvements, and strategic thinking. Gustavo remains the embodiment of Bizagi’s values of integrity, honesty, and commitment to exceptional service.