In an era of constant disruption, financial institutions are turning to agile solutions to stay competitive. Low-code and no-code platforms are radically reshaping the digital frontier by empowering business users and speeding up application delivery.
The global market for low-code/no-code (LCNC) platforms is experiencing explosive growth. Estimates place the market between $26.3 billion and $34.7 billion by 2025, with forecasts soaring up to $67.12 billion or even $187 billion by 2030.
Analysts predict a compound annual growth rate (CAGR) between 20.6% and 31%, driven by the no-code segment growing at 28.1% CAGR through 2025. Today, 84% of businesses leverage LCNC, and 70% of new enterprises are set to adopt it within the next two years.
The banking, financial services, and insurance (BFSI) sector leads LCNC adoption, accounting for 27% of global spend in 2024. Legacy modernization, compliance demands, and digital transformation drive investments across banks, insurers, and fintechs.
European banks embrace real-time composable banking and API governance, while insurers seek automated audit logs and compliance updates to meet IFRS 17 standards. Fintechs leverage LCNC for rapid prototyping and digital onboarding, closing talent gaps and reducing time to market.
Financial institutions adopt LCNC platforms for several compelling reasons:
A broad array of applications demonstrates LCNC’s transformative power in finance:
Adoption patterns vary by region, reflecting different maturity levels and regulatory drivers:
Despite robust momentum, financial institutions must address key concerns. Security and governance frameworks are essential when non-IT staff build mission-critical systems. Integration with legacy mainframes remains complex, though vendors now offer advanced connectors and migration tools.
Successful scaling requires training citizen developers and establishing centers of excellence. Best practices in version control, testing, and compliance oversight ensure that rapid innovation does not compromise stability.
Major LCNC providers tailored to finance include Salesforce, Microsoft Power Platform, OutSystems, Appian, Mendix, and Kissflow. These vendors differentiate through specialized BFSI modules, AI-enhanced builders, and regulated workflow templates, empowering institutions to deploy robust applications with minimal coding effort.
Looking ahead, LCNC platforms will evolve with hyperautomation, RPA integrations, and generative AI capabilities. Financial firms that adopt process-agnostic tools and leverage robotic workflows will outpace competitors in delivering innovative products.
By embracing LCNC, organizations can achieve rapid prototyping of new banking services and streamlined workflows and customer experience improvements. As platforms mature, the boundary between business and IT will blur, unleashing a new era of collaborative innovation in finance.
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